REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTSThe Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by

regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The Bank is required to comply with applicable capital adequacy standards established by the FDIC. The Company is exempt from the Federal Reserve Board’s capital adequacy standards as it believes it meets the requirements of the Small Bank Holding Company Policy Statement. State chartered banks, such as the Bank, are subject to similar capital requirements adopted by the West Virginia Division of Financial Institutions.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Tier 1 common equity to risk-weighted assets, and of Tier 1 capital to average assets, as defined. As of December 31, 2019 and 2018, the Company and the Bank meet all capital adequacy requirements to which they are subject.

The most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 common equity risk-based and Tier 1 leverage ratios as set forth in the table below. Both the Company’s and the Bank’s actual capital amounts and ratios are presented in the table below.

	Actual			Minimum to be Well Capitalized			Minimum for Capital Adequacy Purposes with Capital Buffer 1			Minimum for Capital Adequacy Purposes
(Dollars in thousands)	Amount		Ratio	Amount		Ratio	Amount		Ratio	Amount		Ratio
As of December 31, 2019
Total Capital (to risk-weighted assets)
Subsidiary Bank	$	201,672	12.8%	$	157,107	10.0%	$	155,143	9.88%	$	125,686	8.0%
Tier 1 Capital (to risk-weighted assets)
Subsidiary Bank	$	189,365	12.1%	$	125,686	8.0%	$	123,722	7.88%	$	94,264	6.0%
Common Equity Tier 1 Capital (to risk-weighted assets)
Subsidiary Bank	$	189,365	12.1%	$	102,120	6.5%	$	100,156	6.38%	$	70,698	4.5%
Tier 1 Capital (to average assets)
Subsidiary Bank	$	189,365	9.9%	$	95,227	5.0%	N/A		N/A	$	76,182	4.0%
As of December 31, 2018
Total Capital (to risk-weighted assets)
Consolidated	$	193,495	13.8%	N/A		N/A	N/A		N/A	$	112,299	8.0%
Subsidiary Bank	$	186,127	13.3%	$	140,065	10.0%	$	138,314	9.88%	$	112,052	8.0%
Tier 1 Capital (to risk-weighted assets)
Consolidated	$	168,672	12.0%	N/A		N/A	N/A		N/A	$	84,224	6.0%
Subsidiary Bank	$	174,704	12.5%	$	112,052	8.0%	$	110,301	7.88%	$	84,039	6.0%
Common Equity Tier 1 Capital (to risk-weighted assets)
Consolidated	$	156,714	11.2%	N/A		N/A	N/A		N/A	$	63,168	4.5%
Subsidiary Bank	$	174,704	12.5%	$	91,042	6.5%	$	89,292	6.38%	$	63,029	4.5%
Tier 1 Capital (to average assets)
Consolidated	$	168,672	9.9%	N/A		N/A	N/A		N/A	$	68,375	4.0%
Subsidiary Bank	$	174,704	10.2%	$	85,315	5.0%	N/A		N/A	$	68,252	4.0%

1 The capital conservation buffer requirement was phased in over three years and was fully phased in on January 1, 2019. The capital buffer requirement effectively raises the minimum required common equity Tier 1 capital ratio to 7.0%, the Tier 1 capital ratio to 8.5% and the total capital to 10.5%.