Regulatory Matters

9 Months Ended

Sep. 30, 2021

Banking Regulation, Global Systemically Important Bank (GSIB) Surcharge [Abstract]

Regulatory Matters

Regulatory Matters

The Company is subject to various regulatory capital requirements administered by 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. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification 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 Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The following tables present actual and required capital ratios as of September 30, 2021 and December 31, 2020 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of September 30, 2021 and December 31, 2020 based on the then phased-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of September 30, 2021:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	869,196	15.41	%	$	592,435	10.50	%	N/A		N/A
Tri Counties Bank	$	860,080	15.26	%	$	591,775	10.50	%	$	563,595	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	798,433	14.15	%	$	479,590	8.50	%	N/A		N/A
Tri Counties Bank	$	789,416	14.01	%	$	479,056	8.50	%	$	450,876	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	742,209	13.15	%	$	394,957	7.00	%	N/A		N/A
Tri Counties Bank	$	789,416	14.01	%	$	394,517	7.00	%	$	366,337	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	798,433	9.85	%	$	324,391	4.00	%	N/A		N/A
Tri Counties Bank	$	789,416	9.74	%	$	324,254	4.00	%	$	405,317	5.00	%

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of December 31, 2020:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	793,433	15.22	%	$	547,352	10.50	%	N/A		N/A
Tri Counties Bank	$	780,320	14.97	%	$	547,156	10.50	%	$	521,101	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	727,879	13.96	%	$	443,094	8.50	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	442,936	8.50	%	$	416,881	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	671,975	12.89	%	$	364,901	7.00	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	364,771	7.00	%	$	338,716	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	727,879	9.93	%	$	293,138	4.00	%	N/A		N/A
Tri Counties Bank	$	714,811	9.76	%	$	292,949	4.00	%	$	366,186	5.00	%

As of September 30, 2021 and December 31, 2020, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules. Also, at September 30, 2021 and December 31, 2020, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action.

The Basel III Capital Rules require for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the risk-based capital ratios but not the leverage ratio. At September 30, 2021, the Company and the Bank are in compliance with the capital conservation buffer requirement.