Note 22 - Capital Adequacy

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 22 – CAPITAL ADEQUACY

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited; as are asset growth and expansion, and capital restoration plans are required.

At year end 2013 and 2012, the most recent regulatory notifications categorize us as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed that classification.

Actual and required capital amounts at year end and ratios are presented below:

	Actual					Minimum Required For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
(In thousands of dollars)
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total Capital to Risk Weighted Assets
Consolidated	$	149,581		15.33	%	$	78,058		8.00	%	$	97,572		10.00	%
Firstbank		109,076		13.77	%		63,376		8.00	%		79,220		10.00	%
Keystone Community Bank		25,070		13.94	%		14,390		8.00	%		17,987		10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	137,355		14.08	%	$	39,029		4.00	%	$	58,543		6.00	%
Firstbank		99,129		12.51	%		31,688		4.00	%		47,532		6.00	%
Keystone Community Bank		22,795		12.67	%		7,195		4.00	%		10,792		6.00	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	137,355		9.49	%	$	57,910		4.00	%	$	72,387		5.00	%
Firstbank		99,129		8.19	%		48,393		4.00	%		60,491		5.00	%
Keystone Community Bank		22,795		9.91	%		9,204		4.00	%		11,505		5.00	%

	Amount		Ratio			Amount		Ratio			Amount		Ratio
2012
Total Capital to Risk Weighted Assets
Consolidated	$	155,135		15.99	%	$	77,618		8.00	%	$	97,023		10.00	%
Firstbank – Alma		33,195		15.81	%		16,797		8.00	%		20,997		10.00	%
Firstbank – Mt. Pleasant		37,816		12.74	%		23,748		8.00	%		29,685		10.00	%
Firstbank – West Branch		23,021		14.01	%		13,144		8.00	%		16,430		10.00	%
Keystone Community Bank		28,641		15.78	%		14,521		8.00	%		18,151		10.00	%
Firstbank – West Michigan		15,226		12.83	%		9,493		8.00	%		11,866		10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	142,884		14.73	%	$	38,809		4.00	%	$	58,214		6.00	%
Firstbank – Alma		30,541		14.55	%		8,399		4.00	%		12,598		6.00	%
Firstbank – Mt. Pleasant		34,097		11.49	%		11,874		4.00	%		17,811		6.00	%
Firstbank – West Branch		20,945		12.75	%		6,572		4.00	%		9,858		6.00	%
Keystone Community Bank		26,333		14.51	%		7,260		4.00	%		10,891		6.00	%
Firstbank – West Michigan		13,729		11.57	%		4,746		4.00	%		7,119		6.00	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	142,884		9.71	%	$	58,854		4.00	%	$	73,568		5.00	%
Firstbank – Alma		30,541		8.15	%		14,998		4.00	%		18,748		5.00	%
Firstbank – Mt. Pleasant		34,097		8.12	%		16,765		4.00	%		20,994		5.00	%
Firstbank – West Branch		20,945		8.55	%		9,803		4.00	%		12,253		5.00	%
Keystone Community Bank		26,333		11.61	%		9,072		4.00	%		11,340		5.00	%
Firstbank – West Michigan		13,729		7.29	%		7,538		4.00	%		9,422		5.00	%