Regulatory Capital

6 Months Ended

Jun. 30, 2025

Note 2 — Regulatory Capital

The Company and the Bank are subject to regulatory capital requirements promulgated by the federal banking agencies. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated bank holding company, and the FDIC has similar requirements for the Company’s subsidiary bank. However, the Federal Reserve has provided a “small bank holding company” exception to its consolidated capital requirements for holding companies, and legislation and the related issuance of regulations by the Federal Reserve Board have established the current threshold for the exception at $3.0 billion in total consolidated assets. As a result, the Company will not be subject to the consolidated holding company capital requirement until such time as its consolidated assets exceed $3.0 billion. The Bank met all capital adequacy requirements to which it was subject as of June 30, 2025 and December 31, 2024.

The following table presents information about the Bank’s capital levels at the dates presented:


					Regulatory Capital Requirements
					Minimum Capital						For Classification as
	Actual				Adequacy(1)						Well-Capitalized
	Amount		Ratio		Amount			Ratio			Amount			Ratio

	(Dollars in Thousands)
As of June 30, 2025:
Total capital (to risk-weighted assets)	$	314,375	14.98	%	$	≥	167,820	≥	8.00	%	$	≥	209,775	≥	10.00	%
Tier 1 capital (to risk-weighted assets)		308,675	14.71			≥	125,865	≥	6.00			≥	167,820	≥	8.00
Common equity tier 1 capital (to risk-weighted assets)		308,675	14.71			≥	94,399	≥	4.50			≥	136,354	≥	6.50
Core (Tier 1) capital (to adjusted total assets)		308,675	15.87			≥	77,816	≥	4.00			≥	97,271	≥	5.00
As of December 31, 2024:
Total capital (to risk-weighted assets)	$	290,903	13.92	%	$	≥	167,154	≥	8.00	%	$	≥	208,942	≥	10.00	%
Tier 1 capital (to risk-weighted assets)		285,272	13.65			≥	125,365	≥	6.00			≥	167,154	≥	8.00
Common equity tier 1 capital (to risk-weighted assets)		285,272	13.65			≥	94,024	≥	4.50			≥	135,813	≥	6.50
Core (Tier 1) capital (to adjusted total assets)		285,272	14.44			≥	79,030	≥	4.00			≥	98,788	≥	5.00

(1)	Ratios do not include the capital conservation buffer.

Based on the most recent notification by the FDIC, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. There have been no conditions or events that have occurred since notification that management believes have changed the Bank’s category.