Regulatory Matters

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023 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 March 31, 2024 and December 31, 2023 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 March 31, 2024:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	1,212,626	14.97	%	$	850,469	10.50	%	N/A		N/A
Tri Counties Bank	$	1,202,415	14.85	%	$	850,265	10.50	%	$	809,776	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	1,068,911	13.20	%	$	688,475	8.50	%	N/A		N/A
Tri Counties Bank	$	1,100,831	13.59	%	$	688,310	8.50	%	$	647,821	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	1,011,649	12.49	%	$	566,979	7.00	%	N/A		N/A
Tri Counties Bank	$	1,100,831	13.59	%	$	566,843	7.00	%	$	526,355	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	1,068,911	11.01	%	$	388,326	4.00	%	N/A		N/A
Tri Counties Bank	$	1,100,831	11.34	%	$	388,253	4.00	%	$	485,316	5.00	%

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of December 31, 2023:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	1,196,106	14.73	%	$	852,850	10.50	%	N/A		N/A
Tri Counties Bank	$	1,190,542	14.66	%	$	852,648	10.50	%	$	812,046	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	1,052,063	12.95	%	$	690,402	8.50	%	N/A		N/A
Tri Counties Bank	$	1,088,717	13.41	%	$	690,239	8.50	%	$	649,637	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	994,907	12.25	%	$	568,566	7.00	%	N/A		N/A
Tri Counties Bank	$	1,088,717	13.41	%	$	568,432	7.00	%	$	527,830	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	1,052,063	10.75	%	$	391,620	4.00	%	N/A		N/A
Tri Counties Bank	$	1,088,717	11.12	%	$	391,574	4.00	%	$	489,468	5.00	%

As of March 31, 2024 and December 31, 2023, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules. Also, at March 31, 2024 and December 31, 2023, 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 March 31, 2024, the Company and the Bank are in compliance with the capital conservation buffer requirement.