NOTE 6 – DEPOSITS

The Company’s total deposits consisted of the following:

⁽¹⁾ FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank's total liabilities. As of March 31, 2026 and December 31, 2025, an additional $447.6 million and $475.4 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

Non-reciprocal brokered deposits are used to supplement the Company’s traditional deposit funding sources. At March 31, 2026, the Company had $38.5 million in non-reciprocal brokered deposits representing 2% of total deposits. At December 31, 2025, there were no non-reciprocal brokered deposits.

At March 31, 2026, scheduled maturities of time deposits for the next five years were as follows:

Interest expense recognized on interest-bearing deposits for the three months ended March 31, 2026 and March 31, 2025, consisted of the following:

Overdrawn deposit accounts reclassified as loans were $227 thousand and $15 thousand as of March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026 and at December 31, 2025, the Company had two deposit relationships, one a 1031 exchange intermediary service and the other a software company in our Venture Lending Division, that exceeded 5% of total deposits. Totaling $225.0 million at March 31, 2026 and $228.7 million at December 31, 2025, together they represented 10% of total deposits for both periods.

Estimated uninsured deposits, including accrued interest, were 42% of total deposits at  March 31, 2026 and at  December 31, 2025. The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.