Minimum Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2022

Banking And Thrifts [Abstract]

Minimum Regulatory Capital Requirements

17. MINIMUM REGULATORY CAPITAL REQUIREMENTS

The Bank is subject to various capital requirements administered by the federal banking agencies. Capital adequacy guidelines and prompt corrective actions regulations involve qualitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgment by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Bank on January 1, 2015. Under BASEL III, community banking institutions must maintain a capital conservation buffer of common equity tier I capital in an amount greater than 2.5% of total risk weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following tables) of total, Tier 1 capital and common equity Tier 1 capital to risk weighted assets, and Tier 1 capital to average assets (all as defined). Management believes, as of March 31, 2022 and December 31, 2021, that the Bank met all capital adequacy requirements to which it is subject.

As of March 31, 2022, the most recent notification from the FDIC 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, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category.

The Bank’s actual and minimum capital amounts and ratios, exclusive of the capital conservation buffer, are presented in the following table:

											Minimum
											To Be Well
						For Minimum					Capitalized Under
						Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
March 31, 2022
Total capital (to risk weighted assets)	$	89,621		15.4	%	$	46,423		8.0	%	$	58,029		10.0	%
Tier 1 capital (to risk weighted assets)		82,471		14.2			34,817		6.0			46,423		8.0
Common equity Tier 1 capital (to risk weighted    assets)		82,471		14.2			26,113		4.5			37,719		6.5
Tier 1 capital (to average assets)		82,471		10.5			31,449		4.0			39,311		5.0
December 31, 2021
Total capital (to risk weighted assets)	$	100,180		17.4	%	$	45,956		8.0	%	$	57,445		10.0	%
Tier 1 capital (to risk weighted assets)		93,288		16.2			34,467		6.0			45,956		8.0
Common equity Tier 1 capital (to risk weighted    assets)		93,288		16.2			25,850		4.5			37,339		6.5
Tier 1 capital (to average assets)		93,288		12.3			30,355		4.0			37,943		5.0