Regulatory Matters

12 Months Ended

Dec. 31, 2020

Regulatory Matters [Abstract]

Regulatory Matters

Note 17: Regulatory Matters

As of December 31, 2020, based on its call report computations, State Bank was classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2020 that management believes have changed State Bank’s capital classification.

State Bank’s actual capital amounts and ratios are presented in the following table. Capital levels are presented for the State Bank only as the Company is exempt from quarterly reporting at the holding company level:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Procedures
($ in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2020
Tier I Capital to average assets	$	119,480		9.94	%	$	48,099		4.0	%	$	60,123		5.0	%
Tier I Common equity capital to risk-weighted assets		119,480		12.91	%		41,651		4.5	%		60,162		6.5	%
Tier I Capital to risk-weighted assets		119,480		12.91	%		55,534		6.0	%		74,046		8.0	%
Total Risk-based capital to risk-weighted assets		131,062		14.16	%		74,046		8.0	%		92,557		10.0	%
As of December 31, 2019
Tier I Capital to average assets	$	116,884		11.36	%	$	41,165		4.0	%	$	51,456		5.0	%
Tier I Common equity capital to risk-weighted assets		116,884		12.46	%		42,204		4.5	%		60,962		6.5	%
Tier I Capital to risk-weighted assets		116,884		12.46	%		56,273		6.0	%		75,030		8.0	%
Total Risk-based capital to risk-weighted assets		125,639		13.40	%		75,030		8.0	%		93,788		10.0	%

The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was 2.50 percent at December 31, 2020. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2020, State Bank met all capital adequacy requirements to which they are subject.