Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 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)
June 30, 2023
Total capital to risk-weighted assets
Consolidated	$	550,804	13.66	%	$	322,554	8.00	%	NA		NA
Independent Bank	497,759		12.36		322,172		8.00		$	402,715	10.00	%
Tier 1 capital to risk-weighted assets
Consolidated	$	460,342	11.42	%	$	241,916	6.00	%	NA		NA
Independent Bank	447,355		11.11		241,629		6.00		$	322,172	8.00	%
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	421,872	10.46	%	$	181,437	4.50	%	NA		NA
Independent Bank	447,355		11.11		181,222		4.50		$	261,765	6.50	%
Tier 1 capital to average assets
Consolidated	$	460,342	8.97	%	$	205,284	4.00	%	NA		NA
Independent Bank	447,355		8.72		205,226		4.00		$	256,533	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 June 30, 2023 and December 31, 2022.

NA - Not applicable

Regulatory Capital

The components of our regulatory capital are as follows:

	Consolidated				Independent Bank
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
	(In thousands)
Total shareholders' equity	$	375,162	$	347,596	$	400,645	$	370,418
Add (deduct)
Accumulated other comprehensive (income) loss for regulatory purposes	74,712		86,966		74,712		86,966
Goodwill and other intangibles	(30,578)		(30,851)		(30,578)		(30,851)
CECL (1)	2,576		5,152		2,576		5,152
Common equity tier 1 capital	421,872		408,863		447,355		431,685
Qualifying trust preferred securities	38,470		38,436		—		—
Tier 1 capital	460,342		447,299		447,355		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	50,462		49,250		50,404		49,201
Total risk-based capital	$	550,804	$	536,549	$	497,759	$	480,886

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