Regulatory Matters (Tables)

9 Months Ended

Sep. 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)
September 30, 2023
Total capital to risk-weighted assets
Consolidated	$	564,115	13.58	%	$	332,292	8.00	%	NA		NA
Independent Bank	512,002		12.34		331,958		8.00		$	414,947	10.00	%
Tier 1 capital to risk-weighted assets
Consolidated	$	472,126	11.37	%	$	249,219	6.00	%	NA		NA
Independent Bank	460,064		11.09		248,968		6.00		$	331,958	8.00	%
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	433,639	10.44	%	$	186,914	4.50	%	NA		NA
Independent Bank	460,064		11.09		186,726		4.50		$	269,716	6.50	%
Tier 1 capital to average assets
Consolidated	$	472,126	8.94	%	$	211,355	4.00	%	NA		NA
Independent Bank	460,064		8.71		211,328		4.00		$	264,160	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 September 30, 2023 and December 31, 2022.

NA - Not applicable

Regulatory Capital

The components of our regulatory capital are as follows:

	Consolidated				Independent Bank
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(In thousands)
Total shareholders' equity	$	374,998	$	347,596	$	401,423	$	370,418
Add (deduct)
Accumulated other comprehensive (income) loss for regulatory purposes	86,506		86,966		86,506		86,966
Goodwill and other intangibles	(30,441)		(30,851)		(30,441)		(30,851)
CECL (1)	2,576		5,152		2,576		5,152
Common equity tier 1 capital	433,639		408,863		460,064		431,685
Qualifying trust preferred securities	38,487		38,436		—		—
Tier 1 capital	472,126		447,299		460,064		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	51,989		49,250		51,938		49,201
Total risk-based capital	$	564,115	$	536,549	$	512,002	$	480,886

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