Capital categories
(b) Capital categories. For purposes of section 38 of the FDI Act and this subpart, a member bank is deemed to be: (1) (i) Well capitalized if: (A) Total Risk-Based Capital Measure: The bank has a total risk-based capital ratio of 10.0 percent or greater; and (B) Tier 1 Risk-Based Capital Measure: The bank has a tier 1 risk-based capital ratio of 8.0 percent or greater; and (C) Common Equity Tier 1 Capital Measure: The bank has a common equity tier 1 risk-based capital ratio of 6.5 percent or greater; and (D) Leverage Measure: The bank has a leverage ratio of 5.0 percent or greater; and (E) The bank is not subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Board pursuant to section 8 of the FDI Act, the International Lending Supervision Act of 1983 (12 U.S.C. 3907), or section 38 of the FDI Act, or any regulation thereunder, to meet and maintain a specific capital level for any capital measure. (ii) A qualifying community banking organization, as defined in 217.12 of this chapter, that has elected to use the community bank leverage ratio framework under 217.12 of this chapter, shall be considered to have met the capital ratio requirements for the well capitalized capital category in paragraph (b)(1)(i)(A) through (D) of this section. (2) Adequately capitalized if: (i) Total Risk-Based Capital Measure: the bank has a total risk-based capital ratio of 8.0 percent or greater; (ii) Tier 1 Risk-Based Capital Measure: the bank has a tier 1 risk-based capital ratio of 6.0 percent or greater; (iii) Common Equity Tier 1 Capital Measure: the bank has a common equity tier 1 risk-based capital ratio of 4.5 percent or greater; (iv) Leverage Measure: (A) The bank has a leverage ratio of 4.0 percent or greater; and (B) With respect to an advanced approaches bank or bank that is a Category III Board-regulated institution (as defined in 217.2 of this chapter), the bank has a supplementary leverage ratio of 3.0 percent or greater; and (v) The bank does not meet the definition of a well capitalized bank. (3) Undercapitalized if: (i) Total Risk-Based Capital Measure: the bank has a total risk-based capital ratio of less than 8.0 percent; (ii) Tier 1 Risk-Based Capital Measure: the bank has a tier 1 risk-based capital ratio of less than 6.0 percent; (iii) Common Equity Tier 1 Capital Measure: the bank has a common equity tier 1 risk-based capital ratio of less than 4.5 percent; or (iv) Leverage Measure: (A) The bank has a leverage ratio of less than 4.0 percent; or (B) With respect to an advanced approaches bank or bank that is a Category III Board-regulated institution (as defined in 217.2 of this chapter), the bank has a supplementary leverage ratio of less than 3.0 percent. (4) Significantly undercapitalized if: (i) Total Risk-Based Capital Measure: the bank has a total risk-based capital ratio of less than 6.0 percent; (ii) Tier 1 Risk-Based Capital Measure: the bank has a tier 1 risk-based capital ratio of less than 4.0 percent; (iii) Common Equity Tier 1 Capital Measure: the bank has a common equity tier 1 risk-based capital ratio of less than 3.0 percent; or (iv) Leverage Measure: the bank has a leverage ratio of less than 3.0 percent. (5) Critically undercapitalized if the bank has a ratio of tangible equity to total assets that is equal to or less than 2.0 percent.