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Regulatory Matters
 12 Months Ended
Dec. 31, 2020
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Matters Regulatory Matters
We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements as set forth in the following tables can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank’s prompt corrective action classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors.
 
Management reviews capital ratios on a regular basis to ensure that capital exceeds the prescribed regulatory minimums and is adequate to meet our anticipated future needs.  For all periods presented, the Bank’s ratios exceed the regulatory definition of “well-capitalized” under the regulatory framework for prompt corrective action and Bancorp’s ratios exceed the required minimum ratios to be considered a well-capitalized bank holding company. In addition, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action as of December 31, 2020. There are no conditions or events since that notification that management believes have changed the Bank’s categories and we expect the Bank to remain well capitalized for prompt corrective action purposes.

In August 2018, the Board of Governors of the Federal Reserve System changed the definition of a "Small Bank Holding Company" by increasing the asset threshold from $1.0 billion to $3.0 billion. As a result, Bancorp was not subject to separate minimum capital requirements as of December 31, 2020 and 2019. However, we disclosed comparative capital ratios for Bancorp, which would have exceeded well-capitalized levels had Bancorp been subject to the same minimum capital requirements in 2020 and 2019.

The Bancorp’s and Bank's capital adequacy ratios as of December 31, 2020 and 2019 are presented in the following tables. Bancorp's Tier 1 capital includes the subordinated debenture, which is not included at the Bank level.
Capital Ratios for Bancorp
(dollars in thousands)
Actual Ratio
Adequately Capitalized Threshold 1
Ratio to be a Well Capitalized Bank Holding Company
December 31, 2020AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$339,544 16.03 %≥  $222,393 ≥ 10.50 %≥  $211,802 ≥ 10.00 %
Tier 1 Capital (to risk-weighted assets)$313,891 14.82 %≥  $180,032 ≥ 8.50 %≥  $169,442 ≥ 8.00 %
Tier 1 Capital (to average assets)$313,891 10.80 %≥  $116,224 ≥ 4.00 %≥  $145,280 ≥ 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$311,114 14.69 %≥  $148,262 ≥ 7.00 %≥  $137,672 ≥ 6.50 %
December 31, 2019      
Total Capital (to risk-weighted assets)$319,317 15.07 %≥  $222,430 ≥ 10.50 %≥  $211,838 ≥ 10.00 %
Tier 1 Capital (to risk-weighted assets)$301,553 14.24 %≥  $180,063 ≥ 8.50 %≥  $169,471 ≥ 8.00 %
Tier 1 Capital (to average assets)$301,553 11.66 %≥  $103,489 ≥ 4.00 %≥  $129,361 ≥ 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$298,845 14.11 %≥  $148,287 ≥ 7.00 %≥  $137,695 ≥ 6.50 %
1 The adequately capitalized threshold includes the capital conservation buffer that was effective in 2018 and fully phased-in on January 1, 2019.
Capital Ratios for the Bank (dollars in thousands)
Actual Ratio
Adequately Capitalized Threshold 1
Ratio to be Well Capitalized under Prompt Corrective Action Provisions
December 31, 2020AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$334,686 15.80 %≥  $222,391 ≥ 10.50 %≥  $211,801 ≥ 10.00 %
Tier 1 Capital (to risk-weighted assets)$309,033 14.59 %≥  $180,031 ≥ 8.50 %≥  $169,441 ≥ 8.00 %
Tier 1 Capital (to average assets)$309,033 10.64 %≥  $116,224 ≥ 4.00 %≥  $145,280 ≥ 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$309,033 14.59 %≥  $148,261 ≥ 7.00 %≥  $137,671 ≥ 6.50 %
December 31, 2019      
Total Capital (to risk-weighted assets)$309,875 14.63 %≥  $222,437 ≥ 10.50 %≥  $211,844 ≥   10.00 %
Tier 1 Capital (to risk-weighted assets)$292,111 13.79 %≥  $180,068 ≥ 8.50 %≥  $169,476 ≥   8.00 %
Tier 1 Capital (to average assets)$292,111 11.29 %≥  $103,488 ≥ 4.00 %≥  $129,360 ≥   5.00 %
Common Equity Tier 1 (to risk-weighted assets)$292,111 13.79 %≥  $148,291 ≥ 7.00 %≥  $137,699 ≥   6.50 %
1 The adequately capitalized threshold includes the capital conservation buffer that was effective in 2018 and fully phased-in on January 1, 2019.