Regulatory Disclosures

12 Months Ended

Dec. 31, 2011

Regulatory Disclosures [Abstract]

Regulatory Disclosures

16. Regulatory Disclosures

The Company and the Bank are subject to various capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators, which, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the entity's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's and Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 Capital to risk-weighted assets and of Tier 1 Capital to average assets (as all terms are defined by regulation). As of December 31, 2011 and 2010, the Bank was considered "well-capitalized" under the regulatory framework for prompt corrective action. To be categorized "well-capitalized" the Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. At December 31, 2011, there were no conditions or events that management believes would have changed the Bank's status as well-capitalized. During 2011, the Company contributed an additional $25.0 million of capital to the Bank to further strengthen its regulatory capital.

The Company's and the Bank's actual and required capital amounts and ratios as of December 31, 2011 and 2010 are presented in the following table:

Actual

Minimum For Capital Adequacy Purposes

Minimum To Be  Well- capitalized Under Prompt Corrective Action Provisions

Amount

Ratio

Amount

Ratio

Amount

Ratio

(dollars in thousands)

As of December 31, 2011:

Total Capital (to Risk Weighted Assets):

Taylor Capital Group, Inc. – Consolidated

$

517,706

14.72

%

>$281,366

>8.00

%

>$351,708

>10.00

%

Cole Taylor Bank

471,615

13.42

>281,220

>8.00

>351,526

>10.00

Tier 1 Capital (to Risk Weighted Assets):

Taylor Capital Group, Inc. – Consolidated

$

394,630

11.22

%

>$140,683

>4.00

%

>$211,025

>6.00

%

Cole Taylor Bank

381,563

10.85

>140,610

>4.00

>210,915

>6.00

Leverage (to Average Assets):

Taylor Capital Group, Inc. – Consolidated

$

394,630

8.84

%

>$178,661

>4.00

%

>$223,327

>5.00

%

Cole Taylor Bank

381,563

8.53

>178,946

>4.00

>223,683

>5.00

As of December 31, 2010:

Total Capital (to Risk Weighted Assets):

Taylor Capital Group, Inc. – Consolidated

$

448,389

12.98

%

>$276,381

>8.00

%

>$345,476

>10.00

%

Cole Taylor Bank

414,423

12.04

>275,401

>8.00

>344,252

>10.00

Tier 1 Capital (to Risk Weighted Assets):

Taylor Capital Group, Inc. – Consolidated

$

308,397

8.93

%

>$138,190

>4.00

%

>$207,286

>6.00

%

Cole Taylor Bank

314,182

9.13

>137,701

>4.00

>206,551

>6.00

Leverage (to Average Assets):

Taylor Capital Group, Inc. – Consolidated

$

308,397

6.89

%

>$178,971

>4.00

%

>$223,714

>5.00

%

Cole Taylor Bank

314,182

7.05

>178,270

>4.00

>222,838

>5.00

The Bank is also subject to dividend restrictions set forth by regulatory authorities. Because of the net losses in past periods, as of December 31, 2011, the Bank could not declare and pay dividends to the Company without notifying the appropriate regulatory authorities. Payment of any such dividends would also be subject to the Bank remaining in compliance with all applicable capital ratios.