COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2022

COMMITMENTS AND CONTINGENCIES.

Schedule of actual capital ratios and minimum ratios

The actual capital ratios and minimum ratios for each Bank, as well as the Combined Banks, as of September 30, 2022, are as follows:

					Minimum Ratio to be
			Minimum Ratio for		Well Capitalized under
	Actual		Capital Adequacy		Prompt Corrective
	Ratio		Purposes		Action Provisions
Comenity Bank
Common Equity Tier 1 capital ratio (1)	25.6	%	4.5	%	6.5	%
Tier 1 capital ratio (2)	25.6		6.0		8.0
Total Risk-based capital ratio (3)	26.9		8.0		10.0
Tier 1 Leverage capital ratio (4)	20.4		4.0		5.0
Comenity Capital Bank
Common Equity Tier 1 capital ratio (1)	18.4	%	4.5	%	6.5	%
Tier 1 capital ratio (2)	18.4		6.0		8.0
Total Risk-based capital ratio (3)	19.7		8.0		10.0
Tier 1 Leverage capital ratio (4)	16.1		4.0		5.0
Combined Banks
Common Equity Tier 1 capital ratio (1)	21.4	%	4.5	%	6.5	%
Tier 1 capital ratio (2)	21.4		6.0		8.0
Total Risk-based capital ratio (3)	22.8		8.0		10.0
Tier 1 Leverage capital ratio (4)	18.0		4.0		5.0

(1) The Common Equity Tier 1 capital ratio represents common equity tier 1 capital divided by total risk-weighted assets.

(2) The Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets.

(3) The Total Risk-based capital ratio represents total capital divided by total risk-weighted assets.

(4) The Tier 1 Leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments.