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Capital Requirements
 12 Months Ended
Dec. 31, 2024
Banking Regulation, Total Capital [Abstract]  
Capital Requirements

NOTE 15. Capital Requirements

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 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 their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Bank utilizes the risk-based capital framework for its presentation of capital amounts and ratios.

At December 31, 2024, and 2023, management believes the Bank met all capital adequacy requirements to which it was subject. Additionally, at December 31, 2024, the most recent notification from the Federal Reserve categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the notification that management believes have changed the Bank’s category.

The following table presents the Bank’s actual capital amounts and ratios at December 31, 2024 and 2023:

 

 

 

Actual

 

 

Minimum Capital
Requirement

 

 

Minimum To Be
Well Capitalized
Under Prompt
Corrective Action
Provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(dollars in thousands)

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital to Risk Weighted Assets

 

$

166,145

 

 

 

11.04

%

 

$

67,723

 

 

 

4.50

%

 

$

97,822

 

 

 

6.50

%

Total Capital to Risk Weighted Assets

 

 

180,638

 

 

 

12.00

%

 

 

120,397

 

 

 

8.00

%

 

 

150,496

 

 

 

10.00

%

Tier 1 Capital to Risk Weighted Assets

 

 

166,145

 

 

 

11.04

%

 

 

90,298

 

 

 

6.00

%

 

 

120,397

 

 

 

8.00

%

Tier 1 Capital to Average Assets

 

 

166,145

 

 

 

8.79

%

 

 

75,568

 

 

 

4.00

%

 

 

94,460

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital to Risk Weighted Assets

 

$

155,453

 

 

 

10.27

%

 

$

68,121

 

 

 

4.50

%

 

$

98,397

 

 

 

6.50

%

Total Capital to Risk Weighted Assets

 

 

168,925

 

 

 

11.16

%

 

 

121,104

 

 

 

8.00

%

 

 

151,380

 

 

 

10.00

%

Tier 1 Capital to Risk Weighted Assets

 

 

155,453

 

 

 

10.27

%

 

 

90,828

 

 

 

6.00

%

 

 

121,104

 

 

 

8.00

%

Tier 1 Capital to Average Assets

 

 

155,453

 

 

 

8.48

%

 

 

73,367

 

 

 

4.00

%

 

 

91,709

 

 

 

5.00

%

 

In addition to the minimum regulatory capital required for capital adequacy purposes under the risk-based capital framework, financial institutions also required to maintain a minimum capital conservation buffer of greater than 2.5% in order to avoid restrictions on capital distributions and other payments. At December 31, 2024 and 2023, the Bank's capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer.