XML 126 R23.htm IDEA: XBRL DOCUMENT
v3.20.1

Regulatory Matters | 12 Months Ended
--- | ---
Dec. 31, 2019
Banking and Thrift [Abstract] |
Regulatory Matters | Regulatory Matters Regulatory Capital Requirements: The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company 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 Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in at the rate of 0.625% per year from 0.0% in 2015 to 2.50% on January 1, 2019. The capital conservation buffer for 2018 is 1.875% and for 2019 is 2.50%. At December 31, 2019 and 2018 the Company and the Bank exceeded the minimum regulatory requirements and exceeded the threshold for the "well capitalized" regulatory classification. Regulatory Restrictions on Dividends: Pursuant to Tennessee banking law, the Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to the Company in a calendar year in excess of the total of the Bank's retained net income for that year plus the retained net income for the preceding two years. During the year ended December 31, 2019, SmartBank paid no dividends to the Company. As of December 31, 2019, the Bank could pay approximately $55.5 million of additional dividends to the Company without prior approval of the Commissioner of the TDFI. Regulatory Capital Levels: Actual and required capital levels at December 31, 2019 and 2018 are presented below (dollars in thousands):
|  | Actual |  |  |  | Minimum for capital adequacy purposes |  |  |  | Minimum to be well capitalized under prompt corrective action provisions1 |  |
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
SmartFinancial: |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets) |  | $ | 287,937 |  |  | 14.02 | % |  | $ | 164,313 |  |  | 8.00 | % |  | N/A |  |  | N/A |
Tier 1 Capital (to Risk Weighted Assets) |  | 238,433 |  |  | 11.61 | % |  | 123,235 |  |  | 6.00 | % |  | N/A |  |  | N/A |
Common Equity Tier 1 Capital (to Risk Weighted Assets) |  | 238,433 |  |  | 11.61 | % |  | 92,426 |  |  | 4.50 | % |  | N/A |  |  | N/A |
Tier 1 Capital (to Average Assets)2 |  | 238,433 |  |  | 10.34 | % |  | 92,258 |  |  | 4.00 | % |  | N/A |  |  | N/A |
SmartBank: |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets) |  | $ | 273,432 |  |  | 13.31 | % |  | $ | 164,305 |  |  | 8.00 | % |  | $ | 205,382 |  |  | 10.00 | %
Tier 1 Capital (to Risk Weighted Assets) |  | 263,189 |  |  | 12.81 | % |  | 123,229 |  |  | 6.00 | % |  | 164,305 |  |  | 8.00 | %
Common Equity Tier 1 Capital (to Risk Weighted Assets) |  | 263,189 |  |  | 12.81 | % |  | 92,422 |  |  | 4.50 | % |  | 133,498 |  |  | 6.50 | %
Tier 1 Capital (to Average Assets)2 |  | 263,189 |  |  | 11.41 | % |  | 92,254 |  |  | 4.00 | % |  | 115,317 |  |  | 5.00 | %
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
SmartFinancial: |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets) |  | $ | 257,545 |  |  | 13.47 | % |  | $ | 152,971 |  |  | 8.00 | % |  | N/A |  |  | N/A |
Tier 1 Capital (to Risk Weighted Assets) |  | 210,093 |  |  | 10.99 | % |  | 114,728 |  |  | 6.00 | % |  | N/A |  |  | N/A |
Common Equity Tier 1 Capital (to Risk Weighted Assets) |  | 210,093 |  |  | 10.99 | % |  | 86,046 |  |  | 4.50 | % |  | N/A |  |  | N/A |
Tier 1 Capital (to Average Assets) |  | 210,093 |  |  | 9.91 | % |  | 84,821 |  |  | 4.00 | % |  | N/A |  |  | N/A |
SmartBank: |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets) |  | $ | 243,774 |  |  | 12.74 | % |  | $ | 153,017 |  |  | 8.00 | % |  | $ | 191,271 |  |  | 10.00 | %
Tier 1 Capital (to Risk Weighted Assets) |  | 235,499 |  |  | 12.31 | % |  | 114,763 |  |  | 6.00 | % |  | 153,017 |  |  | 8.00 | %
Common Equity Tier 1 Capital (to Risk Weighted Assets) |  | 235,499 |  |  | 12.31 | % |  | 86,072 |  |  | 4.50 | % |  | 124,326 |  |  | 6.50 | %
Tier 1 Capital (to Average Assets) |  | 235,499 |  |  | 11.17 | % |  | 84,300 |  |  | 4.00 | % |  | 105,375 |  |  | 5.00 | %
1The prompt corrective action provisions are applicable at the Bank level only. 2Average assets for the above calculations were based on the most recent quarter.

X
- References No definition available. + Details
Name: | us-gaap_BankingAndThriftAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration