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Minimum Regulatory Capital
 9 Months Ended
Sep. 30, 2021
Regulatory Matters [Abstract]  
Minimum Regulatory Capital

Note 13 – Minimum Regulatory Capital

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, 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, financial institutions must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. A financial institution's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (the “Basel III rules”) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements phased-in over a multi-year schedule and fully phased-in at January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios of 2.50% for all ratios,

except the tier 1 leverage ratio. If a banking organization dips into its capital conservation buffer, it is subject to limitations on certain activities, including payment of dividends, share repurchases, and discretionary compensation to certain officers. Management believes as of September 30, 2021 and December 31, 2020, the Bank met all capital adequacy requirements to which it is subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized; although, these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2021, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework. There are no conditions or events since that notification that management believes have changed the institution's category.

The following tables present the capital and capital ratios to which the Bank is subject and the amounts and ratios to be adequately and well capitalized as of the dates stated. Adequately capitalized ratios include the conversation buffer.
 

 

 

Actual

 

 

For Capital
Adequacy
Purposes

 

 

To Be Well
Capitalized

 

(Dollars in thousands)

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

As of September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

269,123

 

 

 

13.15

%

 

$

214,936

 

 

 

10.50

%

 

$

204,701

 

 

 

10.00

%

Tier 1 capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

255,997

 

 

 

12.51

%

 

$

173,996

 

 

 

8.50

%

 

$

163,761

 

 

 

8.00

%

Common equity tier 1 capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

255,997

 

 

 

12.51

%

 

$

143,291

 

 

 

7.00

%

 

$

133,056

 

 

 

6.50

%

Tier 1 leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

255,997

 

 

 

9.72

%

 

$

105,358

 

 

 

4.00

%

 

$

131,698

 

 

 

5.00

%

 

 

 

Actual

 

 

For Capital
Adequacy
Purposes

 

 

To Be Well
Capitalized

 

(Dollars in thousands)

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

As of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

109,219

 

 

 

13.10

%

 

$

87,574

 

 

 

10.50

%

 

$

83,404

 

 

 

10.00

%

Tier 1 capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

98,751

 

 

 

11.84

%

 

$

70,893

 

 

 

8.50

%

 

$

66,723

 

 

 

8.00

%

Common equity tier 1 capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

98,751

 

 

 

11.84

%

 

$

58,383

 

 

 

7.00

%

 

$

54,213

 

 

 

6.50

%

Tier 1 leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(To average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Ridge Bank, N.A.

 

$

98,751

 

 

 

8.34

%

 

$

47,363

 

 

 

4.00

%

 

$

59,180

 

 

 

5.00

%

 

 

The Company's principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amounts of dividends that may be paid without approval of regulatory agencies.