Regulatory Matters

9 Months Ended

Sep. 30, 2014

Regulatory Capital Requirements [Abstract]

REGULATORY MATTERS

17. REGULATORY MATTERS

Capital Requirements — The Company is subject to various regulatory capital requirements administered by federal banking agencies. Any institution that fails to meet its minimum capital requirements is subject to actions by regulators that could have a direct material effect on its financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines based on the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amount and classification under the regulatory framework for prompt corrective action are also subject to qualitative judgments by the regulators.

To meet the capital adequacy requirements, Green Bancorp and the Bank must maintain minimum capital amounts and ratios as defined in the regulations. Management believes, as of September 30, 2014 and December 31, 2013, that Green Bancorp and the Bank met all capital adequacy requirements to which they are subject.

The most recent notification from the regulatory banking agencies categorized Green Bank as “well capitalized” under the regulatory capital framework for prompt corrective action and there have been no events since that notification that management believes have changed the Bank’s category.

The Company’s consolidated capital ratios and the Bank’s capital ratios as of the dates set forth are presented in the following table:

		September 30, 2014
	Actual				For Capital Adequacy Purposes				To be Categorized as Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
The Company(1):
Total capital (to risk weighted assets)	$	283,895	16.9	%	$	134,704	8.0	%		N/A	N/A
Tier 1 capital (to risk weighted assets)		268,430	15.9			67,352	4.0			N/A	N/A
Tier I capital (to average assets)		268,430	14.7			72,944	4.0			N/A	N/A
The Bank(2):
Total capital (to risk weighted assets)	$	274,066	16.3	%	$	134,573	8.0	%	$	168,216	10.0	%
Tier 1 capital (to risk weighted assets)		258,601	15.4			67,286	4.0			100,930	6.0
Tier I capital (to average assets)		258,601	14.3			72,587	4.0			90,734	5.0

	December 31, 2013
	Actual				For Capital Adequacy Purposes				To be Categorized as Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
The Company(1):
Total capital (to risk weighted assets)	$	190,229	12.5	%	$	121,719	8.0	%		N/A	N/A
Tier 1 capital (to risk weighted assets)		173,680	11.4			60,859	4.0			N/A	N/A
Tier I capital (to average assets)		173,680	10.3			67,196	4.0			N/A	N/A
The Bank(2):
Total capital (to risk weighted assets)	$	184,908	12.2	%	$	121,619	8.0	%	$	152,023	10.0	%
Tier 1 capital (to risk weighted assets)		168,359	11.1			60,809	4.0			91,214	6.0
Tier I capital (to average assets)		168,359	10.0			67,021	4.0			83,776	5.0

⁽¹⁾ The Federal Reserve may require the Company to maintain capital ratios above the required minimums.

⁽²⁾ The FDIC or the OCC may require the Bank to maintain capital ratios above the required minimums

Dividend Restrictions — Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies.