Supervisors Symposium - December 2023

Internal Use Only

Are regulators going to require Risk assessed Capital?

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© 2023 –FinPro, Inc.

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Internal Use Only

And ultimately benchmarking capital on a risk assessed basis?

Comparison Analytics As of June 30, 2023

Tier 1 Leverage

Tier 1 Risk Based Capital

Total Risk Based Capital

Sample Bank Starting Point

8.88%

9.87%

10.75%

Peer Median

9.77% 9.94% 9.99% 10.33%

13.46% 12.80% 12.73% 14.27%

13.93% 13.18% 13.31% 14.08%

$1B ‐ $5B Bank Median $1B ‐ $5B HP Bank Median Mid Atlantic Bank Median

Median of Above

9.97%

13.13%

13.62%

FinPro Regulatory Threshold High Risk FinPro Regulatory Threshold Moderate Risk

8.00% 9.00%

10.00% 11.25%

11.00% 13.00%

Resulting Goal Ratio

9.44%

11.80%

12.97%

This Bank will need to increase its capital to cover its risk profile. When the Bank fixes its risk profile, its capital requirement will decrease accordingly!

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© 2023 –FinPro, Inc.

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