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Regulatory Restrictions
 12 Months Ended
Dec. 31, 2020
Banking and Thrift [Abstract]  
Regulatory Restrictions Regulatory Restrictions
The Company is regulated by the Board of Governors of the Federal Reserve and is subject to securities registration and public reporting regulations of the Securities and Exchange Commission. The Bank is regulated by the Federal Reserve and the North Carolina Commissioner of Banks.
The primary source of funds for the payment of dividends by the Company is dividends received from its subsidiary, the Bank. The Bank, as a North Carolina banking corporation, may declare dividends so long as such dividends do not reduce its capital below its applicable required capital (typically, the level of capital required to be deemed “adequately capitalized.”) As of December 31, 2020, approximately $590,672,000 of the Company’s investment in the Bank is restricted as to transfer to the Company without obtaining prior regulatory approval.
The average reserve balance maintained by the Bank under the requirements of the FRB was approximately $1,099,000 for the year ended December 31, 2020.
The Company and the Bank must comply with regulatory capital requirements established by the FRB. 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 Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
In 2013, the FRB approved final rules implementing the Basel Committee on Banking Supervision capital guidelines, referred to a “Basel III.” The final rules established a new “Common Equity Tier I” ratio; new higher
capital ratio requirements, including a capital conservation buffer; narrowed the definitions of capital; imposed new operating restrictions on banking organizations with insufficient capital buffers; and increased the risk weighting of certain assets. The final rules became effective January 1, 2015 for the Company. The capital conservation buffer requirement was phased in beginning January 1, 2016, at 0.625% of risk weighted assets, and increased each year until fully implemented at 2.5% in January 1, 2019. The capital conservation buffer requirement at December 31, 2020 was 2.5%.
As of December 31, 2020, the capital standards require the Company to maintain minimum ratios of “Common Equity Tier I” capital to total risk-weighted assets, “Tier I” capital to total risk-weighted assets, and total capital to risk-weighted assets of 4.50%, 6.00% and 8.00%, respectively. Common Equity Tier I capital is comprised of common stock and related surplus, plus retained earnings, and is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. Tier I capital is comprised of Common Equity Tier I capital plus Additional Tier I Capital, which for the Company includes non-cumulative perpetual preferred stock and trust preferred securities. Total capital is comprised of Tier I capital plus certain adjustments, the largest of which is our allowance for loan losses. Risk-weighted assets refer to our on- and off-balance sheet exposures, adjusted for their related risk levels using formulas set forth in Federal Reserve and FDIC regulations.
In addition to the risk-based capital requirements described above, the Company and the Bank are subject to a leverage capital requirement, which calls for a minimum ratio of Tier I capital (as defined above) to quarterly average total assets of 3.00% to 5.00%, depending upon the institution’s composite ratings as determined by its regulators. The Federal Reserve has not advised the Company of any requirement specifically applicable to it.
In addition to the minimum capital requirements described above, the regulatory framework for prompt corrective action also contains specific capital guidelines applicable to banks for classification as “well capitalized,” which are presented with the minimum ratios, the Company’s ratios and the Bank’s ratios as of December 31, 2020 and 2019 in the following table. Based on the most recent notification from its regulators, the Bank is well capitalized under the framework. There are no conditions or events since that notification that management believes have changed the Company’s classification.
 ActualFully Phased-In Regulatory
Guidelines Minimum		To Be Well Capitalized
Under Current Prompt
Corrective Action Provisions
($ in thousands)AmountRatioAmountRatioAmountRatio
   (must equal or exceed)(must equal or exceed)
As of December 31, 2020
Common Equity Tier I Capital Ratio
Company
$639,369 13.19 %$339,251 7.00 %$ N/AN/A
Bank
682,312 14.08 %339,125 7.00 %314,902 6.50 %
Total Capital Ratio
Company
744,835 15.37 %508,876 10.50 %N/AN/A
Bank
735,282 15.18 %508,688 10.50 %484,465 10.00 %
Tier I Capital Ratio
Company
691,865 14.28 %411,947 8.50 %N/AN/A
Bank
682,312 14.08 %411,795 8.50 %387,572 8.00 %
Leverage Ratio
Company
691,865 9.88 %280,039 4.00 %N/AN/A
Bank
682,312 9.75 %280,003 4.00 %350,004 5.00 %
As of December 31, 2019
Common Equity Tier I Capital Ratio
Company
$610,642 13.28 %$321,994 7.00 %$ N/AN/A
Bank
661,234 14.38 %321,866 7.00 %298,875 6.50 %
Total Capital Ratio
Company
684,931 14.89 %482,991 10.50 %N/AN/A
Bank
683,178 14.86 %482,799 10.50 %459,808 10.00 %
Tier I Capital Ratio
Company
662,987 14.41 %390,993 8.50 %N/AN/A
Bank
661,234 14.38 %390,837 8.50 %367,846 8.00 %
Leverage Ratio
Company
662,987 11.19 %236,904 4.00 %N/AN/A
Bank
661,234 11.17 %236,700 4.00 %295,875 5.00 %