Note 14 - Regulatory Capital

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

14. Regulatory Capital

Under current capital regulations, the Bank is required to comply with

four

separate capital adequacy standards. As of

September 30, 2018,

the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. In

2016,

a Capital Conservation Buffer (“CCB”) requirement became effective for banks. The CCB is designed to establish a capital range above minimum capital requirements and impose constraints on dividends, share buybacks and discretionary bonus payments when capital levels fall below prescribed levels. The minimum CCB in

2018

is

1.875%

and increases

0.625%

annually through

2019

to

2.5%.

The CCB for the Bank at

September 30, 2018

was

5.88%.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	September 30, 2018					December 31, 2017
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	655,965		10.12	%	$	631,285		10.11	%
Requirement to be well capitalized		324,032		5.00			312,343		5.00
Excess		331,933		5.12			318,942		5.11
Common Equity Tier I risk-based capital:
Capital level	$	655,965		13.46	%	$	631,285		13.87	%
Requirement to be well capitalized		316,766		6.50			295,937		6.50
Excess		339,199		6.96			335,348		7.37
Tier 1 risk-based capital:
Capital level	$	655,965		13.46	%	$	631,285		13.87	%
Requirement to be well capitalized		389,865		8.00			364,230		8.00
Excess		266,100		5.46			267,055		5.87
Total risk-based capital:
Capital level	$	676,274		13.88	%	$	651,636		14.31	%
Requirement to be well capitalized		487,332		10.00			455,288		10.00
Excess		188,942		3.88			196,348		4.31

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of

September 30, 2018,

the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at

September 30, 2018

was

5.82%.

Set forth below is a summary of the Holding Company’s compliance with banking regulatory capital standards.

	September 30, 2018					December 31, 2017
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	578,034		8.92	%	$	563,426		9.02	%
Requirement to be well capitalized		324,008		5.00			312,278		5.00
Excess		254,026		3.92			251,148		4.02
Common Equity Tier I risk-based capital:
Capital level	$	539,306		11.07	%	$	527,727		11.59	%
Requirement to be well capitalized		316,714		6.50			295,865		6.50
Excess		222,592		4.57			231,862		5.09
Tier 1 risk-based capital:
Capital level	$	578,034		11.86	%	$	563,426		12.38	%
Requirement to be well capitalized		389,801		8.00			364,141		8.00
Excess		188,233		3.86			199,285		4.38
Total risk-based capital:
Capital level	$	673,343		13.82	%	$	658,777		14.47	%
Requirement to be well capitalized		487,252		10.00			455,177		10.00
Excess		186,091		3.82			203,600		4.47