2021 Annual Report

Stock Repurchase Program . On January 22, 2019, the Company adopted a stock repurchase program. Under the stock repurchase program, the Company was initially authorized to repurchase up to $15.0 million of its common stock in open market transactions or through privately negotiated transactions at the Company’s discretion. On July 23, 2019 and October 27, 2020, the Company's board of directors approved $10.0 million and $15.0 million increases, respectively, to the program for a total authorization of $40.0 million. Additionally, on October 27, 2020, the program duration was extended to run through October 27, 2022. During the year ended December 31, 2021, the Company repurchased 146,445 shares of its common stock, representing less than 1% of the Company’s outstanding shares. Shares were repurchased during this period at a weighted average price of $15.71 for a total of $2.3 million. All shares repurchased under the stock repurchase program were converted to authorized but unissued shares. At December 31, 2021, the remaining amount that could be used to repurchase shares under the stock repurchase program was $12.4 million. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program in this fluid economic environment. Regulatory Capital. The Company and the Bank are subject to various regulatory capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s business. Management believes the Company and the Bank met all capital adequacy requirements to which they were subject as of December 31, 2021. The regulatory capital ratios for the Company and the Bank to meet the minimum capital adequacy standards and for the Bank to be considered well capitalized under the prompt corrective action framework are set forth in the following tables. The Company’s and the Bank’s actual capital amounts and ratios are as of the dates indicated.

Minimum Required For Capital Adequacy

For Capital Adequacy Purposes Plus Capital Conservation Buffer

To be Well Capitalized Under Prompt Corrective Action Regulations

Actual

Purposes

December 31, 2021

Amount Ratio Amount Ratio Amount Ratio Amount Ratio

(dollars in thousands) Company (Consolidated): Total Risk-based Capital. . . . . . Tier 1 Risk-based Capital . . . . . Common Equity Tier 1 Capital . Tier 1 Leverage Ratio. . . . . . . . Bank: Total Risk-based Capital. . . . . . Tier 1 Risk-based Capital . . . . . Common Equity Tier 1 Capital . Tier 1 Leverage Ratio. . . . . . . .

$ 499,554 15.55 % $ 256,966 367,161 11.43 192,725 300,647 9.36 144,543 367,161 10.82 135,723 $ 415,848 12.94 % $ 257,005 375,688 11.69 192,754 375,688 11.69 144,565 375,688 11.09 135,508

8.00 % $ 337,268 6.00 273,027 4.50 224,845 4.00 135,723 8.00 % $ 337,319 6.00 273,068 4.50 224,879 4.00 135,508

10.50 %

N/A N/A N/A N/A

N/A N/A N/A N/A

8.50 7.00 4.00

10.50 % $ 321,256 8.50 257,005 7.00 208,816 4.00 169,386

10.00 %

8.00 6.50 5.00

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