v3.26.1
Borrowings and Financing Activities
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings and Financing Activities

12. Borrowings and Financing Activities

As of the dates indicated, the carrying value of our debt is as follows.

 

Borrowings

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Interest
rate (1)

 

 

June 30,
2026

 

 

December 31,
2025

 

Short-term borrowings

 

 

 

 

 

 

 

 

 

Senior Notes due 2027

 

 

4.875

%

 

$

449,156

 

 

$

—

 

FHLB advances due 2026

 

 

3.895

%

 

 

79,865

 

 

 

33,320

 

FHLB advances due 2027

 

 

2.237

%

 

 

6,087

 

 

 

—

 

Total short-term borrowings

 

 

 

 

$

535,108

 

 

$

33,320

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

Senior Notes due 2027

 

 

4.875

%

 

$

—

 

 

$

448,577

 

Senior Notes due 2029

 

 

6.200

%

 

 

620,095

 

 

 

619,331

 

Revolving credit facility

 

 

4.894

%

 

 

75,000

 

 

 

—

 

FHLB advances due 2027

 

 

3.663

%

 

 

1,800

 

 

 

7,887

 

Total long-term borrowings

 

 

 

 

$

696,895

 

 

$

1,075,795

 

 

 

(1)
As of June 30, 2026. Interest on the revolving credit facility is floating rate, subject to change monthly. Interest on the FHLB advances are primarily fixed rate and represent the average rate for all outstanding advances due in a given year.

Interest expense consists of the following.

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Senior notes

 

$

15,848

 

 

$

15,810

 

 

$

31,687

 

 

$

31,610

 

Letter of credit fees

 

 

3,533

 

 

 

—

 

 

 

5,823

 

 

 

—

 

Revolving credit facility

 

 

2,176

 

 

 

741

 

 

 

4,172

 

 

 

1,005

 

FHLB advances

 

 

755

 

 

 

877

 

 

 

1,224

 

 

 

1,302

 

Total interest expense

 

$

22,312

 

 

$

17,428

 

 

$

42,906

 

 

$

33,917

 

 

Letter of Credit

Inigo has in place a $620 million letter of credit facility with a syndicate of participating banks to support its requirement to maintain FAL. As of June 30, 2026, a letter of credit totaling $620 million was issued and outstanding under this facility. The facility contains financial covenants customary for facilities of this type.

Revolving Credit Facility

Radian Group has in place a $500 million unsecured revolving credit facility with a syndicate of bank lenders. During the first quarter of 2026, we drew $200 million on the facility in connection with the Inigo closing and have repaid $125 million of such borrowings through June 30, 2026. See Note 3 for information on the Inigo acquisition.

FHLB Advances

Radian Guaranty is a member of the FHLB. As a member, it may borrow from the FHLB, subject to certain conditions, which include the need to post collateral and the requirement to maintain a minimum investment in FHLB stock, in part depending on the level of its outstanding FHLB advances.

The principal balance of the FHLB advances is required to be collateralized by eligible assets with a fair value that must be maintained generally within a minimum range of 103% to 114% of the amount borrowed, depending on the type of assets pledged. Our investments include securities totaling $91 million and $43 million at June 30, 2026, and December 31, 2025, respectively, which serve as collateral for our FHLB advances to satisfy this requirement.

Debt Covenants and Other Information

As of June 30, 2026, we are in compliance with all of our debt covenants, including for our senior notes, unsecured revolving credit facility and letter of credit facility. For more information regarding our borrowings and financing activities, including certain terms, covenants and Parent Guarantees provided by Radian Group in connection with particular borrowings, see Note 12 of Notes to Consolidated Financial Statements in our 2025 Form 10-K and Note 18 herein.