Regulatory Capital Requirements

6 Months Ended

Jun. 30, 2021

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements

(10) Regulatory Capital Requirements

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy regulations and, additionally for banks, the prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators.  Failure to meet capital requirements can result in regulatory action. As of June 30, 2021, the Company and Bank meet 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 a bank is not classified as well capitalized, regulatory approval is required to accept brokered deposits. If a bank is undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The federal banking agencies are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution or its holding company. Such actions could have a direct material effect on an institution’s or its holding company’s financial statements. As of June, 2021 and December 31, 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 Bank’s category. There are no conditions or events since that notification that management believes have changed the Bank’s category

The Bank and the Company reported the following capital ratios as of June 30, 2021 and December 31, 2020:

(Bank Only)
									Minimum for Capital Adequacy plus Capital Conservation
	As of June 30, 2021					Well
(dollars in thousands)	Amount		Ratio			Capitalized(1)			Buffer (1)(2)
Tier 1 leverage ratio	$	553,229		9.093	%		5.000	%		4.000	%
Common equity tier 1 capital		553,229		18.731			6.500			7.000
Tier 1 risk-based capital		553,229		18.731			8.000			8.500
Total risk-based capital		590,313		19.987			10.000			10.500

	As of December 31, 2020					Well			Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount		Ratio			Capitalized(1)			Buffer (1)(2)
Tier 1 leverage ratio	$	539,897		9.378	%		5.000	%		4.000	%
Common equity tier 1 capital		539,897		18.646			6.500			7.000
Tier 1 risk-based capital		539,897		18.646			8.000			8.500
Total risk-based capital		576,257		19.902			10.000			10.500

(Consolidated)
	As of June 30, 2021					Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount		Ratio			Buffer (1)(2)
Tier 1 leverage ratio	$	570,200		9.369	%		4.000	%
Common equity tier 1 capital	$	570,200		19.301			7.000
Tier 1 risk-based capital	$	570,200		19.301			8.500
Total risk-based capital	$	607,293		20.556			10.500

	As of December 31, 2020					Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount		Ratio			Buffer (1)(2)
Tier 1 leverage ratio	$	555,672		9.650	%		4.000	%
Common equity Tier 1 capital		555,672		19.187			7.000
Tier 1 risk-based capital		555,672		19.187			8.500
Total risk-based capital		592,040		20.443			10.500

(1) Federal regulatory minimum requirements to be considered to be Well Capitalized and Adequately Capitalized

(2) The June 30, 2021 and December 31, 2020 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent