Regulatory Matters

12 Months Ended

Dec. 31, 2022

Banking and Thrift, Interest [Abstract]

Regulatory Matters

Regulatory MattersThe Company and the Bank are required by applicable regulations to maintain minimum levels of regulatory capital. Under the regulations in effect at December 31, 2022, the Company and the Bank were required to maintain a minimum ratio of Tier 1 capital to total average assets of 4.0%; a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 7.0%; a minimum ratio of Tier 1 capital to risk-weighted assets of 8.5%; and a minimum ratio of total (core and supplementary) capital to risk-weighted assets of 10.5%. These ratios include the impact of the required 2.50% capital conservation buffer.

Under the regulatory framework for prompt corrective action, federal regulators are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on an institution’s financial statements. The regulations establish a framework for the classification of banking institutions into five categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Generally, an institution is considered well-capitalized if it has a Tier 1 capital ratio of 5.0%; a common equity Tier 1 risk-based ratio of at least 6.5%; a Tier 1 risk-based ratio of at least 8.0%; and a total risk-based capital ratio of at least 10.0%. At December 31, 2022 and 2021, the Company and the Bank exceeded all regulatory capital requirements currently applicable.

The following is a summary of the Company’s and Bank’s regulatory capital amounts and ratios as of December 31, 2022 and 2021 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution then in effect (dollars in thousands):

	Actual				For capital adequacy purposes					To be well-capitalized under Prompt Corrective Action
As of December 31, 2022	Amount		Ratio		Amount		Ratio			Amount		Ratio
Company:
Tier 1 capital (to average assets)	$	1,150,690	9.43	%	$	488,297	4.00	%		N/A		N/A
Common equity Tier 1 (to risk-weighted assets)	1,021,774		9.93		720,641		7.00		(1)	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,150,690		11.18		875,064		8.50		(1)	N/A		N/A
Total capital (to risk-weighted assets)	1,336,652		12.98		1,080,961		10.50		(1)	N/A		N/A
Bank:
Tier 1 capital (to average assets)	$	1,122,946	9.20	%	$	488,033	4.00	%		$	610,041	5.00	%
Common equity Tier 1 (to risk-weighted assets)	1,122,946		11.02		713,194		7.00		(1)	662,251		6.50
Tier 1 capital (to risk-weighted assets)	1,122,946		11.02		866,021		8.50		(1)	815,078		8.00
Total capital (to risk-weighted assets)	1,183,705		11.62		1,069,791		10.50		(1)	1,018,848		10.00
As of December 31, 2021
Company:
Tier 1 capital (to average assets)	$	1,044,518	9.22	%	$	453,087	4.00	%		N/A		N/A
Common equity Tier 1 (to risk-weighted assets)	917,088		10.26		625,801		7.00		(1)	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,044,518		11.68		759,902		8.50		(1)	N/A		N/A
Total capital (to risk-weighted assets)	1,257,372		14.06		938,702		10.50		(1)	N/A		N/A
Bank:
Tier 1 capital (to average assets)	$	1,027,660	9.08	%	$	452,669	4.00	%		$	565,836	5.00	%
Common equity Tier 1 (to risk-weighted assets)	1,027,660		11.62		619,178		7.00		(1)	574,951		6.50
Tier 1 capital (to risk-weighted assets)	1,027,660		11.62		751,860		8.50		(1)	707,633		8.00
Total capital (to risk-weighted assets)	1,079,766		12.21		928,768		10.50		(1)	884,541		10.00

(1)    Includes the Capital Conservation Buffer of 2.50%.

The Company and the Bank satisfied the criteria to be “well-capitalized” under the Prompt Corrective Action regulations.

Capital distributions and certain discretionary bonus payments are limited if the capital conservation buffer of 2.50% is not maintained. Applicable regulations also impose limitations upon capital distributions by the Company, such as dividends and payments to repurchase or otherwise acquire shares. The Company may not declare or pay cash dividends on or repurchase any of its shares of common stock if the effect thereof would cause stockholders’ equity to be reduced below applicable regulatory capital minimum requirements or if such declaration and payment would otherwise violate regulatory requirements.