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Note 17 - Regulatory Matters | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 17 - REGULATORY MATTERS Holding companies (with assets over $3 billion at the beginning of the year) and banks 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 our financial statements. Final comprehensive regulatory capital rules for U.S. banking organizations pursuant to the capital framework of the Basel Committee on Banking Supervision, generally referred to as “Basel III,” implemented a requirement for all banking organizations to maintain a capital conservation buffer of 2.5% above the minimum risk-based capital requirements. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. At December 31, 2024, the Company and the Bank were in compliance with the capital conservation buffer requirements. If the capital adequacy minimum ratios plus the phased-in conservation buffer amount exceed actual risk-weighted capital ratios, then dividends, share buybacks, and discretionary bonuses to executives could be limited in amount. 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 Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. 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 Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As permitted by the regulators for financial institutions that are not deemed to be “advanced approaches” institutions, we have elected to opt out of the Basel III requirement to include accumulated other comprehensive income in risk-based capital. Management believes, at December 31, 2024 and December 31, 2023, we satisfied all capital adequacy requirements to which we were subject. As of December 31, 2024 and 2023, the most recent notification from the FDIC 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 have changed the Bank’s category). To be categorized as well capitalized, the Bank must maintain minimum ratios as set forth in the table below. The following table sets forth Bancorp’s consolidated and the Bank’s actual capital amounts and ratios and related regulatory requirements as of the dates indicated:
|  |  |  |  |  |  |  |  |  | Amount of Capital Required |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | To Be Well Capitalized |
|  |  |  |  |  |  |  |  |  | Minimum Required for |  |  | Under Prompt Corrective |
|  | Actual |  |  | Capital Adequacy Purposes |  |  | Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio (1) |  |  | Amount |  |  | Ratio |
As of December 31, 2024: |  | (dollars in thousands)
Tier 1 Leverage Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 469,785 |  |  |  | 11.92 | % |  | $ | 157,660 |  |  |  | 4.0 | % |  | $ | 197,075 |  |  |  | 5.0 | %
Bank |  |  | 549,889 |  |  |  | 13.96 | % |  |  | 157,529 |  |  |  | 4.0 | % |  |  | 196,912 |  |  |  | 5.0 | %
Common Equity Tier 1 Risk-Based Capital Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 455,084 |  |  |  | 17.94 | % |  | $ | 114,133 |  |  |  | 4.5 | % |  | $ | 164,859 |  |  |  | 6.5 | %
Bank |  |  | 549,889 |  |  |  | 21.74 | % |  |  | 113,843 |  |  |  | 4.5 | % |  |  | 164,440 |  |  |  | 6.5 | %
Tier 1 Risk-Based Capital Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 469,785 |  |  |  | 18.52 | % |  | $ | 152,178 |  |  |  | 6.0 | % |  | $ | 202,903 |  |  |  | 8.0 | %
Bank |  |  | 549,889 |  |  |  | 21.74 | % |  |  | 151,791 |  |  |  | 6.0 | % |  |  | 202,388 |  |  |  | 8.0 | %
Total Risk-Based Capital Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 621,225 |  |  |  | 24.49 | % |  | $ | 202,903 |  |  |  | 8.0 | % |  | $ | 253,629 |  |  |  | 10.0 | %
Bank |  |  | 581,720 |  |  |  | 22.99 | % |  |  | 202,388 |  |  |  | 8.0 | % |  |  | 252,985 |  |  |  | 10.0 | %
(1) These ratios are exclusive of the 2.5% capital conservation buffer.
|  |  |  |  |  |  |  |  |  | Amount of Capital Required |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | To Be Well Capitalized |
|  |  |  |  |  |  |  |  |  | Minimum Required for |  |  | Under Prompt Corrective |
|  | Actual |  |  | Capital Adequacy Purposes |  |  | Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio (1) |  |  | Amount |  |  | Ratio |
As of December 31, 2023: |  | (dollars in thousands) |
Tier 1 Leverage Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 472,152 |  |  |  | 11.99 | % |  | $ | 157,526 |  |  |  | 4.0 | % |  | $ | 196,907 |  |  |  | 5.0 | %
Bank |  |  | 535,952 |  |  |  | 13.62 | % |  |  | 157,454 |  |  |  | 4.0 | % |  |  | 196,818 |  |  |  | 5.0 | %
Common Equity Tier 1 Risk Based Capital Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 457,214 |  |  |  | 19.07 | % |  | $ | 107,886 |  |  |  | 4.5 | % |  | $ | 155,836 |  |  |  | 6.5 | %
Bank |  |  | 535,952 |  |  |  | 22.41 | % |  |  | 107,598 |  |  |  | 4.5 | % |  |  | 155,419 |  |  |  | 6.5 | %
Tier 1 Risk-Based Capital Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 472,152 |  |  |  | 19.69 | % |  | $ | 143,849 |  |  |  | 6.0 | % |  | $ | 191,798 |  |  |  | 8.0 | %
Bank |  |  | 535,952 |  |  |  | 22.41 | % |  |  | 143,464 |  |  |  | 6.0 | % |  |  | 191,285 |  |  |  | 8.0 | %
Total Risk-Based Capital Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 621,423 |  |  |  | 25.92 | % |  | $ | 191,798 |  |  |  | 8.0 | % |  | $ | 239,748 |  |  |  | 10.0 | %
Bank |  |  | 565,997 |  |  |  | 23.67 | % |  |  | 191,285 |  |  |  | 8.0 | % |  |  | 239,106 |  |  |  | 10.0 | %
(1) These ratios are exclusive of the 2.5% capital conservation buffer. The California Financial Code generally acts to prohibit banks from making a cash distribution to its shareholders in excess of the lesser of the bank’s undivided profits or the bank's net income for its last three fiscal years less the amount of any distribution made by the bank’s shareholders during the same period. The California General Corporation Law generally acts to prohibit companies from paying dividends on common stock unless retained earnings, immediately prior to the dividend payment, equals or exceeds the amount of the dividend. If a company fails this test, then it may still pay dividends if after giving effect to the dividend the company’s assets are at least 125% of its liabilities. Additionally, the Federal Reserve has issued guidance, which requires that they be consulted before payment of a dividend if a bank holding company does not have earnings over the prior four quarters of at least equal to the dividend to be paid, plus other holding company obligations.

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- 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
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