CAPITAL MATTERS

6 Months Ended

Jun. 30, 2024

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

CAPITAL MATTERS

CAPITAL MATTERS

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 June 30, 2024, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.

The Bank’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2024, and December 31, 2023, 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 June 30, 2024
Total capital (to risk weighted assets)	$	227,253	15.0	%	$	121,375	> =	8.0	%	$	151,719	> =	10.0	%
Tier 1 capital (to risk weighted assets)	208,555		13.7	%	91,031		> =	6.0	%	121,375		> =	8.0	%
Common equity tier 1 capital (to risk weighted assets)	208,555		13.7	%	68,273		> =	4.5	%	98,617		> =	6.5	%
Tier 1 leverage ratio (to adjusted total assets)	208,555		11.7	%	71,302		> =	4.0	%	89,128		> =	5.0	%
As of December 31, 2023
Total capital (to risk weighted assets)	$	228,092	14.6	%	$	124,883	> =	8.0	%	$	156,104	> =	10.0	%
Tier 1 capital (to risk weighted assets)	208,726		13.4	%	93,662		> =	6.0	%	124,883		> =	8.0	%
Common equity tier 1 capital (to risk weighted assets)	208,726		13.4	%	70,247		> =	4.5	%	101,468		> =	6.5	%
Tier 1 leverage ratio (to adjusted total assets)	208,726		11.5	%	72,479		> =	4.0	%	90,599		> =	5.0	%

The Company’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2024 and December 31, 2023, respectively, are presented below:

	Actual				For Capital Adequacy Purposes
	Amount		Ratio		Amount			Ratio
As of June 30, 2024
Total capital (to risk weighted assets)	$	231,523	15.2	%	$	121,522	> =	8.0	%
Tier 1 capital (to risk weighted assets)	162,825		10.7	%	91,141		> =	6.0	%
Common equity tier 1 capital (to risk weighted assets)	162,825		10.7	%	68,356		> =	4.5	%
Tier 1 leverage ratio (to adjusted total assets)	162,825		9.1	%	71,302		> =	4.0	%
As of December 31, 2023
Total capital (to risk weighted assets)	$	230,160	14.7	%	$	124,883	> =	8.0	%
Tier 1 capital (to risk weighted assets)	160,794		10.3	%	93,662		> =	6.0	%
Common equity tier 1 capital (to risk weighted assets)	160,794		10.3	%	70,247		> =	4.5	%
Tier 1 leverage ratio (to adjusted total assets)	160,794		8.9	%	72,479		> =	4.0	%