The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as

calculated under regulatory accounting practices. A financial institution’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

The final rules implementing Basel Committee on Banking Supervision’s Capital guidelines for U.S. banks require the Bank to hold a capital conservation buffer of 2.5% above the adequately capitalized risk-based capital ratios. Although the capital conservation buffer is not part of regulatory minimum risk-based capital requirements, it does determine the minimums that must be met to avoid limitation on paying dividends, engaging in share repurchases, and paying discretionary bonuses if capital levels fall below the buffer amount. The net unrealized gain or loss on securities available for sale is not included in computing regulatory capital.

To be categorized as well capitalized under the OCC’s regulatory framework for prompt corrective action, the Bank must maintain minimum risk-based capital and leverage ratios as set forth in the table below. The Bank currently satisfies the requirement under the OCC’s capital regulation to be “well capitalized.”

The following tables set forth the capital position and analysis for the Company and Bank (dollars in thousands). Because total assets on a consolidated basis are less than $3.0 billion, the Company is not subject to the consolidated capital requirements imposed by federal regulations. However, the Company elects to include those ratios for this report. Minimum capital ratios below include the capital conservation buffer. At December 31, 2023, the Company had a borrowing from a correspondent bank which it used to downstream capital to the Bank, with a balance of $5.0 million. This borrowing was paid off and subsequently closed during 2024.


					Minimum Capital Requirement (including applicable capital conservation buffer)				Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Actual
December 31, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio

Total Risk-Based Capital
Company	$	157,206	39.30%		N/A		N/A		N/A		N/A
Bank	$	131,750	32.94	%	$	41,998	10.50	%	$	39,998	10.00	%

Tier 1 Risk-Based Capital
Company	$	152,491	38.12%		N/A		N/A		N/A		N/A
Bank	$	127,034	31.76	%	$	33,998	8.50	%	$	31,999	8.00	%

Common Equity Tier 1 Capital
Company	$	152,491	38.12%		N/A		N/A		N/A		N/A
Bank	$	127,034	31.76	%	$	27,999	7.00	%	$	25,999	6.50	%

Tier 1 Leverage Ratio
Company	$	152,491	11.48%		N/A		N/A		N/A		N/A
Bank	$	127,034	9.57	%	$	53,119	4.00	%	$	66,399	5.00	%


					Minimum Capital Requirement (including applicable capital conservation buffer)				Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Actual
December 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio

Total Risk-Based Capital
Company	$	99,669	24.26	%	N/A		N/A		N/A		N/A
Bank	$	104,523	25.44	%	$	43,140	10.50	%	$	41,086	10.00	%

Tier 1 Risk-Based Capital
Company	$	95,002	23.12	%	N/A		N/A		N/A		N/A
Bank	$	99,856	24.30	%	$	34,923	8.50	%	$	32,869	8.00	%

Common Equity Tier 1 Capital
Company	$	95,002	23.12	%	N/A		N/A		N/A		N/A
Bank	$	99,856	24.30	%	$	28,760	7.00	%	$	26,706	6.50	%

Tier 1 Leverage Ratio
Company	$	95,002	8.77	%	N/A		N/A		N/A		N/A
Bank	$	99,856	9.21	%	$	43,347	4.00	%	$	54,183	5.00	%