Regulatory Matters and Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Bank's Actual Capital Ratios which Include the Impact of the Merger of Citizens and Minimum Ratios Required for Capital Adequacy Purposes

The Bank’s actual capital ratios, which include the impact of the merger of Citizens at June 30, 2016 and December 31, 2015, and the minimum ratios required for capital adequacy purposes to be considered well capitalized under the prompt corrective action provisions, are summarized below for the periods presented:


	Actual					Minimum Regulatory Capital Ratios under Basel III (with 2016 0.625% capital conservation buffer phase-in*)						Well Capitalized under Basel III
	Amount		Ratio			Amount		Ratio				Amount		Ratio
	(Dollars in thousands)
As of June 30, 2016:
Total risk-based capital (to risk-weighted assets)*	$	42,854		11.0	%	$	33,658	³8.625%				$	39,024		³10.0	%
Tier 1 capital (to risk-weighted assets)*		39,188		10.0	%		25,853	³6.625%					31,219		³8.0	%
Tier 1 capital (to average total assets)		39,188		7.5	%		20,906	³4.0%					26,133		³5.0	%
Common equity tier 1 risk-based capital (to risk-weighted assets)*		39,188		10.0	%		20,000	³5.125%					25,365		³6.5	%

	Actual					Minimum Regulatory Capital Ratios under Basel III (without 2.5% capital conservation buffer phase-in)						Well Capitalized under Basel III
	Amount		Ratio			Amount			Ratio			Amount		Ratio
As of December 31, 2015:
Total risk-based capital (to risk-weighted assets)	$	43,128		10.7	%		$32,296			³8.0	%	$	40,370		³10.0	%
Tier 1 capital (to risk-weighted assets)		38,710		9.6	%		24,222			³6.0	%		32,296		³8.0	%
Tier 1 capital (to average total assets)		38,710		7.2	%		21,611			³4.0	%		27,014		³5.0	%
Common equity tier 1 risk-based capital (to risk-weighted assets)		38,710		9.6	%		18,167			³4.5	%		26,241		³6.5	%

The Basel III capital rules became effective for the Bank on January 1, 2015. A new capital ratio - Common equity tier 1 risk-based capital – was introduced under the Basel III capital rules. Since the buffer phase-in of the capital rules was effective in January 2016, the presentation for June 30, 2016 takes into account the transitional capital conservation buffer phase-in, which added 0.625% to the minimum regulatory capital ratios, whereas the December 31, 2015 presentation does not reflect the buffer phase-in.