Regulatory Matters

12 Months Ended

Dec. 31, 2015

Regulatory Matters [Abstract]

Regulatory Matters

Note 12:       Regulatory Matters

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 Company's and 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 assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices.  The 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.

The Bank must give notice to the Federal Reserve Bank of Cleveland prior to declaring a dividend to the Company and is subject to existing regulatory guidance where, in general, a dividend is permissible without regulatory approval if the institution is considered to be “well capitalized” and the dividend does not exceed current year-to-date net income plus the change in retained earnings for the previous two calendar years.  For dividends in excess of the above criteria, the Bank must make application to the Federal Reserve Bank of Cleveland and receive approval before declaring a dividend to the Company.

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) to risk-weighted assets (as defined), common equity Tier 1 capital (as defined) to total risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2015, that the Bank met all capital adequacy requirements to which it is subject.

As of December 31, 2015, based on the computations for the call report the Bank is classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2015 that management believes have changed the Bank's capital classification.

Effective January 1, 2015, new regulatory capital requirements commonly referred to as “Basel III” were implemented and are reflected in December 31, 2015 capital table below. Management opted out of the accumulated other comprehensive income treatment under the new requirements, and as such unrealized gains and losses from available-for-sale securities will continue to be excluded from Bank regulatory capital.

The Bank's actual capital amounts and ratios as of December 31, 2015 and 2014 are presented in the following table.

	Actual					For Capital Adequacy Purposes					To Be well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2015
Tier I Capital to average assets	$	37,524		8.8	%	$	17,092		4.0	%	$	21,365		5.0	%
Tier 1 Common equity capital      to risk-weighted assets		37,524		13.4	%		12,645		4.5	%		18,265		6.5	%
Tier I Capital to risk-weighted      assets		37,524		13.4	%		16,860		6.0	%		22,480		8.0	%
Total Risk-based capital to      risk-weighted assets		40,361		14.4	%		22,480		8.0	%		28,099		10.0	%
As of December 31, 2014
Tier I Capital to average assets	$	36,834		8.8	%	$	16,694		4.0	%	$	20,868		5.0	%
Tier I Capital to risk-weighted      assets		36,834		14.1	%		10,439		4.0	%		15,658		6.0	%
Total Risk-based capital to      risk-weighted assets		39,603		15.2	%		20,878		8.0	%		26,097		10.0	%