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Note 17 - Regulatory Capital
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]
NOTE
17.
REGULATORY CAPITAL
 
The Holding Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that if undertaken, could have a direct material effect on our Consolidated Financial Statements.
 
The capital amounts and the Bank’s prompt corrective action classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are
not
applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy, require the Company and the Bank to maintain minimum amounts and ratios set forth in the following table as defined in the regulations. Management believes as of
December 31, 2019
that the Company and the Bank met all capital adequacy requirements to which they are subject.
 
In
May 2018
the Crapo bill was signed into law which simplified the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than
$10
billion and instructed the federal banking regulators to establish a single Community Bank Leverage Ratio (“CBLR”) which has been set at
9%.
Any qualifying depository institution or its holding company that exceeds the Community Bank Leverage Ratio will be considered to have met generally applicable leverage and risk-based regulatory capital requirements and considered to be “well capitalized” under the prompt corrective action rules discussed above. 
 
As of
December 31, 2019,
the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, an institution must maintain minimum ratios as set forth in the following table. There are
no
conditions or events since that notification that management believes have changed the Bank’s capital rating category.
 
The Holding Company’s and the Bank’s actual capital amounts and ratios as of
December 31, 2019
and
2018
are presented in the following table.
 
   
 
 
 
  
 
 
 
  
Well
   
Minimum
    
Applicable
    
Minimum Capital
  
   
 
 
 
  
 
 
 
  
Capitalized
    
Capital
    
Capital
    
Requirement plus Capital
  
   
Capital
    
Actual
    
Requirement
    
Requirement
    
Conservation
   
Conservation Buffer
  
(Amounts in thousands)
  
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
    
Buffer
    
Amount
    
Ratio
  
At December 31, 2019:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Company
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common equity tier 1 capital ratio
   $
156,587
      
13.19
%
    
n/a
      
n/a
     $
53,409
      
4.50
%
    
2.50
%
   $
83,081
      
7.00
%
Tier 1 capital ratio
   $
166,587
      
14.04
%
    
n/a
      
n/a
     $
71,212
      
6.00
%
    
2.50
%
   $
100,884
      
8.50
%
Total capital ratio
   $
189,513
      
15.97
%
    
n/a
      
n/a
     $
94,949
      
8.00
%
    
2.50
%
   $
124,621
      
10.50
%
Tier 1 leverage ratio
   $
166,587
      
11.30
%
    
n/a
      
n/a
     $
58,945
      
4.00
%
    
n/a
     $
58,945
      
4.00
%
Bank
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common equity tier 1 capital ratio
   $
170,568
      
14.39
%
   $
77,072
      
6.50
%
   $
53,358
      
4.50
%
    
2.50
%
   $
83,001
      
7.00
%
Tier 1 capital ratio
   $
170,568
      
14.39
%
   $
94,858
      
8.00
%
   $
71,144
      
6.00
%
    
2.50
%
   $
100,787
      
8.50
%
Total capital ratio
   $
183,494
      
15.48
%
   $
118,573
      
10.00
%
   $
94,858
      
8.00
%
    
2.50
%
   $
124,502
      
10.50
%
Tier 1 leverage ratio
   $
170,568
      
11.58
%
   $
73,646
      
5.00
%
   $
58,917
      
4.00
%
    
n/a
     $
58,917
      
4.00
%
                                                                         
At December 31, 2018:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Company
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common equity tier 1 capital ratio
   $
139,488
      
12.79
%
    
n/a
      
n/a
     $
49,072
      
4.50
%
    
1.875
%
   $
69,519
      
6.375
%
Tier 1 capital ratio
   $
149,488
      
13.71
%
    
n/a
      
n/a
     $
65,429
      
6.00
%
    
1.875
%
   $
85,876
      
7.875
%
Total capital ratio
   $
172,475
      
15.82
%
    
n/a
      
n/a
     $
87,239
      
8.00
%
    
1.875
%
   $
107,686
      
9.875
%
Tier 1 leverage ratio
   $
149,488
      
11.21
%
    
n/a
      
n/a
     $
53,079
      
4.00
%
    
n/a
     $
53,079
      
4.00
%
Bank
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common equity tier 1 capital ratio
   $
144,245
      
13.23
%
   $
70,856
      
6.50
%
   $
49,054
      
4.50
%
    
1.875
%
   $
69,493
      
6.375
%
Tier 1 capital ratio
   $
144,245
      
13.23
%
   $
87,207
      
8.00
%
   $
65,405
      
6.00
%
    
1.875
%
   $
85,844
      
7.875
%
Total capital ratio
   $
157,232
      
14.42
%
   $
109,009
      
10.00
%
   $
87,207
      
8.00
%
    
1.875
%
   $
107,646
      
9.875
%
Tier 1 leverage ratio
   $
144,245
      
10.81
%
   $
66,712
      
5.00
%
   $
53,369
      
4.00
%
    
n/a
     $
53,369
      
4.00
%