v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings
The following table summarizes certain information of the Company’s long-term debt as of June 30, 2026 and December 31, 2025.
($ in thousands)June 30, 2026December 31, 2025Issue DateStated Maturity DateEarliest Call DateInterest Rate
Subordinated Debentures due November 203560,000 60,000 202520352030
6.25% through November 2030, 3-month SOFR + 2.88% thereafter
Total subordinated debentures60,000 60,000 
Severn Capital Trust I20,619 20,619 20042035
3-month SOFR + 2.26%
Tri-County Capital Trust I7,217 7,217 20042034
3-month SOFR + 2.86%
Tri-County Capital Trust II5,155 5,155 20052035
3-month SOFR + 1.96%
Total trust preferred securities32,991 32,991 
Less: net discount and unamortized issuance costs(3,839)(3,930)
Total long-term debt$89,152 $89,061 
At June 30, 2026, subordinated debentures consisted of $60.0 million of long-term debt issued by the Company in November 2025. As of June 30, 2026, the recorded balance of subordinated debt issued by the Company, net of unamortized issuance costs, was $58.8 million. The Company has the option to redeem the subordinated notes in part or whole as of November 15, 2030. As of June 30, 2026, 100% 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 June 30, 2026 was $19.1 million, net of the unamortized fair value adjustment of $1.6 million. At June 30, 2026, 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 $474 thousand and $626 thousand, respectively. As of June 30, 2026, 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. The Company had no outstanding borrowings from the FHLB at June 30, 2026 and December 31, 2025. The Company did not have any borrowings against correspondent federal fund lines at June 30, 2026 and December 31, 2025. Further information on these obligations is provided in the Company’s 2025 Annual Report.