Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2016

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

Regulatory Capital Requirements

The Company (on a consolidated basis) and Union are subject to various regulatory capital requirements administered by the 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 Company's and Union's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Union 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 Company's and Union's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Under rules effective January 1, 2015, a bank holding company, such as the Company, is considered “well capitalized” if the bank holding company (i) has a total risk based capital ratio of at least 10%, (ii) has a Tier I risk-based capital ratio of at least 8%, and (iii) is not subject to any written agreement order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. In addition, the FDIC has amended its prompt corrective action rules to reflect the revisions made by the new capital rules implementing Basel III. Under the FDIC’s revised rules, which became effective January 1, 2015, an FDIC supervised institution such as Union is considered “well capitalized” if it (i) has a total risk-based capital ratio of 10.0% or greater; (ii) a Tier I risk-based capital ratio of 8.0% or greater; (iii) a common Tier I equity ratio of at least 6.5% or greater, (iv) a leverage capital ratio of 5.0% or greater; and (iv) is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. The final rule also requires unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt-out is exercised. The Bank elected to opt-out of this regulatory capital provision. By opting out of the provision, the bank retains what is known as the accumulated other comprehensive income filter. Subject to a phase in period ending in 2019, the rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” of 2.5% above the amounts necessary to meet its minimum capital adequacy requirements.

Management believes that, as of December 31, 2016 and 2015, the Company and Union met all capital adequacy requirements to which they were subject. As of December 31, 2016 and 2015, the most recent notification from the FDIC categorized Union as well capitalized under the regulatory framework for prompt corrective action as then in effect. The prompt corrective action capital category framework applies to FDIC insured depository institutions such as Union but does not apply directly to bank holding companies such as the Company. Under applicable regulations in effect as of December 31, 2016, to be categorized as well capitalized, an insured depository institution must maintain minimum total risk based, Tier I risk based, common equity Tier 1 risk based, and Tier I leverage ratios as set forth in the table below. There are no conditions or events since the date of the most recent notification that management believes might result in an adverse change to Union's regulatory capital category. As a bank holding company, the Company is subject to substantially similar capital adequacy requirements of the FRB.

Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables:

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2016	Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:	(Dollars in thousands)
Total capital to risk weighted assets	$	60,800	13.05	%	$	37,272	8.00	%	N/A		N/A
Tier 1 capital to risk weighted assets	55,553		11.93	%	27,939		6.00	%	N/A		N/A
Common Equity Tier 1 to risk weighted assets	55,553		11.93	%	20,955		4.50	%	N/A		N/A
Tier 1 capital to average assets	55,553		8.20	%	27,099		4.00	%	N/A		N/A
Union:
Total capital to risk weighted assets	$	60,528	13.02	%	$	37,191	8.00	%	$	46,488	10.00	%
Tier 1 capital to risk weighted assets	55,281		11.89	%	27,896		6.00	%	37,195		8.00	%
Common Equity Tier 1 to risk weighted assets	55,281		11.89	%	20,922		4.50	%	30,221		6.50	%
Tier 1 capital to average assets	55,281		8.17	%	27,065		4.00	%	33,832		5.00	%

	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2015	Amount		Ratio		Amount		Ratio		Amount		Ratio
Company:	(Dollars in thousands)
Total capital to risk weighted assets	$	58,478	13.42	%	$	34,860	8.00	%	N/A		N/A
Tier 1 capital to risk weighted assets	53,277		12.22	%	26,159		6.00	%	N/A		N/A
Common Equity Tier 1 to risk weighted assets	53,277		12.22	%	19,619		4.50	%	N/A		N/A
Tier 1 capital to average assets	53,277		8.54	%	24,954		4.00	%	N/A		N/A
Union:
Total capital to risk weighted assets	$	58,094	13.37	%	$	34,761	8.00	%	$	43,451	10.00	%
Tier 1 capital to risk weighted assets	52,893		12.17	%	26,077		6.00	%	34,769		8.00	%
Common Equity Tier 1 to risk weighted assets	52,893		12.17	%	19,558		4.50	%	28,250		6.50	%
Tier 1 capital to average assets	52,893		8.50	%	24,891		4.00	%	31,114		5.00	%

Dividends paid by Union are the primary source of funds available to the Company for payment of dividends to its stockholders. Union is subject to certain requirements imposed by federal banking laws and regulations, which among other things, establish minimum levels of capital and restrict the amount of dividends that may be distributed by Union to the Company.