Borrowings

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

Borrowings

Note 9 - Borrowings

A significant portion of the Company's short-term borrowings were comprised of securities sold under agreements to repurchase with overnight maturities:

	For the Year Ended December 31,
(In thousands)	2025			2024
Maximum amount outstanding at any month end	$	392,910		$	352,272
Weighted-average interest rate at end of year	1.36		%	2.66		%
Average amount outstanding	$	252,168		$	269,255
Weighted-average interest rate during the year	2.10		%	3.43		%

Securities sold under agreements to repurchase are accounted for as secured borrowings. For securities sold under agreements to repurchase, the Company is required to pledge collateral with value sufficient to fully collateralize borrowings. Company securities pledged were as follows by collateral type and maturity as of:

	December 31,
(In thousands)	2025		2024
Fair value of pledged securities - overnight and continuous:
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	$	512,066	$	237,074

At December 31, 2025, in addition to $388.5 million in cash, the Company had $7.6 billion in available borrowing capacity, including $3.4 billion in available collateralized lines of credit, $3.8 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. The secured lines of credit totaling $3.4 billion, included lendable collateral of $2.3 billion and $1.1 billion at the Federal Reserve and the FHLB, respectively. Of the $1.1 billion at the FHLB, $835.0 million was outstanding at December 31, 2025. During 2025, the average interest rate on FHLB borrowings was 4.27% and the weighted-average interest rate on balances outstanding at December 31, 2025 was 3.82%.

At December 31, 2024, in addition to $476.6 million in cash, the Company had $5.6 billion in available borrowing capacity, including $4.0 billion in available collateralized lines of credit, $1.3 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. The secured lines of credit totaling $4.0 billion, included lendable collateral of $2.6 billion and $1.4 billion at the Federal Reserve and the FHLB, respectively. Of the $1.4 billion at the FHLB, $245.0 million was outstanding at December 31, 2024. During 2024, the average interest rate on FHLB borrowings was 4.20% and the weighted-average interest rate on balances outstanding at December 31, 2024 was 4.19%.

The following table details the maturities of our FHLB borrowings at December 31, 2025:

(In thousands)	Contractual Interest Rate		Carrying Value
2026	3.7 - 4.7%		$	600,000
2027	3.1 - 4.1%		215,000
2028	N/A		—
2029	3.9	%	20,000
Thereafter	N/A		—
Total			$	835,000

The following table summarizes the Company's junior subordinated trust preferred debentures and related common equity securities as of December 31, 2025:

(In thousands)
Description	Issuance Date	Acquisition Date1	Maturity Date	Junior Subordinated Debt		Trust Preferred Securities		Common Equity Securities		Contractual Interest Rate	Interest Rate at December 31, 2025
SBCF Capital Trust I	3/31/2005	NA	3/31/2035	$	20,619	$	20,000	$	619	3 month SOFR +201bps	5.68%
SBCF Statutory Trust II	12/16/2005	NA	12/16/2035	20,619		20,000		619		3 month SOFR +159bps	5.31%
SBCF Statutory Trust III	6/29/2007	NA	6/15/2037	12,372		12,000		372		3 month SOFR +161bps	5.33%
The BANKshares, Inc. Statutory Trust I	12/19/2002	10/1/2014	12/26/2032	5,155		5,000		155		3 month SOFR +351bps	7.20%
The BANKshares, Inc. Statutory Trust II	3/17/2004	10/1/2014	3/17/2034	4,124		4,000		124		3 month SOFR +305bps	6.76%
The BANKshares, Inc. Capital Trust I	12/15/2005	10/1/2014	12/15/2035	5,155		5,000		155		3 month SOFR +165bps	5.53%
Grand Bank Capital Trust I	10/29/2004	7/17/2015	10/29/2034	7,217		7,000		217		3 month SOFR +198bps	5.93%
				$	75,261	$	73,000	$	2,261
1Acquired junior subordinated debentures were recorded at their acquisition date fair values, which collectively was $5.6 million lower than face value; this amount is being amortized into interest expense over the remaining term to maturity.

Interest on the trust preferred securities is calculated on the basis of 3-month SOFR plus spread and is re-set quarterly. The trust preferred securities may be redeemed without penalty, upon approval of the FRB or upon occurrence of certain events affecting their tax or regulatory capital treatment. The proceeds of the offering of trust preferred securities and common equity securities were used by SBCF Capital Trust I and SBCF Statutory Trust II to purchase the $41.2 million junior subordinated deferrable interest notes issued by the Company, and by SBCF Statutory Trust III to purchase the $12.4 million junior subordinated deferrable interest notes issued by the Company, all of which have terms substantially similar to the trust preferred securities.

The Company has the right to defer payments of interest on the notes at any time or from time to time at the Company's election. Interest can be deferred for a period not longer than five years. If the Company elects to defer interest, it may not, with

certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock. As of December 31, 2025, 2024 and 2023, all interest payments on trust preferred securities were current.

Distributions on the trust preferred securities are payable quarterly. The Company has entered into agreements to guarantee the payments of distributions on the trust preferred securities and payments of redemption of the trust preferred securities. Under these agreements, the Company also agrees, on a subordinated basis, to pay expenses and liabilities of the Trusts other than those arising under the trust preferred securities. The obligations of the Company under the junior subordinated notes, the trust agreement establishing the Trusts, the guarantees and agreements as to expenses and liabilities, in aggregate, constitute a full and conditional guarantee by the Company of the Trusts' obligations under the trust preferred securities.

In 2022, the Company acquired $12.3 million in senior notes through a bank acquisition, which bore interest at a fixed rate of 5.50%. On October 30, 2025, this debt was fully redeemed, and the remaining $0.2 million unamortized premium was recorded as an adjustment to Interest Expense.

In 2023, the Company acquired $25.0 million in subordinated debt through a bank acquisition. Contractual interest is paid on a semiannual basis at a fixed interest rate of 3.375% until January 30, 2027, at which point the rate converts to a 3-month SOFR rate plus 203 basis points paid quarterly. At and after January 30, 2027, the notes are redeemable at par. The debt was recorded at fair value, resulting in a $3.9 million discount that is being accreted into interest expense over the remaining term to maturity.

In 2025, the Company assumed a financing obligation through the acquisition of VBI, which is recognized within Long-term debt, net on the Consolidated Balance Sheets. Refer to Note 11 - Lease Commitments for additional details.