Equity and Regulatory Matters

3 Months Ended

Mar. 31, 2020

Banking and Thrift [Abstract]

Equity and Regulatory Matters

NOTE 13 – EQUITY AND REGULATORY MATTERS

PyraMax Bank is subject to various regulatory capital requirements administered by federal and state banking agencies. 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, PyraMax Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about their components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require PyraMax Bank to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and Total capital to risk-weighted assets, and of Tier 1 capital to average assets. It is management’s opinion that PyraMax Bank met all applicable capital adequacy requirements as of March 31, 2020 and December 31, 2019.

As of March 31, 2020 and December 31, 2019, PyraMax Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, PyraMax Bank must maintain minimum regulatory capital ratios as set forth in the table below. PyraMax Bank’s actual and required capital amounts and ratios are presented below:

	March 31, 2020
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
PyraMax Bank
Leverage (Tier 1)	$	46,634		10.9	%	$	17,147		4.0	%	$	21,434		5.0	%
Risk-based:
Common Equity Tier 1		46,634		13.8	%		15,206		4.5	%		21,964		6.5	%
Tier 1		46,634		13.8	%		20,275		6.0	%		27,033		8.0	%
Total		48,642		14.4	%		27,033		8.0	%		33,791		10.0	%

	December 31, 2019
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
PyraMax Bank
Leverage (Tier 1)	$	46,316		10.7	%	$	17,392		4.0	%	$	21,740		5.0	%
Risk-based:
Common Equity Tier 1		46,316		13.5	%		15,391		4.5	%		22,232		6.5	%
Tier 1		46,316		13.5	%		20,522		6.0	%		27,362		8.0	%
Total		48,316		14.1	%		27,362		8.0	%		34,203		10.0	%