Equity and Regulatory Matters

12 Months Ended

Dec. 31, 2019

Banking And Thrift [Abstract]

Equity and Regulatory Matters

NOTE 17 — Equity and Regulatory Matters

The 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s 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 components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the 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, as of December 31, 2019, that the Bank met all applicable capital adequacy requirements.

As of December 31, 2019, the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since December 31, 2019 that management believes have changed the category.

NOTE 17 — Equity and Regulatory Matters – (continued)

The Bank’s actual capital amounts and ratios are presented in the following tables:

	Actual			For Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount	Ratio	Amount		Ratio		Amount	Ratio
December 31, 2019
PyraMax Bank
Leverage (Tier 1)	$       46,316	10.7%	$       17,392		4.0%		$       21,740	5.0%
Risk-based:
Common 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%
December 31, 2018
PyraMax Bank
Leverage (Tier 1)	$       35,955	7.5%	$       19,110		4.0%		$       23,887	5.0%
Risk-based:
Common Tier 1	35,955	10.0%	16,153		4.5%		23,333	6.5%
Tier 1	35,955	10.0%	21,538		6.0%		28,717	8.0%
Total	39,217	10.9%	28,717		8.0%		35,897	10.0%