Note 19 - Regulatory Matters

3 Months Ended

Mar. 31, 2025

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 19 Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of common equity tier 1, tier 1, and total capital (as defined in the regulations) to risk weighted assets (as defined) and of tier 1 capital (as defined) to average assets (as defined). Management believes that, at March 31, 2025 and December 31, 2024, each of the Company and the Bank had met all of the capital adequacy requirements to which it was subject.

The following tables present the Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2025 and December 31, 2024:

	*March 31, 2025*
											*Minimum to be*
						*Minimum Required*					*Well Capitalized*
						*for Capital*					*Under Prompt*
	*Actual*					*Adequacy Purposes*					Corrective Action ⁽¹⁾
(dollars in thousands)	*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*
Common equity tier 1 capital to risk weighted assets
Consolidated ⁽¹⁾	$	455,119		10.10	%	$	202,684		4.50	%		N/A		N/A
Bank		460,031		10.36	%		199,821		4.50	%		288,631		6.50	%
Tier 1 capital to risk weighted assets
Consolidated ⁽¹⁾		464,216		10.31	%		270,246		6.00	%		N/A		N/A
Bank		460,031		10.36	%		266,428		6.00	%		355,238		8.00	%
Total capital to risk weighted assets
Consolidated ⁽¹⁾		570,663		12.67	%		360,328		8.00	%		N/A		N/A
Bank		515,692		11.61	%		355,238		8.00	%		444,047		10.00	%
Tier 1 capital to average assets
Consolidated ⁽¹⁾		464,216		8.86	%		209,690		4.00	%		N/A		N/A
Bank		460,031		9.06	%		203,150		4.00	%		253,937		5.00	%

(1)	“Minimum to be Well Capitalized Under Prompt Corrective Action” is not formally defined under applicable banking regulations for bank holding companies.

	*December 31, 2024*
											*Minimum to be*
						*Minimum Required*					*Well Capitalized*
						*for Capital*					*Under Prompt*
	*Actual*					*Adequacy Purposes*					Corrective Action ⁽¹⁾
(dollars in thousands)	*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*
Common equity tier 1 capital to risk weighted assets
Consolidated ⁽¹⁾	$	443,833		9.91	%	$	201,441		4.50	%		N/A		N/A
Bank		449,497		10.18	%		198,743		4.50	%		287,074		6.50	%
Tier 1 capital to risk weighted assets
Consolidated ⁽¹⁾		452,903		10.12	%		268,588		6.00	%		N/A		N/A
Bank		449,497		10.18	%		264,991		6.00	%		353,322		8.00	%
Total capital to risk weighted assets
Consolidated ⁽¹⁾		559,002		12.49	%		358,118		8.00	%		N/A		N/A
Bank		504,857		11.43	%		353,322		8.00	%		441,652		10.00	%
Tier 1 capital to average assets
Consolidated ⁽¹⁾		452,903		8.65	%		209,532		4.00	%		N/A		N/A
Bank		449,497		8.69	%		206,832		4.00	%		258,540		5.00	%

(1)	“Minimum to be Well Capitalized Under Prompt Corrective Action” is not formally defined under applicable banking regulations for bank holding companies.

The Bank is subject to certain restrictions on the amount of dividends that it may pay without prior regulatory approval, including rules requiring a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes. A banking organization with a conservation buffer of less than the required amount will be subject to the limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. As of March 31, 2025, the capital ratios for the Company and the Bank were sufficient to meet the conservation buffer. In addition, the Company must adhere to various U.S. Department of Housing and Urban Development (“HUD”) regulatory guidelines including required minimum capital and liquidity to maintain their Federal Housing Administration approval status. Failure to comply with the HUD guidelines could result in withdrawal of this certification. As of March 31, 2025 and December 31, 2024, the Company was in compliance with the aforementioned guidelines.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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