Regulatory Capital

12 Months Ended

Dec. 31, 2022

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, 2022, 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, 2022 and 2021 was 6.37% and 6.13%, respectively.

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

	December 31, 2022				December 31, 2021
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	915,628	10.56	%	$	840,105	10.39	%
Requirement to be well-capitalized		433,667	5.00			404,366	5.00
Excess		481,961	5.56			435,739	5.39
Common Equity Tier I risk-based capital:
Capital level	$	915,628	13.79	%	$	840,105	13.58	%
Requirement to be well-capitalized		431,734	6.50			402,100	6.50
Excess		483,894	7.29			438,005	7.08
Tier I risk-based capital:
Capital level	$	915,628	13.79	%	$	840,105	13.58	%
Requirement to be well-capitalized		531,365	8.00			494,892	8.00
Excess		384,263	5.79			345,213	5.58
Total risk-based capital:
Capital level	$	954,457	14.37	%	$	874,400	14.13	%
Requirement to be well-capitalized		664,206	10.00			618,615	10.00
Excess		290,251	4.37			255,785	4.13

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of December 31, 2022, 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, 2022 and 2021 was 5.25% and 5.75%, respectively.

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

	December 31, 2022				December 31, 2021
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	746,880	8.61	%	$	726,174	8.98	%
Requirement to be well-capitalized		433,607	5.00			404,422	5.00
Excess		313,273	3.61			321,752	3.98
Common Equity Tier I risk-based capital:
Capital level	$	698,258	10.52	%	$	671,494	10.86	%
Requirement to be well-capitalized		431,635	6.50			401,836	6.50
Excess		266,623	4.02			269,658	4.36
Tier I risk-based capital:
Capital level	$	746,880	11.25	%	$	726,174	11.75	%
Requirement to be well-capitalized		531,243	8.00			494,568	8.00
Excess		215,637	3.25			231,606	3.75
Total risk-based capital:
Capital level	$	975,709	14.69	%	$	885,469	14.32	%
Requirement to be well-capitalized		664,054	10.00			618,210	10.00
Excess		311,655	4.69			267,259	4.32