XML 69 R52.htm IDEA: XBRL DOCUMENT v3.22.0.1
REGULATORY MATTERS (Tables)
 12 Months Ended
Dec. 31, 2021
REGULATORY MATTERS [Abstract]  
Actual Capital Amounts and Ratios and Components of Regulatory Capital

Our actual capital amounts and ratios at December 31 follow(1):

 
Actual
    
Minimum for
Adequately Capitalized
Institutions
    
Minimum for
Well-Capitalized
Institutions
  
   
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
   
(Dollars in thousands)
  
2021
                                    
Total capital to risk-weighted assets
                                    
Consolidated
  
$
488,495
      
14.53
%
  
$
268,991
      
8.00
%
  
NA
    
NA
  
Independent Bank
    
438,352
      
13.05
      
268,808
      
8.00
    
$
336,011
      
10.00
%
                                                 
Tier 1 capital to risk-weighted assets
                                                
Consolidated
  
$
406,645
      
12.09
%
  
$
201,743
      
6.00
%
  
NA
    
NA
  
Independent Bank
    
396,351
      
11.80
      
201,606
      
6.00
    
$
268,808
      
8.00
%
                                                 
Common equity tier 1 capital to risk-weighted assets
                                                
Consolidated
  
$
368,277
      
10.95
%
  
$
151,307
      
4.50
%
  
NA
    
NA
  
Independent Bank
    
396,351
      
11.80
      
151,205
      
4.50
    
$
218,407
      
6.50
%
                                                 
Tier 1 capital to average assets
                                                
Consolidated
  
$
406,645
      
8.79
%
  
$
185,034
      
4.00
%
  
NA
    
NA
  
Independent Bank
    
396,351
      
8.57
      
185,077
      
4.00
    
$
231,347
      
5.00
%
                                                 
2020
                                                
Total capital to risk-weighted assets
                                                
Consolidated
  
$
455,072
      
15.95
%
  
$
228,214
      
8.00
%
  
NA
    
NA
  
Independent Bank
    
401,005
      
14.06
      
228,111
      
8.00
    
$
285,139
      
10.00
%
                                                 
Tier 1 capital to risk-weighted assets
                                                
Consolidated
  
$
379,395
      
13.30
%
  
$
171,161
      
6.00
%
  
NA
    
NA
  
Independent Bank
    
365,343
      
12.81
      
171,083
      
6.00
    
$
228,111
      
8.00
%
                                                 
Common equity tier 1 capital to risk-weighted assets
                                                
Consolidated
  
$
341,095
      
11.96
%
  
$
128,370
      
4.50
%
  
NA
    
NA
  
Independent Bank
    
365,343
      
12.81
      
128,312
      
4.50
    
$
185,340
      
6.50
%
                                                 
Tier 1 capital to average assets
                                                
Consolidated
  
$
379,395
      
9.15
%
  
$
165,825
      
4.00
%
  
NA
    
NA
  
Independent Bank
    
365,343
      
8.81
      
165,828
      
4.00
    
$
207,285
      
5.00
%

(1)
These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2021 and 2020.
NA - Not applicable
Regulatory Capital

The components of our regulatory capital are as follows:

 
Consolidated
    
Independent Bank
  
   
December 31,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
  
   
(In thousands)
  
Total shareholders’ equity
  
$
398,484
    
$
389,522
    
$
426,558
    
$
413,770
  
Add (deduct)
                                
Accumulated other comprehensive loss for regulatory purposes
    
(6,298
)
    
(15,821
)
    
(6,298
)
    
(15,821
)
Goodwill and other intangibles
    
(31,636
)
    
(32,606
)
    
(31,636
)
    
(32,606
)
CECL (1)
     7,727       -       7,727       -  
Common equity tier 1 capital
    
368,277
      
341,095
      
396,351
      
365,343
  
Qualifying trust preferred securities
    
38,368
      
38,300
      
-
      
-
  
Tier 1 capital
    
406,645
      
379,395
      
396,351
      
365,343
  
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 (2)
    
41,850
      
35,677
      
42,001
      
35,662
  
Total risk-based capital
  
$
488,495
    
$
455,072
    
$
438,352
    
$
401,005
  

(1)
We elected the three year CECL transition method for regulatory purposes.
(2)
Beginning January 1, 2021, calculation of allowances are based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.