Regulatory Matters

6 Months Ended

Jun. 30, 2017

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 Common Equity Tier ("CET1") 1, Total capital 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, 2017, 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 CET1, 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, 2017, 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 2015 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, 2017 and December 31, 2016 under the Basel III Capital Rules. The minimum required capital levels presented below 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, 2017
CET1 (to risk weighted assets)
Summit	$	171,400	10.5	%	$	114,267	7.0	%	$	106,105	6.5	%
Summit Community	189,431		11.6	%	114,312		7.0	%	106,147		6.5	%
Tier I Capital (to risk weighted assets)
Summit	190,400		11.7	%	138,325		8.5	%	130,188		8.0	%
Summit Community	189,431		11.6	%	138,807		8.5	%	130,642		8.0	%
Total Capital (to risk weighted assets)
Summit	202,732		12.4	%	171,668		10.5	%	163,494		10.0	%
Summit Community	201,763		12.4	%	170,848		10.5	%	162,712		10.0	%
Tier I Capital (to average assets)
Summit	190,400		9.2	%	82,783		4.0	%	103,478		5.0	%
Summit Community	189,431		9.2	%	82,361		4.0	%	102,952		5.0	%

	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 December 31, 2016
CET1 (to risk weighted assets)
Summit	146,494	10.5	%	97,663	7.0	%	90,687	6.5	%
Summit Community	165,747	11.9	%	97,498	7.0	%	90,534	6.5	%
Tier I Capital (to risk weighted assets)
Summit	164,357	11.8	%	118,393	8.5	%	111,428	8.0	%
Summit Community	165,747	11.9	%	118,391	8.5	%	111,427	8.0	%
Total Capital (to risk weighted assets)
Summit	176,031	12.6	%	146,693	10.5	%	139,707	10.0	%
Summit Community	177,421	12.7	%	146,687	10.5	%	139,702	10.0	%
Tier I Capital (to average assets)
Summit	164,357	9.4	%	69,939	4.0	%	87,424	5.0	%
Summit Community	165,747	9.5	%	69,788	4.0	%	87,235	5.0	%