Regulatory Matters

12 Months Ended

Dec. 31, 2011

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Matters

Note 11:  Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification 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 the Bank to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of December 31, 2011 and 2010 that the Bank meets all capital adequacy requirements to which it is subject.

As of December 31, 2011, the most recent notification from the OCC categorized the Bank 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 table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios are also presented in the table.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2011
Total risk-based capital (to risk-weighted assets)	$	38,860		14.5	%	$	21,494		8.0	%	$	26,867		10.0	%
Tier I capital (to risk-weighted assets)		35,502		13.2			10,747		4.0			16,120		6.0
Tier I capital (to adjusted total assets)		35,502		9.8			10,919		3.0			18,198		5.0
Tier I capital (to adjusted tangible assets)		35,502		9.8			7,279		2.0			N/A		N/A
Tangible capital (to adjusted tangible assets)		35,502		9.8			5,459		1.5			N/A		N/A
As of December 31, 2010
Total risk-based capital (to risk-weighted assets)	$	38,288		13.8	%	$	22,124		8.0	%	$	27,655		10.0	%
Tier I capital (to risk-weighted assets)		34,975		12.6			11,062		4.0			16,593		6.0
Tier I capital (to adjusted total assets)		34,975		9.4			11,148		3.0			18,581		5.0
Tier I capital (to adjusted tangible assets)		34,975		9.4			7,432		2.0			N/A		N/A
Tangible capital (to adjusted tangible assets)		34,975		9.4			5,574		1.5			N/A		N/A

The Bank and the Company are subject to certain restrictions on the amount of dividends that each may declare without prior regulatory approval. At December 31, 2011, regulatory approval was required for all dividend declarations.

The Company converted from a mutual to a stock institution, and a “liquidation account” was established at $8.1 million, which was net worth reported in the conversion prospectus. Eligible depositors who have maintained their accounts, less annual reduction to the extent they have reduced their deposits, would receive a distribution from this account if the Bank liquidated. Dividends may not reduce shareholders’ equity below the required liquidation account balance.