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

4. Regulatory Capital Requirements



We require capital to fund loans, satisfy our obligations under the Bank’s letters of credit, meet the deposit withdrawal demands of the Bank’s customers, and satisfy our other monetary obligations.  To the extent that deposits are not adequate to fund our capital requirements, we can rely on a number of funding sources, including an unsecured Fed Funds lines of credit with upstream correspondent banks; secured advances with the FHLB of Atlanta, which are collateralized by eligible one to four family residential mortgage loans, home equity lines of credit, commercial real estate loans, and various securities.  Cash may also be pledged as collateral.  In addition, First United Corporation has a secured line of credit with the Fed Discount Window for use in borrowing funds up to 90 days, using municipal securities as collateral; brokered deposits, including CDs and money market funds; and One Way Buy CDARS/ ICS funding, which is a form of brokered deposits that has become a viable supplement to brokered deposits obtained directly. At December 31, 2019, the Bank had $115.0 million available through unsecured lines of credit with correspondent banks, $2.1 million through a secured line of credit with the Fed Discount Window and approximately $143.7 million at the FHLB.  Management is not aware of any demands, commitments, events or uncertainties that are likely to materially affect our ability to meet our future capital requirements.



The following table presents our capital ratios for years ended December 31, 2019 and 2018:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Actual

 

For Capital Adequacy
Purposes

 

To Be Well Capitalized
Under Prompt Corrective
Action Provisions

(in thousands)

 

Amount

 

Ratio

 

Amount

 

Ratio

 

Amount

 

Ratio

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

 182,941 

 

 16.29% 

 

$

 89,837 

 

 8.00% 

 

$

 112,296 

 

 10.00% 

First United Bank & Trust

 

 

 169,943 

 

 15.60% 

 

 

 87,159 

 

 8.00% 

 

 

 108,948 

 

 10.00% 

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

         

 

 

Consolidated

 

 

 170,326 

 

 15.17% 

 

 

 67,378 

 

 6.00% 

 

 

 89,837 

 

 8.00% 

First United Bank & Trust

 

 

 157,328 

 

 14.44% 

 

 

 65,369 

 

 6.00% 

 

 

 87,159 

 

 8.00% 

Common Equity Tier 1 Capital
  (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 143,614 

 

 12.79% 

 

 

 50,533 

 

 4.50% 

 

 

 72,992 

 

 6.50% 

First United Bank & Trust

 

 

 157,328 

 

 14.44% 

 

 

 49,027 

 

 4.50% 

 

 

 70,817 

 

 6.50% 

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

Consolidated

 

 

 170,326 

 

 11.77% 

 

 

 57,491 

 

 4.00% 

 

 

 71,864 

 

 5.00% 

First United Bank & Trust

 

 

 157,328 

 

 10.99% 

 

 

 56,729 

 

 4.00% 

 

 

 70,912 

 

 5.00% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Actual

 

For Capital Adequacy
Purposes

 

To Be Well Capitalized
Under Prompt Corrective
Action Provisions

(in thousands)

 

Amount

 

Ratio

 

Amount

 

Ratio

 

Amount

 

Ratio

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

 169,905 

 

 15.91% 

 

$

 85,431 

 

 8.00% 

 

$

 106,789 

 

 10.00% 

First United Bank & Trust

 

 

 157,631 

 

 15.43% 

 

 

 81,729 

 

 8.00% 

 

 

 102,162 

 

 10.00% 

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

         

 

 

Consolidated

 

 

 158,795 

 

 14.87% 

 

 

 64,073 

 

 6.00% 

 

 

 85,431 

 

 8.00% 

First United Bank & Trust

 

 

 146,521 

 

 14.35% 

 

 

 61,297 

 

 6.00% 

 

 

 81,729 

 

 8.00% 

Common Equity Tier 1 Capital
  (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 132,938 

 

 12.45% 

 

 

 48,055 

 

 4.50% 

 

 

 69,413 

 

 6.50% 

First United Bank & Trust

 

 

 146,521 

 

 14.35% 

 

 

 45,973 

 

 4.50% 

 

 

 66,405 

 

 6.50% 

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

Consolidated

 

 

 158,795 

 

 11.47% 

 

 

 55,136 

 

 4.00% 

 

 

 68,920 

 

 5.00% 

First United Bank & Trust

 

 

 146,521 

 

 10.70% 

 

 

 54,338 

 

 4.00% 

 

 

 67,922 

 

 5.00% 



As of December 31, 2019 and 2018, the most recent notifications from the regulators categorized First United Corporation and the Bank as “well capitalized” under the regulatory framework for prompt corrective action.  The consolidated total risk-based capital ratios include $30.9 million of First United Corporation’s junior subordinated debentures (“TPS Debentures”) which qualified as Tier 1 capital at December 31, 2019 under guidance issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). 

At the Bank level, the ratios increased when comparing December 31, 2019 to December 31, 2018.  At December 31, 2019, we were in compliance with the requirements.