Note 13 - Capital Requirements

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 13. Capital Requirements

The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement, and is not obligated to report consolidated regulatory capital. The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2021 and December 31, 2020, respectively.  These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015.

	Actual					For Capital Adequacy Purposes					To Be Well- Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2021
Total Capital (to risk weighted assets)	$	89,701		12.54	%	$	57,228		8.00	%	$	71,535		10.00	%
Tier 1 Capital (to risk weighted assets)	$	84,115		11.76	%	$	42,921		6.00	%	$	57,228		8.00	%
Common Equity Tier 1 (to risk weighted assets)	$	84,115		11.76	%	$	32,191		4.50	%	$	46,498		6.50	%
Tier 1 Capital (to average total assets)	$	84,115		8.73	%	$	38,561		4.00	%	$	48,201		5.00	%
December 31, 2020
Total Capital (to risk weighted assets)	$	84,176		13.10	%	$	51,409		8.00	%	$	64,261		10.00	%
Tier 1 Capital (to risk weighted assets)	$	79,240		12.33	%	$	38,557		6.00	%	$	51,409		8.00	%
Common Equity Tier 1 (to risk weighted assets)	$	79,240		12.33	%	$	28,918		4.50	%	$	41,770		6.50	%
Tier 1 Capital (to average total assets)	$	79,240		9.50	%	$	33,354		4.00	%	$	41,692		5.00	%

On September 17, 2019 the FDIC finalized a rule that introduces an optional simplified measure of capital adequacy for qualifying community banking organizations (i.e., the community bank leverage ratio (“CBLR”) framework), as required by the Economic Growth, Regulatory Relief and Consumer Protection Act. The CBLR framework is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework.

In order to qualify for the CBLR framework, a community banking organization must have a Tier 1 leverage ratio of greater than 9.00%, less than $10.0 billion in total consolidated assets, and limited amounts of off-balance sheet exposures and trading assets and liabilities. A qualifying community banking organization that opts into the CBLR framework and meets all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the prompt corrective action regulations and will not be required to report or calculated risk-based capital.

The CBLR framework was available for banks to use in their September 30, 2021, Call Report. At this time the Company has elected not to opt into the CBLR framework for the Bank, but may opt into the CBLR framework in the future.