CASH 2018 Annual Report

41 Implementation of the deductions and other adjustments to CET1 Capital began on January 1, 2015, and are being phased in over a four-year period (beginning at 40% on January 1, 2015, and an additional 20% per year thereafter). The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and the buffer increases by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019. The Basel III Capital Rules prescribe a standardized approach for risk weightings for a large and risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities to 600% for certain equity exposures, and resulting in high-risk weights for a variety of asset classes. As of September 30, 2018, the Bank exceeded all of its regulatory capital requirements, as reflected in the table below, and was designated as “well-capitalized” under federal guidelines. The tables below include 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, 2018 Tier 1 leverage ratio 8.50% 9.75% 4.00% 5.00% Common equity Tier 1 capital ratio 10.56% 12.50% 4.50% 6.50% Tier 1 capital ratio 10.97% 12.56% 6.00% 8.00% Total qualifying capital ratio 13.18% 12.89% 8.00% 10.00%