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REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2018
Regulatory Capital Requirements [Abstract]  
REGULATORY MATTERS
REGULATORY MATTERS
 
The Company and the Bank are subject to various regulatory capital requirements administered by the federal 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 the financial statements.  Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
 
Measures of regulatory capital are an important tool used by regulators to monitor the financial health of financial institutions. The primary quantitative measures used to gauge capital adequacy are the Common Equity Tier 1, Tier 1, Total Capital to risk-weighted assets (risk-based capital ratios) and the ratio of Tier 1 capital to average total assets (leverage ratio). Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the Company and Bank. In addition, the OCC has established higher individual minimum capital ratios for the Bank. Specifically, the Bank must maintain a Tier 1 leverage ratio of at least 8%, and a total risk-based capital ratio of at least 12%.

As of December 31, 2018, the most recent notifications from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum common equity Tier I, total risk-based, Tier I risk-based, and Tier I leverage capital ratios as set forth in the table (in thousands). There are no conditions or events since those notifications that management believes has changed the Bank’s category.

Beginning on January 1, 2015, the Company and Bank became subject to the provisions of the Basel III final rule that governs the regulatory capital calculation, including transitional, or phase-in, provisions. The methods for calculating the risk-based capital ratios have changed as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) were fully phased in on January 1, 2019. The ongoing methodological changes will result in differences in the reported capital ratios from one reporting period to the next that are independent of applicable changes in the capital base, asset composition, off-balance sheet exposures or risk profile.

 The Company’s and the Bank’s regulatory ratios at the dates indicated are presented below (in thousands):
 
 
Actual
 
Minimum
 
Well Capitalized
December 31, 2018
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Common equity Tier 1 (CET1)
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
137,991

 
12.20
%
 
$
50,879

 
4.50
%
 
N/A

 
N/A

Bank
 
$
159,673

 
14.14
%
 
$
50,800

 
4.50
%
 
$
73,378

 
6.50
%
Total capital
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
215,310

 
19.04
%
 
$
90,452

 
8.00
%
 
N/A

 
N/A

Bank
 
$
173,832

 
15.40
%
 
$
90,312

 
8.00
%
 
$
112,890

 
10.00
%
Tier 1 capital
 
 
 
 
 
 

 
 

 
 

 
 

Company
 
$
201,130

 
17.79
%
 
$
67,839

 
6.00
%
 
N/A

 
N/A

Bank
 
$
159,673

 
14.14
%
 
$
67,734

 
6.00
%
 
$
90,312

 
8.00
%
Tier 1 Leverage
 
 
 
 
 
 

 
 

 
 

 
 

Company
 
$
201,130

 
11.45
%
 
$
70,282

 
4.00
%
 
N/A

 
N/A

Bank
 
$
159,673

 
9.11
%
 
$
70,141

 
4.00
%
 
$
87,676

 
5.00
%

 
 
Actual
 
Minimum
 
Well Capitalized
December 31, 2017
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Common equity Tier 1 (CET1)
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
171,161

 
12.10
%
 
$
63,678

 
4.50
%
 
N/A

 
N/A

Bank
 
$
183,825

 
13.00
%
 
$
63,646

 
4.50
%
 
$
91,933

 
6.50
%
Total capital
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
251,456

 
17.77
%
 
$
113,205

 
8.00
%
 
N/A

 
N/A

Bank
 
$
201,624

 
14.26
%
 
$
113,148

 
8.00
%
 
$
141,435

 
10.00
%
Tier 1 capital
 
 

 
 

 
 

 
 

 
 

 
 

Company
 
$
233,648

 
16.51
%
 
$
84,904

 
6.00
%
 
N/A

 
N/A

Bank
 
$
183,825

 
13.00
%
 
$
84,861

 
6.00
%
 
$
113,148

 
8.00
%
Tier 1 Leverage
 
 

 
 

 
 

 
 

 
 

 
 

Company
 
$
233,648

 
12.53
%
 
$
74,614

 
4.00
%
 
N/A

 
N/A

Bank
 
$
183,825

 
9.86
%
 
$
74,591

 
4.00
%
 
$
93,239

 
5.00
%