Note 15 - Regulatory Capital Requirements

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 15 – Regulatory Capital Requirements

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The Company and CalFirst Bank are subject to regulatory capital adequacy guidelines administered by federal banking agencies. Failure to meet minimum capital requirements can result in the initiation of certain actions by the federal agencies that, if undertaken, could have a material effect on the Company’s financial statements. The Basel III capital standard became effective January 2, 2015 and phases in through 2019. It revises the definition of capital, increases minimum capital ratios, introduces regulatory capital buffers above those minimums, introduces a common equity Tier 1 capital ratio and revises the rules for calculating risk-weighted assets. Effective January 2, 2015 Basel III capital standards require the Company and Bank to maintain minimum ratios of core capital to adjusted average assets of 4.0%, common equity tier 1 capital to risk-weighted assets of 4.5%, tier 1 capital to risk-weighted assets of 6.0% and total risk-based capital to risk-weighted assets of 8.0%.

The following table presents capital and capital ratio information for the Company and CalFirst Bank as of June 30, 2016 and June 30, 2015, with information for June 30, 2015 reflecting the transition to the Basel III capital standard from previous regulatory capital adequacy guidelines under the Basel I framework. Under Basel III, the Bank could make a one-time election to opt out of the requirement to include components of accumulated other comprehensive income (loss) in common equity Tier 1 capital. The Bank has elected to opt-out of the accumulated other comprehensive income (loss) requirement. The adoption of the new capital standard had an immaterial impact on capital levels and related ratios and the Company and Bank continue to exceed regulatory capital requirements and are considered “well-capitalized” under guidelines established by federal regulators.

	June 30,
	2016				2015
	(dollars in thousands)
California First National Bancorp	Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital	$	189,677		25.12%	$	187,987		29.17%
Tier 1 risk-based capital	$	189,677		25.12%	$	187,987		29.17%
Total risk-based capital	$	196,589		26.04%	$	194,493		30.18%
Tier 1 leverage capital	$	189,677		21.67%	$	187,987		26.79%
California First National Bank
Common equity Tier 1 capital	$	116,379		15.88%	$	109,147		17.65%
Tier 1 risk-based capital	$	116,379		15.88%	$	109,147		17.65%
Total risk-based capital	$	123,091		16.79%	$	115,306		18.65%
Tier 1 leverage capital	$	116,379		13.94%	$	109,147		17.10%