v3.26.1
Regulatory Matters
 6 Months Ended
Jun. 30, 2026
Regulatory Matters [Abstract]  
Regulatory Matters
NOTE 11 – Regulatory Matters

The Bank’s capital requirements are administered by the Office of the Comptroller of the Currency (“OCC”) and involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the OCC. Failure to meet capital requirements can result in regulatory action.

As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have developed a “Community Bank Leverage Ratio” (the ratio of a bank’s tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The federal banking agencies have set the Community Bank Leverage Ratio (“CBLR”) at 9.0%  to be considered well capitalized. Effective July 1, 2026, pursuant to a final rule issued by the federal banking agencies, the minimum CBLR requirement was reduced from greater than 9.0% to greater than 8.0%.

The Bank’s CBLR was 13.20% which exceeded this requirement at June 30, 2026. Actual and required capital amounts and ratios as of the dates indicated are presented below:

   
Actual
    
Minimum Required to Be
Well Capitalized Under
Prompt Corrective Action
Provisions
  
   
Amount
    
Ratio
    
Amount
    
Ratio
  
   
(Dollars in thousands)
  
June 30, 2026
                        
Community Bank Leverage Ratio
  
$
194,521
      
13.20
%
  
$
132,677
      
9.00
%
December 31, 2025
                                
Community Bank Leverage Ratio
  
$
191,336
      
14.09
%
  
$
122,184
      
9.00
%
At June 30, 2026, the Company and the Bank met all the capital adequacy requirements to which they were subject. In addition, the Bank was “well capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since June 30, 2026 that would materially adversely change the Bank’s capital classifications. From time to time, the Bank may need to raise additional capital to support its further growth and to maintain its “well capitalized” status.