Regulatory Matters

9 Months Ended

Sep. 30, 2013

Regulatory Matters [Abstract]

Regulatory Matters

Note 9—Regulatory Matters

Codorus Valley and PeoplesBank are subject to various regulatory capital requirements.  Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if imposed, could have a material effect on Codorus Valley’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Codorus Valley and PeoplesBank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  The capital amounts and classifications are also subject to qualitative judgments by the regulators.

Quantitative measures established by regulators to ensure capital adequacy require Codorus Valley and PeoplesBank to maintain minimum ratios, as set forth below, to total and Tier 1 capital as a percentage of risk-weighted assets, and of Tier 1 capital to quarter-to-date average assets (leverage ratio).  Management believes that Codorus Valley and PeoplesBank were well capitalized on September 30, 2013 based on regulatory capital guidelines.

						Minimum for				Well Capitalized
		Actual				Capital Adequacy				Minimum*
(dollars in thousands)		Amount	Ratio			Amount	Ratio			Amount	Ratio
Codorus Valley Bancorp, Inc. (consolidated)
at September 30, 2013
Capital ratios:
Tier 1 risk based	$	112,766	12.99	%	$	34,726	4.00	%		n/a	n/a
Total risk based		122,215	14.08			69,452	8.00			n/a	n/a
Leverage		112,766	10.19			44,252	4.00			n/a	n/a
at December 31, 2012
Capital ratios:
Tier 1 risk based	$	105,597	13.59	%	$	31,074	4.00	%		n/a	n/a
Total risk based		114,899	14.79			62,147	8.00			n/a	n/a
Leverage		105,597	10.02			42,143	4.00			n/a	n/a
PeoplesBank, A Codorus Valley Company
at September 30, 2013
Capital ratios:
Tier 1 risk based	$	109,063	12.61	%	$	34,602	4.00	%	$	51,903	6.00	%
Total risk based		118,512	13.70			69,203	8.00			86,504	10.00
Leverage		109,063	9.89			44,124	4.00			55,155	5.00
at December 31, 2012
Capital ratios:
Tier 1 risk based	$	102,120	13.20	%	$	30,951	4.00	%	$	46,427	6.00	%
Total risk based		111,422	14.40			61,902	8.00			77,378	10.00
Leverage		102,120	9.72			42,020	4.00			52,526	5.00

*To be well capitalized under prompt corrective action provisions.