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Capital Requirements and Other Regulatory Matters
 12 Months Ended
Dec. 31, 2024
Disclosure Capital [Abstract]  
Capital Requirements and Other Regulatory Matters
11.
Capital Requirements and Other Regulatory Matters

Federal regulations require the Bank and the Company to maintain certain minimum amounts of capital. Specifically, the Bank is required to maintain certain minimum dollar amounts and ratios of Total and Tier 1 capital to risk-weighted assets, of Tier 1 capital to average total assets, and common equity Tier 1 capital to risk-weighted assets.

 

Bank holding companies are generally subject to statutory capital requirements, which were implemented by certain of the new capital regulations described above that became effective on January 1, 2015. However, the Small Banking Holding Company Policy Statement exempts certain small bank holding companies like the Company from those requirements provided that they meet certain conditions.

In addition to the capital requirements, the Federal Deposit Insurance Corporation Improvement Act (“FDICIA”) established five capital categories ranging from “well capitalized” to “critically undercapitalized.” Should any institution fail to meet the requirements to be considered “adequately capitalized,” it would become subject to a series of increasingly restrictive regulatory actions. Management believes that, as of December 31, 2024, the Bank met all capital adequacy requirements to which it is subject.

As of December 31, 2024, and 2023, the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be classified as a well-capitalized financial institution, Total risk-based, Tier 1 risk-based, common equity Tier 1 capital and Tier 1 leverage capital must be at least 10 percent, 8 percent, 6.5 percent, and 5 percent, respectively. There have been no conditions or events since the notification that management believes have changed the Bank’s or the Company’s category.

The Bank’s actual capital amounts and ratios as of December 31, 2024 and 2023 are presented in the table below:

 

 

 

Actual

 

 

Minimum

 

 

Well Capitalized

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(dollars in thousands)

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital:

 

$

254,176

 

 

 

19.55

%

 

$

52,013

 

 

 

4.00

%

 

$

65,016

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 risk-based capital:

 

$

254,176

 

 

 

29.60

%

 

$

38,635

 

 

 

4.50

%

 

$

55,807

 

 

 

6.50

%

Tier 1 risk-based capital:

 

$

254,176

 

 

 

29.60

%

 

$

51,514

 

 

 

6.00

%

 

$

68,685

 

 

 

8.00

%

Total risk-based capital:

 

$

260,420

 

 

 

30.33

%

 

$

68,685

 

 

 

8.00

%

 

$

85,856

 

 

 

10.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital:

 

$

166,340

 

 

 

14.80

%

 

$

45,180

 

 

 

4.00

%

 

$

56,476

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 risk-based capital:

 

$

166,340

 

 

 

22.67

%

 

$

33,013

 

 

 

4.50

%

 

$

47,685

 

 

 

6.50

%

Tier 1 risk-based capital:

 

$

166,340

 

 

 

22.67

%

 

$

44,017

 

 

 

6.00

%

 

$

58,690

 

 

 

8.00

%

Total risk-based capital:

 

$

172,543

 

 

 

23.52

%

 

$

58,690

 

 

 

8.00

%

 

$

73,362

 

 

 

10.00

%