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Regulatory Matters
 12 Months Ended
Dec. 31, 2019
Regulatory Matters [Abstract]  
Regulatory Matters

NOTE 23 – Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. The capital rules require banks and bank holding companies (other than bank holding companies, such as the Company, that qualify under the Federal Reserve’s Small Bank Holding Company Policy Statement) to maintain a minimum total risked-based capital ratio of at least 8%, a total Tier 1 capital ratio of at least 6%, a minimum common equity Tier 1 capital ratio of at least 4.5%, and a leverage ratio of at least 4%. Bank holding companies and banks are also required to hold a capital conservation buffer of common equity Tier 1 capital of 2.5% to avoid limitations on capital distributions and discretionary executive compensation payments. The capital conservation buffer will be phased in incrementally over time, becoming fully effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets.

To be considered “well-capitalized” for purposes of certain rules and prompt corrective action requirements, the Bank must maintain a minimum total risked-based capital ratio of at least 10%, a total Tier 1 capital ratio of at least 8%, a common equity Tier 1 capital ratio of at least 6.5%, and a leverage ratio of at least 5%. As of December 31, 2019, our capital ratios exceed these ratios and we remain “well capitalized.”

The following table summarizes the capital amounts and ratios of the Bank and the Company and the regulatory minimum requirements at December 31, 2019 and 2018.

                               
To be well
capitalized
For capital under prompt
adequacy purposes corrective action
Actual minimum provisions minimum
(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2019
The Bank
Total Capital (to risk weighted assets)       $ 250,847       13.31%       $ 150,807       8.00%        $ 188,510       10.00%
Tier 1 Capital (to risk weighted assets) 234,205 12.42% 113,106 6.00% 150,807 8.00%
Common Equity Tier 1 Capital (to risk weighted assets) 234,205 12.42% 84,829 4.50% 122,531 6.50%
Tier 1 Capital (to average assets) 234,205 10.80% 86,772 4.00% 108,465 5.00%
 
The Company(1)
Total Capital (to risk weighted assets) 258,800 13.73% 150,807 8.00% n/a n/a
Tier 1 Capital (to risk weighted assets) 219,158 11.63% 113,106 6.00% n/a n/a
Common Equity Tier 1 Capital (to risk weighted assets) 206,158 10.94% 84,829 4.50% n/a n/a
Tier 1 Capital (to average assets) 219,158 10.10% 86,772 4.00% n/a n/a
 
To be well
capitalized
For capital under prompt
adequacy purposes corrective action
Actual minimum provisions minimum
(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2018
The Bank
Total Capital (to risk weighted assets) $ 198,195 12.16% $ 130,368 8.00% $ 162,960 10.00%
Tier 1 Capital (to risk weighted assets) 182,433 11.20% 97,776 6.00% 130,368 8.00%
Common Equity Tier 1 Capital (to risk weighted assets) 182,433 11.20% 73,332 4.50% 105,924 6.50%
Tier 1 Capital (to average assets) 182,433 9.84% 74,126 4.00% 92,658 5.00%
 
The Company(1)
Total Capital (to risk weighted assets) 203,595 12.49% 130,368 8.00% n/a n/a
Tier 1 Capital (to risk weighted assets) 187,833 11.53% 97,776 6.00% n/a n/a
Common Equity Tier 1 Capital (to risk weighted assets) 174,833 10.73% 73,332 4.50% n/a n/a
Tier 1 Capital (to average assets) 187,833 10.14% 74,126 4.00% n/a n/a

(1)

Under the Federal Reserve’s Small Bank Holding Company Policy Statement, the Company is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the Federal Reserve (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to the Company, we calculate these ratios for our own planning and monitoring purposes.