Regulatory Capital

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Regulatory Capital

13.     Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards and a Capital Conservation Buffer (“CCB”). As of September 30, 2023, the Bank 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 Bank was 6.06% and 6.37% at September 30, 2023 and December 31, 2022, respectively.

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

	September 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	918,167	10.61	%	$	915,628	10.56	%
Requirement to be well-capitalized		432,771	5.00			433,667	5.00
Excess		485,396	5.61			481,961	5.56
Common Equity Tier I risk-based capital:
Capital level	$	918,167	13.49	%	$	915,628	13.79	%
Requirement to be well-capitalized		442,255	6.50			431,734	6.50
Excess		475,912	6.99			483,894	7.29
Tier I risk-based capital:
Capital level	$	918,167	13.49	%	$	915,628	13.79	%
Requirement to be well-capitalized		544,314	8.00			531,365	8.00
Excess		373,853	5.49			384,263	5.79
Total risk-based capital:
Capital level	$	956,955	14.06	%	$	954,457	14.37	%
Requirement to be well-capitalized		680,393	10.00			664,206	10.00
Excess		276,562	4.06			290,251	4.37

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of September 30, 2023, 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, 2023 and December 31, 2022 was 4.87% and 5.25%, respectively.

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

	September 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	739,364	8.54	%	$	746,880	8.61	%
Requirement to be well-capitalized		432,714	5.00			433,607	5.00
Excess		306,650	3.54			313,273	3.61
Common Equity Tier I risk-based capital:
Capital level	$	692,914	10.19	%	$	698,258	10.52	%
Requirement to be well-capitalized		442,155	6.50			431,635	6.50
Excess		250,759	3.69			266,623	4.02
Tier I risk-based capital:
Capital level	$	739,364	10.87	%	$	746,880	11.25	%
Requirement to be well-capitalized		544,191	8.00			531,243	8.00
Excess		195,173	2.87			215,637	3.25
Total risk-based capital:
Capital level	$	968,152	14.23	%	$	975,709	14.69	%
Requirement to be well-capitalized		680,239	10.00			664,054	10.00
Excess		287,913	4.23			311,655	4.69