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Regulatory Capital Matters
 12 Months Ended
Dec. 31, 2020
Regulatory Capital Requirements [Abstract]  
Regulatory Capital Matters

Note 15. Regulatory Capital Matters

Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffers for 2020 and 2019 are 2.50%. Management believes that as of December 31, 2020 and 2019, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well. Unrealized gain or loss on securities available-for-sale is not included in computing regulatory capital.  

The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated:

 

 

 

 

 

 

Required for

 

 

Minimum

 

 

 

 

 

 

Capital Adequacy

 

 

To be Considered

 

 

 

Actual

 

 

Purposes

 

 

"Well Capitalized"

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(Dollars in thousands)

 

As of December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

155,287

 

 

 

14.81

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

152,232

 

 

 

14.52

%

 

 

83,859

 

 

 

8.00

%

 

 

104,824

 

 

 

10.00

%

Tier 1 capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

142,147

 

 

 

13.56

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

139,092

 

 

 

13.27

%

 

 

62,894

 

 

 

6.00

%

 

 

83,859

 

 

 

8.00

%

Common equity Tier 1 capital (to risk-weighted

   assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

142,147

 

 

 

13.56

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

139,092

 

 

 

13.27

%

 

 

47,171

 

 

 

4.50

%

 

 

68,136

 

 

 

6.50

%

Tier 1 capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

142,147

 

 

 

10.55

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

139,092

 

 

 

10.32

%

 

 

53,915

 

 

 

4.00

%

 

 

67,393

 

 

 

5.00

%

Note: The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.

 

 

 

 

 

 

 

 

Required for

 

 

Minimum

 

 

 

 

 

 

Capital Adequacy

 

 

To be Considered

 

 

 

Actual

 

 

Purposes

 

 

"Well Capitalized"

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(Dollars in thousands)

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

150,092

 

 

 

15.18

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

147,820

 

 

 

14.96

%

 

 

79,069

 

 

 

8.00

%

 

 

98,836

 

 

 

10.00

%

Tier 1 capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

139,975

 

 

 

14.16

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

137,703

 

 

 

13.93

%

 

 

59,301

 

 

 

6.00

%

 

 

79,069

 

 

 

8.00

%

Common equity Tier 1 capital (to risk-weighted

   assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

139,975

 

 

 

14.16

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

137,703

 

 

 

13.93

%

 

 

44,476

 

 

 

4.50

%

 

 

64,243

 

 

 

6.50

%

Tier 1 capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

139,975

 

 

 

12.14

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Bank

 

 

137,703

 

 

 

11.95

%

 

 

46,103

 

 

 

4.00

%

 

 

57,629

 

 

 

5.00

%

Note: The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.