Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2025

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 12 – Regulatory Capital Requirements

The Company 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 financial statements.

Under regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The Company operated under the risk-based framework for the years ended December 31, 2025 and 2024. Under this framework, quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of Total Capital, Tier 1 Capital and Common Equity Tier 1 Capital to Risk-Weighted Assets, and Tier 1 Capital to Total Average Assets (as defined in the regulations). Management believes, as of December 31, 2025 and 2024, that the Company and the Bank meet all capital adequacy requirements to which each is subject.

As of December 31, 2025 and 2024, the Company and the Bank were categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events that management believes have changed the Company’s or the Bank’s category.

The Bank’s actual capital amounts and ratios are presented in the table as of the date indicated:

								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio
December 31, 2025		(Dollars in thousands)
Total Capital	$	791,298	12.4%	$	511,589	8.0%	$	639,486	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		742,881	11.6%		383,692	6.0%		511,589	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		742,881	11.6%		287,769	4.5%		415,666	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		742,881	12.2%		244,395	4.0%		305,494	5.0%
(to Total Average Assets)

								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio
December 31, 2024		(in thousands)
Total Capital	$	656,103	14.1%	$	372,083	8.0%	$	465,104	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		614,156	13.2%		279,063	6.0%		372,083	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		614,156	13.2%		209,297	4.5%		302,318	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		614,156	12.5%		196,435	4.0%		245,544	5.0%
(to Total Average Assets)

The Company’s actual consolidated capital amounts and ratios are presented in the table as of the date indicated:

								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio
December 31, 2025		(Dollars in thousands)
Total Capital	$	871,043	13.6%	$	512,904	8.0%	$	641,130	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		822,626	12.8%		384,678	6.0%		512,904	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		822,626	12.8%		288,508	4.5%		416,734	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		822,626	13.3%		247,709	4.0%		309,636	5.0%
(to Total Average Assets)

								To be well capitalized
					For minimum capital			under prompt corrective
		Actual			adequacy purposes			action provisions
		Amount	Ratio		Amount	Ratio		Amount	Ratio
December 31, 2024		(in thousands)
Total Capital	$	814,505	17.4%	$	374,650	8.0%	$	468,313	10.0%
(to Risk-Weighted Assets)
Tier 1 Capital		772,558	16.5%		280,988	6.0%		374,650	8.0%
(to Risk-Weighted Assets)
Common Equity Tier I Capital		772,558	16.5%		210,741	4.5%		304,403	6.5%
(to Risk-Weighted Assets)
Tier 1 Capital		772,558	15.3%		202,436	4.0%		253,045	5.0%
(to Total Average Assets)