NYCB 2017 Annual Report

140 capital ratio exceeded the minimum requirement for capital adequacy purposes by 632 basis points and the fully phased-in capital conservation buffer by 382 basis points. The Banks are subject to regulation, examination, and supervision by the NYSDFS and the FDIC (the “Regulators”). The Banks are also governed by numerous federal and state laws and regulations, including the FDIC Improvement Act of 1991, which established five categories of capital adequacy ranging from “well capitalized” to “critically undercapitalized.” Such classifications are used by the FDIC to determine various matters, including prompt corrective action and each institution’s FDIC deposit insurance premium assessmen ts. Capital amounts and classifications are also subject to the Regulators’ qualitative judgments about the components of capital and risk weightings, among other factors. The quantitative measures established to ensure capital adequacy require that banks maintain minimum amounts and ratios of leverage capital to average assets and of common equity tier 1 capital, tier 1 capital, and total capital to risk-weighted assets (as such measures are defined in the regulations). At December 31, 2017, the Banks exceeded all the capital adequacy requirements to which they were subject. As of December 31, 2017, the Company, the Community Bank, and the Commercial Bank are categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, a bank must maintain a minimum common equity tier 1 risk-based capital ratio of 6.50%; a minimum tier 1 risk-based capital ratio of 8.00%; a minimum total risk-based capital ratio of 10.00%; and a minimum leverage capital ratio of 5.00%. In the opinion of management, no conditions or events have transpired since December 31, 2017 to change these capital adequacy classifications. The following tables present the actual capital amounts and ratios for the Community Bank at December 31, 2017 and 2016 in comparison to the minimum amounts and ratios required for capital adequacy purposes. Risk-Based Capital At December 31, 2017 Common Equity Tier 1 Tier 1 Total Leverage Capital (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Total capital $4,253,233 13.43% $4,253,233 13.43% $4,387,620 13.86% $4,253,233 10.06% Minimum for capital adequacy purposes 1,424,795 4.50 1,899,727 6.00 2,532,969 8.00 1,691,041 4.00 Excess $2,828,438 8.93% $2,353,506 7.43% $1,854,651 5.86% $2,562,192 6.06% Risk-Based Capital At December 31, 2016 Common Equity Tier 1 Tier 1 Total Leverage Capital (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Total capital $3,686,510 11.23% $3,686,510 11.23% $3,843,382 11.71% $3,686,510 8.45% Minimum for capital adequacy purposes 1,477,056 4.50 1,969,408 6.00 2,625,877 8.00 1,744,601 4.00 Excess $2,209,454 6.73% $1,717,102 5.23% $1,217,505 3.71% $1,941,909 4.45% The following tables present the actual capital amounts and ratios for the Commercial Bank at December 31, 2017 and 2016 in comparison to the minimum amounts and ratios required for capital adequacy purposes: Risk-Based Capital At December 31, 2017 Common Equity Tier 1 Tier 1 Total Leverage Capital (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Total capital $380,194 15.95% $380,194 15.95% $404,643 16.97% $380,194 11.37% Minimum for capital adequacy purposes 107,285 4.50 143,047 6.00 190,729 8.00 133,801 4.00 Excess $272,909 11.45% $237,147 9.95% $213,914 8.97% $246,393 7.37%