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Regulatory Capital Requirements
 3 Months Ended
Mar. 31, 2026
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 (“PCA”), the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s 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 March 31, 2026 and December 31, 2025, management believes that the Company and the Bank met all capital adequacy requirements to which they were subject.
As of March 31, 2026, the most recent notification from the Bank’s primary regulator categorized the Bank, as “well-capitalized” under the regulatory framework for PCA. 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 March 31, 2026 and December 31, 2025.
March 31, 2026
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under PCA Regulation(1)
($ in thousands)
Company Amounts
Common Equity Tier 1 Capital$525,849 $335,606 N/A
Tier 1 Capital556,096 407,522 N/A
Total Capital674,811 503,409 N/A
Leverage Exposure6,098,196 243,928 N/A
Risk-Weighted Assets4,794,374 N/AN/A
Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets (“RWA”)10.97 %7.00 %N/A
Tier 1 Capital to RWA11.60 8.50 N/A
Total Capital to RWA14.08 10.50 N/A
Tier 1 Capital to AA (Leverage)(2)
9.12 4.00 N/A
Bank Amounts
Common Equity Tier 1 Capital$583,733 $335,386 $311,429 
Tier 1 Capital583,733 407,254 383,298 
Total Capital643,627 503,078 479,122 
Leverage Exposure6,093,905 243,756 304,695 
Risk-Weighted Assets4,791,223 N/AN/A
Bank Ratios
Common Equity Tier 1 Capital to RWA12.18 %7.00 %6.50 %
Tier 1 Capital to RWA12.18 8.50 8.00 
Total Capital to RWA13.43 10.50 10.00 
Tier 1 Capital to AA (Leverage)(2)
9.58 4.00 5.00 
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(1)Applies to the Bank only.
(2)Tier 1 Capital to Average Assets (Leverage) has no capital conservation buffer defined. The PCA well-capitalized threshold is defined as 5.00%.
December 31, 2025
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under PCA Regulation(1)
($ in thousands)
Company Amounts
Common Equity Tier 1 Capital$510,729 $339,680 N/A
Tier 1 Capital540,897 412,469 N/A
Total Capital660,451 509,520 N/A
Leverage Exposure6,129,306 245,172 N/A
Risk-Weighted Assets4,852,573 N/AN/A
Company Ratios
Common Equity Tier 1 Capital to RWA10.52 %7.00 %N/A
Tier 1 Capital to RWA11.15 8.50 N/A
Total Capital to RWA13.61 10.50 N/A
Tier 1 Capital to AA (Leverage)(2)
8.82 4.00 N/A
Bank Amounts
Common Equity Tier 1 Capital$569,183 $339,125 $314,902 
Tier 1 Capital569,183 411,794 387,571 
Total Capital629,746 508,687 484,464 
Leverage Exposure6,122,775 244,911 306,139 
Risk-Weighted Assets4,844,639 N/AN/A
Bank Ratios
Common Equity Tier 1 Capital to RWA11.75 %7.00 %6.50 %
Tier 1 Capital to RWA11.75 8.50 8.00 
Total Capital to RWA13.00 10.50 10.00 
Tier 1 Capital to AA (Leverage)(2)
9.30 4.00 5.00 
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(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 March 31, 2026, both the Company and the Bank satisfied the capital conservation buffer requirements applicable to them. The lowest capital buffer ratio at the Company was the Tier 1 Capital to RWA, which was 5.60% above the minimum capital conservation buffer ratio requirement, and the lowest capital buffer ratio at the Bank was the Total Capital to RWA, which was 5.43% above the minimum capital conservation buffer ratio requirement.
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 OCC, cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. As of March 31, 2026, the Bank could pay dividends to the Company to the extent of its current period earnings plus the earnings of the preceding two years, so long as it maintained required capital ratios.