XML 36 R26.htm IDEA: XBRL DOCUMENT v3.23.2
Regulatory Matters
 6 Months Ended
Jun. 30, 2023
Banking Regulation [Abstract]  
Regulatory Matters Regulatory Matters
The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material and adverse effect on the Company’s and the Bank’s business, financial condition and results of operation, such as restrictions on growth or the payment of dividends or other capital distributions or management fees. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
At June 30, 2023, the capital ratios for the Company and the Bank were in excess of all regulatory minimum capital ratios with the addition of the conservation buffer.
On January 1, 2020, the Company adopted ASU 2016-13 and implemented the CECL methodology. In response to the COVID-19 pandemic, federal regulatory agencies published a final rule that provides the option to delay the cumulative effect of the day 1 impact of CECL adoption on regulatory capital, along with 25% of the change in the adjusted allowance for credit losses (as computed for regulatory capital purposes, which excludes purchased credit deteriorated (“PCD”) loans), for two years, followed by a three-year phase-in period. The Company has elected the five-year transition period consistent with the final rule issued by the federal regulatory agencies.
At June 30, 2023 and December 31, 2022, the most recent regulatory notification categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To generally be categorized as “well-capitalized”, the Bank must maintain a minimum total capital ratio, Tier 1 capital ratio, common equity Tier 1 capital ratio, and leverage ratio as set forth in the following table. There are no conditions or events since the most recent notification from regulators that management believes has changed the institution’s category.
The Company’s and the Bank’s levels and ratios are presented in the tables below for the dates indicated and include the effects of the Company’s election to utilize the five-year transition described above:
 ActualRatio Required for Capital Adequacy PurposesRatio Required To Be Well-CapitalizedRatio Required for Minimum Capital Adequacy With Capital Conservation Buffer
June 30, 2023AmountRatio
 (Dollars in thousands)
Common equity Tier 1 capital
(to risk weighted assets):
Company$1,839,586 11.05 %4.50 % N/A 7.00 %
Bank$1,905,339 11.46 %4.50 %6.50 %7.00 %
Total capital
(to risk-weighted assets):
Company$2,102,625 12.64 %8.00 % N/A 10.50 %
Bank$2,065,091 12.42 %8.00 %10.00 %10.50 %
Tier 1 capital
(to risk-weighted assets):
Company$1,942,873 11.68 %6.00 % N/A 8.50 %
Bank$1,905,339 11.46 %6.00 %8.00 %8.50 %
Leverage capital
(to average assets):
Company$1,942,873 9.57 %4.00 % N/A N/A
Bank$1,905,339 9.39 %4.00 %5.00 %N/A

 ActualRatio Required for Capital Adequacy PurposesRatio Required To Be Well-CapitalizedRatio Required for Minimum Capital Adequacy With Capital Conservation Buffer
December 31, 2022AmountRatio
 (Dollars in thousands)
Common equity Tier 1 capital
(to risk weighted assets):
Company$1,799,020 10.55 %4.50 %N/A7.00 %
Bank$2,049,973 12.03 %4.50 %6.50 %7.00 %
Total capital
(to risk-weighted assets):
Company$2,041,319 11.97 %8.00 %N/A10.50 %
Bank$2,189,607 12.85 %8.00 %10.00 %10.50 %
Tier 1 capital
(to risk-weighted assets):
Company$1,901,685 11.15 %6.00 %N/A8.50 %
Bank$2,049,973 12.03 %6.00 %8.00 %8.50 %
Leverage capital
(to average assets):
Company$1,901,685 10.15 %4.00 %N/AN/A
Bank$2,049,973 10.94 %4.00 %5.00 %N/A