Note 7 - Regulatory Matters

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

7.     REGULATORY MATTERS

The Banks are subject to regulations and, among others things, may be limited in their ability to pay dividends or otherwise transfer funds to the holding company.  In addition, dividends paid by the Banks to the Parent would be prohibited if the effect thereof would cause the Banks’ capital to be reduced below applicable minimum capital requirements.

On August 10, 2009, MetroBank entered into a written agreement (the “Agreement”) with the OCC. The Agreement was based on the findings of the OCC during the annual on-site examination of MetroBank performed in the first quarter of 2009 and was primarily focused on matters related to MetroBank’s asset quality. The Board of Directors of MetroBank was officially informed on June 12, 2013 by the OCC that the Agreement had been terminated effective as of June 12, 2013.

As of June 30, 2013, the most recent notifications from the OCC with respect to MetroBank, and the CDFI with respect to Metro United categorized the Banks as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since the notifications that management believes have changed the Banks’ level of capital adequacy.

The Company’s and the Banks’ actual capital amounts and ratios at the dates indicated are presented in the following table (dollars in thousands):

	Actual					Minimum Required For Capital Adequacy Purposes					To be Categorized as Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
As of June 30, 2013
Total risk-based capital ratio
MetroCorp Bancshares, Inc.	$	217,914		17.10	%	$	101,953		8.00	%	$	N/A		N/A	%
MetroBank, N.A.		149,083		16.07			74,199		8.00			92,749		10.00
Metro United Bank		54,222		15.73			27,582		8.00			34,477		10.00
Tier 1 risk-based capital ratio
MetroCorp Bancshares, Inc.		201,902		15.84			50,977		4.00		N/A		N/A
MetroBank, N.A.		137,437		14.82			37,100		4.00			55,649		6.00
Metro United Bank		49,882		14.47			13,791		4.00			20,686		6.00
Leverage ratio
MetroCorp Bancshares, Inc.		201,902		12.87			62,743		4.00		N/A		N/A
MetroBank, N.A.		137,437		12.09			45,479		4.00			56,848		5.00
Metro United Bank		49,882		11.55			17,273		4.00			21,591		5.00

As of December 31, 2012
Total risk-based capital ratio
MetroCorp Bancshares, Inc.	$	212,083	17.95	%	$	94,509	8.00	%	$	N/A	N/A%
MetroBank, N.A.		152,613	17.80			68,587	8.00			85,734		10.00
Metro United Bank		52,714	16.34			25,814	8.00			32,267		10.00
Tier 1 risk-based capital ratio
MetroCorp Bancshares, Inc.		197,077	16.68			47,255	4.00		N/A		N/A
MetroBank, N.A.		141,702	16.53			34,293	4.00			51,440		6.00
Metro United Bank		48,636	15.07			12,907	4.00			19,360		6.00
Leverage ratio
MetroCorp Bancshares, Inc.		197,077	13.18			59,812	4.00		N/A		N/A
MetroBank, N.A.		141,702	12.70			44,613	4.00			55,766		5.00
Metro United Bank		48,636	12.76			15,243	4.00			19,053		5.00