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CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
12 Months Ended
Sep. 30, 2020
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 
As U.S. banking organizations, the Company and the Bank are required to comply with the regulatory capital rules adopted by the Federal Reserve and the OCC (the "Capital Rules") that became effective on January 1, 2015, subject to phase-in periods for certain requirements and other provisions of the Capital Rules. Under the Capital Rules and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

The Capital Rules require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At September 30, 2020, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements. The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components. 

The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.
 CompanyBankMinimum to be Adequately Capitalized Under Prompt Corrective Action ProvisionsMinimum to be Well Capitalized Under Prompt Corrective Action Provisions
September 30, 2020
Tier 1 leverage capital ratio6.58 %7.56 %4.00 %5.00 %
Common equity Tier 1 capital ratio11.78 13.96 4.50 6.50 
Tier 1 capital ratio 12.18 14.00 6.00 8.00 
Total capital ratio15.30 15.26 8.00 10.00 
September 30, 2019    
Tier 1 leverage capital ratio8.33 %9.65 %4.00 %5.00 %
Common equity Tier 1 capital ratio10.35 12.31 4.50 6.50 
Tier 1 capital ratio 10.71 12.37 6.00 8.00 
Total capital ratio13.01 13.02 8.00 10.00 
The following table provides a reconciliation of the amounts included in the table above for the Company.
 
Standardized Approach(1)
September 30, 2020
(Dollars in Thousands)
Total stockholders' equity$847,308 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities302,396 
LESS: Certain other intangible assets40,964 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards18,361 
LESS: Net unrealized gains (losses) on available-for-sale securities17,762 
LESS: Noncontrolling interest3,603 
Common Equity Tier 1 (1)
464,222 
Long-term borrowings and other instruments qualifying as Tier 113,661 
Tier 1 minority interest not included in common equity tier 1 capital1,894 
Total Tier 1 capital479,777 
Allowance for loan and lease losses49,343 
Subordinated debentures (net of issuance costs)73,807 
Total capital$602,927 
(1) Capital ratios were determined using the Capital Rules that became effective on January 1, 2015. The Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum common equity tier 1 capital ratio; those changes are being fully phased in through the end of 2021.

The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.

(Dollars in Thousands)September 30, 2020
Total stockholders' equity$847,308 
LESS: Goodwill309,505 
LESS: Intangible assets41,692 
Tangible common equity496,111 
LESS: AOCI17,542 
Tangible common equity excluding AOCI$478,569 
Since January 1, 2016, the Company and the Bank have been required 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 three risk-based capital ratios but not the leverage ratio. The required Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios with the buffer are currently 7.0%, 8.5% and 10.5%, respectively.