Supplementary Regulatory Capital Disclosure

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Supplementary Regulatory Capital Disclosure

19. Supplementary Regulatory Capital Disclosure

The Company’s subsidiary, WEX Bank, is subject to various regulatory capital requirements administered by the FDIC and the UDFI. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, WEX Bank must meet specific capital guidelines that involve quantitative measures of WEX Bank’s assets, liabilities and certain off-balance sheet items. WEX Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could limit business activities and have a material effect on the Company’s business, results of operations and financial condition.

Quantitative measures established by regulation to ensure capital adequacy require WEX Bank to maintain minimum amounts and ratios as defined in the regulations. The most recent FDIC exam report categorized WEX Bank as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events subsequent to that examination report that management believes have changed WEX Bank’s capital rating.

The following table presents WEX Bank’s actual and regulatory minimum capital amounts and ratios:

(In millions)	Actual Amount		Ratio		Minimum for Capital Adequacy Purposes Amount		Ratio		Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount		Ratio
June 30, 2023
Total Capital to risk-weighted assets	$	728.8	15.87	%	$	367.4	8.00	%	$	459.3	10.00	%
Tier 1 Capital to average assets	$	671.2	10.72	%	$	250.5	4.00	%	$	313.2	5.00	%
Common equity to risk-weighted assets	$	671.2	14.62	%	$	206.7	4.50	%	$	298.5	6.50	%
Tier 1 Capital to risk-weighted assets	$	671.2	14.62	%	$	275.6	6.00	%	$	367.4	8.00	%
December 31, 2022
Total Capital to risk-weighted assets	$	595.6	15.16	%	$	314.4	8.00	%	$	393.0	10.00	%
Tier 1 Capital to average assets	$	546.2	10.22	%	$	213.7	4.00	%	$	267.1	5.00	%
Common equity to risk-weighted assets	$	546.2	13.90	%	$	176.8	4.50	%	$	255.4	6.50	%
Tier 1 Capital to risk-weighted assets	$	546.2	13.90	%	$	235.8	6.00	%	$	314.4	8.00	%