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Regulatory Matters
 12 Months Ended
Dec. 31, 2022
Regulatory Matters [Abstract]  
Regulatory Matters

(13) Regulatory Matters

The Bank is 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 Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Total and Tier I Capital to Risk-Weighted Assets and of Tier I Capital to Average Assets. Management believes, as of December 31, 2022 and 2021, that the Bank meets all capital adequacy requirements to which it is subject.

As of December 31, 2022 and 2021, the most recent notification from the OCC 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 common equity Tier 1 risk-based, total risk-based, Tier I risk-based and Tier I leverage ratios as set forth below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios for December 31, 2022 and 2021 are presented in the table below (in thousands).

 

 

 

 

 

 

 

 

 

For Capital

 

 

To Be Well Capitalized

 

 

 

 

 

 

 

 

 

Adequacy

 

 

Under Prompt Corrective

 

 

 

Actual

 

 

Purposes

 

 

Action Provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

As of December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 (to Risk Weighted Assets)

 

$

87,397

 

 

 

11.86

%

 

$

33,170

 

 

 

4.50

%

 

$

47,913

 

 

 

6.50

%

Total Capital (to Risk Weighted Assets)

 

 

96,612

 

 

 

13.11

%

 

 

58,970

 

 

 

8.00

%

 

 

73,712

 

 

 

10.00

%

Tier I Capital (to Risk Weighted Assets)

 

 

87,397

 

 

 

11.86

%

 

 

44,227

 

 

 

6.00

%

 

 

58,970

 

 

 

8.00

%

Tier I Capital (to Average Assets)

 

 

87,397

 

 

 

10.97

%

 

 

31,865

 

 

 

4.00

%

 

 

39,832

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 (to Risk Weighted Assets)

 

$

83,662

 

 

 

13.47

%

 

$

27,960

 

 

 

4.50

%

 

$

40,386

 

 

 

6.50

%

Total Capital (to Risk Weighted Assets)

 

 

91,438

 

 

 

14.75

%

 

 

49,706

 

 

 

8.00

%

 

 

62,133

 

 

 

10.00

%

Tier I Capital (to Risk Weighted Assets)

 

 

83,662

 

 

 

13.47

%

 

 

37,280

 

 

 

6.00

%

 

 

49,706

 

 

 

8.00

%

Tier I Capital (to Average Assets)

 

 

83,662

 

 

 

10.77

%

 

 

31,070

 

 

 

4.00

%

 

 

38,837

 

 

 

5.00

%