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REGULATORY MATTERS: | 12 Months Ended
--- | ---
Dec. 31, 2019
Banking and Thrift [Abstract] |
REGULATORY MATTERS | REGULATORY MATTERS: The Corporation and its bank affiliates are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Corporation's financial statements. Further, the Corporation's primary source of funds to pay dividends to shareholders is dividends from its subsidiary banks and compliance with these capital requirements can affect the ability of the Corporation and its banking affiliates to pay dividends. At December 31, 2019, approximately $26.7 million of undistributed earnings of the subsidiary banks, included in consolidated retained earnings, were available for distribution to the Corporation without regulatory approval. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and Banks must meet specific capital guidelines that involve quantitative measures of the Corporation's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation's and Banks' capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and Banks to maintain minimum amounts and ratios of Total, Common equity tier I capital and Tier I Capital to risk-weighted assets, and of Tier I Capital to average assets. The final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel lll rules) became effective for the Corporation on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel lll rules, the Corporation must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2018 and 2017 is 1.875% and 1.25%, respectively. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes, as of December 31, 2019 and 2018, that the Corporation meets all capital adequacy requirements to which it is subject. As of December 31, 2019, the most recent notification from the respective regulatory agencies categorized the subsidiary banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the banks must maintain minimum total risk-based, Common equity tier I capital, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the banks' category. The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2019 and 2018.
|  |  |  |  |  |  |  |  |  | To Be Well Capitalized
|  |  |  |  |  | For Capital |  | Under Prompt Corrective
|  | Actual |  | Adequacy Purposes |  | Action Provisions
(Dollar amounts in thousands) |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
Total risk-based capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporation – 2019 |  | $ | 495,817 |  |  | 16.16 | % |  | $ | 322,091 |  |  | 10.500 | % |  | N/A |  |  | N/A |
Corporation – 2018 |  | $ | 451,036 |  |  | 19.36 | % |  | $ | 230,091 |  |  | 9.875 | % |  | N/A |  |  | N/A |
First Financial Bank – 2019 |  | 472,995 |  |  | 15.91 | % |  | 312,111 |  |  | 10.500 | % |  | 297,249 |  |  | 10.00 | %
First Financial Bank – 2018 |  | 421,553 |  |  | 18.71 | % |  | 222,453 |  |  | 9.875 | % |  | 225,268 |  |  | 10.00 | %
Common equity tier I capital |  |  |  |  |  |  |  |  |  |  |  |
Corporation – 2019 |  | $ | 475,874 |  |  | 15.51 | % |  | $ | 214,728 |  |  | 7.000 | % |  | N/A |  |  | N/A |
Corporation – 2018 |  | $ | 430,600 |  |  | 18.48 | % |  | $ | 148,540 |  |  | 6.375 | % |  | N/A |  |  | N/A |
First Financial Bank – 2019 |  | 457,649 |  |  | 15.40 | % |  | 208,074 |  |  | 7.000 | % |  | 193,212 |  |  | 6.50 | %
First Financial Bank – 2018 |  | 405,181 |  |  | 17.99 | % |  | 143,609 |  |  | 6.375 | % |  | 146,424 |  |  | 6.50 | %
Tier I risk-based capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporation – 2019 |  | $ | 475,874 |  |  | 15.51 | % |  | $ | 260,741 |  |  | 8.500 | % |  | N/A |  |  | N/A |
Corporation – 2018 |  | $ | 430,600 |  |  | 18.48 | % |  | $ | 183,490 |  |  | 7.875 | % |  | N/A |  |  | N/A |
First Financial Bank – 2019 |  | 457,649 |  |  | 15.40 | % |  | 252,661 |  |  | 8.500 | % |  | 237,799 |  |  | 8.00 | %
First Financial Bank – 2018 |  | 405,181 |  |  | 17.99 | % |  | 177,399 |  |  | 7.875 | % |  | 180,215 |  |  | 8.00 | %
Tier I leverage capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporation – 2019 |  | $ | 475,874 |  |  | 12.04 | % |  | $ | 158,081 |  |  | 4.00 | % |  | N/A |  |  | N/A |
Corporation – 2018 |  | $ | 430,600 |  |  | 14.59 | % |  | $ | 118,072 |  |  | 4.00 | % |  | N/A |  |  | N/A |
First Financial Bank – 2019 |  | 457,649 |  |  | 11.93 | % |  | 153,453 |  |  | 4.00 | % |  | 191,816 |  |  | 5.00 | %
First Financial Bank – 2018 |  | 405,181 |  |  | 14.19 | % |  | 114,213 |  |  | 4.00 | % |  | 142,767 |  |  | 5.00 | %

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826 + Details
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