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REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2019
Banking and Thrift [Abstract]  
REGULATORY MATTERS

Note 24 – 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 Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

 

Quantitative measures established and defined by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As of December 31, 2019 and 2018, the capital levels of the Company and the Bank substantially exceeded all applicable capital adequacy requirements.

 

As of December 31, 2019, the most recent notification from the Bank’s primary regulator 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 Total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage 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 category.

The Company's and the Bank's actual capital amounts and ratios at December 31 for the years indicated are presented in the following table:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To Be Well

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Under

 

 

 

 

 

 

 

 

 

For Capital

 

Prompt Corrective

 

 

 

Actual

 

Adequacy Purposes

 

Action Provisions

(Dollars in thousands)

 

Amount

 

Ratio

 

Amount

 

Ratio

 

Amount

 

Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital to risk-weighted assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

1,052,328

 

14.85

%

 

$

566,863

 

8.00

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

950,793

 

13.44

%

 

$

565,794

 

8.00

%

 

$

707,243

 

10.00

%

Tier 1 Capital to risk-weighted assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

794,300

 

11.21

%

 

$

425,147

 

6.00

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

894,659

 

12.65

%

 

$

424,346

 

6.00

%

 

$

565,794

 

8.00

%

Common Equity Tier 1 Capital to risk-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

weighted assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

783,903

 

11.06

%

 

$

318,860

 

4.50

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

894,659

 

12.65

%

 

$

318,259

 

4.50

%

 

$

459,708

 

6.50

%

Tier 1 Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

794,300

 

9.70

%

 

$

327,577

 

4.00

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

894,659

 

10.94

%

 

$

327,123

 

4.00

%

 

$

408,904

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital to risk-weighted assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

818,393

 

12.26

%

 

$

533,994

 

8.00

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

780,858

 

11.72

%

 

$

532,970

 

8.00

%

 

$

666,213

 

10.00

%

Tier 1 Capital to risk-weighted assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

737,883

 

11.06

%

 

$

400,496

 

6.00

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

727,371

 

10.92

%

 

$

399,728

 

6.00

%

 

$

532,970

 

8.00

%

Common Equity Tier 1 Capital to risk-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

weighted assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

727,481

 

10.90

%

 

$

300,372

 

4.50

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

727,371

 

10.92

%

 

$

299,796

 

4.50

%

 

$

433,038

 

6.50

%

Tier 1 Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

737,883

 

9.50

%

 

$

310,807

 

4.00

%

 

 

N/A

 

N/A

 

 

Sandy Spring Bank

 

$

727,371

 

9.38

%

 

$

310,224

 

4.00

%

 

$

387,780

 

5.00

%