Regulatory Capital Matters

9 Months Ended

Sep. 30, 2021

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Matters

Regulatory Capital MattersUnder the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. As of September 30, 2021, the capital conservation buffers for the Company is 2.50%. Management believes that as of September 30, 2021 and December 31, 2020, 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:

($ in thousands)	September 30, 2021
	Actual (1)				Required for Capital Adequacy Purposes			Minimum To be Considered "Well Capitalized"
	Amount		Ratio		Amount	Ratio		Amount	Ratio
Total capital (to risk-weighted assets)
Consolidated	$	172,873	13.81	%	N/A	N/A		N/A	N/A
Bank	170,171		13.60	%	100,135	8.00	%	125,169	10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	158,126		12.63	%	N/A	N/A		N/A	N/A
Bank	155,424		12.42	%	75,101	6.00	%	100,135	8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Consolidated	158,126		12.63	%	N/A	N/A		N/A	N/A
Bank	155,424		12.42	%	56,326	4.50	%	81,360	6.50	%
Tier 1 leverage (to average assets)
Consolidated	158,126		9.75	%	N/A	N/A		N/A	N/A
Bank	155,424		9.58	%	64,875	4.00	%	81,094	5.00	%

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

($ in thousands)	December 31, 2020
	Actual (1)				Required for Capital Adequacy Purposes			Minimum To be Considered "Well Capitalized"
	Amount		Ratio		Amount	Ratio		Amount	Ratio
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 leverage (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	%

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