Regulatory Matters

12 Months Ended

Dec. 31, 2021

Banking And Thrift Disclsoure [Abstract]

Regulatory Matters

REGULATORY MATTERS

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes that the Bank met all capital adequacy requirements to which it was subject at December 31, 2021 and December 31, 2020.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2021 and December 31, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s classification.

Actual and required capital amounts and ratios for the Bank are presented below at December 31, 2021:

	Actual				Required for Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital
(to Risk Weighted Assets)	$	106,002	21.25	%	$	39,909	8.00	%	$	49,886	10.00	%
Tier 1 Capital
(to Risk Weighted Assets)	$	99,656	19.98	%	$	29,932	6.00	%	$	39,909	8.00	%
Common Equity Tier 1 Capital
(to Risk Weighted Assets)	$	99,656	19.98	%	$	22,449	4.50	%	$	32,426	6.50	%
Tier 1 Capital
(to Average Assets)	$	99,656	12.22	%	$	32,619	4.00	%	$	40,774	5.00	%

Actual and required capital amounts and ratios for the Bank are presented below at December 31, 2020:

	Actual				Required for Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital
(to Risk Weighted Assets)	$	78,824	17.02	%	$	37,056	8.00	%	$	46,320	10.00	%
Tier 1 Capital
(to Risk Weighted Assets)	$	72,825	15.72	%	$	27,792	6.00	%	$	37,056	8.00	%
Common Equity Tier 1 Capital
(to Risk Weighted Assets)	$	72,825	15.72	%	$	20,844	4.50	%	$	30,108	6.50	%
Tier 1 Capital
(to Average Assets)	$	72,825	11.75	%	$	24,799	4.00	%	$	30,998	5.00	%

Dividend Restrictions

Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits of the Bank for that year combined with the retained net profits for the preceding two years.