XML 38 R17.htm IDEA: XBRL DOCUMENT v3.25.3
Regulatory Capital Requirements
 9 Months Ended
Sep. 30, 2025
Regulatory Capital Requirements under Banking Regulations [Abstract]  
Regulatory Capital Requirements Regulatory Capital Requirements
Banks and bank holding companies 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Banks’ assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain amounts and ratios (set forth in the table below) of common equity Tier 1 (“CET1”), 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 (leverage ratio). As of September 30, 2025 and December 31, 2024, management believes that the Company and the Bank met all capital adequacy requirements to which they were subject.
As of December 31, 2024, the most recent notification from the Bank’s primary regulator categorized the Bank, as “well-capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes would change the Bank’s classification. To be categorized as “well-capitalized,” the Bank must maintain minimum CET1, Tier 1 risk-based and total risk-based capital ratios, and Tier 1 leverage ratios, which are outlined in the table below.
The following table presents the capital amounts and ratios for the Company and the Bank as of September 30, 2025 and December 31, 2024.
September 30, 2025December 31, 2024
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under Prompt Corrective Action Regulation(1)
Amount
($ in thousands)
The Company Amounts
Common Equity Tier 1 Capital$496,709 $340,707 N/A$458,258 
Tier 1 Capital526,794 413,715 N/A488,105 
Total Capital627,055 511,060 N/A591,228 
Risk-Weighted Assets4,867,237 237,716 N/A4,852,564 
The Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets (“RWA”)10.21 %7.00 %N/A9.44 %
Tier 1 Capital to RWA10.82 8.50 N/A10.06 
Total Capital to RWA12.88 10.50 N/A12.18 
Tier 1 Capital to Average Assets (Leverage)(2)
8.86 4.00 N/A8.02 
The Bank Amounts
Common Equity Tier 1 Capital$559,212 $340,541 $316,217 $521,453 
Tier 1 Capital559,212 413,514 389,190 521,453 
Total Capital620,034 510,811 486,487 580,706 
Risk-Weighted Assets4,864,871 237,596 296,995 4,851,903 
The Bank Ratios
Common Equity Tier 1 Capital to RWA11.49 %7.00 %6.50 %10.75 %
Tier 1 Capital to RWA11.49 8.50 8.00 10.75 
Total Capital to RWA12.75 10.50 10.00 11.97 
Tier 1 Capital to Average Assets (Leverage)(2)
9.41 4.00 5.00 8.58 
____________________________________
(1)Applies to the Bank only.
(2)Tier 1 Capital to Average Assets (Leverage) has no capital conservation buffer defined. The PCA well-capitalized threshold is defined as 5.00%.
As of September 30, 2025, both the Company and the Bank satisfy the capital conservation buffer requirements applicable to them. The lowest ratio at the Company is the Tier 1 Capital to RWA, which was 4.82% above the minimum buffer ratio and, at the Bank, the lowest ratio was the Total Capital to RWA, which was 4.75% above the minimum buffer ratio.
The Company is a separate legal entity from the Bank and must provide for its own liquidity. In addition to its operating expenses, the Company is responsible for paying any dividends declared to its common stockholders and interest and principal on outstanding debt. The Company’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company in any calendar year, without the receipt of prior approval from the Federal Reserve Bank, cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. At September 30, 2025, the Bank could pay dividends to the Company to the extent of its earnings, so long as it maintained required capital ratios.