Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Stockholders' Equity

Stockholders' Equity

Regulatory Capital

The Company and its subsidiary Bank are subject to various regulatory capital requirements administered by the federal banking regulators, including a risk-based capital measure. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated financial holding company, and the Office of the Comptroller of the Currency (the "OCC") has similar requirements for the Company's subsidiary bank. 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 Statements of Financial Condition.

Federal regulators require federally insured depository institutions to meet several minimum capital standards: (1) total capital to risk-weighted assets of 8.0%; (2) tier 1 capital to risk-weighted assets of 6.0%; (3) common equity tier 1 capital to risk-weighted assets of 4.5%; and (4) tier 1 capital to adjusted total assets of 4.0%. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a "capital conservation buffer" consisting of 2.5% of common equity tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer capital requirement was fully phased on January 1, 2019. The regulators established a framework for the classification of savings institutions into five categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Generally, an institution is considered well capitalized if it has: a total capital to risk-weighted assets ratio of at least 10.0%, a tier 1 capital to risk-weighted assets ratio of at least 8.0%, a common tier 1 capital to risk-weighted assets ratio of at least 6.5%, and a tier 1 capital to adjusted total assets ratio of at least 5.0%. As of December 31, 2019 and 2018, each of the Company and the Bank exceeded all capital adequacy requirements to which it is subject.

Based upon most recent notification from federal banking regulators, the Bank was categorized as well capitalized as of September 30, 2019, under the regulatory framework for prompt corrective action. There are no conditions existing or events which have occurred since notification that management believes have changed the Bank's category.

The following table presents the Company's and the Bank's actual capital amounts and ratios as of December 31, 2019 and 2018 compared to the Federal Reserve Bank minimum capital adequacy requirements and the Federal Reserve Bank requirements for classification as a well-capitalized institution:

(12)    Stockholders' Equity (continued)

Regulatory Capital (continued)

	Actual				Minimum Capital Adequacy Requirements				Minimum Capital Adequacy Requirements With Capital Conservation Buffer				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Company	(In thousands, except ratio data)
At December 31, 2019:
Total capital (to risk-weighted assets)	$	1,061,555	17.25	%	$	492,438	8.00	%	$	646,324	10.50	%	N/A		N/A
Tier 1 capital (to risk-weighted assets)	988,172		16.05		369,328		6.00		523,215		8.50		N/A		N/A
Common equity tier 1 capital (to risk-weighted assets)	980,995		15.94		276,996		4.50		430,883		7.00		N/A		N/A
Tier 1 capital (to adjusted total assets)	988,172		12.92		305,824		4.00		305,824		4.00		N/A		N/A
At December 31, 2018:
Total capital (to risk-weighted assets)	$	1,094,062	23.45	%	$	373,276	8.00	%	$	460,763	9.88	%	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,035,477		22.19		279,957		6.00		367,444		7.88		N/A		N/A
Common equity tier 1 capital (to risk-weighted assets)	1,035,477		22.19		209,968		4.50		297,455		6.38		N/A		N/A
Tier 1 capital (to adjusted total assets)	1,035,477		15.75		263,037		4.00		263,037		4.00		N/A		N/A
Bank
At December 31, 2019:
Total capital (to risk-weighted assets)	$	844,664	14.25	%	$	474,125	8.00	%	$	622,290	10.50	%	$	592,657	10.00	%
Tier 1 capital (to risk-weighted assets)	782,881		13.21		355,594		6.00		503,758		8.50		474,125		8.00
Common equity tier 1 capital (to risk-weighted assets)	782,881		13.21		266,696		4.50		414,860		7.00		385,227		6.50
Tier 1 capital (to adjusted total assets)	782,881		10.25		305,423		4.00		305,423		4.00		381,779		5.00
At December 31, 2018:
Total capital (to risk-weighted assets)	$	886,728	19.04	%	$	372,550	8.00	%	$	459,866	9.88	%	$	465,687	10.00	%
Tier 1 capital (to risk-weighted assets)	828,257		17.79		279,412		6.00		366,729		7.88		372,550		8.00
Common equity tier 1 capital (to risk-weighted assets)	828,257		17.79		209,559		4.50		296,875		6.38		302,697		6.50
Tier 1 capital (to adjusted total assets)	828,257		12.60		263,025		4.00		263,025		4.00		382,006		5.00

(12)    Stockholders' Equity (continued)

Regulatory Capital (continued)

As a result of the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies developed a "Community Bank Leverage Ratio" (the ratio of a bank's Tier 1 equity capital to average total consolidated assets) for financial institutions with less than $10 billion. A "qualifying community bank" with capital exceeding 9% will be considered compliant with all applicable regulatory capital and leverage requirements, including the capital requirements to be considered "well capitalized' under Prompt Corrective Action statutes. The rule has been adopted in final form and the framework, if elected, will first be available for use in the Bank's March 31, 2020 Call Report.

Stock Repurchase Program

On June 11, 2019, the Company announced that its Board of Directors authorized the Company's first stock repurchase program since the completion of its minority public offering in April 2018. This program, which commenced on June 13, 2019, authorized the purchase of up to 4,000,000 shares, or approximately 3.5%, of the Company's then issued and outstanding common stock. On December 5, 2019, the Company announced that the Board of Directors authorized expanding its stock repurchase program to acquire an additional 3,000,000 shares of the Company's outstanding common stock.

During the year ended December 31, 2019, the Company repurchased 3,543,800 shares at a cost of approximately $55.3 million, or $15.61 per share under this program. Repurchased shares are held as treasury stock and are available for general corporate purposes. There were no stock repurchase programs in effect at or during the year ended December 31, 2018.