| REGULATORY MATTERS |
NOTE 8 – REGULATORY MATTERS Banks and certain bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, 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 initiate regulatory action. Under regulatory guidance for non-advanced approaches institutions, the Bank and Company are required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets, including an additional conservation buffer determined by banking regulators. As of March 31, 2025 and December 31, 2024, this buffer was 2.5%. The Bank met all capital adequacy requirements to which they are subject as of March 31, 2025 and December 31, 2024. Actual and required capital amounts and ratios are presented below at period-end: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | To Be Well | | | | | | | | | | | | | | Minimum Capital | | Capitalized Under | | | | | | | | | For Capital | | Adequacy with | | Prompt Corrective | | | | Actual | | Adequacy Purposes | | Capital Buffer | | Action Provisions | | | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | | | | | | | | | | | | | | | | | | | | | Total capital (to risk-weighted assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 518,723 | | 14.15 | % | $ | 293,221 | | 8.00 | % | $ | 384,853 | | 10.50 | % | | NA | | NA | | Bank | | $ | 445,011 | | 12.14 | % | $ | 293,336 | | 8.00 | % | $ | 385,004 | | 10.50 | % | $ | 366,670 | | 10.00 | % | Tier 1 capital (to risk-weighted assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 464,519 | | 12.67 | % | $ | 219,916 | | 6.00 | % | $ | 311,547 | | 8.50 | % | | NA | | NA | | Bank | | $ | 402,807 | | 10.99 | % | $ | 220,002 | | 6.00 | % | $ | 311,670 | | 8.50 | % | $ | 293,336 | | 8.00 | % | Common Equity Tier 1 capital (to risk-weighted assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 464,519 | | 12.67 | % | $ | 164,937 | | 4.50 | % | $ | 256,568 | | 7.00 | % | | NA | | NA | | Bank | | $ | 402,807 | | 10.99 | % | $ | 165,002 | | 4.50 | % | $ | 256,669 | | 7.00 | % | $ | 238,336 | | 6.50 | % | Tier 1 capital (to average assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 464,519 | | 10.76 | % | $ | 172,646 | | 4.00 | % | $ | 172,646 | | 4.00 | % | | NA | | NA | | Bank | | $ | 402,807 | | 9.34 | % | $ | 172,530 | | 4.00 | % | $ | 172,530 | | 4.00 | % | $ | 215,662 | | 5.00 | % | December 31, 2024 | | | | | | | | | | | | | | | | | | | | | | Total capital (to risk-weighted assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 509,763 | | 14.14 | % | $ | 288,325 | | 8.00 | % | $ | 378,427 | | 10.50 | % | | NA | | NA | | Bank | | $ | 438,549 | | 12.18 | % | $ | 288,152 | | 8.00 | % | $ | 378,200 | | 10.50 | % | $ | 360,190 | | 10.00 | % | Tier 1 capital (to risk-weighted assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 457,749 | | 12.70 | % | $ | 216,244 | | 6.00 | % | $ | 306,346 | | 8.50 | % | | NA | | NA | | Bank | | $ | 398,535 | | 11.06 | % | $ | 216,114 | | 6.00 | % | $ | 306,162 | | 8.50 | % | $ | 288,152 | | 8.00 | % | Common Equity Tier 1 capital (to risk-weighted assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 457,749 | | 12.70 | % | $ | 162,183 | | 4.50 | % | $ | 252,285 | | 7.00 | % | | NA | | NA | | Bank | | $ | 398,535 | | 11.06 | % | $ | 162,086 | | 4.50 | % | $ | 252,133 | | 7.00 | % | $ | 234,124 | | 6.50 | % | Tier 1 capital (to average assets): | | | | | | | | | | | | | | | | | | | | | | Company | | $ | 457,749 | | 10.96 | % | $ | 167,134 | | 4.00 | % | $ | 167,134 | | 4.00 | % | | NA | | NA | | Bank | | $ | 398,535 | | 9.54 | % | $ | 167,019 | | 4.00 | % | $ | 167,019 | | 4.00 | % | $ | 208,774 | | 5.00 | % |
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