The Bank is 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. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Federal banking regulations require minimum capital requirements for community banking institutions as set forth in the following table. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital, Tier 1 capital or total capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. At June 30, 2025, the Company and the Bank met the required capital conservation buffer. Management believes that the Bank’s capital levels will remain characterized as “well capitalized.”

As of June 30, 2025, the most recent notification from the Office of the Comptroller of Currency categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank is subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year, to an amount that shall not exceed the Bank's net income for the current year, plus its net income retained for the two previous years, subject to regulatory approval.

The Bank’s actual capital amounts and ratios as of June 30, 2025 and 2024 are also presented in the table below.


	Actual					Minimum Capital Requirement					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
June 30, 2025
Total capital (to risk weighted assets)	$	66,255		34.2	%	$	15,489		8.0	%	$	19,362		10.0	%
Common equity Tier 1 capital (to risk weighted assets)		64,476		33.3			8,713		4.5			12,585		6.5
Tier 1 capital (to risk weighted assets)		64,476		33.3			11,617		6.0			15,489		8.0
Tier 1 capital (to adjusted total assets)		64,476		17.8			14,461		4.0			18,076		5.0

June 30, 2024
Total capital (to risk weighted assets)	$	65,532		33.8	%	$	15,501		8.0	%	$	19,377		10.0	%
Common equity Tier 1 capital (to risk weighted assets)		63,799		32.9			8,719		4.5			12,595		6.5
Tier 1 capital (to risk weighted assets)		63,799		32.9			11,626		6.0			15,501		8.0
Tier 1 capital (to adjusted total assets)		63,799		17.8			14,317		4.0			17,896		5.0