| Regulatory Matters |
Regulatory Matters
Regulatory Capital
We, along with the Bank, must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that could have a material effect on the Consolidated Financial Statements. On January 1, 2015, the Basel III rules became effective and include transition provisions through 2018.
To be categorized as "well-capitalized," the Company and the Bank must maintain minimum tangible capital, Tier 1 capital, common equity Tier 1, and total capital ratios as set forth in the table below. We, along with the Bank, are considered "well-capitalized" at both September 30, 2016 and December 31, 2015. There have been no conditions or events that management believes have changed our or the Bank’s category.
The following table shows the regulatory capital ratios as of the dates indicated: | | | | | | | | | | | | | | | | | | | Bancorp | Actual | | For Capital Adequacy Purposes | | Well Capitalized Under Prompt Corrective Action Provisions | | Amount | Ratio | | Amount | Ratio | | Amount | Ratio | | (Dollars in millions) | September 30, 2016 | | | | | | | | | Tangible capital (to tangible assets) | $ | 1,225 |
| 8.88 | % | | N/A |
| N/A |
| | N/A |
| N/A |
| Tier 1 capital (to adjusted tangible assets) | 1,225 |
| 8.88 | % | | $ | 552 |
| 4.00 | % | | $ | 690 |
| 5.00 | % | Common equity Tier 1 capital (to RWA) | 1,056 |
| 12.04 | % | | 395 |
| 4.50 | % | | 570 |
| 6.50 | % | Tier 1 capital (to risk-weighted assets) | 1,225 |
| 13.98 | % | | 526 |
| 6.00 | % | | 701 |
| 8.00 | % | Total capital (to risk-weighted assets) | 1,338 |
| 15.26 | % | | 701 |
| 8.00 | % | | 877 |
| 10.00 | % | December 31, 2015 | | | | | | | | | Tangible capital (to tangible assets) | $ | 1,435 |
| 11.51 | % | | N/A |
| N/A |
| | N/A |
| N/A |
| Tier 1 capital (to adjusted tangible assets) | 1,435 |
| 11.51 | % | | $ | 499 |
| 4.0 | % | | $ | 624 |
| 5.0 | % | Common equity Tier 1 capital (to RWA) | 1,065 |
| 14.09 | % | | 340 |
| 4.5 | % | | 491 |
| 6.5 | % | Tier 1 capital (to risk-weighted assets) | 1,435 |
| 18.98 | % | | 454 |
| 6.0 | % | | 605 |
| 8.0 | % | Total capital (to risk-weighted assets) | 1,534 |
| 20.28 | % | | 605 |
| 8.0 | % | | 756 |
| 10.0 | % |
N/A - Not applicable | | | | | | | | | | | | | | | | | | | Bank | Actual | | For Capital Adequacy Purposes | | Well Capitalized Under Prompt Corrective Action Provisions | | Amount | Ratio | | Amount | Ratio | | Amount | Ratio | | (Dollars in millions) | September 30, 2016 | | | | | | | | | Tangible capital (to tangible assets) | $ | 1,459 |
| 10.55 | % | | N/A |
| N/A |
| | N/A |
| N/A |
| Tier 1 capital (to adjusted tangible assets) | 1,459 |
| 10.55 | % | | $ | 553 |
| 4.00 | % | | $ | 691 |
| 5.00 | % | Common equity tier 1 capital (to RWA) | 1,459 |
| 16.59 | % | | 396 |
| 4.50 | % | | 572 |
| 6.50 | % | Tier 1 capital (to risk-weighted assets) | 1,459 |
| 16.59 | % | | 528 |
| 6.00 | % | | 704 |
| 8.00 | % | Total capital (to risk-weighted assets) | 1,571 |
| 17.87 | % | | 704 |
| 8.00 | % | | 879 |
| 10.00 | % | December 31, 2015 | | | | | | | | | Tangible capital (to tangible assets) | $ | 1,472 |
| 11.79 | % | | N/A |
| N/A |
| | N/A |
| N/A |
| Tier 1 capital (to adjusted tangible assets) | 1,472 |
| 11.79 | % | | $ | 500 |
| 4.0 | % | | $ | 625 |
| 5.0 | % | Common equity tier 1 capital (to RWA) | 1,472 |
| 19.42 | % | | 341 |
| 4.5 | % | | 493 |
| 6.5 | % | Tier 1 capital (to risk-weighted assets) | 1,472 |
| 19.42 | % | | 455 |
| 6.0 | % | | 607 |
| 8.0 | % | Total capital (to risk-weighted assets) | 1,570 |
| 20.71 | % | | 607 |
| 8.0 | % | | 758 |
| 10.0 | % |
N/A - Not applicable |