Regulatory Matters

3 Months Ended

Mar. 31, 2024

Regulatory Matters

Regulatory Matters

Note 9:   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 consolidated financial statements. Management believes that, as of March 31, 2024, the Company and the Bank met all capital adequacy requirements to which they are subject.

The capital rules require the Company to maintain a 2.5% capital conservation buffer with respect to Common Equity Tier I capital, Tier I capital to risk-weighted assets, and total capital to risk-weighted assets, which is included in the column “Required to be Considered Adequately Capitalized” within the table below. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, as well as certain discretionary bonus payments to executive officers.

The Company and the Bank opted to exclude AOCI from the regulatory capital calculations. As a result, changes in AOCI, net of tax, do not impact the Company’s or Bank’s regulatory capital ratios.

The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2024 and December 31, 2023 are presented in the following table:

					Required to be Considered				Required to be Considered
	Actual				Well Capitalized				Adequately Capitalized(1)
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
March 31, 2024
Total Capital to Risk-Weighted Assets
Consolidated	$	825,110	11.4	%		N/A	N/A		$	761,189	10.5	%
Bank		806,893	11.1		$	724,451	10.0	%		760,673	10.5
Tier 1 Capital to Risk-Weighted Assets
Consolidated		745,321	10.3			N/A	N/A			616,201	8.5
Bank		727,104	10.0			579,561	8.0			615,783	8.5
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated		736,438	10.2			N/A	N/A			507,460	7.0
Bank		727,104	10.0			470,893	6.5			507,116	7.0
Tier 1 Capital to Average Assets
Consolidated		745,321	10.1			N/A	N/A			295,231	4.0
Bank	$	727,104	9.9	%	$	369,073	5.0	%	$	295,258	4.0	%
December 31, 2023
Total Capital to Risk-Weighted Assets
Consolidated	$	807,018	11.2	%		N/A	N/A		$	756,285	10.5	%
Bank		800,522	11.1		$	719,705	10.0	%		755,691	10.5
Tier 1 Capital to Risk-Weighted Assets
Consolidated		727,723	10.1			N/A	N/A			612,231	8.5
Bank		721,227	10.0			575,764	8.0			611,750	8.5
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated		718,855	10.0			N/A	N/A			504,190	7.0
Bank		721,227	10.0			467,809	6.5			503,794	7.0
Tier 1 Capital to Average Assets
Consolidated		727,723	10.0			N/A	N/A			292,517	4.0
Bank	$	721,227	9.9	%	$	365,675	5.0	%	$	292,540	4.0	%

(1) Represents the minimum capital required for capital adequacy under Basel III. Includes capital conservation buffer of 2.5%.