Regulatory Capital

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Regulatory Capital

14. Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As of December 31, 2023, 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, 2023 and 2022 was 4.81% and 6.37%, respectively.

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

	December 31, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	825,104	9.47	%	$	915,628	10.56	%
Requirement to be well-capitalized		435,792	5.00			433,667	5.00
Excess		389,312	4.47			481,961	5.56
Common Equity Tier I risk-based capital:
Capital level	$	825,104	12.22	%	$	915,628	13.79	%
Requirement to be well-capitalized		438,878	6.50			431,734	6.50
Excess		386,226	5.72			483,894	7.29
Tier I risk-based capital:
Capital level	$	825,104	12.22	%	$	915,628	13.79	%
Requirement to be well-capitalized		540,157	8.00			531,365	8.00
Excess		284,947	4.22			384,263	5.79
Total risk-based capital:
Capital level	$	864,999	12.81	%	$	954,457	14.37	%
Requirement to be well-capitalized		675,196	10.00			664,206	10.00
Excess		189,803	2.81			290,251	4.37

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of December 31, 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 December 31, 2023 and 2022 was 4.93% and 5.25%, respectively.

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

	December 31, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	737,732	8.47	%	$	746,880	8.61	%
Requirement to be well-capitalized		435,748	5.00			433,607	5.00
Excess		301,984	3.47			313,273	3.61
Common Equity Tier I risk-based capital:
Capital level	$	691,754	10.25	%	$	698,258	10.52	%
Requirement to be well-capitalized		438,770	6.50			431,635	6.50
Excess		252,984	3.75			266,623	4.02
Tier I risk-based capital:
Capital level	$	737,732	10.93	%	$	746,880	11.25	%
Requirement to be well-capitalized		540,024	8.00			531,243	8.00
Excess		197,708	2.93			215,637	3.25
Total risk-based capital:
Capital level	$	967,627	14.33	%	$	975,709	14.69	%
Requirement to be well-capitalized		675,030	10.00			664,054	10.00
Excess		292,597	4.33			311,655	4.69