Regulatory Matters (Tables)

3 Months Ended

Mar. 31, 2023

Regulatory Matters [Abstract]

Capital Amounts and Ratios

Our actual capital amounts and ratios follow (1):

	Actual				Minimum for Adequately Capitalized Institutions				Minimum for Well-Capitalized Institutions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
March 31, 2023
Total capital to risk-weighted assets
Consolidated	$	542,176	13.80	%	$	314,237	8.00	%	NA		NA
Independent Bank	486,461		12.40		313,901		8.00		$	392,377	10.00	%
Tier 1 capital to risk-weighted assets
Consolidated	$	453,041	11.53	%	$	235,678	6.00	%	NA		NA
Independent Bank	437,377		11.15		235,426		6.00		$	313,901	8.00	%
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	414,588	10.55	%	$	176,758	4.50	%	NA		NA
Independent Bank	437,377		11.15		176,569		4.50		$	255,045	6.50	%
Tier 1 capital to average assets
Consolidated	$	453,041	8.92	%	$	203,233	4.00	%	NA		NA
Independent Bank	437,377		8.61		203,239		4.00		$	254,048	5.00	%
December 31, 2022
Total capital to risk-weighted assets
Consolidated	$	536,549	13.62	%	$	315,059	8.00	%	NA		NA
Independent Bank	480,886		12.22		314,733		8.00		$	393,416	10.00	%
Tier 1 capital to risk-weighted assets
Consolidated	$	447,299	11.36	%	$	236,294	6.00	%	NA		NA
Independent Bank	431,685		10.97		236,049		6.00		$	314,733	8.00	%
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	408,863	10.38	%	$	177,221	4.50	%	NA		NA
Independent Bank	431,685		10.97		177,037		4.50		$	255,720	6.50	%
Tier 1 capital to average assets
Consolidated	$	447,299	8.86	%	$	201,875	4.00	%	NA		NA
Independent Bank	431,685		8.56		201,820		4.00		$	252,275	5.00	%

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(1) These ratios do not reflect a capital conservation buffer of 2.50% at March 31, 2023 and December 31, 2022.

NA - Not applicable

Regulatory Capital

The components of our regulatory capital are as follows:

	Consolidated				Independent Bank
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
	(In thousands)
Total shareholders' equity	$	367,714	$	347,596	$	390,503	$	370,418
Add (deduct)
Accumulated other comprehensive income (loss) for regulatory purposes	75,013		86,966		75,013		86,966
Goodwill and other intangibles	(30,715)		(30,851)		(30,715)		(30,851)
CECL (1)	2,576		5,152		2,576		5,152
Common equity tier 1 capital	414,588		408,863		437,377		431,685
Qualifying trust preferred securities	38,453		38,436		—		—
Tier 1 capital	453,041		447,299		437,377		431,685
Subordinated debt	40,000		40,000		—		—
Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	49,135		49,250		49,084		49,201
Total risk-based capital	$	542,176	$	536,549	$	486,461	$	480,886

(1) We elected the three year CECL transition method for regulatory purposes.