Borrowings

9 Months Ended

Sep. 30, 2025

The following table summarizes certain information of the Company’s long-term debt at September 30, 2025 and December 31, 2024.


($ in thousands)	September 30, 2025		December 31, 2024		Issue Date	Stated Maturity Date	Earliest Call Date	Interest Rate



Subordinated Debentures due September 2030	$	25,000	$	25,000	2020	2030	2025	5.375% through September 2025, 3-month SOFR* + 5.265% thereafter
Subordinated Debentures due October 2030	19,500		19,500		2020	2030	2025	4.75% through October 2025, 3-month SOFR + 4.58% thereafter
Total subordinated debentures	44,500		44,500

Severn Capital Trust I	20,619		20,619		2004	2035		3-month SOFR + 2.00%
Tri-County Capital Trust I	7,217		7,217		2004	2034		90-day SOFR + 2.60%
Tri-County Capital Trust II	5,155		5,155		2005	2035		90-day SOFR + 1.70%
Total trust preferred securities	32,991		32,991
Less: net discount and unamortized issuance costs	(2,997)		(3,774)
Total long-term debt	$	74,494	$	73,717

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* Secured Overnight Financing Rate (“SOFR”).

At September 30, 2025, subordinated debentures consisted of $25.0 million of long-term debt issued by the Company in August 2020, and $19.5 million of long-term debt assumed as a result of the merger with TCFC. As of September 30, 2025, the recorded balance of subordinated debt issued by the Company and the assumed subordinated debt from TCFC, net of unamortized issuance costs and fair value discounts, were $25.0 million and $19.4 million, respectively. The Company has the option to redeem the subordinate notes in part or whole as of September 1, 2025. As of September 30, 2025, 80% of the subordinated debt was considered Tier 2 capital under current regulatory guidelines.

The Company assumed trust preferred securities in the aggregate of $33.0 million as a result of the merger with TCFC in 2023 and the acquisition of Severn in 2021. Trust preferred securities consisted of $20.6 million issued by Severn Capital Trust I, $7.2 million issued by Tri-County Capital Trust I and $5.2 million issued by Tri-County Capital Trust II. The recorded balance of the junior subordinated debt securities of Severn Capital Trust I at September 30, 2025 was $18.9 million, net of the unamortized fair value adjustment of $1.7 million. At September 30, 2025, the junior subordinated debt securities of Tri-County Capital Trust I and Tri-County Capital Trust II had a recorded balance of $6.7 million and $4.5 million, respectively, which are presented net of the unamortized fair value adjustments of $523 thousand and $678 thousand, respectively. As of September 30, 2025, the entire amount of trust preferred securities debt is considered Tier 2 capital under current regulatory guidelines.

The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the Federal Home Loan Bank (“FHLB”) to meet short-term liquidity needs. There were $50.0 million of outstanding borrowings from the FHLB at September 30, 2025 and December 31, 2024. The $50.0 million FHLB advance originated on May 7, 2024 was for an initial term of 18-months at a rate of 4.79%. The Company did not have any short-term borrowings from the FHLB at September 30, 2025 and December 31, 2024. Further information on these obligations is provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.