REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2021

Regulatory Capital Requirements Administered By Federal Banking Agencies [Abstract]

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines, and additionally for the Bank, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off balance sheet items calculated under regulatory accounting practices. Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company. The Bank has not paid dividends to the Company in the past. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of December 31, 2021, the Bank meets all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2021 and 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The following table presents the regulatory capital, assets and risk based capital (common equity Tier 1, Tier 1 and Total capital) ratios for the Bank at December 31, 2021 and 2020 (in thousands, other than ratios):

	Bank Actual				Minimum Capital Adequacy				Minimum Capital Adequacy With Capital Buffer				For Classification as Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Common equity tier 1	$	293,349	25.74	%	$	51,292	4.50	%	$	79,787	7.00	%	$	74,088	6.50	%
Tier 1 capital	293,349		25.74	%	68,389		6.00	%	96,885		8.50	%	91,186		8.00	%
Total capital	307,624		26.99	%	91,186		8.00	%	119,681		10.50	%	113,982		10.00	%
Tier 1 (leverage) capital	293,349		15.00	%	78,201		4.00	%	N/A		N/A		97,752		5.00	%
December 31, 2020
Common equity tier 1	$	206,258	19.93	%	$	46,578	4.50	%	$	72,455	7.00	%	$	67,279	6.50	%
Tier 1 capital	206,258		19.93	%	62,104		6.00	%	87,981		8.50	%	82,806		8.00	%
Total capital	219,262		21.18	%	82,806		8.00	%	108,682		10.50	%	103,507		10.00	%
Tier 1 (leverage) capital	206,258		10.72	%	76,934		4.00	%	N/A		N/A		96,168		5.00	%