CAPITAL MATTERS

3 Months Ended

Mar. 31, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Although these terms are not used to represent overall financial condition, if adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At March 31, 2025, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.

The Bank’s Tier 1 (leverage) and risk-based capital ratios at March 31, 2025, and December 31, 2024, respectively, are presented below:


	Actual				For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount			Ratio		Amount			Ratio
As of March 31, 2025
Total capital (to risk weighted assets)	$	225,675	15.6	%	$	115,795	> =	8.0	%	$	144,744	> =	10.0	%
Tier 1 capital (to risk weighted assets)	207,551		14.3	%	86,846		> =	6.0	%	115,795		> =	8.0	%
Common equity tier 1 capital (to risk weighted assets)	207,551		14.3	%	65,135		> =	4.5	%	94,084		> =	6.5	%
Tier 1 leverage ratio (to adjusted total assets)	207,551		12.0	%	69,020		> =	4.0	%	86,275		> =	5.0	%
As of December 31, 2024
Total capital (to risk weighted assets)	$	225,432	15.6	%	$	115,755	> =	8.0	%	$	144,693	> =	10.0	%
Tier 1 capital (to risk weighted assets)	207,749		14.4	%	86,816		> =	6.0	%	115,755		> =	8.0	%
Common equity tier 1 capital (to risk weighted assets)	207,749		14.4	%	65,112		> =	4.5	%	94,051		> =	6.5	%
Tier 1 leverage ratio (to adjusted total assets)	207,749		11.9	%	69,787		> =	4.0	%	87,234		> =	5.0	%

The Company’s Tier 1 (leverage) and risk-based capital ratios at March 31, 2025 and December 31, 2024, respectively, are presented below:


	Actual				For Capital Adequacy Purposes
	Amount		Ratio		Amount			Ratio
As of March 31, 2025
Total capital (to risk weighted assets)	$	231,949	16.0	%	$	115,988	> =	8.0	%
Tier 1 capital (to risk weighted assets)	163,825		11.3	%	86,991		> =	6.0	%
Common equity tier 1 capital (to risk weighted assets)	163,825		11.3	%	65,243		> =	4.5	%
Tier 1 leverage ratio (to adjusted total assets)	163,825		9.5	%	69,117		> =	4.0	%
As of December 31, 2024
Total capital (to risk weighted assets)	$	232,926	16.1	%	$	115,914	> =	8.0	%
Tier 1 capital (to risk weighted assets)	165,243		11.4	%	86,936		> =	6.0	%
Common equity tier 1 capital (to risk weighted assets)	165,243		11.4	%	65,202		> =	4.5	%
Tier 1 leverage ratio (to adjusted total assets)	165,243		9.5	%	69,867		> =	4.0	%

- 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.

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