REGULATORY MATTERS

6 Months Ended

Jun. 30, 2025

NOTE 8 – REGULATORY MATTERS

Banks and certain 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.

Under regulatory guidance for non-advanced approaches institutions, the Bank and Company are required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets, including an additional conservation buffer determined by banking regulators. As of June 30, 2025 and December 31, 2024, this buffer was 2.5%. The Bank met all capital adequacy requirements to which they are subject as of June 30, 2025 and December 31, 2024.

Actual and required capital amounts and ratios are presented below at period-end:


													To Be Well
									Minimum Capital				Capitalized Under
					For Capital				Adequacy with				Prompt Corrective
	Actual				Adequacy Purposes				Capital Buffer				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio

June 30, 2025
Total capital (to risk-weighted assets):
Company	$	483,515	13.08	%	$	295,630	8.00	%	$	388,014	10.50	%		NA	NA
Bank	$	450,082	12.19	%	$	295,422	8.00	%	$	387,741	10.50	%	$	369,277	10.00	%
Tier 1 capital (to risk-weighted assets):
Company	$	428,868	11.61	%	$	221,723	6.00	%	$	314,107	8.50	%		NA	NA
Bank	$	407,435	11.03	%	$	221,566	6.00	%	$	313,886	8.50	%	$	295,422	8.00	%
Common Equity Tier 1 capital (to risk-weighted assets):
Company	$	428,868	11.61	%	$	166,292	4.50	%	$	258,676	7.00	%		NA	NA
Bank	$	407,435	11.03	%	$	166,175	4.50	%	$	258,494	7.00	%	$	240,030	6.50	%
Tier 1 capital (to average assets):
Company	$	428,868	10.16	%	$	168,813	4.00	%	$	168,813	4.00	%		NA	NA
Bank	$	407,435	9.66	%	$	168,765	4.00	%	$	168,765	4.00	%	$	210,956	5.00	%
December 31, 2024
Total capital (to risk-weighted assets):
Company	$	509,763	14.14	%	$	288,325	8.00	%	$	378,427	10.50	%		NA	NA
Bank	$	438,549	12.18	%	$	288,152	8.00	%	$	378,200	10.50	%	$	360,190	10.00	%
Tier 1 capital (to risk-weighted assets):
Company	$	457,749	12.70	%	$	216,244	6.00	%	$	306,346	8.50	%		NA	NA
Bank	$	398,535	11.06	%	$	216,114	6.00	%	$	306,162	8.50	%	$	288,152	8.00	%
Common Equity Tier 1 capital (to risk-weighted assets):
Company	$	457,749	12.70	%	$	162,183	4.50	%	$	252,285	7.00	%		NA	NA
Bank	$	398,535	11.06	%	$	162,086	4.50	%	$	252,133	7.00	%	$	234,124	6.50	%
Tier 1 capital (to average assets):
Company	$	457,749	10.96	%	$	167,134	4.00	%	$	167,134	4.00	%		NA	NA
Bank	$	398,535	9.54	%	$	167,019	4.00	%	$	167,019	4.00	%	$	208,774	5.00	%

- 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

Bank First Corp 10-Q