The 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

The regulations require minimum ratios of total capital, common equity Tier 1 capital and Tier 1 capital to risk-weighted assets and a minimum leverage ratio for all banking organizations as set forth in the following table. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. At June 30, 2026, the Bank exceeded each of the applicable regulatory capital requirements including the capital conservation buffer.

As of June 30, 2026 and December 31, 2025, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank must maintain minimum Total Risk-Based Capital, Common Equity Tier 1 Risk-based, Tier 1 Risk-based, and Tier 1 Leverage Ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed the Bank’s category.

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


	Actual					Minimum Capital Requirement					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
June 30, 2026
Company
Total Risk-Based Capital:	$	443,918		20.2	%	$	175,828		8.0	%	N/A		N/A
Common Equity Tier 1 Risk-Based Capital		391,044		17.8			98,903		4.5		N/A		N/A
Tier 1 Risk-Based Capital:		391,044		17.8			131,871		6.0		N/A		N/A
Tier 1 Leverage Capital:		391,044		14.2			87,914		4.0		N/A		N/A
Bank
Total Risk-Based Capital:	$	365,182		16.6	%	$	175,870		8.0	%	$	219,838		10.0	%
Common Equity Tier 1 Risk-Based Capital		340,186		15.5			98,927		4.5			142,895		6.5
Tier 1 Risk-Based Capital:		340,186		15.5			131,903		6.0			175,870		8.0
Tier 1 Leverage Capital:		340,186		12.4			87,935		4.0			109,919		5.0


	Actual					Minimum Capital Requirement					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2025
Company
Total Risk-Based Capital:	$	430,414		19.7	%	$	175,124		8.0	%	N/A		N/A
Common Equity Tier 1 Risk-Based Capital		379,888		17.4			98,507		4.5		N/A		N/A
Tier 1 Risk-Based Capital:		379,888		17.4			131,343		6.0		N/A		N/A
Tier 1 Leverage Capital:		379,888		13.8			87,562		4.0		N/A		N/A
Bank
Total Risk-Based Capital:	$	349,158		15.9	%	$	176,232		8.0	%	$	220,290		10.0	%
Common Equity Tier 1 Risk-Based Capital		326,447		14.8			99,130		4.5			143,188		6.5
Tier 1 Risk-Based Capital:		326,447		14.8			132,174		6.0			176,232		8.0
Tier 1 Leverage Capital:		326,447		11.9			88,116		4.0			110,145		5.0

The Bank may not declare or pay a dividend if the total of all dividends declared during the calendar year, including the proposed dividend, exceeds the sum of the Bank’s net income during the current calendar year and the retained net income of the prior two calendar years, unless the dividend has been approved by the FDIC and the Massachusetts Division of Banks.