Regulatory Matters

12 Months Ended

Dec. 31, 2011

Regulatory Matters [Abstract]

Regulatory Matters

(2) Regulatory Matters

Applicable regulations require the Bank to maintain minimum levels of regulatory capital. Under the regulations in effect at December 31, 2011, the Bank was required to maintain a minimum ratio of tangible capital to total adjusted assets of 1.5%; a minimum ratio of Core capital to risk weighted assets of 4.0%; and a minimum ratio of total (core and supplementary) capital to risk-weighted assets of 8.0%.

Under the regulatory framework for prompt corrective action, federal regulators are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on the institution's financial statements. The regulations establish a framework for the classification of banking institutions into five categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Generally an institution is considered well capitalized if it has a Tier 1 ratio of at least 6.0%; and a total risk-based capital ratio of at least 10.0%. At December 31, 2011 and 2010, the Bank was considered well-capitalized.

The following is a summary of the Bank's actual capital amounts and ratios as of December 31, 2011 and 2010 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution (in thousands).

	Actual					For capital  adequacy Purposes						To be well capitalized under prompt corrective action
As of December 31, 2011	Amount		Ratio			Amount		Ratio				Amount		Ratio
Tangible capital	$	217,022		9.41	%	$	34,593	1.5%				$	—		—	%
Core capital		217,022		9.41			92,247	4.0					115,309		5.0
Tier 1 risk-based capital		217,022		15.42			56,298	4.0					84,446		6.0
Total risk-based capital		230,825		16.40			112,595	8.0					140,744		10.0
	Actual					For capital  adequacy Purposes						To be well capitalized under prompt corrective action
As of December 31, 2010	Amount		Ratio			Amount			Ratio			Amount		Ratio
Tangible capital	$	206,163		9.1	%		$33,868			1.5	%	$	—		—	%
Core capital		206,163		9.1			90,315			4.0			112,893		5.0
Tier 1 risk-based capital		206,163		14.4			57,450			4.0			86,174		6.0
Total risk-based capital		219,399		15.3			114,899			8.0			143,624		10.0

Applicable regulations impose limitations upon all capital distributions by the Bank, such as dividends and payments to repurchase or otherwise acquire shares. The Bank may not declare or pay cash dividends on or repurchase any of its shares of common stock if the effect thereof would cause stockholders' equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements.