Note 19 - Regulatory Matters

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 19 Regulatory Matters

The Company and the Bank 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 consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of common equity tier 1, tier 1, and total capital (as defined in the regulations) to risk weighted assets (as defined) and of tier 1 capital (as defined) to average assets (as defined). Management believes that, at June 30, 2025 and December 31, 2024, each of the Company and the Bank had met all of the capital adequacy requirements to which it was subject.

The following tables present the Company’s and the Bank’s actual capital amounts and ratios as of June 30, 2025 and December 31, 2024:

	June 30, 2025
											Minimum to be
						Minimum Required					Well Capitalized
						for Capital					Under Prompt
	Actual					Adequacy Purposes					Corrective Action (1)
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Common equity tier 1 capital to risk weighted assets
Consolidated (1)	$	473,212		10.54	%	$	202,112		4.50	%		N/A		N/A
Bank		477,814		10.78	%		199,368		4.50	%		287,977		6.50	%
Tier 1 capital to risk weighted assets
Consolidated (1)		482,337		10.74	%		269,483		6.00	%		N/A		N/A
Bank		477,814		10.78	%		265,825		6.00	%		354,433		8.00	%
Total capital to risk weighted assets
Consolidated (1)		588,579		13.10	%		359,311		8.00	%		N/A		N/A
Bank		533,303		12.04	%		354,433		8.00	%		443,041		10.00	%
Tier 1 capital to average assets
Consolidated (1)		482,337		9.16	%		210,717		4.00	%		N/A		N/A
Bank		477,814		9.34	%		204,575		4.00	%		255,719		5.00	%

(1) “Minimum to be Well Capitalized Under Prompt Corrective Action” is not formally defined under applicable banking regulations for bank holding companies.

	December 31, 2024
											Minimum to be
						Minimum Required					Well Capitalized
						for Capital					Under Prompt
	Actual					Adequacy Purposes					Corrective Action (1)
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Common equity tier 1 capital to risk weighted assets
Consolidated (1)	$	443,833		9.91	%	$	201,441		4.50	%		N/A		N/A
Bank		449,497		10.18	%		198,743		4.50	%		287,074		6.50	%
Tier 1 capital to risk weighted assets
Consolidated (1)		452,903		10.12	%		268,588		6.00	%		N/A		N/A
Bank		449,497		10.18	%		264,991		6.00	%		353,322		8.00	%
Total capital to risk weighted assets
Consolidated (1)		559,002		12.49	%		358,118		8.00	%		N/A		N/A
Bank		504,857		11.43	%		353,322		8.00	%		441,652		10.00	%
Tier 1 capital to average assets
Consolidated (1)		452,903		8.65	%		209,532		4.00	%		N/A		N/A
Bank		449,497		8.69	%		206,832		4.00	%		258,540		5.00	%

(1) “Minimum to be Well Capitalized Under Prompt Corrective Action” is not formally defined under applicable banking regulations for bank holding companies.

The Bank is subject to certain restrictions on the amount of dividends that it may pay without prior regulatory approval, including rules requiring a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes. A banking organization with a conservation buffer of less than the required amount will be subject to the limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. As of June 30, 2025, the capital ratios for the Company and the Bank were sufficient to meet the conservation buffer. In addition, the Company must adhere to various U.S. Department of Housing and Urban Development (“HUD”) regulatory guidelines including required minimum capital and liquidity to maintain their Federal Housing Administration approval status. Failure to comply with the HUD guidelines could result in withdrawal of this certification. As of June 30, 2025 and December 31, 2024, the Company was in compliance with the aforementioned guidelines.