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Capital Requirements and Restrictions on Retained Earnings
12 Months Ended
Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]  
Capital Requirements and Restrictions on Retained Earnings Capital Requirements and Restrictions on Retained Earnings
Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, for the Bank, prompt corrective action ("PCA") regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory enforcement actions. The net unrealized gain or loss on available for sale securities are excluded from computing regulatory capital. Management believes as of December 31, 2020 the Corporation and the Bank meet all capital adequacy requirements to which they are subject.

The PCA regulations provide five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms alone do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion; brokered deposits may not be accepted, renewed or rolled over; and capital restoration plans are required. As of December 31, 2020 and December 31, 2019, the most recent regulatory notifications categorized the Bank as well capitalized under the PCA regulatory framework. There are no events or conditions since this notification that management believes have changed the Bank’s capital category.

Actual and required capital amounts and ratios are presented below as of December 31, 2020 and December 31, 2019. The capital adequacy ratio includes the capital conservation buffer.
 ActualFor Capital
Adequacy Purposes
To Be Well Capitalized
Under Prompt Corrective
Action Provisions
 AmountRatioAmountRatioAmountRatio
December 31, 2020
Total Capital to Risk Weighted Assets
Consolidated$462,457 14.32 %$339,107 10.50 %N/A
Bank$434,598 13.52 %$337,554 10.50 %$321,480 10.00 %
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated$384,650 11.91 %$274,516 8.50 %N/A
Bank$408,693 12.71 %$273,258 8.50 %$257,184 8.00 %
Common equity Tier 1 to Risk Weighted Assets
Consolidated$306,865 9.50 %$226,072 7.00 %N/A
Bank$401,314 12.48 %$225,036 7.00 %$208,962 6.50 %
Tier 1 (Core) Capital to Average Assets
Consolidated$384,650 8.11 %$189,728 4.00 %N/A
Bank$408,693 8.66 %$188,690 4.00 %$235,863 5.00 %
December 31, 2019
Total Capital to Risk Weighted Assets
Consolidated$350,806 12.51 %$294,407 10.50 %N/A
Bank$330,321 11.87 %$292,271 10.50 %$278,353 10.00 %
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated$281,333 10.03 %$238,330 8.50 %N/A
Bank$312,795 11.24 %$236,600 8.50 %$222,682 8.00 %
Common equity Tier 1 to Risk Weighted Assets
Consolidated$261,333 9.32 %$196,272 7.00 %N/A
Bank$305,416 10.97 %$194,847 7.00 %$180,929 6.50 %
Tier 1 (Core) Capital to Average Assets
Consolidated$281,333 7.86 %$143,189 4.00 %N/A
Bank$312,795 8.79 %$142,301 4.00 %$177,876 5.00 %

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. During 2020, $69,809 of accumulated net earnings of the Bank included in consolidated stockholders’ equity, plus any 2021 net profits retained to the date of the dividend declared, is available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements described above.