REGULATORY MATTERS

12 Months Ended

Dec. 31, 2016

Banking and Thrift [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 16 – REGULATORY MATTERS

Bank 34 is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines involving 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 of total risk-based capital and Tier 1 capital to risk-weighted assets, and Tier 1 capital to adjusted total assets. Management believes, as of December 31, 2016 and 2015, the Bank meets all capital adequacy requirements to which it is subject.

Banks are also subject to certain restrictions on the amount of dividends that they may declare without prior regulatory approval.

As of December 31, 2016, the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank has to maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as disclosed in the table below. There are no conditions or events that management believes have changed the Bank’s prompt corrective action category.

The Bank’s actual and required capital amounts and ratios are as follows:

											To be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2016:
(Dollars in thousands)
Total Capital
(to Risk-Weighted Assets)	$	42,265		18.14	%	$	18,644		≥8.00	%	$	23,305		≥10.00	%
Tier I Capital
(to Risk-Weighted Assets)	$	39,681		17.03	%	$	13,983		≥6.00	%	$	18,644		≥8.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)	$	39,681		17.03	%	$	10,487		≥4.50	%	$	15,148		≥6.50	%
Tier I Capital
(to Average Assets)	$	39,681		11.91	%	$	13,331		≥4.00	%	$	16,664		≥5.00	%
As of December 31, 2015:
(Dollars in thousands)
Total Capital
(to Risk-Weighted Assets)	$	31,584		16.93	%	$	14,928		≥8.00	%	$	18,660		≥10.00	%
Tier I Capital
(to Risk-Weighted Assets)	$	29,690		15.91	%	$	11,196		≥6.00	%	$	14,928		≥8.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)	$	29,690		15.91	%	$	8,397		≥4.50	%	$	12,129		≥6.50	%
Tier I Capital
(to Average Assets)	$	29,690		11.06	%	$	10,742		≥4.00	%	$	13,428		≥5.00	%