v3.26.1
Note 9 - Regulatory Matters
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 9 – REGULATORY MATTERS

 

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. 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.

 

Management believes, as of March 31, 2026, that the Bank meets all capital adequacy requirements to which it is subject.

 

As of March 31, 2026, the most recent notification from the FDIC 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 total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

 

The Bank’s actual capital amounts and ratios are presented in the table as of the dates indicated:

 

          

Minimum For Capital

  

Minimum To Be Well

 
          

Adequacy Purposes

  

Capitalized Under

 
          

Plus Capital

  

Prompt Corrective

 
  

Actual

  

Conservation Buffer

  

Action Provisions

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 
          

(dollars in thousands)

         

As of March 31, 2026

                        

Total Capital (to Risk Weighted Assets)

 $169,318   14.55% $122,171   10.50% $116,353   10.00%

Tier 1 Capital (to Risk Weighted Assets)

  158,199   13.60%  98,900   8.50%  93,082   8.00%

Common Equity Tier 1 Capital (to Risk Weighted Assets)

  158,199   13.60%  81,447   7.00%  75,629   6.50%

Tier 1 Capital (to Average Assets)

  158,199   9.83%  64,365   4.00%  80,456   5.00%
                         

As of December 31, 2025

                        

Total Capital (to Risk Weighted Assets)

 $165,616   14.29% $121,710   10.50% $115,914   10.00%

Tier 1 Capital (to Risk Weighted Assets)

  154,650   13.34%  98,527   8.50%  92,731   8.00%

Common Equity Tier 1 Capital (to Risk Weighted Assets)

  154,650   13.34%  81,140   7.00%  75,344   6.50%

Tier 1 Capital (to Average Assets)

  154,650   9.86%  62,736   4.00%  78,420   5.00%