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Regulatory Matters
 12 Months Ended
Dec. 31, 2024
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Matters Regulatory Matters
We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements as set forth in the following tables can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank’s prompt corrective action classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors.

Management reviews capital ratios on a regular basis and produces a five-year capital plan semi-annually to ensure that capital exceeds the prescribed regulatory minimums and is adequate to meet our anticipated future needs.  Stress tests are performed on capital ratios and include scenarios such as additional unrealized losses on the investment portfolio, additional deposit growth, loan credit quality deterioration, and potential share repurchases. For all periods presented, the Bank’s ratios exceed the regulatory definition of “well-capitalized” under the regulatory framework for prompt corrective action and Bancorp’s ratios exceed the required minimum ratios to be considered a well-capitalized bank holding company. In addition, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action as of December 31, 2024. There are no conditions or events since that notification that management believes have changed the Bank’s categories and we expect the Bank to remain well capitalized for prompt corrective action purposes.
The Bancorp’s and Bank's capital adequacy ratios as of December 31, 2024 and 2023 are presented in the following tables.

Bancorp Capital Ratios
(dollars in thousands)
Actual
Adequately Capitalized Threshold 1
Threshold to be a Well Capitalized Bank Holding Company
December 31, 2024AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$420,606 16.54 %$266,991 10.50 %$254,277 10.00 %
Tier 1 Capital (to risk-weighted assets)$389,448 15.32 %$216,136 8.50 %$203,422 8.00 %
Tier 1 Leverage Capital (to average assets)$389,448 10.46 %$148,899 4.00 %$186,123 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$389,448 15.32 %$177,994 7.00 %$165,280 6.50 %
December 31, 2023      
Total Capital (to risk-weighted assets)$440,842 16.89 %$274,002 10.50 %$260,954 10.00 %
Tier 1 Capital (to risk-weighted assets)$415,224 15.91 %$221,811 8.50 %$208,763 8.00 %
Tier 1 Leverage Capital (to average assets)$415,224 10.46 %$158,771 4.00 %$198,464 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$415,224 15.91 %$182,668 7.00 %$169,620 6.50 %
Bank Capital Ratios
(dollars in thousands)
Actual
Adequately Capitalized Threshold 1
Threshold to be Well Capitalized under Prompt Corrective Action Provisions
December 31, 2024AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$410,186 16.13 %$266,955 10.50 %$254,243 10.00 %
Tier 1 Capital (to risk-weighted assets)$379,028 14.91 %$216,107 8.50 %$203,395 8.00 %
Tier 1 Leverage Capital (to average assets)$379,028 10.18 %$148,887 4.00 %$186,108 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$379,028 14.91 %$177,970 7.00 %$165,258 6.50 %
December 31, 2023      
Total Capital (to risk-weighted assets)$433,598 16.62 %$273,986 10.50 %$260,939 10.00 %
Tier 1 Capital (to risk-weighted assets)$407,981 15.64 %$221,798 8.50 %$208,751 8.00 %
Tier 1 Leverage Capital (to average assets)$407,981 10.28 %$158,767 4.00 %$198,459 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$407,981 15.64 %$182,657 7.00 %$169,610 6.50 %
1 Except for Tier 1 Leverage Capital, the adequately capitalized thresholds reflect the regulatory minimum plus a 2.5% capital conservation buffer as required under the Basel III Capital Standards in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses.