Note 9 - Regulatory Capital Ratios

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note

9

Regulatory Capital Ratios

The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional 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 that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The 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 (set forth in the table below) of Common Equity Tier

1,

Tier

1,

and Total capital to risk-weighted assets and of Tier

1

capital to average assets. It is management's opinion, as of

December 31, 2017

and as of

June 30, 2018,

that the Bank meets all applicable capital adequacy requirements.

As of

June 30, 2018,

and

December 31, 2017,

the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are

no

conditions or events since

June 30, 2018

that management believes have changed the Bank's category.

The Bank's actual capital amounts and ratios are presented in the following tables:

										To Be Well Capitalized
	Actual					For Capital Adequacy Purposes				Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
June 30, 2018
Common Equity Tier 1 capital (to risk-weighted assets)	$	48,073		24.14	%	≥	$8,963	≥	4.50%	≥	$12,947	≥	6.50%
Tier 1 capital (to risk-weighted assets)		48,073		24.14	%	≥	11,951	≥	6.00	≥	15,934	≥	8.00
Total capital (to risk-weighted assets)		49,981		25.09	%	≥	15,934	≥	8.00	≥	19,918	≥	10.00
Tier 1 capital (to average assets)		48,073		18.59	%	≥	10,342	≥	4.00	≥	12,927	≥	5.00
December 31, 2017
Common Equity Tier 1 capital (to risk-weighted assets)	$	47,513		26.82	%	≥	$7,973	≥	4.50%	≥	$11,517	≥	6.50%
Tier 1 capital (to risk-weighted assets)		47,513		26.82	%	≥	10,631	≥	6.00	≥	14,174	≥	8.00
Total capital (to risk-weighted assets)		49,313		27.83	%	≥	14,174	≥	8.00	≥	17,718	≥	10.00
Tier 1 capital (to average assets)		47,513		17.20	%	≥	11,051	≥	4.00	≥	13,813	≥	5.00