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Regulatory Capital Matters
 12 Months Ended
Dec. 31, 2013
Banking and Thrift [Abstract]  
Regulatory Capital Matters
Regulatory Capital Matters

The Company (on a consolidated basis) and the Bank are 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank'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 risk components, asset risk weighting and other factors.

Risk-based capital guidelines issued by the FDIC establish a risk-adjusted ratio relating capital to different categories of assets and off-balance sheet exposures for banks. The Bank’s Tier 1 capital is comprised primarily of common equity and excludes accumulate other comprehensive income. Total capital also includes a portion of the allowance for loan losses, as defined according to regulatory guidelines. In addition, under Washington State banking regulations, the Bank is limited as to the ability to declare or pay dividends to the Company up to the amount of the Bank’s retained earnings then on hand. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations). As of December 31, 2013, the Company and Bank met the minimum capital requirements to which it is subject and is considered to be “well-capitalized.”

The following tables describe the Company’s and Bank’s regulatory capital and threshold requirements:
 
 
 
Actual
 
For capital adequacy purposes
 
To be well-capitalized under prompt corrective action provisions
December 31, 2013
 
Amount
 
Ratio
 
Amount
 
Minimum ratio
 
Amount
 
Minimum ratio
Total risk-based capital ratio
 
 
 
 
 
 
 
 
 
 
 
 
Company (consolidated)
 
$
218,470

 
19.76
%
 
$
88,435

 
8.00
%
 
N/A

 
 
Whidbey Island Bank
 
211,954

 
19.20
%
 
88,330

 
8.00
%
 
110,413

 
10.00
%
Tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 

 
 

 
 

Company (consolidated)
 
204,431

 
18.49
%
 
44,217

 
4.00
%
 
N/A

 
 

Whidbey Island Bank
 
197,931

 
17.93
%
 
44,165

 
4.00
%
 
66,248

 
6.00
%
Tier 1 leverage ratio
 
 
 
 
 
 
 
 

 
 

 
 

Company (consolidated)
 
204,431

 
12.41
%
 
65,887

 
4.00
%
 
N/A

 
 

Whidbey Island Bank
 
197,931

 
12.02
%
 
65,855

 
4.00
%
 
82,319

 
5.00
%

 
 
Actual
 
For capital adequacy purposes
 
To be well-capitalized under prompt corrective action provisions
December 31, 2012
 
Amount
 
Ratio
 
Amount
 
Minimum ratio
 
Amount
 
Minimum ratio
Total risk-based capital ratio
 
 
 
 
 
 
 
 
 
 
 
 
Company (consolidated)
 
$
210,545

 
19.39
%
 
$
86,856

 
8.00
%
 
N/A

 
 
Whidbey Island Bank
 
203,471

 
18.77
%
 
86,715

 
8.00
%
 
108,393

 
10.00
%
Tier 1 risk-based capital ratio
 
 

 
 

 
 

 
 

 
 

 
 

Company (consolidated)
 
196,889

 
18.13
%
 
43,428

 
4.00
%
 
N/A

 
 

Whidbey Island Bank
 
189,837

 
17.51
%
 
43,357

 
4.00
%
 
65,036

 
6.00
%
Tier 1 leverage ratio
 
 

 
 

 
 

 
 

 
 

 
 

Company (consolidated)
 
196,889

 
11.78
%
 
66,858

 
4.00
%
 
N/A

 
 

Whidbey Island Bank
 
189,837

 
11.36
%
 
66,820

 
4.00
%
 
83,525

 
5.00
%