CASH 2017 Annual Report

38 As of September 30, 2017, the Bank exceeded all of its regulatory capital requirements as showing in the table below and was designated as “well-capitalized” under federal guidelines. The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis. See Note 13 to the “Notes to Consolidated Financial Statements,” which is included in Part II, Item 8 “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. Regulatory Capital Data Company (Actual) Bank (Actual) Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Ratio Ratio Ratio (Dollars in Thousands) September 30, 2017 Tier 1 leverage ratio 7.64% 9.64% 4.00% 5.00% Common equity Tier 1 capital ratio 13.97% 18.22% 4.50% 6.50% Tier 1 capital ratio 14.46% 18.22% 6.00% 8.00% Total qualifying capital ratio 18.41% 18.59% 8.00% 10.00% The following table provides a reconciliation of the amounts included in the table above. Reconciliation: Standardized Approach (1) September 30, 2017 (Dollars in Thousands) Total equity $ 434,496 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 95,332 LESS: Certain other intangible assets 41,743 LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 1,495 LESS: Net unrealized gains (losses) on available-for-sale securities 9,166 Common Equity Tier 1 (1) 286,760 Long-term debt and other instruments qualifying as Tier 1 10,310 LESS: Additional tier 1 capital deductions 374 Total Tier 1 capital 296,696 Allowance for loan losses 7,718 Subordinated debentures (net of issuance costs) 73,347 Total qualifying capital 377,761 (1) Capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio; those changes are being fully phased in through the end of 2021.