Capital Requirements

12 Months Ended

Dec. 31, 2015

Capital Requirements [Abstract]

Capital Requirements

Note 12 – Capital Requirements

The Company (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, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

In July 2013, the federal bank regulatory agencies issued final rules and requirements for banking organizations to implement the Basel III regulatory capital reforms and certain provisions of the Dodd-Frank Act. Effective January 1, 2015, the final rules require the Company and the Bank to comply with the following new minimum capital ratios: (i) a new common equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (ii) a Tier 1 capital ratio of 6% of risk-weighted assets (increased from the prior requirement of 4%); (iii) a total capital ratio of 8% of risk-weighted assets (unchanged from the prior requirement); and (iv) a leverage ratio of 4% of total assets (unchanged from the prior requirement). Beginning January 1, 2016 a capital conservation buffer requirement for each of the capital ratios will be phased in over a four-year period, beginning at 0.625% of risk-weighted assets and increasing to 2.5% at January 1, 2019.

With respect to the Bank, the rules also revised the “prompt corrective action” regulations pursuant to Section 38 of the FDIA. In addition, the new capital requirements for the Company and the Bank include changes in the risk weights of assets to better reflect credit risk and other risk exposures.

The Bank's capital ratios remain well above the levels designated by bank regulators as “well capitalized” at December 31, 2015. 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 table below. There are no conditions or events since that management believes have changed the institution's category.

Beginning January 1, 2015, the Company calculates its regulatory capital under the U.S. Basel III Standardized Approach. The Company calculated regulatory capital measures for periods prior to 2015 under previous regulatory requirements. The table summarizes the Company's regulatory capital and related ratios for the periods presented:

December 31, 2015									Minimum
									To Be Well Capitalized
					Minimum Capital				Under Prompt Corrective
	Actual				Requirement				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital
(To Risk Weighted Assets)
Consolidated	$	59,982	13.39	%	$	35,824	8.00	%		N/A	N/A
Bank	$	58,606	13.10	%	$	35,779	8.00	%	$	44,724	10.00	%
Common Equity Tier 1 Capital
(To Risk Weighted Assets)
Consolidated	$	56,415	12.60	%	$	20,151	4.50	%		N/A	N/A
Bank	$	55,039	12.31	%	$	20,126	4.50	%	$	29,071	6.50	%
Tier 1 Capital
(To Risk Weighted Assets)
Consolidated	$	56,415	12.60	%	$	26,868	6.00	%		N/A	N/A
Bank	$	55,039	12.31	%	$	26,835	6.00	%	$	35,779	8.00	%
Tier 1 Capital
(To Average Assets)
Consolidated	$	56,415	10.05	%	$	22,462	4.00	%		N/A	N/A
Bank	$	55,039	9.81	%	$	22,439	4.00	%	$	28,048	5.00	%

December 31, 2014									Minimum
									To Be Well Capitalized
					Minimum Capital				Under Prompt Corrective
	Actual				Requirement				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital
(To Risk Weighted Assets)
Consolidated	$	63,752	17.87	%	$	28,538	8.00	%		N/A	N/A
Bank	$	52,505	15.63	%	$	28,490	8.00	%	$	35,612	10.00	%
Tier 1 Capital
(To Risk Weighted Assets)
Consolidated	$	60,588	16.98	%	$	14,269	4.00	%		N/A	N/A
Bank	$	55,669	14.74	%	$	14,245	4.00	%	$	21,367	6.00	%
Tier 1 Capital
(To Average Assets)
Consolidated	$	60,588	11.38	%	$	21,305	4.00	%		N/A	N/A
Bank	$	55,669	9.86	%	$	21,296	4.00	%	$	26,620	5.00	%