Regulatory Capital Requirements

9 Months Ended

Sep. 30, 2023

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements

Note 10 – Regulatory Capital Requirements

The following table presents our capital ratios as of September 30, 2023 and December 31, 2022.

	September 30, 2023		December 31, 2022		Required for Capital Adequacy Purposes		Required to be Well Capitalized
Total Capital (to risk-weighted assets)	14.12	%	14.37	%	8.00	%	10.00	%
Tier 1 Capital (to risk-weighted assets)	12.88	%	13.29	%	6.00	%	8.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)	12.88	%	13.29	%	4.50	%	6.50	%
Tier 1 Capital (to average assets)	9.81	%	10.01	%	4.00	%	5.00	%

As of September 30, 2023 and December 31, 2022, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.  We adopted CECL effective January 1, 2023 and elected not to implement the regulatory agencies’ capital transition and instead opted to record the impact to our capital ratios immediately upon implementation.

Effective with the implementation of CECL, a $2.2 million adjustment, net of tax, was made to retained earnings.  The adjustment did not have a material impact to our capital ratios.