Funds Borrowed

6 Months Ended

Jun. 30, 2025

Debt Disclosure [Abstract]

Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

	Payments Due for the Twelve Months Ending June 30,
(Dollars in thousands)	2026		2027		2028		2029		2030		Thereafter		June 30, 2025 (1)		December 31, 2024 (1)		Interest Rate (2)
Deposits (3)	$	664,028	$	543,454	$	385,662	$	199,629	$	216,994	$	—	$	2,009,767	$	2,091,663		3.81	%
Privately placed notes		31,250		—		53,750		39,000		—		22,500		146,500		146,500		8.12
SBA debentures and borrowings		15,500		4,500		—		2,500		—		48,000		70,500		70,250		3.81
Trust preferred securities		—		—		—		—		—		33,000		33,000		33,000		6.70
Federal reserve and other borrowings		40,000		—		—		—		—		—		40,000		35,000		4.50
Total	$	750,778	$	547,954	$	439,412	$	241,129	$	216,994	$	103,500	$	2,299,767	$	2,376,413		4.14	%

(1)Excludes deferred financing costs of $8.5 million and $8.2 million as of June 30, 2025 and December 31, 2024.

(2)Weighted average contractual rate as of June 30, 2025.

(3)Balance excludes $4.6 million and $3.0 million of strategic partner reserve deposits and includes $4.6 million and $6.0 million in retail savings deposit balances as of June 30, 2025 and December 31, 2024.

(A) DEPOSITS

Most deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, the annual expense of which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. Additionally, the Bank raises deposits through listing services and, as of June 30, 2025 and December 31, 2024, the Bank had $11.7 million and $10.4 million in listing service deposit balances from other financial institutions. As of June 30, 2025 and December 31, 2024, the Bank had $4.6 million and $6.0 million in retail savings deposit balances. The following table presents the maturity of the deposit pools and retail savings deposits, which includes strategic partner reserve deposits, as of June 30, 2025.

(Dollars in thousands)	June 30, 2025
Three months or less	$	223,935
Over three months through six months		102,360
Over six months through one year		337,733
Over one year		1,345,739
Deposits		2,009,767
Strategic partner collateral deposits		4,550
Total deposits	$	2,014,317

(B) FEDERAL RESERVE DISCOUNT WINDOW AND OTHER BORROWINGS

As of June 30, 2025, the Bank had $200.6 million in home improvement loans pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is approximately 44% of book value, for a total of approximately $88.7 million in secured borrowing capacity, of which $40.0 million was utilized as of June 30, 2025.

The Bank has borrowing arrangements with several correspondent banks. These agreements are accommodations that can be terminated at any time, for any reason and allow the Bank to borrow up to $75.0 million. As of June 30, 2025, there were no outstanding amounts with respect to these arrangements.

(C) PRIVATELY PLACED NOTES

The Company has entered into various private placements with certain institutional investors over time. The following table presents the private placement notes outstanding as of June 30, 2025 and December 31, 2024.

(Dollars in thousands)
Date of Notes	Maturity	Interest Rate			Interest Payable	June 30, 2025		December 31, 2024
December 2020	December 2027		7.500	%	Semi-annually	$	53,750	$	53,750
February 2021	February 2026		7.250	%	Semi-annually		31,250		31,250
September 2023	September 2028		9.250	%	Semi-annually		39,000		39,000
June 2024	June 2039		8.875	%	Semi-annually		17,500		17,500
August 2024	August 2039		8.625	%	Semi-annually		5,000		5,000
						$	146,500	$	146,500

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for Medallion Capital and FSVC, typically for a four and a half year term and a 1% fee. On February 28, 2024, Medallion Capital accepted a commitment from the SBA for $18.5 million in debenture financing. Medallion Capital can draw funds under the commitment, in whole or in part, until September 30, 2028. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with the remaining $0.4 million of the fee to be paid pro rata as Medallion Capital draws under the commitment. As of June 30, 2025, none of the commitment had been drawn, $10.3 million was drawable.

The following table presents the SBA debentures and borrowings as of June 30, 2025 and December 31, 2024.

(Dollars in thousands)
Date of Notes	Maturity	Interest Rate			Interest Payable	June 30, 2025		December 31, 2024
March 2015	March 2025		2.87	%	Semi-annually	$	—	$	10,000
September 2015	September 2025		3.57	%	Semi-annually		4,000		4,000
March 2016	March 2026		3.25	%	Semi-annually		1,500		1,500
March 2016	March 2026		3.18	%	Semi-annually		10,000		10,000
May 2016	September 2026		2.72	%	Semi-annually		2,500		2,500
March 2017	March 2027		3.52	%	Semi-annually		2,000		2,000
September 2018	September 2028		4.22	%	Semi-annually		1,250		1,250
March 2019	March 2029		3.79	%	Semi-annually		1,250		1,250
September 2020	September 2030		1.71	%	Semi-annually		3,000		3,000
June 2021	September 2031		1.58	%	Semi-annually		8,500		8,500
October 2021	March 2032		3.21	%	Semi-annually		7,000		7,000
October 2022	March 2033		5.44	%	Semi-annually		4,750		4,750
April 2023	September 2033		5.96	%	Semi-annually		4,750		4,750
September 2023	March 2034		5.08	%	Semi-annually		4,750		4,750
November 2023	March 2034		5.08	%	Semi-annually		5,000		5,000
March 2025	September 2035	*			Semi-annually		10,250		—
						$	70,500	$	70,250

(*) Interest rate will price in September 2025 and will accrue interest at a rate which approximates 5% until that time.

(E) TRUST PREFERRED SECURITIES

In June 2007, the Company issued and sold $36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35.0 million of trust preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. Interest is calculated using the Secured Overnight Financing Rate, or SOFR, adjusted by a relevant spread adjustment of approximately 26 basis points, plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the trust preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the trust preferred securities were repurchased from a third-party investor. As of June 30, 2025, $33.0 million was outstanding on the trust preferred securities.

(F) COVENANT COMPLIANCE

Certain of the Company's debt agreements contain financial covenants that require the Company to maintain certain financial ratios and minimum tangible net worth. As of June 30, 2025, the Company was in compliance with all such covenants.