| Regulatory Capital |
Note 12: Regulatory Capital The Company and the Bank are subject to various regulatory requirements administered by 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 financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank must also meet certain specific capital guidelines under the regulatory framework for prompt corrective action. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets (referred to as the “leverage ratio”), as defined under the applicable regulatory capital rules. The following tables present the capital amounts and ratios for the Company, on a consolidated basis, and the Bank as of June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Minimum Required | | For Capital Adequacy | | To be Well Capitalized | | | | | | | | | For Capital Adequacy | | Purposes Plus Capital | | Under Prompt Corrective | | | | Actual | | Purposes | | Conservation Buffer | | Action Regulations | | (dollars in thousands) | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | Company (Consolidated): | | | | | | | | | | | | | | | | | | | | | | Total Risk-based Capital | | $ | 638,131 | | 14.17 | % | $ | 360,228 | | 8.00 | % | $ | 472,799 | | 10.50 | % | | N/A | | N/A | | Tier 1 Risk-based Capital | | | 473,118 | | 10.51 | | | 270,171 | | 6.00 | | | 382,742 | | 8.50 | | | N/A | | N/A | | Common Equity Tier 1 Capital | | | 406,604 | | 9.03 | | | 202,628 | | 4.50 | | | 315,200 | | 7.00 | | | N/A | | N/A | | Tier 1 Leverage Ratio | | | 473,118 | | 9.14 | | | 207,099 | | 4.00 | | | 207,099 | | 4.00 | | | N/A | | N/A | | Bank: | | | | | | | | | | | | | | | | | | | | | | Total Risk-based Capital | | $ | 602,742 | | 13.41 | % | $ | 359,617 | | 8.00 | % | $ | 471,997 | | 10.50 | % | $ | 449,521 | | 10.00 | % | Tier 1 Risk-based Capital | | | 546,513 | | 12.16 | | | 269,713 | | 6.00 | | | 382,093 | | 8.50 | | | 359,617 | | 8.00 | | Common Equity Tier 1 Capital | | | 546,513 | | 12.16 | | | 202,285 | | 4.50 | | | 314,665 | | 7.00 | | | 292,189 | | 6.50 | | Tier 1 Leverage Ratio | | | 546,513 | | 10.58 | | | 206,577 | | 4.00 | | | 206,577 | | 4.00 | | | 258,221 | | 5.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Minimum Required | | For Capital Adequacy | | To be Well Capitalized | | | | | | | | | For Capital Adequacy | | Purposes Plus Capital | | Under Prompt Corrective | | | | Actual | | Purposes | | Conservation Buffer | | Action Regulations | | (dollars in thousands) | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | December 31, 2024 | | | | | | | | | | | | | | | | | | | | | | Company (Consolidated): | | | | | | | | | | | | | | | | | | | | | | Total Risk-based Capital | | $ | 585,966 | | 13.76 | % | $ | 340,581 | | 8.00 | % | $ | 447,013 | | 10.50 | % | | N/A | | N/A | | Tier 1 Risk-based Capital | | | 453,049 | | 10.64 | | | 255,436 | | 6.00 | | | 361,867 | | 8.50 | | | N/A | | N/A | | Common Equity Tier 1 Capital | | | 386,535 | | 9.08 | | | 191,577 | | 4.50 | | | 298,008 | | 7.00 | | | N/A | | N/A | | Tier 1 Leverage Ratio | | | 453,049 | | 9.44 | | | 191,878 | | 4.00 | | | 191,878 | | 4.00 | | | N/A | | N/A | | Bank: | | | | | | | | | | | | | | | | | | | | | | Total Risk-based Capital | | $ | 573,158 | | 13.49 | % | $ | 340,003 | | 8.00 | % | $ | 446,254 | | 10.50 | % | $ | 425,004 | | 10.00 | % | Tier 1 Risk-based Capital | | | 520,000 | | 12.24 | | | 255,002 | | 6.00 | | | 361,253 | | 8.50 | | | 340,003 | | 8.00 | | Common Equity Tier 1 Capital | | | 520,000 | | 12.24 | | | 191,252 | | 4.50 | | | 297,503 | | 7.00 | | | 276,253 | | 6.50 | | Tier 1 Leverage Ratio | | | 520,000 | | 10.86 | | | 191,593 | | 4.00 | | | 191,593 | | 4.00 | | | 239,491 | | 5.00 | |
The Company and the Bank must maintain a capital conservation buffer, as defined by regulatory guidelines, in order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers.
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