Regulatory Capital

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Regulatory Capital

15.     Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As of June 30, 2020, 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 2.50%. The CCB for the Bank at June 30, 2020 was 5.25%.

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

	June 30, 2020				December 31, 2019
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	683,521	9.56	%	$	680,749	9.65	%
Requirement to be well capitalized		357,421	5.00			352,581	5.00
Excess		326,100	4.56			328,168	4.65
Common Equity Tier I risk-based capital:
Capital level	$	683,521	12.63	%	$	680,749	13.02	%
Requirement to be well capitalized		351,803	6.50			339,944	6.50
Excess		331,718	6.13			340,805	6.52
Tier 1 risk-based capital:
Capital level	$	683,521	12.63	%	$	680,749	13.02	%
Requirement to be well capitalized		432,988	8.00			418,393	8.00
Excess		250,533	4.63			262,356	5.02
Total risk-based capital:
Capital level	$	717,192	13.25	%	$	702,500	13.43	%
Requirement to be well capitalized		541,235	10.00			522,991	10.00
Excess		175,957	3.25			179,509	3.43

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of June 30, 2020, 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 June 30, 2020 was 5.42%.

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

	June 30, 2020				December 31, 2019
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	617,620	8.64	%	$	615,500	8.73	%
Requirement to be well capitalized		357,349	5.00			352,581	5.00
Excess		260,271	3.64			262,919	3.73
Common Equity Tier I risk-based capital:
Capital level	$	583,238	10.79	%	$	572,651	10.95	%
Requirement to be well capitalized		351,397	6.50			339,929	6.50
Excess		231,841	4.29			232,722	4.45
Tier 1 risk-based capital:
Capital level	$	617,620	11.42	%	$	615,500	11.77	%
Requirement to be well capitalized		432,488	8.00			418,374	8.00
Excess		185,132	3.42			197,126	3.77
Total risk-based capital:
Capital level	$	726,291	13.43	%	$	712,251	13.62	%
Requirement to be well capitalized		540,610	10.00			522,967	10.00
Excess		185,681	3.43			189,284	3.62