Regulatory Matters

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Regulatory Matters

Note O - Regulatory Matters -

The Bank is subject to various regulatory capital requirements administered by its primary federal regulator, the Office of the Comptroller of the Currency (OCC). Failure to meet minimum regulatory capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators that if undertaken, could have a direct material effect on the Bank’s financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines involving quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by 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 as of January 1, 2016, of Total capital, Tier 1 capital, Common Equity Tier 1 capital to risk-weighted assets (as defined in the regulations), and Leverage capital, which is Tier 1 capital to adjusted average total assets (as defined). Management believes, as of December 31, 2019 and 2018, that the Bank met all the capital adequacy requirements to which it is subject.

As of December 31, 2019 and 2018, the most recent notifications from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have minimum Total capital, Common Equity Tier 1 capital, Tier 1 capital and Leveraged capital ratios as disclosed in the table below. There are no conditions or events since the most recent notification 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 Prompt
					For Capital Adequacy				Corrective Action
	Actual				Purposes				Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of December 31, 2019
Total Capital (to Risk-Weighted Assets)
Bank	$	19,829	25.08%	%	$	6,325	8.0	%	$	7,906	10.0	%
Tier I Capital (to Risk-Weighted Assets)
Bank	$	19,060	24.11%	%	$	4,744	6.0	%	$	6,325	8.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)
Bank	$	19,060	24.11%	%	$	3,558	4.5	%	$	5,139	6.5	%
Tier I Leverage Capital (to Adjusted Total Assets)
Bank	$	19,060	14.64%	%	$	5,209	4.0	%	$	6,512	5.0	%
As of December 31, 2018
Total Capital (to Risk-Weighted Assets)
Bank	$	19,095	26.06	%	$	5,862	8.0	%	$	7,327	10.0	%
Tier I Capital (to Risk-Weighted Assets)
Bank	$	18,327	25.01	%	$	4,396	6.0	%	$	5,862	8.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)
Bank	$	18,327	25.01	%	$	3,297	4.5	%	$	4,763	6.5	%
Tier I Leverage Capital (to Adjusted Total Assets)
Bank	$	18,327	15.60	%	$	4,699	4.0	%	$	5,874	5.0	%

A reconciliation of the Bank’s capital determined under GAAP to Total Capital, Tier 1 Capital, Common Equity Tier 1 Capital and Tier 1 leverage Capital for December 31, 2019 and 2018 is as follows:

(Dollars in thousands)	2019		2018
Equity Capital (Bank only)	$	19,082	$	18,296
Unrealized Gains (Losses) on Securities Available for Sale, Net		22		(31)
Tangible, Tier 1 Capital and Common Equity Tier 1		19,060		18,327
Allowance for Loan Losses		769		768
Total Capital	$	19,829	$	19,095

The specific reserves included in the Allowance for Loan Losses were not significant as of December 31, 2019 and 2018.