v3.26.1
Regulatory Capital Requirements
 6 Months Ended
Jun. 30, 2026
Regulatory Capital Requirements Under Banking Regulations [Abstract]  
Regulatory Capital Requirements Regulatory Capital Requirements
The Company and the Bank are subject to various regulatory capital requirements administered by 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 Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and 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. Prompt corrective action provisions are not applicable to bank holding companies.
Basel III Capital Requirements
The Company and the Bank are subject to Basel III capital guidelines. Basel III requires the Company and the Bank to maintain certain minimum ratios to meet capital adequacy requirements. It is management’s belief that, as of June 30, 2026, both the Company and the Bank met all capital adequacy requirements under Basel III. Management expects that the capital ratios for the Company and the Bank under Basel III will continue to exceed capital adequacy requirements. Management believes that, as of June 30, 2026, the Bank is well-capitalized under the regulatory framework for prompt corrective action.
Capital amounts and ratios for the Company as of June 30, 2026 and December 31, 2025, are presented in the following table (Basel III Minimum includes the capital conservation buffer):
ActualBasel III Minimum
(dollars in thousands)AmountRatioAmountRatio
June 30, 2026
Total Risk-Based Capital$453,106 18.76%$253,614 10.50%
Tier I Risk-Based Capital$427,693 17.71%$205,306 8.50%
Common Equity Tier I Capital$427,693 17.71%$169,076 7.00%
Tier I Leverage Capital$427,693 12.77%$133,948 4.00%
December 31, 2025
Total Risk-Based Capital$430,986 18.03%$250,995 10.50%
Tier I Risk-Based Capital$406,945 17.02%$203,186 8.50%
Common Equity Tier I Capital$406,945 17.02%$167,330 7.00%
Tier I Leverage Capital$406,945 12.21%$133,321 4.00%
Capital amounts and ratios for the Bank as of June 30, 2026 and December 31, 2025, are presented in the following table (Basel III Minimum includes the capital conservation buffer):
Regulatory Requirements
ActualBasel III Minimum
Well-Capitalized(1)
(dollars in thousands)AmountRatioAmountRatioAmountRatio
June 30, 2026
Total Risk-Based Capital$443,564 18.37%$253,528 10.50%$241,455 10.00%
Tier I Risk-Based Capital$418,151 17.32%$205,237 8.50%$193,164 8.00%
Common Equity Tier I Capital$418,151 17.32%$169,019 7.00%$156,946 6.50%
Tier I Leverage Capital$418,151 12.49%$133,896 4.00%$167,371 5.00%
December 31, 2025
Total Risk-Based Capital$421,929 17.66%$250,916 10.50%$238,968 10.00%
Tier I Risk-Based Capital$397,888 16.65%$203,123 8.50%$191,174 8.00%
Common Equity Tier I Capital$397,888 16.65%$167,277 7.00%$155,329 6.50%
Tier I Leverage Capital$397,888 11.94%$133,274 4.00%$166,593 5.00%
(1)This column refers to the prompt corrective action requirements applicable to banks.
Community Bank Leverage Ratio Framework
As part of the Economic Growth Act, an optional CBLR framework is available to the Company and the Bank as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations. Specifically, depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a Tier 1 leverage ratio of greater than 9.00%, are considered qualifying community banking organizations eligible to opt into the CBLR framework and replace the applicable Basel III risk-based capital requirements. In April 2026, the federal banking agencies issued a final rule that, among other things, lowered the 9.00% leverage ratio requirement to 8.00%.
As of June 30, 2026, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework.