REGULATORY MATTERS

9 Months Ended

Sep. 30, 2018

Banking and Thrift [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 2018 is 1.875%. The Bank made one-time election to opt-out the net unrealized gain or loss on available for sale securities in computing regulatory capital. At September 30, 2018 and December 31, 2017, the Company and Bank were both considered “well capitalized"

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, under capitalized, significantly under capitalized, and critically under-capitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If under capitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of September 30, 2018 and December 31, 2017, 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, Tier 1 common equity, and Tier 1 leverage ratios as set forth in the following tables:

Regulatory Capital Compliance
As of September 30, 2018	Actual				For Capital Adequacy Purposes				For Capital Adequacy Purposes With Capital Conservation Buffer*				To be Well Capitalized Under Prompt Corrective Action Provisions
(amounts in thousands except ratios)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:
Total risk-based capital	$	176,251	16.92	%	$	83,358	8.00	%	$	102,895	9.875	%	$	104,197	10.00	%
Tier 1 risk-based capital	163,166		15.66	%	62,518		6.00	%	82,055		7.875	%	83,358		8.00	%
Tier 1 leverage	163,166		12.58	%	51,873		4.00	%	51,873		4.000	%	64,841		5.00	%
Tier 1 common equity	146,749		14.08	%	46,889		4.50	%	66,426		6.375	%	67,728		6.50	%
Parke Bank:
Total risk-based capital	$	175,774	16.88	%	$	83,325	8.00	%	$	102,854	9.875	%	$	104,156	10.00	%
Tier 1 risk-based capital	162,694		15.62	%	62,494		6.00	%	82,023		7.875	%	83,325		8.00	%
Tier 1 leverage	162,694		12.55	%	51,856		4.00	%	51,856		4.000	%	64,820		5.00	%
Tier 1 common equity	162,694		15.62	%	46,870		4.50	%	66,400		6.375	%	67,702		6.50	%

As of December 31, 2017	Actual				For Capital Adequacy Purposes				For Capital Adequacy Purposes With Capital Conservation Buffer*				To be Well Capitalized Under Prompt Corrective Action Provisions
(amounts in thousands except ratios)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:
Total risk-based capital	$	162,837	17.17	%	$	75,859	8.00	%	$	87,711	9.25	%	$	94,823	10.00	%
Tier 1 risk-based capital	150,926		15.92	%	56,894		6.00	%	68,747		7.25	%	75,859		8.00	%
Tier 1 leverage	150,926		14.31	%	42,178		4.00	%	42,178		4.00	%	52,722		5.00	%
Tier 1 common equity	121,955		12.86	%	42,670		4.50	%	54,523		5.75	%	61,635		6.50	%
Parke Bank:
Total risk-based capital	$	159,435	16.81	%	$	75,861	8.00	%	$	87,714	9.25	%	$	94,826	10.00	%
Tier 1 risk-based capital	147,524		15.56	%	56,896		6.00	%	68,749		7.25	%	75,861		8.00	%
Tier 1 leverage	147,524		13.99	%	42,175		4.00	%	42,175		4.00	%	52,719		5.00	%
Tier 1 common equity	147,524		15.56	%	42,672		4.50	%	54,525		5.75	%	61,637		6.50	%

*The minimums under Basel III increase by .625% (the capital conservation buffer) annually until 2019. The fully phased-in minimums are 10.5% (Total risk-based capital), 8.5% (Tier 1 risk-based capital), and 7.0% (Tier 1 common equity).