Capital Requirements and Regulatory Matters

12 Months Ended

Dec. 31, 2013

Capital Requirements And Regulatory Matters [Abstract]

Capital Requirements And Regulatory Matters

Note 14:  Capital Requirements and Regulatory Matters

We and Bank SNB are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our andBank SNB’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we and Bank SNB must meet specific capital guidelines that involve quantitative measures of our and Bank SNB’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  Our and Bank SNB’s 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 Bank SNB to maintain minimum amounts 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). 

Management believes that, as of December 31, 2013, we and Bank SNB met all capital adequacy requirements and that as of December 31, 2012, we, Stillwater National, and Bank of Kansas met all capital adequacy requirements.

As of December 31, 2013, Bank SNB was categorized as well-capitalized under the regulatory framework for prompt corrective action.  As of December 31, 2012, Stillwater National and Bank of Kansas were categorized as well-capitalized under the regulatory framework for prompt corrective action.  To be categorized as well-capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the following table.

A summary of actual capital amounts and ratios as of December 31, 2013 are presented below.

					To Be Well Capitalized
					Under Prompt Corrective				For Capital
	Actual				Action Provisions				Adequacy Purposes
(Dollars in thousands)	Amount		Ratio			Amount	Ratio			Amount	Ratio
As of December 31, 2013:
Total Capital (to risk-weighted assets)
Southwest	$	310,867	21.59	%	$	N/A	N/A	%	$	115,194	8.00	%
Bank SNB		284,388	19.83			143,413	10.00			114,730	8.00
Tier I Capital (to risk-weighted assets)
Southwest		292,051	20.28			N/A	N/A			57,597	4.00
Bank SNB		266,132	18.56			86,048	6.00			57,365	4.00
Tier I Leverage (to average assets)
Southwest		292,051	14.86			N/A	N/A			78,597	4.00
Bank SNB		266,132	13.62			97,719	5.00			78,175	4.00

A summary of actual capital amounts and ratios of Stillwater National and Bank of Kansas as of December 31, 2012 are presented below.

					To Be Well Capitalized
					Under Prompt Corrective				For Capital
	Actual				Action Provisions				Adequacy Purposes
(Dollars in thousands)	Amount		Ratio			Amount	Ratio			Amount	Ratio
As of December 31, 2012:
Total Capital (to risk-weighted assets)
Southwest	$	339,964	21.56	%	$	N/A	N/A	%	$	126,122	8.00	%
Stillwater National		269,323	19.55			137,793	10.00			110,234	8.00
Bank of Kansas		33,356	18.37			18,161	10.00			14,529	8.00
Tier I Capital (to risk-weighted assets)
Southwest		319,665	20.28			N/A	N/A			63,061	4.00
Stillwater National		236,705	17.18			82,676	6.00			55,117	4.00
Bank of Kansas		31,064	17.10			10,896	6.00			7,264	4.00
Tier I Leverage (to average assets)
Southwest		319,665	15.01			N/A	N/A			85,201	4.00
Stillwater National		236,705	13.14			90,088	5.00			72,070	4.00
Bank of Kansas		31,064	10.02			15,506	5.00			12,405	4.00

The approval of the OCC is required if the total of all dividends declared by Bank SNB in any calendar year exceeds the total of its net profits of that year combined with its retained net profits of the preceding two years.  In addition, Bank SNB may not pay a dividend if, after paying the dividend, Bank SNB would be undercapitalized.  For the year ended December 31, 2013,  Bank SNBdeclared $19.5 million in dividends. For the year ended December 31, 2012, Bank SNB declared $65.0 million in dividends, and no dividends were declared by Bank SNB for the year ended December 31, 2011.