| Regulatory Capital |
Note 10 Regulatory Capital As a bank holding company that has elected to be treated as a financial holding company, the Company, NBH Bank and BOJHT are subject to regulatory capital adequacy requirements implemented by the Federal Reserve, in addition to those implemented by the FDIC for NBH Bank and BOJHT, including maintaining capital positions at the “well-capitalized” level. The federal banking agencies have risk based capital adequacy regulations intended to provide a measure of capital adequacy that reflects the degree of risk associated with a banking organization’s operations. Under these regulations, assets are assigned to one of several risk categories, and nominal dollar amounts of assets and credit equivalent amounts of off-balance-sheet items are multiplied by a risk adjustment percentage for the category. Regulatory authorities can initiate certain mandatory actions if the Company, NBH Bank or BOJHT fail to meet the minimum capital requirements, which could have a material effect on our financial statements and business generally. Under the Basel III requirements, at June 30, 2026 and December 31, 2025, the Company and the Banks met all capital requirements, including the capital conservation buffer of 2.5%. The Company and the Banks had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as detailed in the tables below: | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | | | | | Required to be | | Required to be | | | | | | | | well capitalized under | | considered | | | | | | | | prompt corrective | | adequately | | | Actual | | action provisions | | capitalized(1) | | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | Tier 1 leverage ratio: | | | | | | | | | | | | | | | | Consolidated | | 10.3% | | $ | 1,230,519 | | N/A | | | N/A | | 4.0% | | $ | 477,802 | NBH Bank | | 10.3% | | | 1,223,193 | | 5.0% | | $ | 595,277 | | 4.0% | | | 476,221 | Bank of Jackson Hole Trust | | 38.4% | | | 14,897 | | 5.0% | | | 1,941 | | 4.0% | | | 1,553 | Common equity tier 1 risk based capital: | | | | | | | | | | | | | | | | Consolidated | | 12.3% | | $ | 1,230,519 | | N/A | | | N/A | | 7.0% | | $ | 701,079 | NBH Bank | | 12.3% | | | 1,223,193 | | 6.5% | | $ | 647,927 | | 7.0% | | | 697,768 | Bank of Jackson Hole Trust | | 140.7% | | | 14,897 | | 6.5% | | | 688 | | 7.0% | | | 741 | Tier 1 risk based capital ratio: | | | | | | | | | | | | | | | | Consolidated | | 12.3% | | $ | 1,230,519 | | N/A | | | N/A | | 8.5% | | $ | 851,310 | NBH Bank | | 12.3% | | | 1,223,193 | | 8.0% | | $ | 797,449 | | 8.5% | | | 847,290 | Bank of Jackson Hole Trust | | 140.7% | | | 14,897 | | 8.0% | | | 847 | | 8.5% | | | 900 | Total risk based capital ratio: | | | | | | | | | | | | | | | | Consolidated | | 15.4% | | $ | 1,544,336 | | N/A | | | N/A | | 10.5% | | $ | 1,051,618 | NBH Bank | | 13.4% | | | 1,335,167 | | 10.0% | | $ | 996,811 | | 10.5% | | | 1,046,652 | Bank of Jackson Hole Trust | | 141.2% | | | 14,949 | | 10.0% | | | 1,059 | | 10.5% | | | 1,112 |
(1) | | Includes the capital conservation buffer of 2.5%. |
| | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | Required to be | | Required to be | | | | | | | | well capitalized under | | considered | | | | | | | | prompt corrective | | adequately | | | Actual | | action provisions | | capitalized(1) | | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | Tier 1 leverage ratio: | | | | | | | | | | | | | | | | Consolidated | | 11.6% | | $ | 1,101,481 | | N/A | | | N/A | | 4.0% | | $ | 381,030 | NBH Bank | | 10.2% | | | 963,497 | | 5.0% | | $ | 474,353 | | 4.0% | | | 379,483 | Bank of Jackson Hole Trust | | 34.2% | | | 13,219 | | 5.0% | | | 1,934 | | 4.0% | | | 1,548 | Common equity tier 1 risk based capital: | | | | | | | | | | | | | | | | Consolidated | | 14.9% | | $ | 1,101,481 | | N/A | | | N/A | | 7.0% | | $ | 517,822 | NBH Bank | | 13.1% | | | 963,497 | | 6.5% | | $ | 477,845 | | 7.0% | | | 514,602 | Bank of Jackson Hole Trust | | 79.3% | | | 13,219 | | 6.5% | | | 1,083 | | 7.0% | | | 1,167 | Tier 1 risk based capital ratio: | | | | | | | | | | | | | | | | Consolidated | | 14.9% | | $ | 1,101,481 | | N/A | | | N/A | | 8.5% | | $ | 628,784 | NBH Bank | | 13.1% | | | 963,497 | | 8.0% | | $ | 588,117 | | 8.5% | | | 624,874 | Bank of Jackson Hole Trust | | 79.3% | | | 13,219 | | 8.0% | | | 1,333 | | 8.5% | | | 1,417 | Total risk based capital ratio: | | | | | | | | | | | | | | | | Consolidated | | 16.8% | | $ | 1,244,572 | | N/A | | | N/A | | 10.5% | | $ | 776,733 | NBH Bank | | 14.3% | | | 1,051,838 | | 10.0% | | $ | 735,146 | | 10.5% | | | 771,904 | Bank of Jackson Hole Trust | | 79.5% | | | 13,250 | | 10.0% | | | 1,667 | | 10.5% | | | 1,750 |
| | | (1) | | Includes the capital conservation buffer of 2.5%. |
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