XML 41 R29.htm IDEA: XBRL DOCUMENT
v3.25.3

Note 21 - Regulatory Matters | 9 Months Ended
--- | ---
Sep. 30, 2025
Notes to Financial Statements |
Regulatory Capital Requirements under Banking Regulations [Text Block] |
(21) | Regulatory Matters
Bancorp and the Bank are subject to capital regulations in accordance with Basel III, as administered by banking regulators. Regulatory agencies measure capital adequacy within a framework that makes capital requirements, in part, dependent on the individual risk profiles of financial institutions. 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 Bancorp’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Holding Company and the Bank must meet specific capital guidelines that involve quantitative measures of Bancorp’s assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings and other factors. Banking regulators have categorized the Bank as well-capitalized. To meet the definition of well-capitalized, a bank must have a minimum 6.5% Common Equity Tier 1 Risk-Based Capital ratio, 8.0% Tier 1 Risk-Based Capital ratio, 10.0% Total Risk-Based Capital ratio and 5.0% Tier 1 Leverage ratio. Additionally, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, Bancorp and the Bank must hold a 2.5% capital conservation buffer composed of Common Equity Tier 1 Risk-Based Capital above the minimum risk-based capital requirements for the Common Equity Tier 1 Risk-Based Capital ratio, Tier 1 Risk-Based Capital ratio and Total Risk-Based Capital ratio necessary to be considered adequately-capitalized. At September 30, 2025, the adequately-capitalized minimums, including the capital conservation buffer, were a 7.0% Common Equity Tier 1 Risk-Based Capital ratio, 8.5% Tier 1 Risk-Based Capital ratio and 10.5% Total Risk-Based Capital ratio. As all of Bancorp’s capital ratios were above the adequately-capitalized minimums, including the buffer, the Company was not subject to any such restrictions. As a result of the CB acquisition, Bancorp became the 100% successor owner of the following unconsolidated trust subsidiaries: Commonwealth Statutory Trust III, Commonwealth Statutory Trust IV and Commonwealth Statutory Trust V. The sole assets of the trust subsidiaries represent the proceeds of offerings loaned in exchange for subordinated debentures with similar terms to the TPS. The TPS are treated as part of Tier 1 Capital. The subordinated note and related interest expense are included in Bancorp’s consolidated financial statements. The subordinated notes are currently redeemable at Bancorp’s option on a quarterly basis. As of September 30, 2025 and December 31, 2024, subordinated notes totaled $27 million. Bancorp continues to exceed the regulatory requirements for all calculations. Bancorp and the Bank intend to maintain a capital position that meets or exceeds the “well-capitalized” requirements as defined by the FRB and the FDIC, in addition to the capital conservation buffer. The following table sets forth consolidated Bancorp’s and the Bank’s risk based capital amounts and ratios:
(dollars in thousands) |  | Actual |  |  | Minimum for adequately capitalized |  |  | Minimum for well capitalized |
September 30, 2025 |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
Total risk-based capital (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 1,028,017 |  |  |  | 13.17 | % |  | $ | 624,415 |  |  |  | 8.00 | % |  | NA |  |  | NA |
Bank |  |  | 1,001,121 |  |  |  | 12.83 |  |  |  | 624,072 |  |  |  | 8.00 |  |  | $ | 780,090 |  |  |  | 10.00 | %
Common equity tier 1 risk-based capital (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 904,431 |  |  |  | 11.59 |  |  |  | 351,234 |  |  |  | 4.50 |  |  | NA |  |  | NA |
Bank |  |  | 903,588 |  |  |  | 11.58 |  |  |  | 351,040 |  |  |  | 4.50 |  |  |  | 507,058 |  |  |  | 6.50 |
Tier 1 risk-based capital (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 930,431 |  |  |  | 11.92 |  |  |  | 468,311 |  |  |  | 6.00 |  |  | NA |  |  | NA |
Bank |  |  | 903,588 |  |  |  | 11.58 |  |  |  | 468,054 |  |  |  | 6.00 |  |  |  | 624,072 |  |  |  | 8.00 |
Leverage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 930,431 |  |  |  | 10.24 |  |  |  | 363,491 |  |  |  | 4.00 |  |  | NA |  |  | NA |
Bank |  |  | 903,588 |  |  |  | 9.95 |  |  |  | 363,226 |  |  |  | 4.00 |  |  |  | 454,032 |  |  |  | 5.00 |
(dollars in thousands) |  | Actual |  |  | Minimum for adequately capitalized |  |  | Minimum for well capitalized |
December 31, 2024 |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
Total risk-based capital (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 943,723 |  |  |  | 12.73 | % |  | $ | 593,201 |  |  |  | 8.00 | % |  | NA |  |  | NA |
Bank |  |  | 918,210 |  |  |  | 12.39 |  |  |  | 593,002 |  |  |  | 8.00 |  |  | $ | 741,252 |  |  |  | 10.00 | %
Common equity tier 1 risk-based capital (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 828,386 |  |  |  | 11.17 |  |  |  | 333,676 |  |  |  | 4.50 |  |  | NA |  |  | NA |
Bank |  |  | 828,873 |  |  |  | 11.18 |  |  |  | 333,564 |  |  |  | 4.50 |  |  |  | 481,814 |  |  |  | 6.50 |
Tier 1 risk-based capital (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 854,386 |  |  |  | 11.52 |  |  |  | 444,901 |  |  |  | 6.00 |  |  | NA |  |  | NA |
Bank |  |  | 828,873 |  |  |  | 11.18 |  |  |  | 444,751 |  |  |  | 6.00 |  |  |  | 593,002 |  |  |  | 8.00 |
Leverage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 854,386 |  |  |  | 9.94 |  |  |  | 343,886 |  |  |  | 4.00 |  |  | NA |  |  | NA |
Bank |  |  | 828,873 |  |  |  | 9.65 |  |  |  | 343,624 |  |  |  | 4.00 |  |  |  | 429,530 |  |  |  | 5.00 |
(1) Ratio is computed in relation to risk-weighted assets. NA – Regulatory framework does not define “well-capitalized” for holding companies.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1D -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1D Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1F -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1F + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration