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Regulatory Matters
 12 Months Ended
Dec. 31, 2023
Regulatory Matters [Abstract]  
Regulatory Matters

Note 16: Regulatory Matters

 

As of December 31, 2023, 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, 2023 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 State Bank only as the Company is exempt from quarterly reporting at the holding company level:

 

           For Capital Adequacy   To Be Well Capitalized Under Prompt Corrective  
   Actual   Purposes   Action Procedures 
($ in thousands)  Amount   Ratio   Amount   Ratio   Amount   Ratio 
As of December 31, 2023                        
Tier I Capital to average assets  $148,049    10.93%  $54,185    4.0%  $67,732    5.0%
Tier I Common equity capital to risk-weighted assets  $148,049    13.42%  $49,640    4.5%  $71,702    6.5%
                               
Tier I Capital to risk-weighted assets  $148,049    13.42%  $66,186    6.0%  $88,249    8.0%
Total Risk-based capital to risk-weighted assets  $161,872    14.67%  $88,249    8.0%  $110,311    10.0%
                               
As of December 31, 2022                              
Tier I Capital to average assets  $146,678    11.06%  $53,069    4.0%  $66,336    5.0%
Tier I Common equity capital to risk-weighted assets  $146,678    13.42%  $49,200    4.5%  $71,067    6.5%
                               
Tier I Capital to risk-weighted assets  $146,678    13.42%  $65,600    6.0%  $87,466    8.0%
Total Risk-based capital to risk-weighted assets  $160,346    14.67%  $87,466    8.0%  $109,333    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, 2023 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 that State Bank met all capital adequacy requirements to which State Bank was subject as of December 31, 2023.