Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations |
The following tables summarize both the Corporation’s and the Bank’s capital ratios and the ratios required by their federal regulators: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | Actual | | Minimum Required for Capital Adequacy Purposes | | For Capital Adequacy Purposes Plus Capital Conservation Buffer | | Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | | (Dollars in Thousands) | Total capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 258,607 | | | 11.25 | % | | $ | 183,965 | | | 8.00 | % | | $ | 241,454 | | | 10.50 | % | | N/A | | N/A | First Business Bank | | $ | 251,116 | | | 10.97 | % | | $ | 183,053 | | | 8.00 | % | | $ | 240,257 | | | 10.50 | % | | $ | 228,816 | | | 10.00 | % | Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 206,104 | | | 8.96 | % | | $ | 137,974 | | | 6.00 | % | | $ | 195,463 | | | 8.50 | % | | N/A | | N/A | First Business Bank | | 222,500 | | | 9.72 | | | 137,290 | | | 6.00 | | | 194,494 | | | 8.50 | | | 183,053 | | | 8.00 | | Common equity tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 196,042 | | | 8.53 | % | | $ | 103,480 | | | 4.50 | % | | $ | 160,970 | | | 7.00 | % | | N/A | | N/A | First Business Bank | | 222,500 | | | 9.72 | | | 102,967 | | | 4.50 | | | 160,171 | | | 7.00 | | | 148,731 | | | 6.50 | | Tier 1 leverage capital (to adjusted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 206,104 | | | 7.99 | % | | $ | 103,228 | | | 4.00 | % | | $ | 103,228 | | | 4.00 | % | | N/A | | N/A | First Business Bank | | 222,500 | | | 8.67 | | | 102,635 | | | 4.00 | | | 102,635 | | | 4.00 | | | 128,294 | | | 5.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2019 | | | Actual | | Minimum Required for Capital Adequacy Purposes | | For Capital Adequacy Purposes Plus Capital Conservation Buffer | | Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | | (Dollars in Thousands) | Total capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 239,029 | | | 12.01 | % | | $ | 159,185 | | | 8.00 | % | | $ | 208,930 | | | 10.50 | % | | N/A | | N/A | First Business Bank | | 233,181 | | | 11.79 | | | 158,177 | | | 8.00 | | | 207,607 | | | 10.50 | % | | $ | 197,721 | | | 10.00 | % | Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 194,456 | | | 9.77 | % | | $ | 119,388 | | | 6.00 | % | | $ | 169,134 | | | 8.50 | % | | N/A | | N/A | First Business Bank | | 212,315 | | | 10.74 | | | 118,633 | | | 6.00 | | | 168,063 | | | 8.50 | % | | $ | 158,177 | | | 8.00 | % | Common equity tier 1 capital (to risk-weighted assets)
| | | | | | | | | | | | | | | | | Consolidated | | $ | 184,409 | | | 9.27 | % | | $ | 89,541 | | | 4.50 | % | | $ | 139,286 | | | 7.00 | % | | N/A | | N/A | First Business Bank | | 212,315 | | | 10.74 | | | 88,974 | | | 4.50 | | | 138,405 | | | 7.00 | % | | $ | 128,519 | | | 6.50 | % | Tier 1 leverage capital (to adjusted assets) | | | | | | | | | | | | | | | | | Consolidated | | $ | 194,456 | | | 9.27 | % | | $ | 83,950 | | | 4.00 | % | | $ | 83,950 | | | 4.00 | % | | N/A | | N/A | First Business Bank | | 212,315 | | | 10.18 | | | 83,414 | | | 4.00 | | | 83,414 | | | 4.00 | | | $ | 104,268 | | | 5.00 | % |
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Reconciliation of stockholders' equity to federal regulatory capital |
The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2020 and 2019, respectively: | | | | | | | | | | | | | | | | | As of December 31, | | | 2020 | | 2019 | | | (In Thousands) | Stockholders’ equity of the Corporation | | $ | 206,162 | | | $ | 194,156 | | Net unrealized and accumulated losses on specific items | | 933 | | | 1,348 | | Disallowed servicing assets | | (587) | | | (629) | | Disallowed goodwill and other intangibles | | (10,466) | | | (10,466) | | Junior subordinated notes | | 10,062 | | | 10,047 | | Tier 1 capital | | 206,104 | | | 194,456 | | Allowable general valuation allowances and subordinated debt | | 52,503 | | | 44,573 | | Total capital | | $ | 258,607 | | | $ | 239,029 | |
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