Note 13 - Regulatory Capital

12 Months Ended

Dec. 31, 2015

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

13. Regulatory Capital

Dividend payments by Republic to the Company are subject to the Pennsylvania Banking Code of 1965 (the “Banking Code”) and the Federal Deposit Insurance Act (the “FDIA”). Under the Banking Code, no dividends may be paid except from “accumulated net earnings” (generally, undivided profits). Under the FDIA, an insured bank may pay no dividends if the bank is in arrears in the payment of any insurance assessment due to the FDIC. Under current banking laws, Republic would be limited to $17.8 million of dividends plus an additional amount equal to its net profit for 2016, up to the date of any such dividend declaration. However, dividends would be further limited in order to maintain capital ratios.

State and Federal regulatory authorities have adopted standards for the maintenance of adequate levels of capital by Republic. Federal banking agencies impose four minimum capital requirements on the Company’s risk-based capital ratios based on total capital, Tier 1 capital, CET 1 capital, and a leverage capital ratio. The risk-based capital ratios measure the adequacy of a bank’s capital against the riskiness of its assets and off-balance sheet activities. Failure to maintain adequate capital is a basis for “prompt corrective action” or other regulatory enforcement action. In assessing a bank’s capital adequacy, regulators also consider other factors such as interest rate risk exposure; liquidity, funding and market risks; quality and level or earnings; concentrations of credit; quality of loans and investments; risks of any nontraditional activities; effectiveness of bank policies; and management’s overall ability to monitor and control risks.

The following table presents the Company’s and Republic’s capital regulatory ratios at December 31, 2015 and 2014:

	Actual					For Capital Adequacy Purposes					To be well capitalized under prompt corrective action regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio
At December 31, 2015:
Total risk based capital
Republic	$	138,566		12.65	%	$	87,617		8.00	%	$	109,521		10.00	%
Company		145,089		13.19	%		87,976		8.00	%		-		-	%
Tier one risk based capital
Republic		129,863		11.86	%		65,712		6.00	%		87,617		8.00	%
Company		136,386		12.40	%		65,982		6.00	%		-		-	%
CET 1 risk based capital
Republic		129,863		11.86	%		49,284		4.50	%		71,189		6.50	%
Company		114,586		10.42	%		49,487		4.50	%		-		-	%
Tier one leveraged capital
Republic		129,863		9.22	%		56,328		4.00	%		70,410		5.00	%
Company		136,386		9.65	%		56,531		4.00	%		-		-	%
At December 31, 2014:
Total risk based capital
Republic	$	132,460		14.04	%	$	75,491		8.00	%	$	94,364		10.00	%
Company		142,556		15.10	%		75,543		8.00	%		-		-	%
Tier one risk based capital
Republic		120,924		12.81	%		37,746		4.00	%		56,618		6.00	%
Company		131,020		13.88	%		37,771		4.00	%		-		-	%
Tier one leveraged capital
Republic		120,924		10.37	%		46,630		4.00	%		58,288		5.00	%
Company		131,020		11.23	%		46,680		4.00	%		-		-	%

Management believes that Republic met, as of December 31, 2015, all capital adequacy requirements to which it is subject. As of December 31, 2015 and 2014, the FDIC categorized Republic as well capitalized under the regulatory framework for prompt corrective action provisions of the Federal Deposit Insurance Act.  There are no calculations or events since that notification that management believes have changed Republic’s category.

In July 2013, the federal bank regulatory agencies adopted revisions to the agencies’ capital adequacy guidelines and prompt corrective action rules, which were designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. The final rules generally implement higher minimum capital requirements, add a new common equity tier 1 capital requirement, and establish criteria that instruments must meet to be considered common equity tier 1 capital, additional tier 1 capital or tier 2 capital. The new minimum capital to risk-adjusted assets requirements are a common equity tier 1 capital ratio of 4.5% (6.5% to be considered “well capitalized”) and a tier 1 capital ratio of 6.0%, increased from 4.0% (and increased from 6.0% to 8.0% to be considered “well capitalized”); the total capital ratio remains at 8.0% under the new rules (10.0% to be considered “well capitalized”). Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The new minimum capital requirements were effective on January 1, 2015. The capital contribution buffer requirements phase in over a three-year period beginning January 1, 2016. Management has reviewed the new standards and evaluated all options and strategies to ensure compliance with the new standards. Republic maintained its status as a “well-capitalized” financial institution under the new standards.