The following table presents actual and required capital ratios as of December 31, 2018 and 2017 for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2018 and 2017 based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are presented in the following table as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums.



Regulatory Capital
	Actual				Minimum Capital Adequacy				To Be Well Capitalized				Full Phase In of Basel III
(Dollar amounts in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2018
The Company
Tier 1 leverage ratio (to average assets)	$	117,220	10.76	%	$	43,575	4.000	%	N/A		N/A		$	43,575	4.00	%
Tier 1 capital (to risk-weighted assets)	117,220		12.95	%	71,259		7.875	%	N/A		N/A		76,914		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	115,158		12.73	%	57,686		6.375	%	N/A		N/A		63,341		7.00	%
Total capital ratio (to risk-weighted assets)	128,544		14.21	%	89,356		9.875	%	N/A		N/A		95,012		10.50	%

The Bank
Tier 1 leverage ratio (to average assets)	$	96,122	9.06	%	$	42,445	4.000	%	$	53,056	5.00	%	$	42,445	4.00	%
Tier 1 capital (to risk-weighted assets)	96,122		11.00	%	68,822		7.875	%	69,914		8.00	%	74,284		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	96,122		11.00	%	55,713		6.375	%	56,805		6.50	%	61,175		7.00	%
Total capital ratio (to risk-weighted assets)	107,061		12.25	%	86,301		9.875	%	87,393		10.00	%	91,763		10.50	%

December 31, 2017
The Company
Tier 1 leverage ratio (to average assets)	$	82,428	8.10	%	$	40,724	4.000	%	N/A		N/A		$	40,724	4.00	%
Tier 1 capital (to risk-weighted assets)	82,428		10.18	%	58,717		7.250	%	N/A		N/A		68,841		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	80,366		9.92	%	46,569		5.750	%	N/A		N/A		56,693		7.00	%
Total capital ratio (to risk-weighted assets)	92,562		11.43	%	74,915		9.250	%	N/A		N/A		85,039		10.50	%

The Bank
Tier 1 leverage ratio (to average assets)	$	86,150	8.55	%	$	40,316	4.000	%	$	50,395	5.00	%	$	40,316	4.00	%
Tier 1 capital (to risk-weighted assets)	86,150		10.78	%	57,928		7.250	%	63,920		8.00	%	67,915		8.50	%
Common equity tier 1 capital ratio (to risk-weighted assets)	86,150		10.78	%	45,943		5.750	%	51,935		6.50	%	55,930		7.00	%
Total capital ratio (to risk-weighted assets)	96,148		12.03	%	73,908		9.250	%	79,900		10.00	%	83,895		10.50	%