Regulatory Matters

9 Months Ended

Sep. 30, 2017

Regulatory Matters

Regulatory Matters

12.  Regulatory Matters

The following table presents the regulatory capital ratios of the Bank and Holding Company, including regulatory thresholds, at September 30, 2017.  The minimum Capital Conservation Buffer (CCB) for 2017 increased to 1.25% from 0.625% in 2016, the first year the requirement was effective. The CCB increases 0.625% annually through 2019 to 2.5% and is designed to establish a capital range for banking organizations above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels.

	At September 30, 2017				Capitalized Ratio
	Bank		Company				Minimum ratio
(in thousands)	Ratios		Ratios		Well(1)		plus fully phased-in CCB
Common equity tier 1 capital	12.0	%	10.0	%	6.5	%	7.0	%
Tier 1 capital	12.0	%	11.6	%	8.0	%	8.5	%
Total capital	13.1	%	14.5	%	10.0	%	10.5	%
Tier 1 leverage	10.4	%	10.0	%	5.0	%	4.0	%

(1) The ratios for the well-capitalized requirement are only applicable to the Bank.  However, the Company manages its capital position as if the requirement applies to the consolidated entity and has presented the ratios as if they also applied to the Company.