Security Bank 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 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 the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under U.S. GAAP reporting requirements and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Quantitative measures established by regulatory reporting standards to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined) to risk-weighted assets (as defined), common equity Tier I capital (as defined) to total risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of March 31, 2026, that the Bank met all capital adequacy requirements to which it is subject.

As of March 31, 2026, the most recent notification from the regulators 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 capital, Tier I risk-based capital, common equity Tier I risk-based capital and Tier I leverage ratios as set forth in the table.

There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual and required capital amounts and ratios are as follows:


						Minimum Capital					Minimum to be Well
	Actual					Requirement					Capitalized
March 31, 2026	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Common equity Tier 1 capital to risk-weighted assets	$	24,427		18.87	%	$	5,824		4.50	%	$	8,412		6.50	%

Tier 1 capital to risk-weighted assets		24,427		18.87	%		7,765		6.00	%		10,353		8.00	%

Total capital to risk-weighted assets		25,595		19.78	%		10,353		8.00	%		12,942		10.00	%

Tier 1 leverage to adjusted average assets		24,427		9.76	%		10,011		4.00	%		12,514		5.00	%


						Minimum Capital					Minimum to be Well
	Actual					Requirement					Capitalized
December 31, 2025	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Common equity Tier 1 capital to risk-weighted assets	$	23,914		19.91	%	$	5,405		4.50	%	$	7,808		6.50	%

Tier 1 capital to risk-weighted assets		23,914		19.91	%		7,207		6.00	%		9,609		8.00	%

Total capital to risk-weighted assets		24,888		20.72	%		9,609		8.00	%		12,012		10.00	%

Tier 1 leverage to adjusted average assets		23,914		10.63	%		8,996		4.00	%		11,246		5.00	%