REGULATORY MATTERS

3 Months Ended

12 Months Ended

Mar. 31, 2016

Dec. 31, 2015

Banking and Thrift [Abstract]

REGULATORY MATTERS

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, 2016 and December 31, 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 March 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 March 31, 2016:
(Dollars in thousands)
Total Capital
(to Risk-Weighted Assets)	$	31,687		16.26	%	$	15,592		³8.00	%	$	19,490		³10.00	%
Tier I Capital
(to Risk-Weighted Assets)	$	29,635		15.21	%	$	11,694		³6.00	%	$	15,592		³8.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)	$	29,635		15.21	%	$	8,771		³4.50	%	$	12,669		³6.50	%
Tier I Capital
(to Average Assets)	$	29,635		11.09	%	$	10,690		³4.00	%	$	13,363		³5.00	%
As of December 31, 2015:
(Dollars in thousands)
Total Capital
(to Risk-Weighted Assets)	$	31,584		16.93	%	$	14,928		³8.00	%	$	18,660		³10.00	%
Tier I Capital
(to Risk-Weighted Assets)	$	29,690		15.91	%	$	11,196		³6.00	%	$	14,928		³8.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)	$	29,690		15.91	%	$	8,397		³4.50	%	$	12,129		³6.50	%
Tier I Capital
(to Average Assets)	$	29,690		11.06	%	$	10,742		³4.00	%	$	13,428		³5.00	%

NOTE 17 – 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, 2015 and 2014, 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, 2015, 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, 2015:
(Dollars in thousands)
Total Capital
(to Risk-Weighted Assets)	$	31,584	16.93	%	$	14,928	³8.00	%	$	18,660	³10.00	%
Tier I Capital
(to Risk-Weighted Assets)	$	29,690	15.91	%	$	11,196	³6.00	%	$	14,928	³8.00	%
Common Equity Tier 1 Capital
(to Risk-Weighted Assets)	$	29,690	15.91	%	$	8,397	³4.50	%	$	12,129	³6.50	%
Tier I Capital
(to Average Assets)	$	29,690	11.06	%	$	10,742	³4.00	%	$	13,428	³5.00	%
As of December 31, 2014:
(Dollars in thousands)
Total Capital
(to Risk-Weighted Assets)	$	30,574	17.09	%	$	14,313	³8.00	%	$	17,891	³10.00	%
Tier I Capital
(to Risk-Weighted Assets)	$	28,867	16.13	%	$	7,157	³4.00	%	$	10,735	³6.00	%
Tier I Capital
(to Average Assets)	$	28,867	11.68	%	$	9,887	³4.00	%	$	12,359	³5.00	%