Note 15 - Regulatory Capital

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

15.    Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As September 30, 2019, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The Bank is also required to comply with a Capital Conservation Buffer (“CCB”). 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 is 2.500%. The CCB for the Bank at September 30, 2019 was 5.21%.

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

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	673,084		9.66	%	$	660,782		9.85	%
Requirement to be well capitalized		348,415		5.00			335,512		5.00
Excess		324,669		4.66			325,270		4.85
Common Equity Tier I risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		342,103		6.50			323,386		6.50
Excess		330,981		6.29			337,396		6.78
Tier 1 risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		421,049		8.00			398,014		8.00
Excess		252,035		4.79			262,768		5.28
Total risk-based capital:
Capital level	$	695,120		13.21	%	$	681,727		13.70	%
Requirement to be well capitalized		526,312		10.00			497,517		10.00
Excess		168,808		3.21			184,210		3.70

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of September 30, 2019, 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, 2019 was 5.37%.

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

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	606,844		8.71	%	$	586,582		8.74	%
Requirement to be well capitalized		348,355		5.00			335,616		5.00
Excess		258,489		3.71			250,966		3.74
Common Equity Tier I risk-based capital:
Capital level	$	564,466		10.73	%	$	546,230		10.98	%
Requirement to be well capitalized		342,078		6.50			323,382		6.50
Excess		222,388		4.23			222,848		4.48
Tier 1 risk-based capital:
Capital level	$	606,844		11.53	%	$	586,582		11.79	%
Requirement to be well capitalized		421,019		8.00			398,008		8.00
Excess		185,825		3.53			188,574		3.79
Total risk-based capital:
Capital level	$	703,879		13.37	%	$	682,527		13.72	%
Requirement to be well capitalized		526,274		10.00			497,511		10.00
Excess		177,605		3.37			185,016		3.72