Note 15 - Regulatory Capital Requirements

12 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note

15

– Regulatory Capital Requirements

:

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, 2017

and

June 30, 2016.

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,
	2017					2016
	(dollars in thousands)
California First National Bancorp	Amount		Ratio			Amount		Ratio
Common equity Tier 1 capital	$	196,140		33.09	%	$	189,677		25.12	%
Tier 1 risk-based capital	$	196,140		33.09	%	$	189,677		25.12	%
Total risk-based capital	$	203,338		34.30	%	$	196,589		26.04	%
Tier 1 leverage capital	$	196,140		26.01	%	$	189,677		21.67	%
California First National Bank
Common equity Tier 1 capital	$	126,424		22.22	%	$	116,379		15.88	%
Tier 1 risk-based capital	$	126,424		22.22	%	$	116,379		15.88	%
Total risk-based capital	$	133,419		23.45	%	$	123,091		16.79	%
Tier 1 leverage capital	$	126,424		17.23	%	$	116,379		13.94	%