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 June 30, 2026 and December 31, 2025, an additional $513.0 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. As of  June 30, 2026, the Company had $65.5 million in non-reciprocal brokered deposits representing 3% of total deposits. As of  December 31, 2025, there were no non-reciprocal brokered deposits.

As of  June 30, 2026, scheduled maturities of time deposits for the next five years were as follows:

Interest expense recognized on interest-bearing deposits for the three and six months ended June 30, 2026 and June 30, 2025, consisted of the following:

Overdrawn deposit accounts reclassified as loans were $1.4 million and $15 thousand as of June 30, 2026 and December 31, 2025, respectively.

As of  June 30, 2026, the Company had one deposit relationship, a software company in our Venture Lending Division, that exceeded 5% of total deposits, with a total deposit of $133.4 million. As of  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. These two deposit relationships totaled $228.7 million and together they represented 10% of total deposits as of  December 31, 2025.

Estimated uninsured deposits, including accrued interest, were 40% and 42% of total deposits as of  June 30, 2026 and  December 31, 2025, respectively. The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.