Capital Requirements

12 Months Ended

Dec. 31, 2011

Capital Requirements [Abstract]

Capital Requirements

Note 20. Capital Requirements

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 and the Bank'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 their 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. Prompt corrective action provisions are not applicable to bank holding companies.

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 (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined).  Management believes, as of December 31, 2011 and 2010, that the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2011, the most recent notification from the Federal Reserve Bank of Richmond categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table.  There are no conditions or events since that notification that management believes have changed the institution's category.

The Company's and the Bank's actual capital amounts and ratios are also presented in the following table. No amount was deducted from capital for interest-rate risk.

	Actual					Minimum Capital Requirement					Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2011:
Total capital (to risk weighted assets):
Consolidated	$	58,400		13.3	%	$	35,106		8.0	%		N/A		N/A
The Fauquier Bank	$	56,640		12.9	%	$	35,113		8.0	%	$	43,892		10.0	%
Tier 1 capital (to risk weighted assets):
Consolidated	$	52,899		12.1	%	$	17,553		4.0	%		N/A		N/A
The Fauquier Bank	$	51,138		11.7	%	$	17,557		4.0	%	$	26,335		6.0	%
Tier 1 capital (to average assets):
Consolidated	$	52,899		8.7	%	$	24,332		4.0	%		N/A		N/A
The Fauquier Bank	$	51,138		8.4	%	$	24,266		4.0	%	$	30,333		5.0	%
As of December 31, 2010:
Total capital (to risk weighted assets):
Consolidated	$	55,728		12.6	%	$	35,535		8.0	%		N/A		N/A
The Fauquier Bank	$	54,926		12.4	%	$	35,499		8.0	%	$	44,374		10.0	%
Tier 1 capital (to risk weighted assets):
Consolidated	$	50,170		11.3	%	$	17,765		4.0	%		N/A		N/A
The Fauquier Bank	$	49,370		11.1	%	$	17,749		4.0	%	$	26,624		6.0	%
Tier 1 capital (to average assets):
Consolidated	$	50,170		8.2	%	$	24,362		4.0	%		N/A		N/A
The Fauquier Bank	$	49,370		8.1	%	$	24,351		4.0	%	$	30,438		5.0	%