Note 16 - Regulatory Matters

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE

1

6

– 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, 2018

and

2017,

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, 2018,

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:

		Actual				For Capital Adequacy Puroses			To be Well Capitalized Under Prompt Corrective Action Provisions
		Amount	Ratio			Amount	Ratio		Amount	Ration
		(Dollars in thousands)
As of December 31, 2018:
Total Capital (to Risk-Weighted Assets)	$	41,685	14.50	%	$	22,999	> 8.00%	$	28,748	> 10.00%
Tier I Capital (to Risk-Weighted Assets)	$	38,703	13.46	%	$	17,252	> 6.00%	$	23,003	> 8.00%
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	$	38,703	13.46	%	$	12,939	> 4.50%	$	18,690	> 6.50%
Tier I Capital (to Average Assets)	$	38,703	10.29	%	$	15,045	> 4.00%	$	18,806	> 5.00%
As of December 31, 2017:
Total Capital (to Risk-Weighted Assets)	$	45,076	17.21	%	$	20,950	> 8.00%	$	26,187	> 10.00%
Tier I Capital (to Risk-Weighted Assets)	$	41,800	15.96	%	$	15,712	> 6.00%	$	20,950	> 8.00%
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	$	41,800	15.96	%	$	11,784	> 4.50%	$	17,022	> 6.50%
Tier I Capital (to Average Assets)	$	41,800	11.96	%	$	14,011	> 4.00%	$	17,514	> 5.00%