REGULATORY SUPERVISION

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 13. REGULATORY SUPERVISION

On March 26, 2015, the Office of the Comptroller of the Currency (the OCC), the Bank’s primary regulator, terminated the Consent Order, dated August 10, 2012 (the Order), between the OCC and the Bank, which had restricted the activities of the Bank in various ways as previously reported. Additionally, the OCC has reclassified the Bank as a well-capitalized institution.

The Bank’s actual and required capital levels and ratios as of March 31, 2015 and December 31, 2014 were as follows:

	Actual				Required to be Well- Capitalized Under Prompt  Corrective Action
	Amount		Ratio		Amount		Ratio
	(Dollars in Millions)
March 31, 2015
Total capital (to risk weighted assets)	$	80.2	15.86	%	$	50.6	10.00	%
Common equity tier 1 capital (to risk weighted assets)		73.9	14.61	%		32.9	6.50	%
Tier 1 capital (to risk weighted assets)		73.9	14.61	%		40.5	8.00	%
Tier 1 capital (to adjusted total assets)		73.9	10.38	%		35.6	5.00	%
December 31, 2014
Total capital (to risk weighted assets)	$	79.2	17.64	%	$	44.9	10.00	%
Tier 1 capital (to risk weighted assets)		73.5	16.38	%		26.9	6.00	%
Tier 1 capital (to adjusted total assets)		73.5	10.35	%		35.5	5.00	%

The Bank’s capital classification under PCA defined levels as of March 31, 2015 was well-capitalized.

The Company remains subject to a Supervisory Agreement with the Board of Governors of the Federal Reserve System (the FRB), which provides, among other things, that: (1) the Company must comply with regulatory prior notification requirements with respect to changes in directors and senior executive officers; (2) the Company cannot declare or pay dividends or make any other capital distributions without prior written FRB approval; (3) the Company will not be permitted to enter into, renew, extend or revise any contractual arrangement relating to compensation or benefits for any senior executive officers or directors, unless it provides 30 days prior written notice of the proposed transaction to the FRB; (4) the Company may not make any golden parachute payment or prohibited indemnification payment without FRB prior written approval; and (5) the Company may not incur, issue, renew or rollover any debt or debt securities, increase any current lines of credit, guarantee the debt of any entity, or otherwise incur any additional debt without the prior written non-objection of the FRB.