REGULATORY MATTERS

12 Months Ended

Dec. 31, 2011

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

NOTE M – REGULATORY MATTERS

Banking regulations require the Bank to maintain certain capital levels and limit the dividends paid by the Bank to the holding company.  Dividends paid by the Bank to the Corporation are the primary source of funds for dividends by the Corporation to its shareholders.  Payments of dividends require preapproval of the Bank's regulators.

The Corporation and its subsidiary bank are subject to various regulatory capital requirements administered by the federal and state 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 Corporation's consolidated financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and its subsidiary bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  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 Corporation and its subsidiary bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to adjusted average total assets (leverage).  Management's contention is that as of December 31, 2011, the Corporation and its subsidiary bank exceeded all capital adequacy requirements.

At December 31, 2011 the Bank was categorized by regulators as well-capitalized under the regulatory framework for prompt corrective action.  A financial institution is considered to be well-capitalized if it has a total risk-based capital ratio of 10% or more, a Tier 1 risk-based capital ratio of 6% or more, and a Tier 1 leverage capital ratio of 5% or more.  There are no conditions or anticipated events that, in the opinion of management, would change the categorization.

The actual capital amounts and ratios at December 31, 2011 and 2010, are presented in the following table.  No amount was deducted from capital for interest-rate risk exposure.

	Security Capital
	Corporation
	(Consolidated)					Bank
	Amount		Ratio			Amount		Ratio
	(In thousands)
December 31, 2011
Total risk-based	$	71,027		23.25	%	$	56,245		19.24	%
Tier 1 risk-based		67,206		22.00	%		52,644		18.01	%
Tier 1 leverage		67,206		13.31	%		52,644		10.43	%
December 31, 2010
Total risk-based	$	70,745		22.47	%	$	55,487		18.46	%
Tier 1 risk-based		66,803		21.22	%		51,724		17.21	%
Tier 1 leverage		66,803		12.98	%		51,724		10.30	%

The minimum amounts of capital and ratios as established by banking regulators at December 31, 2011 and 2010 were as follows:

	Security Capital
	Corporation
	(Consolidated)					Bank
	Amount		Ratio			Amount		Ratio
	(In thousands)
December 31, 2011
Total risk-based	$	24,436		8.0	%	$	23,388		8.0	%
Tier 1 risk-based		12,218		4.0	%		11,694		4.0	%
Tier 1 leverage		20,350		4.0	%		20,195		4.0	%
December 31, 2010
Total risk-based	$	25,189		8.0	%	$	24,049		8.0	%
Tier 1 risk-based		12,594		4.0	%		12,025		4.0	%
Tier 1 leverage		20,587		4.0	%		20,082		4.0	%