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Regulatory Matters
 12 Months Ended
Dec. 31, 2017
Regulatory Capital Requirements [Abstract]  
Regulatory Matters
Regulatory Matters

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory action. The final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2017 was 1.250% and for 2016 was 0.625%. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2017, the Company and Bank met all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2017 and 2016, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category.

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 tables.

As of December 31, 2017
(amounts in thousands except ratios)
 
Actual
For Capital Adequacy Purpose
For Capital Adequacy Purposes with Capital Conservation Buffer *
To be Well Capitalized Under Prompt Corrective Action Provisions
Company
Amount
Ratio
Amount
Ratio
Amount
Ratio
Amount
Ratio
Total risk-based capital
$
162,837

17.17
%
$
75,859

8.00
%
$
87,711

9.250
%
$
94,823

10.00
%
Tier 1 risk-based capital
$
150,926

15.92
%
$
56,894

6.00
%
$
68,747

7.250
%
$
75,859

8.00
%
Tier 1 leverage
$
150,926

14.31
%
$
42,178

4.00
%
$
42,178

4.000
%
$
52,722

5.00
%
Tier 1 common equity
$
121,955

12.86
%
$
42,670

4.50
%
$
54,523

5.750
%
$
61,635

6.50
%
Parke Bank
 
 
 
 
 
 
 
 
Total risk-based capital
$
159,435

16.81
%
$
75,861

8.00
%
$
87,714

9.250
%
$
94,826

10.00
%
Tier 1 risk-based capital
$
147,524

15.56
%
$
56,896

6.00
%
$
68,749

7.250
%
$
75,861

8.00
%
Tier 1 leverage
$
147,524

13.99
%
$
42,175

4.00
%
$
42,175

4.000
%
$
52,719

5.00
%
Tier 1 common equity
$
147,524

15.56
%
$
42,672

4.50
%
$
54,525

5.750
%
$
61,637

6.50
%

As of December 31, 2016
(amounts in thousands except ratios)
 
Actual
For Capital Adequacy Purpose
For Capital Adequacy Purposes with Capital Conservation Buffer *
To be Well Capitalized Under Prompt Corrective Action Provisions
Company
Amount
Ratio
Amount
Ratio
Amount
Ratio
Amount
Ratio
Total risk-based capital
$
154,018

18.33
%
$
67,219

8.00
%
$
72,470

8.625
%
$
84,024

10.00
%
Tier 1 risk-based capital
$
143.453

17.07
%
$
50,414

6.00
%
$
55.666

6.625
%
$
67,219

8.00
%
Tier 1 leverage
$
143,453

15.25
%
$
37,618

4.00
%
$
37,618

4.000
%
$
47,023

5.00
%
Tier 1 common equity
$
110,453

13.15
%
$
37,811

4.50
%
$
43,062

5.125
%
$
54,615

6.50
%
Parke Bank
 
 
 
 
 
 
 
 
Total risk-based capital
$
150,636

17.93
%
$
67,218

8.00
%
$
72,470

8.625
%
$
84,023

10.00
%
Tier 1 risk-based capital
$
140,070

16.67
%
$
50,414

6.00
%
$
55,665

6.625
%
$
67,218

8.00
%
Tier 1 leverage
$
140,047

15.29
%
$
36,654

4.00
%
$
36,654

4.000
%
$
45,818

5.00
%
Tier 1 common equity
$
140,047

16.67
%
$
37,810

4.50
%
$
43,062

5.125
%
$
54,615

6.50
%

* The new capital rules require banks and covered financial institution holding companies to maintain a capital conservation buffer of at least 2.5% of risk-weighted assets over and above the minimum risk-based capital requirements. Institutions that do not maintain the required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management.