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Regulatory Matters

12 Months Ended

Dec. 31, 2021

Note 18: Regulatory Matters

As of December 31, 2021, based on its call report computations, State Bank was classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2021 that management believes have changed State Bank’s capital classification.

State Bank’s actual capital amounts and ratios are presented in the following table. Capital levels are presented for the State Bank only as the Company is exempt from quarterly reporting at the holding company level:

($ in thousands)	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Procedures
As of December 31, 2021	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier I Capital to average assets	$	133,202		10.18	%	$	52,324		4.0	%	$	65,405		5.0	%
Tier I Common equity capital to risk-weighted assets		133,202		13.94	%		42,986		4.5	%		62,090		6.5	%

Tier I Capital to risk-weighted assets		133,202		13.94	%		57,314		6.0	%		76,419		8.0	%
Total Risk-based capital to risk-weighted assets		145,165		15.20	%		76,419		8.0	%		95,523		10.0	%

As of December 31, 2020
Tier I Capital to average assets	$	119,480		9.94	%	$	48,099		4.0	%	$	60,123		5.0	%
Tier I Common equity capital to risk-weighted assets		119,480		12.91	%		41,651		4.5	%		60,162		6.5	%

Tier I Capital to risk-weighted assets		119,480		12.91	%		55,534		6.0	%		74,046		8.0	%
Total Risk-based capital to risk-weighted assets		131,062		14.16	%		74,046		8.0	%		92,557		10.0	%

The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was 2.50 percent at December 31, 2021 and the Company still would have met the minimum capital requirements when the capital buffer is considered. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2021, State Bank met all capital adequacy requirements to which they are subject.