v3.25.4
REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2025
Regulatory Matters [Abstract]  
REGULATORY MATTERS REGULATORY MATTERS
Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of December 31, 2025, the
Bank had positive undivided profits of $222.6 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent or that would not be in accordance with guidelines of regulatory authorities.
We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our consolidated financial statements. In addition, capital adequacy rules include a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. To avoid limits on capital distributions and certain discretionary bonus payments we must meet the minimum ratio for adequately capitalized institutions plus the buffer. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of December 31, 2025 and 2024, categorized our Bank as well capitalized and exceeding the minimum ratio for adequately capitalized institutions plus the capital conservation buffer. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (‘‘FDIC’’) categorization.
Our actual capital amounts and ratios at December 31 follow(1):
Actual Minimum for
Adequately Capitalized
Institutions 		Minimum for
Well-Capitalized
Institutions
AmountRatio AmountRatio AmountRatio
(Dollars in thousands)
2025
Total capital to risk-weighted assets
Consolidated$621,506 13.59 %$365,958 8.00 %NANA
Independent Bank570,750 12.49 365,463 8.00 $456,829 10.00 %
Tier 1 capital to risk-weighted assets
Consolidated$564,180 12.33 %$274,468 6.00 %NANA
Independent Bank513,500 11.24 274,098 6.00 $365,463 8.00 %
Common equity tier 1 capital to risk-weighted assets
Consolidated$525,540 11.49 %$205,851 4.50 %NANA
Independent Bank513,500 11.24 205,573 4.50 $296,939 6.50 %
Tier 1 capital to average assets
Consolidated$564,180 10.27 %$219,663 4.00 %NANA
Independent Bank513,500 9.36 219,422 4.00 $274,278 5.00 %
2024
Total capital to risk-weighted assets
Consolidated$622,444 14.22 %$350,113 8.00 %NANA
Independent Bank567,254 12.99 349,335 8.00 $436,668 10.00 %
Tier 1 capital to risk-weighted assets
Consolidated$527,616 12.06 %$262,585 6.00 %NANA
Independent Bank512,546 11.74 262,001 6.00 $349,335 8.00 %
Common equity tier 1 capital to risk-weighted assets
Consolidated$489,044 11.17 %$196,939 4.50 %NANA
Independent Bank512,546 11.74 196,501 4.50 $283,834 6.50 %
Tier 1 capital to average assets
Consolidated$527,616 9.85 %$214,332 4.00 %NANA
Independent Bank512,546 9.58 214,112 4.00 $267,640 5.00 %
_______________________________
(1)
These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2025 and 2024.
NA - Not applicable
The components of our regulatory capital are as follows:
Consolidated Independent Bank
December 31,December 31,
2025202420252024
(In thousands)
Total shareholders’ equity$502,951 $454,686 $490,911 $478,188 
Add (deduct)
Accumulated other comprehensive loss for regulatory purposes51,890 64,146 51,890 64,146 
Goodwill and other intangibles(29,301)(29,788)(29,301)(29,788)
Common equity tier 1 capital525,540 489,044 513,500 512,546 
Qualifying trust preferred securities38,640 38,572 — — 
Tier 1 capital564,180 527,616 513,500 512,546 
Subordinated debt— 40,000 — — 
Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets57,326 54,828 57,250 54,708 
Total risk-based capital$621,506 $622,444 $570,750 $567,254