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SUBORDINATED DEBT
 6 Months Ended
Jun. 30, 2025
Subordinated Borrowings [Abstract]  
SUBORDINATED DEBT SUBORDINATED DEBT
The following table summarizes the Company’s subordinated debt at June 30, 2025 and December 31, 2024:
Subordinated debt
Fixed to Float
(dollars in thousands)Issued September 2019Issued September 2019Total
At June 30, 2025
Outstanding amount$50,750 $27,004 $77,754 
Carrying amount50,750 27,009 77,759 
Current rate7.91 %5.50 %
At December 31, 2024
Outstanding amount$50,750 $27,250 $78,000 
Carrying amount50,750 26,999 77,749 
Current rate7.94 %5.50 %
Maturity date9/30/20299/30/2034
Optional redemption date9/30/20249/30/2029
Fixed to variable conversion date9/30/20249/30/2029
Variable rate
3-month SOFR plus 3.61%
3-month SOFR plus 4.05%
Interest payment termsSemiannually through 9/30/2024; Quarterly for all subsequent periodsSemiannually through 9/30/2029; Quarterly for all subsequent periods
The value of subordinated debentures have been reduced by the debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date. All of the subordinated debentures above may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.
On August 27, 2025, the Company notified holders that the Company will redeem on September 30, 2025 all of the outstanding Fixed-to-Floating Rate Subordinated Notes due September 30, 2029, having an aggregate current principal amount of $50.8 million. The aggregate redemption price will be 100% of the aggregate principal amount of the subordinated notes, plus accrued and unpaid interest. The interest rate on the subordinated notes is currently 7.91%, equating to approximately $4.0 million of annual interest expense.