v3.26.1
Regulatory Matters
 3 Months Ended
Mar. 31, 2026
Regulatory Matters [Abstract]  
Regulatory Matters

Note 8. Regulatory Matters

 

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in 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, banks must meet specific capital guidelines that involve quantitative measures of a bank’s 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 regulation to ensure capital adequacy require banks to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the applicable regulations) to risk-weighted assets (as defined in the applicable regulations ) and of Tier I capital to average assets (as defined in the applicable regulations ). Management believes that as of March 31, 2026 and December 31, 2025, the Bank met all capital adequacy requirements to which it is subject. In addition to these requirements, the Bank is subject to an institution specific capital conservation buffer, which must exceed 2.50%, to avoid limitations on distributions and discretionary bonus payments.

 

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 I risk-based and Tier I leverage capital 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 capitalization classification.

 

The Bank’s actual capital amounts and ratios as of March 31, 2026 and December 31, 2025 are presented in the tables below (dollars in thousands).

 

                   Minimum 
                   to be well 
           Minimum   capitalized under 
           for capital   prompt corrective 
   Actual   adequacy purposes   action provisions 
   Amount   Ratio   Amount   Ratio   Amount   Ratio 
As of March 31, 2026:                        
Total capital (to risk-weighted assets)  $267,555    14.0%  $152,725        8.0%  $190,906    10.0%
                               
Tier I capital (to risk-weighted assets)  $249,108    13.0%  $114,544    6.0%  $152,725    8.0%
                               
Common equity Tier 1 capital (to risk-weighted assets)  $249,108    13.0%  $85,908    4.5%  $124,089    6.5%
                               
Tier 1 capital (to average assets)  $249,108    11.1%  $89,458    4.0%  $111,823    5.0%
                   Minimum 
                   to be well 
           Minimum   capitalized under 
           for capital   prompt corrective 
   Actual   adequacy purposes   action provisions 
   Amount   Ratio   Amount   Ratio   Amount   Ratio 
As of December 31, 2025:                        
Total capital (to risk-weighted assets)  $255,727    13.5%  $151,732    8.0%  $189,665    10.0%
                               
Tier I capital (to risk-weighted assets)  $237,827    12.5%  $113,799    6.0%  $151,732    8.0%
                               
Common equity Tier 1 capital (to risk-weighted assets)  $237,827    12.5%  $85,349    4.5%  $123,282    6.5%
                               
Tier 1 capital (to average assets)  $237,827    10.8%  $88,218    4.0%  $110,272    5.0%