XML 32 R22.htm IDEA: XBRL DOCUMENT v3.23.3
Note 14 - Regulatory Matters
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

14.

Regulatory Matters

 

The Company and the Banks are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators, which, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's and the Banks' capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believed the Company and the Banks met all capital adequacy requirements to which they were subject as of September 30, 2023.

 

The Company and the Banks’ capital amounts and ratios as of September 30, 2023 and December 31, 2022 are as follows (dollars in thousands):

 

                  

To Be Well

 
                  

Capitalized Under

 
          

For Capital

  

Prompt Corrective

 
  

Actual

  

Adequacy Purposes

  

Action Provisions

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 
                         

As of September 30, 2023:

                        

Total capital (to risk-weighted assets):

                        

Consolidated

 $217,473   14.1% $161,572   10.50%  N/A   N/A 

Boone Bank & Trust

  16,212   13.7   12,381   10.50   11,791   10.0%

First National Bank

  111,884   14.0   83,616   10.50   79,635   10.0 

Iowa State Savings Bank

  26,454   16.2   17,163   10.50   16,346   10.0 

Reliance State Bank

  28,670   12.0   25,044   10.50   23,851   10.0 

State Bank & Trust

  22,184   16.1   14,443   10.50   13,755   10.0 

United Bank & Trust

  12,976   16.0   8,524   10.50   8,119   10.0 
                         

Tier 1 capital (to risk-weighted assets):

                        

Consolidated

 $200,329   13.0% $130,796   8.50%  N/A   N/A 

Boone Bank & Trust

  15,342   13.0   10,023   8.50   9,433   8.0%

First National Bank

  102,720   12.9   67,689   8.50   63,708   8.0 

Iowa State Savings Bank

  24,508   15.0   13,894   8.50   13,077   8.0 

Reliance State Bank

  25,974   10.9   20,273   8.50   19,081   8.0 

State Bank & Trust

  20,700   15.0   11,692   8.50   11,004   8.0 

United Bank & Trust

  12,003   14.8   6,901   8.50   6,495   8.0 
                         

Tier 1 capital (to average-assets):

                        

Consolidated

 $200,329   9.0% $88,779   4.00%  N/A   N/A 

Boone Bank & Trust

  15,342   9.6   6,363   4.00   7,954   5.0%

First National Bank

  102,720   8.9   46,107   4.00   57,634   5.0 

Iowa State Savings Bank

  24,508   9.9   9,949   4.00   12,436   5.0 

Reliance State Bank

  25,974   8.4   12,340   4.00   15,426   5.0 

State Bank & Trust

  20,700   9.5   8,682   4.00   10,853   5.0 

United Bank & Trust

  12,003   9.4   5,082   4.00   6,353   5.0 
                         

Common equity tier 1 capital (to risk-weighted assets):

                        

Consolidated

 $200,329   13.0% $107,714   7.00%  N/A   N/A 

Boone Bank & Trust

  15,342   13.0   8,254   7.00   7,664   6.5%

First National Bank

  102,720   12.9   55,744   7.00   51,762   6.5 

Iowa State Savings Bank

  24,508   15.0   11,442   7.00   10,625   6.5 

Reliance State Bank

  25,974   10.9   16,696   7.00   15,503   6.5 

State Bank & Trust

  20,700   15.0   9,629   7.00   8,941   6.5 

United Bank & Trust

  12,003   14.8   5,683   7.00   5,277   6.5 

 

                  

To Be Well

 
                  

Capitalized Under

 
          

For Capital

  

Prompt Corrective

 
  

Actual

  

Adequacy Purposes

  

Action Provisions

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 
                         

As of December 31, 2022:

                        

Total capital (to risk-weighted assets):

                        

Consolidated

 $215,799   14.1% $160,370   10.50%  N/A   N/A 

Boone Bank & Trust

  15,962   12.9   12,984   10.50   12,366   10.0%

First National Bank

  110,887   14.2   82,089   10.50   78,180   10.0 

Iowa State Savings Bank

  25,398   15.5   17,210   10.50   16,390   10.0 

Reliance State Bank

  28,385   12.4   24,103   10.50   22,955   10.0 

State Bank & Trust

  22,011   14.7   15,716   10.50   14,968   10.0 

United Bank & Trust

  12,633   15.1   8,759   10.50   8,342   10.0 
                         

Tier 1 capital (to risk-weighted assets):

                        

Consolidated

 $199,069   13.0% $129,823   8.50%  N/A   N/A 

Boone Bank & Trust

  14,990   12.1   10,511   8.50   9,893   8.0%

First National Bank

  101,976   13.0   66,453   8.50   62,544   8.0 

Iowa State Savings Bank

  24,113   14.7   13,932   8.50   13,112   8.0 

Reliance State Bank

  25,647   11.2   19,512   8.50   18,364   8.0 

State Bank & Trust

  20,392   13.6   12,723   8.50   11,974   8.0 

United Bank & Trust

  11,677   14.0   7,090   8.50   6,673   8.0 
                         

Tier 1 capital (to average-assets):

                        

Consolidated

 $199,069   9.1% $87,392   4.00%  N/A   N/A 

Boone Bank & Trust

  14,990   8.7   6,868   4.00   8,585   5.0%

First National Bank

  101,976   8.9   45,582   4.00   56,978   5.0 

Iowa State Savings Bank

  24,113   9.3   10,423   4.00   13,029   5.0 

Reliance State Bank

  25,647   8.5   12,001   4.00   15,001   5.0 

State Bank & Trust

  20,392   9.1   8,932   4.00   11,165   5.0 

United Bank & Trust

  11,677   8.9   5,274   4.00   6,592   5.0 
                         

Common equity tier 1 capital (to risk-weighted assets):

                        

Consolidated

 $199,069   13.0% $106,913   7.00%  N/A   N/A 

Boone Bank & Trust

  14,990   12.1   8,656   7.00   8,038   6.5%

First National Bank

  101,976   13.0   54,726   7.00   50,817   6.5 

Iowa State Savings Bank

  24,113   14.7   11,473   7.00   10,654   6.5 

Reliance State Bank

  25,647   11.2   16,069   7.00   14,921   6.5 

State Bank & Trust

  20,392   13.6   10,477   7.00   9,729   6.5 

United Bank & Trust

  11,677   14.0   5,839   7.00   5,422   6.5 

 

The Company and the Banks are subject to the rules of the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules included the implementation of a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes for all capital ratios except tier 1 capital to average assets. A banking organization with a capital conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. At September 30, 2023, the capital ratios for the Company and the Banks were sufficient to meet the conservation buffer.