Regulatory Matters

12 Months Ended

Dec. 31, 2015

Regulatory Matters [Abstract]

Regulatory Matters

NOTE 17, Regulatory Matters

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can cause certain mandatory and possibly additional discretionary actions to be initiated by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their 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. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. The terms Tier 1 capital, risk-weighted assets and average assets, as used in this note, are as defined in the applicable regulations. Management believes, as of December 31, 2015 and 2014, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2015, the most recent notification from the Comptroller categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank's category. The Company's and the Bank's actual capital amounts and ratios as of December 31, 2015 and 2014 are also presented in the table.

	Capital					Minimum Capital Requirement					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount			Ratio
	(dollars in thousands)
December 31, 2015:
Total Capital to Risk Weighted Assets:
Consolidated	$	104,076		14.89	%	$	55,910		8.00	%		N/	A		N/	A
Old Point National Bank		96,079		13.83	%		55,589		8.00	%	$	69,486			10.00	%
Tier 1 Capital to Risk Weighted Assets:
Consolidated		96,338		13.78	%		41,932		6.00	%		N/	A		N/	A
Old Point National Bank		88,341		12.71	%		41,692		6.00	%		55,589			8.00	%
Common Equity Tier 1 Capital to Risk Weighted Assets:
Consolidated		96,338		13.78	%		31,449		4.50	%		N/	A		N/	A
Old Point National Bank		88,341		12.71	%		31,269		4.50	%		45,166			6.50	%
Tier 1 Capital to Average Assets:
Consolidated		96,338		10.93	%		35,260		4.00	%		N/	A		N/	A
Old Point National Bank		88,341		10.06	%		35,124		4.00	%		43,905			5.00	%
December 31, 2014:
Total Capital to Risk Weighted Assets:
Consolidated	$	101,450		15.44	%	$	52,560		8.00	%		N/	A		N/	A
Old Point National Bank		94,472		14.45	%		52,294		8.00	%	$	65,367			10.00	%
Tier 1 Capital to Risk Weighted Assets:
Consolidated		94,375		14.36	%		26,280		4.00	%		N/	A		N/	A
Old Point National Bank		87,397		13.37	%		26,147		4.00	%		39,220			6.00	%
Tier 1 Capital to Average Assets:
Consolidated		94,375		10.75	%		35,131		4.00	%		N/	A		N/	A
Old Point National Bank		87,397		10.01	%		34,940		4.00	%		43,675			5.00	%

The approval of the Comptroller is required if the total of all dividends declared by a national bank in any calendar year exceeds the bank's net profits for that year combined with its retained net profits for the preceding two calendar years. Under this formula, the Bank and Trust can distribute as dividends to the Company in 2016, without approval of the Comptroller, $3.0 million plus an additional amount equal to the Bank's and Trust's retained net profits for 2016 up to the date of any dividend declaration.