Note 9 - Long-term Debt |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Long-Term Debt [Text Block] |
NOTE 9 - LONG-TERM DEBT
At June 30, 2026, the Company's long-term debt consisted of $120.0 million of fixed-to-floating rate subordinated notes, with an April 1, 2031 maturity date (the "Notes"). The interest rate was fixed at 4.00% through March 31, 2026, and now resets quarterly to a rate of three-month Secured Overnight Financing Rate ("") plus 329 basis points starting April 1, 2026. The rate was set at 6.98% as of April 1, 2026 and increased to 7.02% as of July 1, 2026. The Notes may be included in Tier 2 capital with certain limitations applicable under current regulatory guidelines, and such amount is discounted as the Notes approach maturity. Therefore, $96.0 million of the Notes were considered Tier 2 capital at June 30, 2026, compared to $120.0 million at December 31, 2025. The Notes became redeemable at par beginning April 1, 2026, and on July 1, 2026, the Company redeemed $40.0 million at par plus accrued interest.
We recognized interest expense on the Notes of
$2.1 million,
$1.2 million, and
million for the
three months ended
June 30, 2026, March 31, 2026, and June 30, 2025, and
$3.3 million and
$2.4 million for the
six months ended June 30, 2026 and 2025. We also recorded debt issuance cost amortization expense of
$0,
$89,000 and
$96,000 for the
three months ended
June
30,
2026,
March
31,
2026, and
June
30,
2025, and
$89,000 and
$191,000 for the
six months ended
June 30, 2026 and
2025. We were in compliance with all covenants for the Notes as of
June
30,
2026.
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