Regulatory Capital

12 Months Ended

Dec. 31, 2011

Regulatory Capital [Abstract]

Regulatory Capital

Note 13: Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, 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 classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital to average assets (as defined). Management believes, as of December 31, 2011, that the Bank meets all capital adequacy requirements to which it is subject.

As of December 31, 2011, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category from well capitalized.

The Bank’s actual and required capital amounts and ratios are as follows:

	Actual				Required for Adequate Capital				To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
2011
Total risk-based capital (to risk-weighted assets)	$	40,015	14.68	%	$	21,804	8.00	%	$	27,256	10.00	%
Tier 1 capital (to risk-weighted assets)		37,449	13.74			10,902	4.00			16,353	6.00
Core capital (to adjusted total assets)		37,449	9.25			16,197	4.00			20,246	5.00
Core capital (to adjusted tangible assets)		37,449	9.25			8,098	2.00			-	N/A
Tangible capital (to adjusted total assets)		37,449	9.25			6,074	1.50			-	N/A
2010
Total risk-based capital (to risk-weighted assets)	$	40,007	14.92	%	$	21,454	8.00	%	$	26,818	10.00	%
Tier 1 capital (to risk-weighted assets)		37,415	13.95			10,727	4.00			16,091	6.00
Core capital (to adjusted total assets)		37,415	9.70			15,434	4.00			19,292	5.00
Core capital (to adjusted tangible assets)		37,415	9.70			7,717	2.00			N/A	N/A
Tangible capital (to adjusted total assets)		37,415	9.70			5,788	1.50			N/A	N/A