Shareholders' Equity

3 Months Ended

Mar. 31, 2026

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Stock Repurchase Program

The 2025 Repurchase Program adopted by the Board of Directors authorizes the repurchase of up to 850,000 shares, or approximately 4%, of the Bancorp’s outstanding common stock. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. Repurchases under the 2025 Repurchase Program are conducted pursuant to a trading plan adopted by the Bancorp that is designed to qualify under Rule 10b5-1 under the Exchange Act. The 2025 Repurchase Program commenced on May 15, 2025 and expires on May 15, 2026 and may be modified, suspended, or discontinued at any time. Through March 31, 2026, the Bancorp has repurchased a total of 267,658 shares, at an average price of $27.26 and a total cost of $7.4 million, under its 2025 Repurchase Program. The total cost included $65 thousand of excise tax attributable to shares that were repurchased.

Regulatory Capital Requirements

Capital levels at March 31, 2026 exceeded the regulatory minimum levels to be considered “well capitalized.”

The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum and well capitalized regulatory amounts and ratios that were in effect during the respective periods:

(Dollars in thousands)	Actual			For Capital Adequacy Purposes			To Be “Well Capitalized” Under Prompt Corrective Action Provisions
	Amount	Ratio		Amount	Ratio		Amount	Ratio
March 31, 2026
Total Capital (to Risk-Weighted Assets):
Corporation	$622,030	13.38	%	$372,027	8.00	%	N/A	N/A
Bank	614,658	13.22		371,824	8.00		$464,781	10.00	%
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	579,664	12.46		279,020	6.00		N/A	N/A
Bank	572,292	12.31		278,868	6.00		371,824	8.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Corporation	557,667	11.99		209,265	4.50		N/A	N/A
Bank	572,292	12.31		209,151	4.50		302,107	6.50
Tier 1 Capital (to Average Assets): (1)
Corporation	579,664	8.80		263,555	4.00		N/A	N/A
Bank	572,292	8.69		263,425	4.00		329,281	5.00
December 31, 2025
Total Capital (to Risk-Weighted Assets):
Corporation	615,600	12.95		380,342	8.00		N/A	N/A
Bank	607,862	12.79		380,144	8.00		475,180	10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	577,224	12.14		285,256	6.00		N/A	N/A
Bank	569,486	11.98		285,108	6.00		380,144	8.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Corporation	555,227	11.68		213,942	4.50		N/A	N/A
Bank	569,486	11.98		213,831	4.50		308,867	6.50
Tier 1 Capital (to Average Assets): (1)
Corporation	577,224	8.65		267,046	4.00		N/A	N/A
Bank	569,486	8.53		266,921	4.00		333,651	5.00

(1)    Leverage ratio.

In addition to the minimum regulatory capital required for capital adequacy outlined in the table above, the Corporation and the Bank are required to maintain a minimum capital conservation buffer, in the form of common equity, of 2.50%, resulting in a requirement for the Corporation and the Bank to effectively maintain total capital, Tier 1 capital, and common equity Tier 1 capital ratios of 10.50%, 8.50%, and 7.00%, respectively. The Corporation and the Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends and discretionary bonuses. The Corporation’s and the Bank’s capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer at March 31, 2026 and December 31, 2025.

The Bancorp owns the common stock of two capital trusts, which have issued trust preferred securities. In accordance with GAAP, the capital trusts are treated as unconsolidated subsidiaries. At both March 31, 2026 and December 31, 2025, $22.0 million in trust preferred securities were included in the Tier 1 capital of the Corporation for regulatory capital reporting purposes pursuant to the capital adequacy guidelines of the Federal Reserve.