Note 23 - Regulatory Matters

12 Months Ended

Dec. 31, 2015

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

(23) 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 1, common equity Tier 1, and total capital, as defined, to risk weighted assets and Tier 1 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.

In 2013, the Federal Reserve Board and the FDIC approved rules that substantially amended the regulatory risk-based capital rules applicable to Bancorp and Bank. The rules implemented the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" (“Basel III”) and changes required by the Dodd-Frank Act. The Basel III regulatory capital reforms became effective for Bancorp and Bank on January 1, 2015, and included new minimum risk-based capital and leverage ratios. Capital ratios for December 31, 2014 were calculated using the former rules and for December 31, 2015 ratios were calculated using the new Basel III rules. For Bancorp, key differences under Basel III include risk weighting for loan commitments under one year and higher risk weighting for certain commercial real estate and construction loans. These differences resulted in higher risk-weighted assets, and therefore, somewhat lower risk-based capital ratios. Bancorp and the Bank met all capital requirements to which they were subject as of December 31, 2015 and 2014.

The following table sets forth consolidated Bancorp’s and the Bank’s risk based capital amounts and ratios as of December 31, 2015 and 2014 follows:

(dollars in thousands)
	Actual					Minimum for adequately capitalized					Minimum for well capitalized
December 31, 2015	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total risk-based capital (1)
Consolidated	$	307,666		13.31	%	$	184,923		8.00	%	NA		NA
Bank		298,129		12.91			184,743		8.00		$	230,929		10.00	%
Common Equity Tier 1 risk-based capital (2)
Consolidated		284,793		12.32			104,023		4.50		NA		NA
Bank		275,256		11.92			103,914		4.50			138,552		6.00
Tier 1 risk-based capital (1)
Consolidated		284,793		12.32			138,698		6.00		NA		NA
Bank		275,256		11.92			138,552		6.00			138,552		6.00
Leverage (3)
Consolidated		284,793		10.53			108,183		4.00		NA		NA
Bank		275,256		10.19			108,049		4.00			135,062		5.00

	Actual					Minimum for adequately capitalized					Minimum for well capitalized
December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total risk-based capital (1)
Consolidated	$	280,228		13.86	%	$	161,748		8.00	%	NA		NA
Bank		274,345		13.59			161,498		8.00		$	201,873		10.00	%
Tier 1 risk-based capital (1)
Consolidated		255,308		12.63			80,858		4.00		NA		NA
Bank		249,425		12.36			80,720		4.00			121,080		6.00
Leverage (3)
Consolidated		255,308		10.26			74,651		3.00		NA		NA
Bank		249,425		10.04			74,529		3.00			124,216		5.00

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

(2) Ratio became effective January 2015.

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

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