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Note 15 - Regulatory Matters
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 15. Regulatory Matters

 

The Company and the 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 possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Banks’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks 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. Regulators also have the ability to impose higher limits than those specified by capital adequacy guidelines if they so deem necessary. Management believes, as of December 31, 2024 and 2023, that the Company and each subsidiary bank met all capital adequacy requirements to which they are subject.

 

The Company’s and each of the subsidiary bank’s actual capital amounts and ratios as of December 31, 2024 and 2023 are also presented in the tables. (dollars in thousands)

 

                  

To Be Well

 
                  

Capitalized Under

 
          

For Capital

  

Prompt Corrective

 
  

Actual

  

Adequacy Purposes

  

Action Provisions

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 
                         

As of December 31, 2024:

                        

Total capital (to risk- weighted assets):

                        

Consolidated

 $219,750   14.3% $161,155   10.50%  N/A   N/A 

Boone Bank & Trust

  16,446   13.5   12,809   10.50   12,199   10.0%

First National Bank

  112,663   14.6   81,211   10.50   77,344   10.0 

Iowa State Savings Bank

  27,161   15.1   18,866   10.50   17,967   10.0 

Reliance State Bank

  29,222   12.2   25,232   10.50   24,030   10.0 

State Bank & Trust

  22,435   16.0   14,719   10.50   14,018   10.0 

United Bank & Trust

  13,205   16.4   8,479   10.50   8,075   10.0 
                         

Tier 1 capital (to risk- weighted assets):

                        

Consolidated

 $201,749   13.1% $130,459   8.50%  N/A   N/A 

Boone Bank & Trust

  15,404   12.6   10,369   8.50   9,759   8.0%

First National Bank

  103,707   13.4   65,742   8.50   61,875   8.0 

Iowa State Savings Bank

  24,915   13.9   15,272   8.50   14,374   8.0 

Reliance State Bank

  26,237   10.9   20,426   8.50   19,224   8.0 

State Bank & Trust

  20,734   14.8   11,915   8.50   11,214   8.0 

United Bank & Trust

  12,198   15.1   6,864   8.50   6,460   8.0 
                         

Tier 1 capital (to average- assets):

                        

Consolidated

 $201,749   9.2% $87,421   4.00%  N/A   N/A 

Boone Bank & Trust

  15,404   9.1   6,743   4.00   8,429   5.0%

First National Bank

  103,707   9.3   44,595   4.00   55,744   5.0 

Iowa State Savings Bank

  24,915   9.5   10,541   4.00   13,176   5.0 

Reliance State Bank

  26,237   8.6   12,160   4.00   15,200   5.0 

State Bank & Trust

  20,734   10.2   8,096   4.00   10,120   5.0 

United Bank & Trust

  12,198   9.6   5,084   4.00   6,356   5.0 
                         

Common equity tier 1 capital (to risk-weighted assets):

                        

Consolidated

 $201,749   13.1% $107,436   7.00%  N/A   N/A 

Boone Bank & Trust

  15,404   12.6   8,540   7.00   7,930   6.5%

First National Bank

  103,707   13.4   54,141   7.00   50,274   6.5 

Iowa State Savings Bank

  24,915   13.9   12,577   7.00   11,679   6.5 

Reliance State Bank

  26,237   10.9   16,821   7.00   15,620   6.5 

State Bank & Trust

  20,734   14.8   9,812   7.00   9,112   6.5 

United Bank & Trust

  12,198   15.1   5,653   7.00   5,249   6.5 

 

                  

To Be Well

 
                  

Capitalized Under

 
          

For Capital

  

Prompt Corrective

 
  

Actual

  

Adequacy Purposes

  

Action Provisions

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 
                         

As of December 31, 2023:

                        

Total capital (to risk- weighted assets):

                        

Consolidated

 $218,049   14.0% $164,005   10.50%  N/A   N/A 

Boone Bank & Trust

  16,232   13.6   12,510   10.50   11,914   10.0%

First National Bank

  112,057   13.9   84,863   10.50   80,822   10.0 

Iowa State Savings Bank

  26,691   15.7   17,854   10.50   17,004   10.0 

Reliance State Bank

  28,755   11.9   25,293   10.50   24,089   10.0 

State Bank & Trust

  22,283   16.0   14,597   10.50   13,902   10.0 

United Bank & Trust

  12,989   16.1   8,486   10.50   8,082   10.0 
                         

Tier 1 capital (to risk- weighted assets):

                        

Consolidated

 $200,187   12.8% $132,766   8.50%  N/A   N/A 

Boone Bank & Trust

  15,309   12.8   10,127   8.50   9,532   8.0%

First National Bank

  102,634   12.7   68,699   8.50   64,658   8.0 

Iowa State Savings Bank

  24,619   14.5   14,453   8.50   13,603   8.0 

Reliance State Bank

  25,937   10.8   20,476   8.50   19,271   8.0 

State Bank & Trust

  20,676   14.9   11,817   8.50   11,122   8.0 

United Bank & Trust

  11,979   14.8   6,870   8.50   6,466   8.0 
                         

Tier 1 capital (to average- assets):

                        

Consolidated

 $200,187   9.0% $88,992   4.00%  N/A   N/A 

Boone Bank & Trust

  15,309   9.6   6,393   4.00   7,991   5.0%

First National Bank

  102,634   8.8   46,878   4.00   58,597   5.0 

Iowa State Savings Bank

  24,619   9.6   10,234   4.00   12,792   5.0 

Reliance State Bank

  25,937   8.3   12,464   4.00   15,580   5.0 

State Bank & Trust

  20,676   9.6   8,573   4.00   10,717   5.0 

United Bank & Trust

  11,979   9.5   5,039   4.00   6,299   5.0 
                         

Common equity tier 1 capital (to risk-weighted assets):

                        

Consolidated

 $200,187   12.8% $109,337   7.00%  N/A   N/A 

Boone Bank & Trust

  15,309   12.8   8,340   7.00   7,744   6.5%

First National Bank

  102,634   12.7   56,576   7.00   52,534   6.5 

Iowa State Savings Bank

  24,619   14.5   11,903   7.00   11,052   6.5 

Reliance State Bank

  25,937   10.8   16,862   7.00   15,658   6.5 

State Bank & Trust

  20,676   14.9   9,731   7.00   9,036   6.5 

United Bank & Trust

  11,979   14.8   5,657   7.00   5,253   6.5 

 

The Company and the Banks are subject to the rules of the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules include the implementation of a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes. A banking organization with a capital conservation buffer of less than the required amount will be subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. At December 31, 2024 and 2023, the capital ratios for the Company and the Banks were sufficient to meet the conservation buffer.

 

Federal and state banking regulations place certain restrictions on dividends paid and loans or advances made by the Banks to the Company. Dividends paid by each Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. Management believes that these restrictions currently do not have a significant impact on the Company.