| Regulatory Capital Requirements |
(10) Regulatory Capital Requirements
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy regulations and, additionally for
banks, the prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to
qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory action. As of March 31, 2025, the Company and Bank meet all capital adequacy requirements to which they are subject.
Prompt corrective action regulations provide five
classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is not classified as
well capitalized, regulatory approval is required to accept brokered deposits. If a bank is undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The federal banking
agencies are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution or its holding company. Such actions could have a direct material effect on an institution’s or
its holding company’s financial statements. As of March 31, 2025 and December 31, 2024, the most recent regulatory guidance categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no
conditions or events since that notification that management believes have changed the Bank’s category.
The Bank and the Company reported the following capital ratios as of March 31, 2025 and December
31, 2024:
| (Bank Only) |
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Minimum for
|
|
|
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|
|
|
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Capital Adequacy plus |
| |
As of March 31, 2025 |
Well
|
Capital Conservation |
|
(dollars in thousands)
|
|
Amount
|
|
|
Ratio
|
|
|
Capitalized(1)
|
|
|
Buffer (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
|
658,909
|
|
|
|
10.533
|
%
|
|
|
5.000
|
%
|
|
|
4.000
|
%
|
|
Common equity tier 1 capital
|
|
|
658,909
|
|
|
|
18.660
|
|
|
|
6.500
|
|
|
|
7.000
|
|
|
Tier 1 risk-based capital
|
|
|
658,909
|
|
|
|
18.660
|
|
|
|
8.000
|
|
|
|
8.500
|
|
|
Total risk-based capital
|
|
|
703,154
|
|
|
|
19.913
|
|
|
|
10.000
|
|
|
|
10.500
|
|
|
|
|
|
|
|
|
|
|
Minimum for
|
|
| |
|
Capital Adequacy plus |
| As of December 31, 2024 |
Well
|
Capital Conservation |
|
(dollars in thousands)
|
|
Amount
|
|
|
Ratio
|
|
|
Capitalized(1)
|
|
|
Buffer (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
|
652,668
|
|
|
|
10.618
|
%
|
|
|
5.000
|
%
|
|
|
4.000
|
%
|
|
Common equity tier 1 capital
|
|
|
652,668
|
|
|
|
18.542
|
|
|
|
6.500
|
|
|
|
7.000
|
|
|
Tier 1 risk-based capital
|
|
|
652,668
|
|
|
|
18.542
|
|
|
|
8.000
|
|
|
|
8.500
|
|
|
Total risk-based capital
|
|
|
696,767
|
|
|
|
19.795
|
|
|
|
10.000
|
|
|
|
10.500
|
|
|
(Consolidated)
|
|
|
|
|
|
|
|
|
|
|
|
Minimum for
|
|
| |
|
Capital Adequacy plus |
| |
As of March 31, 2025
|
Capital Conservation |
|
(dollars in thousands)
|
|
Amount
|
|
|
Ratio
|
|
|
Buffer (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
|
687,387
|
|
|
|
10.984
|
%
|
|
|
4.000
|
%
|
|
Common equity tier 1 capital
|
|
|
687,387
|
|
|
|
19.461
|
|
|
|
7.000
|
|
|
Tier 1 risk-based capital
|
|
|
687,387
|
|
|
|
19.461
|
|
|
|
8.500
|
|
|
Total risk-based capital
|
|
|
731,643
|
|
|
|
20.714
|
|
|
|
10.500
|
|
|
|
|
|
|
|
Minimum for
|
|
| |
|
Capital Adequacy plus |
| |
As of December 31, 2024 |
Capital Conservation |
|
(dollars in thousands)
|
|
Amount
|
|
|
Ratio
|
|
|
Buffer (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
|
679,651
|
|
|
|
11.054
|
%
|
|
|
4.000
|
%
|
|
Common equity Tier 1 capital
|
|
|
679,651
|
|
|
|
19.303
|
|
|
|
7.000
|
|
|
Tier 1 risk-based capital
|
|
|
679,651
|
|
|
|
19.303
|
|
|
|
8.500
|
|
|
Total risk-based capital
|
|
|
723,762
|
|
|
|
20.556
|
|
|
|
10.500
|
|
| (1) |
Federal regulatory minimum requirements to be
considered to be Well Capitalized and Adequately Capitalized
|
| (2) |
The March 31, 2025 and December 31, 2024 common
equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent
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