Regulatory Capital Requirements - (As Restated)

12 Months Ended

Dec. 31, 2015

Regulatory Capital Requirements - (As Restated) [Abstract]

Regulatory Capital Requirements - (As Restated)

5.Regulatory Capital Requirements – (As Restated)

We require capital to fund loans, satisfy our obligations under the Bank’s letters of credit, meet the deposit withdrawal demands of the Bank’s customers, and satisfy our other monetary obligations.  To the extent that deposits are not adequate to fund our capital requirements, we can rely on a number of funding sources, including an unsecured Fed Funds lines of credit with upstream correspondent banks; secured advances with the FHLB of Atlanta, which are collateralized by eligible one to four family residential mortgage loans, home equity lines of credit, commercial real estate loans, and various securities.  Cash may also be pledged as collateral.  In addition, First United Corporation has a secured line of credit with the Fed Discount Window for use in borrowing funds up to 90 days, using municipal securities as collateral; brokered deposits, including CDs and money market funds; and One Way Buy CDARS/ ICS funding, which is a form of brokered deposits that has become a viable supplement to brokered deposits obtained directly. At December 31, 2015, the Bank had $70.0 million available through unsecured lines of credit with correspondent banks, $17.2 million through a secured line of credit with the Fed Discount Window and approximately $104.2 million at the FHLB.Management is not aware of any demands, commitments, events or uncertainties that are likely to materially affect our ability to meet our future capital requirements.

		Actual			For Capital Adequacy Purposes			To Be Well Capitalized Under Prompt Corrective Action Provisions
(in thousands)		Amount	Ratio		Amount	Ratio		Amount	Ratio
December 31, 2015
Total Capital (to risk-weighted assets)
Consolidated	$	173,124	17.21%	$	79,276	8.00%	$	99,095	10.00%
First United Bank & Trust		149,775	16.29%		73,714	8.00%		92,143	10.00%
Tier 1 Capital (to risk-weighted assets)
Consolidated		153,283	15.24%		59,457	6.00%		79,276	8.00%
First United Bank & Trust		138,243	15.03%		55,286	6.00%		73,714	8.00%
Common Equity Tier 1 Capital (to risk-weighted assets)
Consolidated		100,485	9.99%		44,593	4.50%		64,412	6.50%
First United Bank & Trust		138,243	15.03%		41,464	4.50%		59,893	6.50%
Tier 1 Capital (to average assets)
Consolidated		153,283	11.64%		52,833	4.00%		66,041	5.00%
First United Bank & Trust		138,243	10.53%		52,346	4.00%		65,432	5.00%
		Actual			For Capital Adequacy Purposes			To Be Well Capitalized Under Prompt Corrective Action Provisions
(in thousands)		Amount	Ratio		Amount	Ratio		Amount	Ratio
December 31, 2014
Total Capital (to risk-weighted assets)
Consolidated	$	161,377	15.40%	$	83,851	8.00%	$	104,813	10.00%
First United Bank & Trust		162,550	15.60%		83,379	8.00%		104,224	10.00%
Tier 1 Capital (to risk-weighted assets)
Consolidated		149,130	14.23%		41,925	4.00%		62,888	6.00%
First United Bank & Trust		150,433	14.43%		41,689	4.00%		62,534	6.00%
Tier 1 Capital (to average assets)
Consolidated		149,130	11.29%		52,846	4.00%		66,057	5.00%
First United Bank & Trust		150,433	11.43%		52,642	4.00%		65,803	5.00%

As of December 31, 2014 and 2015, the most recent notifications from the regulators categorized First United Corporation and the Bank as “well capitalized” under the regulatory framework for prompt corrective action.  On a consolidated basis, all capital ratios increased at December 31, 2015 when compared to December 31, 2014.  The consolidated total risk-based capital ratios include $40.3 million ofFirst United Corporation’s junior subordinated debentures (“TPS Debentures”)which qualified as Tier 1 capital at December 31, 2015 under guidance issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). 

At the Bank level, the ratios increased from December 31, 2014 to December 31, 2015 primarily due to the increase in earnings in 2015.

As of December 31, 2015, we were in compliance with the requirements as set forth in the final rules.

First United Corporation’s Board of Directors suspended the payment of dividends on the common stock in December 2010 when it approved the above-mentioned deferral of dividends on the Series A Preferred Stock, and this suspension remains in effect.