Capital Requirements

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Capital Requirements

Capital Requirements

The Corporation (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 - possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of the Corporation’s and the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation’s 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 Corporation and Bank to maintain minimum amounts and ratios (set forth in the table below) of total Tier 1, and Common Equity 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, 2017 and 2016, that the Corporation and the Bank meet all capital adequacy requirements to which they are subject.

At December 31, 2017 the Corporation and Bank exceeded the minimum required ratios for “well capitalized” as defined by the federal banking regulators. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events that management believes have changed the institutions’ category.

The Corporation’s and Bank’s actual capital amounts and ratios as of December 31, 2017 and 2016 are presented in the table below:

									Minimum To Be Well Capitalized Under
					Minimum Capital				Prompt Corrective
	Actual				Requirement				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars In Thousands)
December 31, 2017
Total Capital
(to Risk-Weighted Assets)
Corporation	$	257,139	12.25	%	$	183,670	8.750	%	$	209,909	10.00	%
Bank	$	243,301	11.66	%	$	182,517	8.750	%	$	208,591	10.00	%
Tier 1 Capital
(to Risk-Weighted Assets)
Corporation	$	240,535	11.46	%	$	141,689	6.750	%	$	167,927	8.00	%
Bank	$	225,743	10.82	%	$	140,799	6.750	%	$	166,873	8.00	%
Tier 1 Capital
(to Average Assets)
Corporation	$	240,535	8.48	%	$	148,986	5.250	%	$	141,892	5.00	%
Bank	$	225,743	8.51	%	$	139,313	5.250	%	$	132,679	5.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)
Corporation	$	240,535	11.46	%	$	83,964	4.00	%	$	136,441	6.50	%
Bank	$	225,743	10.82	%	$	83,436	4.00	%	$	135,584	6.50	%
December 31, 2016
Total Capital
(to Risk-Weighted Assets)
Corporation	$	135,009	11.51	%	$	93,866	8.63	%	$	117,333	10.00	%
Bank	$	124,149	10.58	%	$	93,866	8.63	%	$	117,332	10.00	%
Tier 1 Capital
(to Risk-Weighted Assets)
Corporation	$	120,317	10.25	%	$	70,400	6.63	%	$	93,866	8.00	%
Bank	$	109,457	9.33	%	$	70,399	6.63	%	$	93,866	8.00	%
Tier 1 Capital
(to Average Assets)
Corporation	$	120,317	8.90	%	$	52,800	5.13	%	$	58,667	5.00	%
Bank	$	109,457	8.11	%	$	60,793	5.13	%	$	67,547	5.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)
Corporation	$	120,317	10.25	%	$	54,068	4.00	%	$	87,861	6.50	%
Bank	$	109,457	9.33	%	$	46,933	4.00	%	$	76,266	6.50	%