Regulatory Matters

12 Months Ended

Dec. 31, 2015

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, 2015, the Bank was required to maintain a minimum ratio of Tier 1 capital to total adjusted assets of 4.0%; a minimum ratio of common equity Tier 1 to risk-weighted assets of 4.5%; a minimum ratio of Tier 1 capital to risk weighted assets of 6.0%; 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 capital ratio of 5.0%; a common equity Tier1 risk-based ratio of at least 6.5%; a Tier 1 risk-based ratio of at least 8.0%; and a total risk-based capital ratio of at least 10.0%. At December 31, 2015 and 2014, the Bank was considered well-capitalized.

The following is a summary of the Bank’s regulatory capital amounts and ratios as of December 31, 2015 and 2014 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution then in effect (in thousands). The Bank was not subject to the common equity Tier 1 capital requirement at December 31, 2014.

	Actual					For capital  adequacy purposes					To be well-capitalized under prompt corrective action
As of December 31, 2015	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 capital (to average assets)	$	229,306		8.91	%	$	102,935		4.00	%	$	128,669		5.00	%
Common equity Tier 1 (to risk-weighted assets)		229,306		12.72			81,114		4.50			117,165		6.50
Tier 1 capital (to risk-weighted assets)		229,306		12.72			108,152		6.00			144,203		8.00
Total capital (to risk-weighted assets)		246,106		13.65			144,203		8.00			180,253		10.00

	Actual					For capital  adequacy purposes					To be well-capitalized under prompt corrective action
As of December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 capital (to average assets)	$	223,573		9.46	%	$	94,573		4.00	%	$	118,217		5.00	%
Tier 1 capital (to risk-weighted assets)		223,573		14.05			63,663		4.00			95,494		6.00
Total capital (to risk-weighted assets)		239,940		15.08			127,325		8.00			159,157		10.00

The following is a summary of the consolidated Company’s regulatory capital amounts and ratios as of December 31, 2015 compared to the regulatory minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized institution (in thousands). The Company was not subject to regulatory capital requirements at December 31, 2014.

	Actual					For capital  adequacy purposes					To be well-capitalized under prompt corrective action
As of December 31, 2015	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 capital (to average assets)	$	250,324		9.72	%	$	102,984		4.00	%	$	128,730		5.00	%
Common equity Tier 1 (to risk-weighted assets)		241,856		13.40			81,234		4.50			117,338		6.50
Tier 1 capital (to risk-weighted assets)		250,324		13.87			108,312		6.00			144,416		8.00
Total capital (to risk-weighted assets)		267,124		14.80			144,416		8.00			180,520		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.