Regulatory Capital

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies.

Regulatory Capital

15. Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As of December 31, 2020, the Bank continued to be categorized as “well-capitalized” under the prompt corrective action regulations and continued 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 2.5%. The CCB for the Bank at December 31, 2020 and 2019 was 4.30% and 5.43%, respectively.

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

	December 31, 2020				December 31, 2019
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	733,010	9.27	%	$	680,749	9.65	%
Requirement to be well capitalized		395,510	5.00			352,581	5.00
Excess		337,500	4.27			328,168	4.65
Common Equity Tier I risk-based capital:
Capital level	$	733,010	11.65	%	$	680,749	13.02	%
Requirement to be well capitalized		408,929	6.50			339,944	6.50
Excess		324,081	5.15			340,805	6.52
Tier I risk-based capital:
Capital level	$	733,010	11.65	%	$	680,749	13.02	%
Requirement to be well capitalized		503,297	8.00			418,393	8.00
Excess		229,713	3.65			262,356	5.02
Total risk-based capital:
Capital level	$	773,807	12.30	%	$	702,500	13.43	%
Requirement to be well capitalized		629,121	10.00			522,991	10.00
Excess		144,686	2.30			179,509	3.43

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of December 31, 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 December 31, 2020 and 2019 was 4.54% and 5.62%, respectively.

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

	December 31, 2020				December 31, 2019
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	662,987	8.38	%	$	615,500	8.73	%
Requirement to be well capitalized		395,439	5.00			352,581	5.00
Excess		267,548	3.38			262,919	3.73
Common Equity Tier I risk-based capital:
Capital level	$	621,247	9.88	%	$	572,651	10.95	%
Requirement to be well capitalized		408,694	6.50			339,929	6.50
Excess		212,553	3.38			232,722	4.45
Tier I risk-based capital:
Capital level	$	662,987	10.54	%	$	615,500	11.77	%
Requirement to be well capitalized		503,008	8.00			418,374	8.00
Excess		159,979	2.54			197,126	3.77
Total risk-based capital:
Capital level	$	794,034	12.63	%	$	712,251	13.62	%
Requirement to be well capitalized		628,760	10.00			522,967	10.00
Excess		165,274	2.63			189,284	3.62