Regulatory Capital Matters

6 Months Ended

Jun. 30, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Matters

Regulatory Capital MattersThe Bank is subject to certain risk-based capital and leverage ratio requirements under the U.S. Basel III capital rules administered by the federal and state banking agencies. Failure to be well-capitalized or to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on the Company's operations or financial condition. The Basel III capital rules also require the Bank to maintain a capital conservation buffer of 2.5% above the minimum risk-based capital ratios in order to absorb losses during periods of economic stress, effective January 1, 2019. Banking institutions with a ratio of common equity tier 1 capital to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends. equity repurchases and compensation based on the amount of the shortfall. Management believes that as of June 30, 2023 and December 31, 2022, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank.

The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated:

	June 30, 2023
	Actual(1)				Required for Capital Adequacy Purposes				Minimum To be Considered "Well Capitalized"
($ in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)
Consolidated	$	222,643	13.10	%	N/A		N/A		N/A		N/A
Bank	220,584		12.98		$	136,000	8.00	%	$	170,000	10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	202,589		11.92		N/A		N/A		N/A		N/A
Bank	200,530		11.80		102,000		6.00		136,000		8.00
Common equity Tier 1 capital (to risk-weighted  assets)
Consolidated	202,589		11.92		N/A		N/A		N/A		N/A
Bank	200,530		11.80		76,500		4.50		110,500		6.50
Tier 1 capital (to average assets)
Consolidated	202,589		9.50		N/A		N/A		N/A		N/A
Bank	200,530		9.41		85,257		4.00		106,571		5.00

(1)The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.

	December 31, 2022
	Actual(1)				Required for Capital Adequacy Purposes				Minimum To be Considered "Well Capitalized"
($ in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)
Consolidated	$	213,862	13.06	%	N/A		N/A		N/A		N/A
Bank	211,981		12.94		$	131,020	8.00	%	$	163,775	10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	194,358		11.87		N/A		N/A		N/A		N/A
Bank	192,477		11.75		98,265		6.00		131,020		8.00
Common equity Tier 1 capital (to risk-weighted  assets)
Consolidated	194,358		11.87		N/A		N/A		N/A		N/A
Bank	192,477		11.75		73,699		4.50		106,454		6.50
Tier 1 capital (to average assets)
Consolidated	194,358		9.38		N/A		N/A		N/A		N/A
Bank	192,477		9.29		82,836		4.00		103,545		5.00

(1)The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.