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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 ("SOFR") 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 $1.2 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.