Each of the federal banking agencies have issued substantially similar risk-based and leverage capital rules applicable to U. S. banking organizations. The Federal Reserve has established regulatory capital requirements applicable to bank holding companies such as the Company and the OCC applicable to national associations such as the Bank. 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 and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its 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.

Quantitative measures established by OCC regulations to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 risk-based capital (as defined) to average assets and risk-weighted assets (as defined). Management believes, as of December 31, 2025 and 2024, that the Bank met all capital adequacy requirements to which it was subject.

As of December 31, 2025 and 2024, the most recent notification from the OCC categorized the Bank as “well capitalized” under the OCC regulatory classification framework. To be categorized as “well capitalized,” the Bank must maintain minimum Total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 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.

Current capital rules do not establish standards for determining whether a bank holding company is well capitalized. However, for purposes of processing regulatory applications and notices, the Federal Reserve's Regulation Y provides that a bank holding company is considered "well capitalized" if (i) on a consolidated basis, the bank holding company maintains a total risk-based capital ration of 10% or greater; (ii) on a consolidated basis, the bank holding company maintains a Tier 1 risk-based capital ratio of 6.0% or greater; and (iii) the bank holding company is not subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. The Company is considered "well capitalized" under this definition.The following tables present actual and required capital ratios for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2025 and 2024. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.


	Actual				Minimum Capital Required – Basel III Fully Phased-In				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2025
Company:
Tier 1 risk-based capital	$	368,936	12.75	%	$	246,026	8.50	%	N/A		N/A
Total risk-based capital	458,178		15.83		303,915		10.50		N/A		N/A
Tier 1 leverage capital	368,936		10.72		137,724		4.00		N/A		N/A

Bank:
Common equity Tier 1 capital	$	406,337	14.09	%	$	201,862	7.00	%	$	187,444	6.50	%
Tier 1 risk-based capital	406,337		14.09		245,119		8.50		230,700		8.00
Total risk-based capital	440,904		15.29		302,793		10.50		288,375		10.00
Tier 1 leverage capital	406,337		11.84		137,312		4.00		171,640		5.00


	Actual				Minimum Capital Required – Basel III Fully Phased-In				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2024
Company:
Tier 1 risk-based capital	$	341,026	11.85	%	$	244,587	8.50	%	N/A		N/A
Total risk-based capital	430,901		14.97		302,137		10.50		N/A		N/A
Tier 1 leverage capital	341,026		10.17		134,195		4.00		N/A		N/A

Bank:
Common equity Tier 1 capital	$	380,777	13.28	%	$	200,779	7.00	%	$	186,437	6.50	%
Tier 1 risk-based capital	380,777		13.28		243,803		8.50		229,461		8.00
Total risk-based capital	416,193		14.51		301,168		10.50		286,826		10.00
Tier 1 leverage capital	380,777		11.38		133,833		4.00		167,292		5.00