Regulatory Matters

12 Months Ended

Dec. 31, 2012

Regulatory Matters

18. Regulatory Matters:

The Company and the Bank are subject to the regulations of certain federal and state agencies and receive periodic examinations by those regulatory authorities. In addition, they are subject to various regulatory capital requirements administered by 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 consolidated 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 the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the 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 of Total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to leverage assets. Management believes that, as of December 31, 2012, the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2012, according to FDIC guidelines, the Bank is considered to be well-capitalized. To be categorized as well-capitalized, the Bank must maintain minimum Total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2012:
Total capital (to risk weighted assets)
Bank:	$	173,225		17.90	%	$	77,426		8	%	$	96,783		10	%
Company:	$	175,671		18.15	%	$	77,411		8	%	$	96,764		10	%
Tier 1 capital (to risk weighted assets)
Bank:	$	161,073		16.64	%	$	38,713		4	%	$	58,070		6	%
Company:	$	163,519		16.90	%	$	38,706		4	%	$	58,059		6	%
Tier 1 capital (to leverage assets)
Bank:	$	161,073		12.15	%	$	53,019		4	%	$	66,273		5	%
Company:	$	163,519		12.33	%	$	53,030		4	%	$	66,287		5	%
As of December 31, 2011:
Total capital (to risk weighted assets)
Bank:	$	165,089		18.41	%	$	71,756		8	%	$	89,695		10	%
Company:	$	172,336		19.22	%	$	71,720		8	%	$	89,651		10	%
Tier 1 capital (to risk weighted assets)
Bank:	$	153,829		17.15	%	$	35,878		4	%	$	53,817		6	%
Company:	$	161,076		17.97	%	$	35,860		4	%	$	53,790		6	%
Tier 1 capital (to leverage assets)
Bank:	$	153,829		12.51	%	$	49,178		4	%	$	61,472		5	%
Company:	$	161,076		13.09	%	$	49,226		4	%	$	61,533		5	%