Regulatory Matters

12 Months Ended

Dec. 31, 2014

Banking and Thrift [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, 2014, the Bank was required to maintain a minimum ratio of tangible capital to total adjusted assets of 1.5%; a minimum ratio of Tier 1 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 risk-based ratio of at least 6.0% and a total risk-based capital ratio of at least 10.0%. At December 31, 2014 and 2013, the Bank was considered well-capitalized.

The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013 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, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tangible capital	$	223,573		9.46	%	$	35,465		1.50	%	$	—		—	%
Tier 1 leverage		223,573		9.46			94,573		4.00			118,217		5.00
Tier 1 risk-based capital		223,573		14.05			63,663		4.00			95,494		6.00
Total risk-based capital		239,940		15.08			127,325		8.00			159,157		10.00

	Actual					For capital adequacy purposes					To be well-capitalized under prompt corrective action
As of December 31, 2013	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tangible capital	$	217,776		9.66	%	$	33,830		1.50	%	$	—		—	%
Tier 1 leverage		217,776		9.66			90,215		4.00			112,768		5.00
Tier 1 risk-based capital		217,776		14.72			59,190		4.00			88,785		6.00
Total risk-based capital		236,304		15.97			118,380		8.00			147,975		10.00

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.