Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2024

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Requirements

Regulatory Capital Requirements

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

Under the standard regulatory capital guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier I risk-based capital ratio of 6.0%, a minimum common equity Tier I risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a 2.5% capital conservation buffer consisting of common Tier I equity, increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees.

The Company and Union's risk-based capital ratios exceeded regulatory guidelines at December 31, 2024 and 2023, and, specifically, Union was "well capitalized" under Prompt Corrective Action provisions for each period. There were no conditions or events known to management that occurred subsequent to December 31, 2024 and prior to the publication of these financial statements that would change the Company's or Union's regulatory capital categorization.

Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables:

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:	(Dollars in thousands)
Total capital to risk weighted assets	$	123,278	12.53	%	$	78,709	8.00	%	N/A		N/A
Tier 1 capital to risk weighted assets	98,254		9.99	%	59,011		6.00	%	N/A		N/A
Common Equity Tier 1 to risk weighted assets	98,254		9.99	%	44,259		4.50	%	N/A		N/A
Tier 1 capital to average assets	98,254		6.29	%	62,483		4.00	%	N/A		N/A
Union:
Total capital to risk weighted assets	$	122,962	12.51	%	$	78,633	8.00	%	$	98,291	10.00	%
Tier 1 capital to risk weighted assets	114,211		11.62	%	58,973		6.00	%	78,631		8.00	%
Common Equity Tier 1 to risk weighted assets	114,211		11.62	%	44,230		4.50	%	63,887		6.50	%
Tier 1 capital to average assets	114,211		7.31	%	62,496		4.00	%	78,120		5.00	%

	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:	(Dollars in thousands)
Total capital to risk weighted assets	$	119,577	13.34	%	$	71,710	8.00	%	N/A		N/A
Tier 1 capital to risk weighted assets	95,539		10.66	%	53,774		6.00	%	N/A		N/A
Common Equity Tier 1 to risk weighted assets	95,539		10.66	%	40,331		4.50	%	N/A		N/A
Tier 1 capital to average assets	95,539		6.51	%	58,703		4.00	%	N/A		N/A
Union:
Total capital to risk weighted assets	$	119,652	13.35	%	$	71,702	8.00	%	$	89,627	10.00	%
Tier 1 capital to risk weighted assets	111,854		12.48	%	53,776		6.00	%	71,701		8.00	%
Common Equity Tier 1 to risk weighted assets	111,854		12.48	%	40,332		4.50	%	58,257		6.50	%
Tier 1 capital to average assets	111,854		7.62	%	58,716		4.00	%	73,395		5.00	%

Dividends paid by Union are the primary source of funds available to the Company for payment of dividends to its stockholders. Union is subject to certain requirements imposed by federal banking laws and regulations, which among other things, establish minimum levels of capital and restrict the amount of dividends that may be distributed by Union to the Company.