Note 15 - Regulatory Matters

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 15 - REGULATORY MATTERS

The Bank, as a state-chartered, federally insured savings bank, is subject to the capital requirements established by the FDIC. Under the FDIC's capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors.

The Company is a bank holding company registered with the Board of Governors of the Federal Reserve System (the "Federal Reserve"). Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. For a bank holding company with less than $3.0 billion in assets, the capital guidelines apply on a bank only basis and the Federal Reserve expects the holding company's subsidiary banks to be well-capitalized under the prompt corrective action regulations.

Based on its capital levels at December 31, 2023, the Bank exceeded all regulatory capital requirements as of that date. Consistent with the Bank's goals to operate a sound and profitable organization, it is the Bank's policy to maintain a "well-capitalized" status under the regulatory capital categories of the FDIC. Based on capital levels at December 31, 2023, the Bank was considered to be "well-capitalized" under applicable regulatory requirements. Management monitors the capital levels to provide for current and future business opportunities and to maintain the Bank's "well-capitalized" status.

The tables below provide the Bank’s regulatory capital requirements and actual results at December 31, 2023 and 2022.

	Actual					For Capital Adequacy					To Be Well Capitalized
(Dollars in Thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2023
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets)	$	150,129		18.2	%	$	49,391		6.0	%	$	65,854		8.0	%
Total Risk-Based Capital (To Risk Weighted Assets)		160,457		19.5	%		65,854		8.0	%		82,318		10.0	%
Common Equity Tier 1 Capital (To Risk Weighted Assets)		150,129		18.2	%		37,043		4.5	%		53,506		6.5	%
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets)		150,129		9.8	%		61,076		4.0	%		76,345		5.0	%
December 31, 2022
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets)	$	141,452		17.8	%	$	47,714		6.0	%	$	63,619		8.0	%
Total Risk-Based Capital (To Risk Weighted Assets)		151,408		19.0	%		63,619		8.0	%		79,523		10.0	%
Common Equity Tier 1 Capital (To Risk Weighted Assets)		141,452		17.8	%		35,785		4.5	%		51,690		6.5	%
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets)		141,452		10.4	%		54,372		4.0	%		67,965		5.0	%

In addition to the minimum capital requirements, the Bank must maintain a capital conservation buffer, which consists of additional Common Equity Tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. At December 31, 2023 the Bank’s conservation buffer was 11.5%.