Note 16 - Regulatory Matters

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 16. Regulatory Matters

Information presented for December 31, 2024 and December 31, 2023, reflects the Basel III capital requirements that became effective January 1, 2015 for the Bank. Under these capital requirements 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 classifications are also subject to qualitative judgments by regulators about components, risk- weightings and other factors.

The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, became effective for the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer for 2023 and 2024 is 2.50%. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Total capital, Common Equity Tier 1 capital, and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2024, the Bank meets all capital adequacy requirements to which it is subject.

The Bank’s actual capital amounts and ratios are presented in the table (dollars in thousands):

	Actual					Capital Adequacy Purposes			To Be Well Capitalized Under the Prompt Corrective Action Provision
*(Dollars in thousands)*	Amount		Ratio			Amount		Ratio	Amount		Ratio
As of December 31, 2024
Total capital (to risk-weighted assets)	$	296,584		15.69	%	$	151,269	≥ 8.0%	$	189,086	≥ 10.0%
Common equity tier 1 capital (to risk-weighted assets)	$	276,847		14.64	%	$	85,089	≥ 4.5%	$	122,906	≥ 6.5%
Tier 1 capital (to risk-weighted assets)	$	276,847		14.64	%	$	113,451	≥ 6.0%	$	151,269	≥ 8.0%
Tier 1 capital (to average assets)	$	276,847		12.08	%	$	91,708	≥ 4.0%	$	114,635	≥ 5.0%
As of December 31, 2023
Total capital (to risk-weighted assets)	$	312,069		17.18	%	$	145,300	≥ 8.0%	$	181,625	≥ 10.0%
Common equity tier 1 capital (to risk-weighted assets)	$	294,553		16.22	%	$	81,731	≥ 4.5%	$	118,056	≥ 6.5%
Tier 1 capital (to risk-weighted assets)	$	294,553		16.22	%	$	108,975	≥ 6.0%	$	145,300	≥ 8.0%
Tier 1 capital (to average assets)	$	294,553		14.66	%	$	80,375	≥ 4.0%	$	100,469	≥ 5.0%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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