Minimum Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2011

Deposits/Securities Sold Under Agreements to Repurchase/Federal Home Loan Bank Advances/Minimum Regulatory Capital Requirements [Abstract]

Minimum Regulatory Capital Requirements

Note 9. Minimum Regulatory Capital Requirements

The Bank is subject to various regulatory capital requirements administered by its primary federal regulator, which has historically been the Office of Thrift Supervision (OTS). Under the Dodd-Frank Act of 2010, the OTS was eliminated and responsibility for the supervision and regulation of the Bank was transferred to the Office of the Comptroller of the Currency (OCC) on July 21, 2011. The OCC is the agency that is primarily responsible for the regulation and supervision of national banks. 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 affect on the Bank and 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 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 Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2011 and December 31, 2010, that the Bank met all capital adequacy requirements to which it was subject.

As of December 31, 2011, the most recent notification from the OCC 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 prompt corrective action category.

The Bank’s actual capital amounts and ratios are presented in the following tables. Dollar amounts are presented in thousands.

		September 30,		September 30,			September 30,		September 30,			September 30,		September 30,
											To be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2011:
Total capital (to risk-weighted assets)	$	42,287		21.96	%	$	15,408		8.00	%	$	19,260		10.00	%
Tier I capital (to risk-weighted assets)		39,858		20.69	%		N/A		N/A			11,556		6.00	%
Tier I capital (to adjusted total assets)		39,858		14.13	%		11,284		4.00	%		14,105		5.00	%
Tangible capital (to adjusted total assets)		39,858		14.13	%		4,231		1.50	%		N/A		N/A

		September 30,		September 30,			September 30,		September 30,			September 30,		September 30,
											To be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2010:
Total capital (to risk-weighted assets)	$	39,659		20.78	%	$	15,266		8.00	%	$	19,082		10.00	%
Tier I capital (to risk-weighted assets)		37,453		19.63	%		N/A		N/A			11,449		6.00	%
Tier I capital (to adjusted total assets)		37,453		13.53	%		11,070		4.00	%		13,838		5.00	%
Tangible capital (to adjusted total assets)		37,453		13.53	%		4,151		1.50	%		N/A		N/A