Regulatory Restrictions

12 Months Ended

Dec. 31, 2011

Regulatory Restrictions

Regulatory Restrictions

Note 19 - Regulatory Restrictions

Dividends payable by the Company and the Bank are subject to various limitations imposed by statutes, regulations and policies adopted by bank regulatory agencies. Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Under Federal Reserve regulations, the Bank is limited as to the amount it may lend affiliates, including the Company, unless such loans are collateralized by specific obligations.

Both the Company and the Bank are subject to regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate actions by regulators that could have an effect on the financial statements. Under the framework for prompt corrective action, both the Company and the Bank must meet capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items. The capital amounts and classification are also subject to qualitative judgments by the regulators. Management believes, as of December 31, 2011, that the Company and the Bank met capital adequacy requirements to which they were subject.

As of the most recent notification, the primary regulator of the Bank considered it to be "well capitalized" under the regulatory framework. There are no conditions or events since that notification that management believes have changed the classification. To be categorized as well capitalized, the Company and the Bank must maintain minimum ratios set forth in the table below.

The Company and the Bank's actual capital amounts and ratios are presented as follows:

	Capital levels
	Actual					Adequately capitalized					Well capitalized
As of December 31, 2011	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total risk-based capital (to risk-weighted assets)
Consolidated	$	73,694		12.71	%	$	46,371		8.00	%		N/A		N/A
Bank		69,480		12.06			46,074		8.00		$	57,593		10.00	%
Tier I capital (to risk-weighted assets)
Consolidated		66,176		11.42			23,185		4.00			N/A		N/A
Bank		62,256		10.81			23,037		4.00			34,556		6.00
Tier I capital (to average assets)
Consolidated		66,176		7.61			34,805		4.00			N/A		N/A
Bank		62,256		7.18			34,662		4.00			43,328		5.00

	Capital levels
	Actual				Adequately capitalized				Well capitalized
As of December 31, 2010		Amount	Ratio			Amount	Ratio			Amount	Ratio
Total risk-based capital (to risk-weighted assets)
Consolidated	$	66,932	11.82	%	$	45,289	8.00	%		N/A	N/A
Bank		62,901	11.18			44,995	8.00		$	56,243	10.00	%
Tier I capital (to risk-weighted assets)
Consolidated		59,551	10.52			22,644	4.00			N/A	N/A
Bank		55,847	9.93			22,497	4.00			33,746	6.00
Tier I capital (to average assets)
Consolidated		59,551	7.42			32,086	4.00			N/A	N/A
Bank		55,847	6.99			31,947	4.00			39,934	5.00