Regulatory Matters

6 Months Ended

Jun. 30, 2015

Banking and Thrift [Abstract]

Regulatory Matters

REGULATORY MATTERS

We and our subsidiaries are subject to various regulatory capital requirements administered by the banking regulatory agencies.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we and each of our subsidiaries must meet specific capital guidelines that involve quantitative measures of our and our subsidiaries’ assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.  We and each of our subsidiaries’ capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require us and each of our subsidiaries to maintain minimum amounts and ratios of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  We believe, as of June 30, 2015, that we and each of our subsidiaries met all capital adequacy requirements to which they were subject.

The most recent notifications from the banking regulatory agencies categorized us and each of our subsidiaries as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, we and each of our subsidiaries must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below.

The Basel III Capital Rules became effective for us on January 1, 2015, with full compliance with all of the final rule's requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. As of June 30, 2015, our capital levels remained characterized as "well-capitalized" under the new rules. See the Capital Requirements section included in Part I Item 1 Business of our 2014 Annual Report on Form 10-K for further discussion of Basel III.

The following table presents Summit's, as well as our subsidiary, Summit Community Bank's ("Summit Community"), actual and required minimum capital amounts and ratios as of June 30, 2015 under the Basel III Capital Rules. The minimum required capital levels presented below as of June 30, 2015 reflect the minimum required capital levels (inclusive of the full capital conservation buffers) that will be effective as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

	Actual				Minimum Required Capital - Basel III Fully Phased-in				Minimum Required To Be Well Capitalized
Dollars in thousands	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of June 30, 2015
CET1 (to risk weighted assets)
Summit	$	133,498	11.6	%	$	80,559	7.0	%	$	74,805	6.5	%
Summit Community	154,024		13.4	%	80,460		7.0	%	74,713		6.5	%
Tier I Capital (to risk weighted assets)
Summit	152,498		13.2	%	98,199		8.5	%	92,423		8.0	%
Summit Community	154,024		13.4	%	97,702		8.5	%	91,955		8.0	%
Total Capital (to risk weighted assets)
Summit	163,770		14.2	%	121,098		10.5	%	115,331		10.0	%
Summit Community	165,296		14.4	%	120,528		10.5	%	114,789		10.0	%
Tier I Capital (to average assets)
Summit	152,498		10.4	%	58,653		4.0	%	73,316		5.0	%
Summit Community	154,024		10.6	%	58,122		4.0	%	72,653		5.0	%

Summit's, as well as Summit Community's, actual capital amounts and ratios as of December 31, 2014, as computed under the regulatory capital rules then in effect, are presented in the following table.

	Actual			Minimum Required Capital			Minimum Required To Be Well Capitalized
Dollars in thousands	Amount	Ratio		Amount	Ratio		Amount	Ratio
As of December 31, 2014
Tier I Capital (to risk weighted assets)
Summit	141,589	13.3	%	42,583	4.0	%	63,875	6.0	%
Summit Community	150,653	14.2	%	42,437	4.0	%	63,656	6.0	%
Total Capital (to risk weighted assets)
Summit	158,196	14.9	%	84,937	8.0	%	106,172	10.0	%
Summit Community	161,820	15.3	%	84,612	8.0	%	105,765	10.0	%
Tier I Capital (to average assets)
Summit	141,589	9.9	%	57,208	4.0	%	71,510	5.0	%
Summit Community	150,653	10.6	%	56,850	4.0	%	71,063	5.0	%