Regulatory Capital

12 Months Ended

Dec. 31, 2021

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 December 31, 2021, 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, 2021 and 2020 was 6.13% and 4.30%, respectively.

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

	December 31, 2021				December 31, 2020
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	840,105	10.39	%	$	733,010	9.27	%
Requirement to be well capitalized		404,366	5.00			395,510	5.00
Excess		435,739	5.39			337,500	4.27
Common Equity Tier I risk-based capital:
Capital level	$	840,105	13.58	%	$	733,010	11.65	%
Requirement to be well capitalized		402,100	6.50			408,929	6.50
Excess		438,005	7.08			324,081	5.15
Tier I risk-based capital:
Capital level	$	840,105	13.58	%	$	733,010	11.65	%
Requirement to be well capitalized		494,892	8.00			503,297	8.00
Excess		345,213	5.58			229,713	3.65
Total risk-based capital:
Capital level	$	874,400	14.13	%	$	773,807	12.30	%
Requirement to be well capitalized		618,615	10.00			629,121	10.00
Excess		255,785	4.13			144,686	2.30

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of December 31, 2021, 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, 2021 and 2020 was 5.75% and 4.54%, respectively.

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

	December 31, 2021				December 31, 2020
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	726,174	8.98	%	$	662,987	8.38	%
Requirement to be well capitalized		404,422	5.00			395,439	5.00
Excess		321,752	3.98			267,548	3.38
Common Equity Tier I risk-based capital:
Capital level	$	671,494	10.86	%	$	621,247	9.88	%
Requirement to be well capitalized		401,836	6.50			408,694	6.50
Excess		269,658	4.36			212,553	3.38
Tier I risk-based capital:
Capital level	$	726,174	11.75	%	$	662,987	10.54	%
Requirement to be well capitalized		494,568	8.00			503,008	8.00
Excess		231,606	3.75			159,979	2.54
Total risk-based capital:
Capital level	$	885,469	14.32	%	$	794,034	12.63	%
Requirement to be well capitalized		618,210	10.00			628,760	10.00
Excess		267,259	4.32			165,274	2.63