Regulatory Matters

12 Months Ended

Dec. 31, 2021

Regulatory Matters [Abstract]

Regulatory Matters

NOTE 23 – Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. The capital rules require banks and bank holding companies (other than bank holding companies, such as the Company, that qualify under the Federal Reserve’s Small Bank Holding Company Policy Statement) to maintain a minimum total risked-based capital ratio of at least 8%, a total Tier 1 capital ratio of at least 6%, a minimum common equity Tier 1 capital ratio of at least 4.5%, and a leverage ratio of at least 4%. Bank holding companies and banks are also required to hold a capital conservation buffer of common equity Tier 1 capital of 2.5% to avoid limitations on capital distributions and discretionary executive compensation payments. The capital conservation buffer was phased in incrementally over time, becoming fully effective on January 1, 2019, and consists of an additional amount of common equity equal to 2.5% of risk-weighted assets.

To be considered “well-capitalized” for purposes of certain rules and prompt corrective action requirements, the Bank must maintain a minimum total risked-based capital ratio of at least 10%, a total Tier 1 capital ratio of at least 8%, a common equity Tier 1 capital ratio of at least 6.5%, and a leverage ratio of at least 5%. As of December 31, 2021, our capital ratios exceed these ratios and we remain “well capitalized.”

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The following table summarizes the capital amounts and ratios of the Bank and the Company and the regulatory minimum requirements at December 31, 2021 and 2020.

											To be well
											capitalized
						For capital					under prompt
						adequacy purposes					corrective action
	Actual					minimum					provisions minimum
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2021
The Bank
Total Capital (to risk weighted assets)	$	331,052		14.36	%	$	184,418		8.00	%	$	230,522		10.00	%
Tier 1 Capital (to risk weighted assets)		302,217		13.11	%		138,313		6.00	%		184,418		8.00	%
Common Equity Tier 1 Capital (to risk weighted assets)		302,217		13.11	%		103,735		4.50	%		149,839		6.50	%
Tier 1 Capital (to average assets)		302,217		10.55	%		114,537		4.00	%		143,172		5.00	%
The Company(1)
Total Capital (to risk weighted assets)		343,476		14.90	%		184,418		8.00	%		n/a		n/a
Tier 1 Capital (to risk weighted assets)		291,641		12.65	%		138,313		6.00	%		n/a		n/a
Common Equity Tier 1 Capital (to risk weighted assets)		278,641		12.09	%		103,735		4.50	%		n/a		n/a
Tier 1 Capital (to average assets)		291,641		10.18	%		114,555		4.00	%		n/a		n/a

											To be well
											capitalized
						For capital					under prompt
						adequacy purposes					corrective action
	Actual					minimum					provisions minimum
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2020
The Bank
Total Capital (to risk weighted assets)	$	279,414		13.92	%	$	160,554		8.00	%	$	200,693		10.00	%
Tier 1 Capital (to risk weighted assets)		254,092		12.66	%		120,416		6.00	%		160,554		8.00	%
Common Equity Tier 1 Capital (to risk weighted assets)		254,092		12.66	%		90,312		4.50	%		130,451		6.50	%
Tier 1 Capital (to average assets)		254,092		10.26	%		99,094		4.00	%		123,867		5.00	%
The Company(1)
Total Capital (to risk weighted assets)		288,593		14.38	%		160,554		8.00	%		n/a		n/a
Tier 1 Capital (to risk weighted assets)		240,271		11.97	%		120,416		6.00	%		n/a		n/a
Common Equity Tier 1 Capital (to risk weighted assets)		227,271		11.32	%		90,312		4.50	%		n/a		n/a
Tier 1 Capital (to average assets)		240,271		9.70	%		99,094		4.00	%		n/a		n/a

​⁽¹⁾ Under the Federal Reserve’s Small Bank Holding Company Policy Statement, the Company is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the Federal Reserve (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to the Company, we calculate these ratios for our own planning and monitoring purposes.