REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

REGULATORY CAPITAL REQUIREMENTS

Note 15 – Regulatory Capital Requirements

We 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 our consolidated financial statements. The Bank is required to comply with applicable capital adequacy standards established by the FDIC. We are exempt from the Federal Reserve Board’s capital adequacy standards as we believe we meet the requirements of the Small Bank Holding Company Policy Statement. West Virginia state chartered banks, such as the Bank, are subject to similar capital requirements adopted by the West Virginia Division of Financial Institutions.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Tier 1 common equity to risk-weighted assets, and of Tier 1 capital to average assets, as defined. As of December 31, 2021 and 2020, we and the Bank meet all capital adequacy requirements to which they are subject.

The most recent notification from the FDIC 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, Tier 1 common equity risk-based and Tier 1 leverage ratios as set forth in the table below. Our actual capital amounts and ratios are presented in the table below.

	Actual			Minimum Capital Requirement			Minimum to be Well Capitalized
(Dollars in thousands)	Amount		Ratio	Amount		Ratio	Amount		Ratio
As of December 31, 2021
Total capital (to risk-weighted assets)
Subsidiary bank	$	339,998	16.7%	$	162,426	8.0%	$	203,032	10.0%
Tier 1 capital (to risk-weighted assets)
Subsidiary bank	$	321,282	15.8%	$	121,819	6.0%	$	162,426	8.0%
Common equity tier 1 capital (to risk-weighted assets)
Subsidiary bank	$	321,282	15.8%	$	91,365	4.5%	$	131,971	6.5%
Tier 1 capital (to average assets)
Subsidiary bank	$	321,282	11.6%	$	111,117	4.0%	$	138,896	5.0%
As of December 31, 2020
Total capital (to risk-weighted assets)
Subsidiary bank	$	273,318	15.8%	$	138,277	8.0%	$	172,846	10.0%
Tier 1 capital (to risk-weighted assets)
Subsidiary bank	$	251,565	14.6%	$	103,708	6.0%	$	138,277	8.0%
Common equity tier 1 capital (to risk-weighted assets)
Subsidiary bank	$	251,565	14.6%	$	77,781	4.5%	$	112,350	6.5%
Tier 1 capital (to average assets)
Subsidiary bank	$	251,565	11.0%	$	91,269	4.0%	$	114,086	5.0%