Note 7 - Regulatory Matters

9 Months Ended

Sep. 30, 2025

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 7. Regulatory Matters

The Association is subject to various regulatory capital requirements administered by its primary federal regulator, the Office of the Comptroller of Currency (“OCC”). Failure to meet the minimum regulatory capital requirements can initiate certain mandatory, and possible additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Association’s financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines involving quantitative measures of the Association's assets, liabilities, and certain off-financial condition items, as calculated under regulatory accounting practices. The Association's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Management believes, as of September 30, 2025, that the Association meets all capital adequacy requirements to which it is subject.

As of September 30, 2025 the most recent notification from the OCC categorized the Association as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Association must maintain minimum total risk based, Tier I risk-based, and Tier I leverage ratios as disclosed in the table below. There are no conditions or events since the notification that management believes have changed the Association’s prompt corrective action category.

The Association's actual capital amounts and ratios as of September 30, 2025 and December 31, 2024 are presented in the table:

September 30, 2025	Actual					Required for Capital Adequacy Purposes					Required to be Well-Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage Ratio	$	17,253		47.49	%	$	1,453		4.00	%	$	1,816		5.00	%
Common Equity Tier 1	$	17,253		96.40	%	$	805		4.50	%	$	1,163		6.50	%
Tier 1 Risk-Based Capital	$	17,253		96.40	%	$	1,074		6.00	%	$	1,432		8.00	%
Total Risk-Based Capital	$	17,438		97.43	%	$	1,432		8.00	%	$	1,790		10.00	%

December 31, 2024 (dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage Ratio	$	13,916		37.80	%	$	1,472		4.00	%	$	1,841		5.00	%
Common Equity Tier 1	$	13,916		73.80	%	$	849		4.50	%	$	1,226		6.50	%
Tier 1 Risk-Based Capital	$	13,916		73.80	%	$	1,131		6.00	%	$	1,508		8.00	%
Total Risk-Based Capital	$	14,101		74.78	%	$	1,508		8.00	%	$	1,886		10.00	%

- 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.

+ References + Details

Magnolia Bancorp, Inc. 10-Q