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Note 20 - Regulatory Requirements and Restrictions

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 20. Regulatory Requirements and Restrictions

The Company and the Bank are subject to various regulatory capital requirements administered by state and 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. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, which applies only to the Bank, the Bank must meet specific capital guidelines that involve quantitative measures of the entity’s balance sheet assets and off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In addition, the Company and the Bank are subject to various regulatory restrictions related to the payment of dividends, including requirements to maintain capital at or above regulatory minimums.

The current risk-based capital requirements, based on the international capital standards known as Basel III, requires the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital, and total capital to risk-weighted assets, and of Tier 1 capital to average consolidated assets (“Tier 1 leverage ratio”), as defined in the regulations. Basel III’s capital conservation buffer (“CCB”), which is intended to absorb losses during periods of economic stress, increased those minimum ratios by 2.5% on January 1, 2019).

The following tables present actual and required capital ratios, under Basel III capital rules, as of the dates indicated:

	*December 31, 2024*
	*Actual*					*Minimum Basel III Requirement*					*Minimum Basel III Requirement - with CCB*					*Well Capitalized Requirement(1)*
(Amounts in thousands)	*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*
The Company
Common equity Tier 1 ratio	$	380,602		16.75	%	$	102,277		4.50	%	$	159,097		7.00	%		N/A		N/A
Tier 1 risk-based capital ratio		380,602		16.75	%		136,369		6.00	%		193,190		8.50	%		N/A		N/A
Total risk-based capital ratio		409,096		18.00	%		181,826		8.00	%		238,646		10.50	%		N/A		N/A
Tier 1 Leverage ratio		380,602		12.25	%		124,267		4.00	%		N/A		N/A			N/A		N/A

The Bank
Common equity Tier 1 ratio	$	315,006		13.89	%	$	102,025		4.50	%	$	158,705		7.00	%	$	147,369		6.50	%
Tier 1 risk-based capital ratio		315,006		13.89	%		136,003		6.00	%		192,713		8.50	%		181,377		8.00	%
Total risk-based capital ratio		343,430		15.15	%		181,377		8.00	%		238,058		10.50	%		226,722		10.00	%
Tier 1 Leverage ratio		315,006		10.32	%		122,092		4.00	%		N/A		N/A			152,615		5.00	%

(1)	Based on prompt corrective action provisions

	*December 31, 2023*
	*Actual*					*Minimum Basel III Requirement*					*Minimum Basel III Requirement - with CCB*					*Well Capitalized Requirement(1)*
(Amounts in thousands)	*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*
The Company
Common equity Tier 1 ratio	$	355,157		14.69	%	$	108,761		4.50	%	$	169,184		7.00	%		N/A		N/A
Tier 1 risk-based capital ratio		355,157		14.69	%		145,015		6.00	%		205,438		8.50	%		N/A		N/A
Total risk-based capital ratio		385,369		15.94	%		193,353		8.00	%		253,776		10.50	%		N/A		N/A
Tier 1 Leverage ratio		355,157		11.52	%		123,278		4.00	%		N/A		N/A			N/A		N/A

The Bank
Common equity Tier 1 ratio	$	312,593		12.97	%	$	108,461		4.50	%	$	168,718		7.00	%	$	156,667		6.50	%
Tier 1 risk-based capital ratio		312,593		12.97	%		144,615		6.00	%		204,872		8.50	%		192,820		8.00	%
Total risk-based capital ratio		342,805		14.22	%		192,820		8.00	%		253,077		10.50	%		241,026		10.00	%
Tier 1 Leverage ratio		312,593		10.07	%		124,181		4.00	%		N/A		N/A			155,226		5.00	%

(1)	Based on prompt corrective action provisions

- 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.

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