Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2026

Note 11 – Regulatory Capital Requirements

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

The Company operated under the risk-based framework as of March 31, 2026 and December 31, 2025.

Under this framework, quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of Total Capital, Tier 1 Capital and Common Equity Tier 1 Capital to Risk-Weighted Assets, and Tier 1 Capital to Total Average Assets (as defined in the regulations). Management believes, as of March 31, 2026 and December 31, 2025, that the Company and the Bank meet all capital adequacy requirements to which each is subject.

As of March 31, 2026 and December 31, 2025, the Company and the Bank were categorized 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 date indicated:


								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio

March 31, 2026		(in thousands)

Total Capital	$	812,238	12.2%	$	531,937	8.0%	$	664,922	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		757,905	11.4%		398,953	6.0%		531,937	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		757,905	11.4%		299,215	4.5%		432,199	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		757,905	11.0%		274,662	4.0%		343,328	5.0%
(to Total Average Assets)


								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio

December 31, 2025		(in thousands)

Total Capital	$	791,298	12.4%	$	511,589	8.0%	$	639,486	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		742,881	11.6%		383,692	6.0%		511,589	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		742,881	11.6%		287,769	4.5%		415,666	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		742,881	12.2%		244,395	4.0%		305,494	5.0%
(to Total Average Assets)

The Company’s actual consolidated capital amounts and ratios are presented in the table as of the date indicated:


								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio

March 31, 2026		(in thousands)

Total Capital	$	863,940	13.0%	$	531,338	8.0%	$	664,173	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		809,607	12.2%		398,504	6.0%		531,338	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		809,607	12.2%		298,878	4.5%		431,713	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		809,607	11.7%		277,376	4.0%		346,720	5.0%
(to Total Average Assets)


								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio

December 31, 2025		(in thousands)

Total Capital	$	871,043	13.6%	$	512,904	8.0%	$	641,130	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		822,626	12.8%		384,678	6.0%		512,904	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		822,626	12.8%		288,508	4.5%		416,734	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		822,626	13.3%		247,709	4.0%		309,636	5.0%
(to Total Average Assets)

- 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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