v3.26.1
Note 7 - Regulatory Matters
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 7. Regulatory Matters

 

The Association is subject to various regulatory capital requirements administered by its primary federal regulator, the Office of the Comptroller of Currency (“OCC”). Failure to meet the minimum regulatory capital requirements can result in certain mandatory, and possible additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Association’s financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines involving quantitative measures of the Association's assets, liabilities, and certain off-financial condition items, as calculated under regulatory accounting practices. The Association's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

 

As of June 30, 2026, the most recent notification from the OCC categorized the Association as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Association must maintain minimum total risk based, Tier I risk-based, and Tier I leverage ratios as disclosed in the table below. There are no conditions or events since the notification that management believes have changed the Association’s prompt corrective action category.

 

The Association's actual capital amounts and ratios as of June 30, 2026 and December 31, 2025 are presented in the following tables:

 

  

Actual

  

Required for Capital Adequacy Purposes

  

Required to be Well-Capitalized Under Prompt Corrective Action Provisions

 

June 30, 2026

                        
 (dollars in thousands) 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

Tier 1 Leverage Ratio

 $17,114   47.17% $1,451   4.00% $1,814   5.00%

Common Equity Tier 1

 $17,114   98.90% $779   4.50% $1,125   6.50%

Tier 1 Risk-Based Capital

 $17,114   98.90% $1,038   6.00% $1,384   8.00%

Total Risk-Based Capital

 $17,299   99.97% $1,384   8.00% $1,731   10.00%

 

  

Actual

  

Required for Capital Adequacy Purposes

  

Required to be Well-Capitalized Under Prompt Corrective Action Provisions

 

December 31, 2025

                        
 (dollars in thousands) 

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

Tier 1 Leverage Ratio

 $17,209   46.48% $1,481   4.00% $1,851   5.00%

Common Equity Tier 1

 $17,209   97.62% $793   4.50% $1,146   6.50%

Tier 1 Risk-Based Capital

 $17,209   97.62% $1,058   6.00% $1,410   8.00%

Total Risk-Based Capital

 $17,394   98.67% $1,410   8.00% $1,763   10.00%