Regulatory Matters

9 Months Ended

Sep. 30, 2020

Banking Regulation, Risk-Based Information [Abstract]

Regulatory Matters

Regulatory Matters

The 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. Management believes that, as of September 30, 2020, the Company and the Bank met all capital adequacy requirements to which they are subject.

The capital rules require the Company to maintain a 2.5% capital conservation buffer with respect to Common Equity Tier I capital, Tier I capital to risk-weighted assets, and total capital to risk-weighted assets, which is included in the column “Minimum Capital Required - Basel III Fully Phased-In” within the table below. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, as well as certain discretionary bonus payments to executive officers.

The Company’s and the Bank’s actual capital amounts and ratios as of September 30, 2020 and December 31, 2019 are presented in the following table:

	Actual				Minimum Capital Required - Basel III Fully Phased-In				Required to be Considered Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
September 30, 2020
Total Capital to Risk-Weighted Assets
Consolidated	$	652,827	13.2	%	$	518,259	10.5	%	N/A		N/A
Bank	601,491		12.2		518,063		10.5		$	493,393	10.0	%
Tier I Capital to Risk-Weighted Assets
Consolidated	590,952		12.0		419,543		8.5		N/A		N/A
Bank	539,639		10.9		419,384		8.5		394,714		8.0
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated	590,000		12.0		345,506		7.0		N/A		N/A
Bank	539,639		10.9		345,375		7.0		320,706		6.5
Tier I Capital to Average Assets
Consolidated	590,952		10.8		217,932		4.0		N/A		N/A
Bank	$	539,639	9.9	%	$	217,994	4.0	%	$	272,492	5.0	%
December 31, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	633,228	13.4	%	$	495,095	10.5	%	N/A		N/A
Bank	581,600		12.3		494,954		10.5		$	471,385	10.0	%
Tier I Capital to Risk-Weighted Assets
Consolidated	576,332		12.2		400,791		8.5		N/A		N/A
Bank	524,704		11.1		400,677		8.5		377,108		8.0
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated	575,411		12.2		330,063		7.0		N/A		N/A
Bank	524,704		11.1		329,970		7.0		306,400		6.5
Tier I Capital to Average Assets
Consolidated	576,332		12.1		191,099		4.0		N/A		N/A
Bank	$	524,704	11.0	%	$	191,170	4.0	%	$	238,963	5.0	%