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Note 9 - Long-term Debt

12 Months Ended

Dec. 31, 2023

NOTE 9 - LONG-TERM DEBT

In November 2018, the Company issued $55.0 million of 6.18% fixed-to-floating rate subordinated notes, with a December 1, 2028 maturity date (the “2028 Subordinated Notes”). The interest rate was fixed through December 1, 2023 and was scheduled to float at three-month CME Term SOFR plus applicable tenor spread adjustment of 26 basis points plus 315 basis points thereafter. On December 1, 2023, the Company redeemed the 2028 Subordinated Notes at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest.

In March 2021, the Company issued $120.0 million of 4.00% fixed-to-floating rate subordinated notes, with an April 1, 2031 maturity date (the “2031 Subordinated Notes”). The interest rate is fixed through April 1, 2026 and is scheduled to float at three-month SOFR plus 329 basis points thereafter. The Company can redeem the 2031 Subordinated Notes beginning April 1, 2026. The 2031 Subordinated Notes are considered Tier 2 capital at the Company.

Long-term debt and unamortized debt issuance costs were as follows as of the dates indicated:

	At December 31, 2023				At December 31, 2022
*(dollars in thousands)*	Principal		Unamortized debt issuance costs		Principal		Unamortized debt issuance costs
2028 Subordinated Notes	$	—	$	—	$	55,000	$	180
2031 Subordinated Notes		120,000		853		120,000		1,235
Total	$	120,000	$	853	$	175,000	$	1,415

The following table presents interest and amortization expense the Company incurred for the years ended December 31, 2023 and 2022:

	*For the Year Ended December 31,*
*(dollars in thousands)*	*2023*		*2022*
Interest Expense:
Interest	$	7,916	$	8,199
Amortization		562		578