Regulatory Matters

3 Months Ended

Mar. 31, 2014

(17) Regulatory Matters

Bancorp and the Bank are subject to various capital requirements prescribed by banking regulations and administered by state and federal banking agencies. Under these requirements, Bancorp and the Bank must meet minimum amounts and percentages of Tier I and total capital, as defined, to risk weighted assets and Tier I capital to average assets. Risk weighted assets are determined by applying certain risk weightings prescribed by the regulations to various categories of assets and off-balance sheet commitments. Capital and risk weighted assets may be further subject to qualitative judgments by regulators as to components, risk weighting and other factors. Failure to meet the capital requirements can result in certain mandatory, and possibly discretionary, corrective actions prescribed by the regulations or determined to be necessary by the regulators, which could materially affect the unaudited consolidated financial statements. Bancorp and the Bank met all capital requirements to which they were subject as of March 31, 2014.

The following table sets forth consolidated Bancorp’s and the Bank’s risk based capital amounts and ratios as of March 31, 2014 and December 31, 2013.

	Actual				Minimum for adequately capitalized				Minimum for well capitalized
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
March 31, 2014

Total risk-based capital (1)
Consolidated	$	258,026	13.72	%	$	150,452	8.00	%	NA		NA
Bank	248,296		13.24	%	150,028		8.00	%	$	187,535	10.00	%

Tier I risk-based capital (1)
Consolidated	$	234,459	12.47	%	$	75,207	4.00	%	NA		NA
Bank	224,796		11.99	%	74,994		4.00	%	$	112,492	6.00	%

Leverage (2)
Consolidated	$	234,459	10.00	%	$	70,338	3.00	%	NA		NA
Bank	224,796		9.61	%	70,176		3.00	%	$	116,959	5.00	%

December 31, 2013

Total risk-based capital (1)
Consolidated	$	252,171	13.54	%	$	148,993	8.00	%	NA		NA
Bank	239,577		12.90	%	148,575		8.00	%	$	185,719	10.00	%

Tier I risk-based capital (1)
Consolidated	$	228,827	12.29	%	$	74,476	4.00	%	NA		NA
Bank	219,299		11.65	%	75,296		4.00	%	$	112,944	6.00	%

Leverage (2)
Consolidated	$	228,827	9.75	%	$	70,408	3.00	%	NA		NA
Bank	219,299		9.24	%	71,201		3.00	%	$	118,668	5.00	%

(1) Ratio is computed in relation to risk-weighted assets.

(2) Ratio is computed in relation to average assets.

NA — Not applicable. Regulatory framework does not define well capitalized for holding companies.

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

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+ Details