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Note 6 - Regulatory Matters
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]
NOTE
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
March 31, 2020
and
December 31, 2019,
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
March 31, 2020,
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, common equity 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
  
   
(Dollars in thousands)
  
As of March 31, 2020:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
                                                 
Total Capital (to Risk-Weighted Assets)
  
 $
43,855
 
  
 
14.00
%
  
$
25,046
    
 
>
8.00
%
  
$
31,325
    
 
>
10.00
%
                                                 
Tier I Capital (to Risk-Weighted Assets)
  
 $
40,418
 
  
 
12.91
%
  
$
18,785
    
 
>
6.00
%
  
$
25,046
    
 
>
8.00
%
                                                 
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
  
$
40,418
    
 
12.91
%
  
$
14,088
    
 
>
4.50
%
  
$
20,350
    
 
>
6.50
%
                                                 
Tier I Capital (to Average Assets)
  
$
40,418
    
 
10.36
%
  
$
15,605
    
 
>
4.00
%
  
$
19,507
    
 
>
5.00
%
                                                 
As of December 31, 2019:
                                                
                                                 
Total Capital (to Risk-Weighted Assets)
   $
42,944
      
14.59
 %   $
23,554
      
>
8.00		 %   $
29,443
      
>
10.00		 %
                                                 
Tier I Capital (to Risk-Weighted Assets)
   $
39,982
      
13.58
 %   $
17,666
      
>
6.00		 %   $
23,554
      
>
8.00		 %
                                                 
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
   $
39,982
      
13.58
 %   $
13,249
      
>
4.50		 %   $
19,138
      
>
6.50		 %
                                                 
Tier I Capital (to Average Assets)
   $
39,982
      
10.30
 %   $
15,529
      
>
4.00		 %   $
19,411
      
>
5.00		 %