| Regulatory Matters |
REGULATORY MATTERS
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1, and Common equity tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2015 and 2014, that the Company met all capital adequacy requirements to which it is subject.
As of December 31, 2015 and 2014, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized” the Bank must maintain minimum total risk-based capital, Tier 1 risk-based capital, Common equity tier 1 risk-based capital, and Tier 1 leverage ratios as set forth in the table.
The actual capital amounts and ratios are presented in the table below:
| | | | | | | | | | | | | | | | | | | | | | | Actual | | For Capital Adequacy Purposes | | To Be Well Capitalized Under Applicable Action Provisions | (in thousands) | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | As of December 31, 2015: | | | | | | | | | | | | Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | Enterprise Financial Services Corp | $ | 418,367 |
| | 11.85 | % | | $ | 282,442 |
| | 8.00 | % | | $ | — |
| | — | % | Enterprise Bank & Trust | 386,531 |
| | 10.98 |
| | 281,632 |
| | 8.00 |
| | 352,040 |
| | 10.00 |
| Tier 1 Capital (to Risk Weighted Assets) | | | | | | | | | | | | Enterprise Financial Services Corp | 374,676 |
| | 10.61 |
| | 211,831 |
| | 6.00 |
| | — |
| | — |
| Enterprise Bank & Trust | 342,840 |
| | 9.74 |
| | 211,224 |
| | 6.00 |
| | 281,632 |
| | 8.00 |
| Common Equity Tier 1 Capital (to Risk Weighted Assets)1 | | | | | | | | | | | | Enterprise Financial Services Corp | 319,553 |
| | 9.05 |
| | 158,873 |
| | 4.50 |
| | — |
| | — |
| Enterprise Bank & Trust | 342,816 |
| | 9.74 |
| | 158,418 |
| | 4.50 |
| | 228,826 |
| | 6.50 |
| Leverage Ratio (Tier 1 Capital to Average Assets) | | | | | | | | | | | | Enterprise Financial Services Corp | 374,676 |
| | 10.71 |
| | 139,893 |
| | 4.00 |
| | — |
| | — |
| Enterprise Bank & Trust | 342,840 |
| | 9.84 |
| | 139,311 |
| | 4.00 |
| | 174,138 |
| | 5.00 |
| | | | | | | | | | | | | As of December 31, 2014: | | | | | | | | | | | | Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | Enterprise Financial Services Corp | $ | 369,868 |
| | 13.40 | % | | $ | 220,858 |
| | 8.00 | % | | $ | — |
| | — | % | Enterprise Bank & Trust | 343,334 |
| | 12.51 |
| | 219,645 |
| | 8.00 |
| | 274,556 |
| | 10.00 |
| Tier 1 Capital (to Risk Weighted Assets) | | | | | | | | | | | | Enterprise Financial Services Corp | 335,221 |
| | 12.14 |
| | 110,429 |
| | 4.00 |
| | — |
| | — |
| Enterprise Bank & Trust | 308,874 |
| | 11.25 |
| | 109,823 |
| | 4.00 |
| | 164,734 |
| | 6.00 |
| Leverage Ratio (Tier 1 Capital to Average Assets) | | | | | | | | | | | | Enterprise Financial Services Corp | 335,221 |
| | 10.48 |
| | 96,000 |
| | 3.00 |
| | — |
| | — |
| Enterprise Bank & Trust | 308,874 |
| | 9.71 |
| | 95,411 |
| | 3.00 |
| | 159,018 |
| | 5.00 |
| | | | | | | | | | | | | 1 Not an applicable regulatory ratio until implementation of Basel III in 2015
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