CAPITAL AND REGULATORY MATTERS

9 Months Ended

Sep. 30, 2025

CAPITAL AND REGULATORY MATTERS [Abstract]

CAPITAL AND REGULATORY MATTERS

9.  CAPITAL AND REGULATORY MATTERS

The Company and its bank subsidiary are subject to various regulatory capital requirements administered by its banking regulators. 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 and its bank subsidiary’s financial statements. Under capital guidelines and the regulatory framework for prompt corrective action, the Company and its bank subsidiary 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.

Quantitative measures established by regulation to ensure capital adequacy require the Company and its bank subsidiary to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of September 30, 2025 and December 31, 2024, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject.

As of September 30, 2025 and December 31, 2024, the Company met the definition of “well-capitalized” under the applicable regulations of the Board of Governors of the Federal Reserve System and the bank subsidiary was “well capitalized” under the FDIC’s regulatory framework for prompt corrective action and the Basel III capital guidelines. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since September 30, 2025 that management believes have changed the bank subsidiary’s category.

The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands):

	Actual					Minimum Required Under BASEL III					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2025
Total Capital to Risk Weighted Assets:
Consolidated	$	611,541		17.34	%	$	370,388		10.50	%		N/A		N/A
City Bank		533,034		15.11	%		370,347		10.50	%	$	352,711		10.00	%
Tier 1 Capital to Risk Weighted Assets:
Consolidated		553,326		15.69	%		299,838		8.50	%		N/A		N/A
City Bank		488,925		13.86	%		299,804		8.50	%		282,169		8.00	%
Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		508,326		14.41	%		246,926		7.00	%		N/A		N/A
City Bank		488,925		13.86	%		246,898		7.00	%		229,262		6.50	%
Tier 1 Capital to Average Assets:
Consolidated		553,326		12.37	%		179,724		4.00	%		N/A		N/A
City Bank		488,925		10.94	%		179,648		4.00	%		223,531		5.00	%
December 31, 2024
Total Capital to Risk Weighted Assets:
Consolidated	$	631,713		17.86	%	$	371,426		10.50	%		N/A		N/A
City Bank		520,788		14.73	%		371,351		10.50	%	$	353,667		10.00	%
Tier 1 Capital to Risk Weighted Assets:
Consolidated		523,535		14.80	%		300,678		8.50	%		N/A		N/A
City Bank		476,574		13.48	%		300,617		8.50	%		282,934		8.00	%
Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		478,535		13.53	%		247,617		7.00	%		N/A		N/A
City Bank		476,574		13.48	%		247,567		7.00	%		229,884		6.50	%
Tier 1 Capital to Average Assets:
Consolidated		523,535		12.04	%		174,777		4.00	%		N/A		N/A
City Bank		476,574		10.96	%		174,710		4.00	%		217,336		5.00	%

The Company is subject to the Basel III capital ratio requirements which include a “capital conservation buffer” of 2.50% above the regulatory minimum risk-based capital adequacy requirements. This 2.50% capital conservation buffer is reflected in the table above. Both the Company’s and the Bank’s actual ratios, as outlined in the table above, exceeded the Basel III risk-based capital requirement with the capital conservation buffer as of September 30, 2025.

State banking regulations place certain restrictions on dividends paid by banks to their shareholders. Dividends paid by the Company’s bank subsidiary would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements.