Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Regulatory Capital Requirements

Regulatory Capital Requirements

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, possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. A financial institution’s 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 final rules implementing Basel Committee on Banking Supervision’s Capital guidelines for U.S. banks require the Bank to hold a capital conservation buffer of 2.5% above the adequately capitalized risk-based capital ratios. Although the capital conservation buffer is not part of regulatory minimum risk-based capital requirements, it does determine the minimums that must be met to avoid limitation on paying dividends, engaging in share repurchases, and paying discretionary bonuses if capital levels fall below the buffer amount. The Bank has made the one-time AOCI opt-out election available to non-advanced approach institutions under 12 C.F.R. § 3.22(b)(2). Accordingly, all components of the Bank’s AOCI, including net unrealized gain or loss on AFS securities, are excluded from the computation of regulatory capital.

To be categorized as well capitalized under the OCC’s regulatory framework for prompt corrective action, the Bank must maintain minimum risk-based capital and leverage ratios as set forth in the table below. The Bank currently satisfies the requirement under the OCC’s capital regulation to be “well capitalized.”

The following tables set forth the capital position and analysis for the Company and Bank (dollars in thousands). Because total assets on a consolidated basis are less than $3.0 billion, the Company is not subject to the consolidated capital requirements imposed by federal regulations. However, the Company elects to include those ratios for this report. Minimum capital ratios below include the capital conservation buffer.

					Minimum Capital Requirement (including applicable capital conservation buffer)				Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Actual
December 31, 2025	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Risk-Based Capital
Company	$	176,952	47.66	%	N/A		N/A		N/A		N/A
Bank	$	165,665	44.63	%	$	38,977	10.50	%	$	37,121	10.00	%
Tier 1 Risk-Based Capital
Company	$	172,728	46.52	%	N/A		N/A		N/A		N/A
Bank	$	161,442	43.49	%	$	31,553	8.50	%	$	29,697	8.00	%
Common Equity Tier 1 Capital
Company	$	172,728	46.52	%	N/A		N/A		N/A		N/A
Bank	$	161,442	43.49	%	$	25,985	7.00	%	$	24,129	6.50	%
Tier 1 Leverage Ratio
Company	$	172,728	10.28	%	N/A		N/A		N/A		N/A
Bank	$	161,442	9.61	%	$	67,201	4.00	%	$	84,002	5.00	%

					Minimum Capital Requirement (including applicable capital conservation buffer)				Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Actual
December 31, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Risk-Based Capital
Company	$	157,206	39.30	%	N/A		N/A		N/A		N/A
Bank	$	131,750	32.94	%	$	41,998	10.50	%	$	39,998	10.00	%
Tier 1 Risk-Based Capital
Company	$	152,491	38.12	%	N/A		N/A		N/A		N/A
Bank	$	127,034	31.76	%	$	33,998	8.50	%	$	31,999	8.00	%
Common Equity Tier 1 Capital
Company	$	152,491	38.12	%	N/A		N/A		N/A		N/A
Bank	$	127,034	31.76	%	$	27,999	7.00	%	$	25,999	6.50	%
Tier 1 Leverage Ratio
Company	$	152,491	11.48	%	N/A		N/A		N/A		N/A
Bank	$	127,034	9.57	%	$	53,119	4.00	%	$	66,399	5.00	%

After proceeds from the Company’s IPO are depleted, the Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2025, approximately $53.3 million of retained earnings was available for dividend declaration without regulatory approval.