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Regulatory Matters
 12 Months Ended
Dec. 31, 2015
Regulatory Matters

NOTE 18: REGULATORY MATTERS

The Company is subject to examination, regulation, and periodic reporting under the Bank Holding Company Act of 1956, as amended, which is administered by the FRB. The FRB has adopted capital adequacy guidelines for bank holding companies (on a consolidated basis) that are substantially similar to those of the FDIC for the Banks.

The following tables present the regulatory capital ratios for the Company at December 31, 2015 and 2014, in comparison with the minimum amounts and ratios required by the FRB for capital adequacy purposes:

 

           Risk-Based Capital        
At December 31, 2015    Common Equity
Tier 1		     Tier 1     Total     Leverage Capital  
(dollars in thousands)    Amount      Ratio     Amount      Ratio     Amount      Ratio     Amount      Ratio  

Total capital

    $ 3,558,415         10.49 %    $ 3,644,872         10.75 %    $ 4,086,913         12.05 %    $ 3,644,872         7.77 % 

Minimum for capital adequacy purposes

      1,526,064         4.50        2,034,752         6.00        2,713,003         8.00        1,876,006         4.00   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Excess

    $ 2,032,351         5.99 %    $ 1,610,120         4.75 %    $ 1,373,910         4.05 %    $ 1,768,866         3.77 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

     Risk-Based Capital        
At December 31, 2014    Tier 1     Total     Leverage Capital  
(dollars in thousands)    Amount      Ratio     Amount      Ratio     Amount      Ratio  

Total regulatory capital

    $ 3,731,430         12.30 %    $ 3,919,248         12.92 %    $ 3,731,430         8.04 % 

Minimum for capital adequacy purposes

      1,213,802         4.00        2,427,605         8.00        1,856,755         4.00   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Excess

    $ 2,517,628         8.30 %    $ 1,491,643         4.92 %    $ 1,874,675         4.04 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

The Banks are subject to regulation, examination, and supervision by the NYSDFS and the FDIC (the “Regulators”). The Banks are also governed by numerous federal and state laws and regulations, including the FDIC Improvement Act of 1991, which established five categories of capital adequacy ranging from well capitalized to critically undercapitalized. Such classifications are used by the FDIC to determine various matters, including prompt corrective action and each institution’s FDIC deposit insurance premium assessments. Capital amounts and classifications are also subject to the Regulators’ qualitative judgments about the components of capital and risk weightings, among other factors.

The quantitative measures established to ensure capital adequacy require that banks maintain minimum amounts and ratios of leverage capital to average assets and of common equity Tier 1 capital, Tier 1 capital, and total capital to risk-weighted assets (as such measures are defined in the regulations). At December 31, 2015, the Banks exceeded all the capital adequacy requirements to which they were subject.

As of December 31, 2015, the most recent notifications from the FDIC categorized the Community Bank and the Commercial Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, a bank must maintain a minimum common equity Tier 1 risk-based capital ratio of 6.50%; a minimum Tier 1 risk-based capital ratio of 8.00%; a minimum total risk-based capital ratio of 10.00%; and a minimum leverage capital ratio of 5.00%. In the opinion of management, no conditions or events have transpired since said notification to change these capital adequacy classifications.

The following tables present the actual capital amounts and ratios for the Community Bank at December 31, 2015 and 2014 in comparison to the minimum amounts and ratios required for capital adequacy purposes.

 

           Risk-Based Capital        
At December 31, 2015    Common Equity
Tier 1		     Tier 1     Total     Leverage Capital  
(dollars in thousands)    Amount      Ratio     Amount      Ratio     Amount      Ratio     Amount      Ratio  

Total capital

    $ 3,478,429         11.04 %    $ 3,478,429         11.04 %    $ 3,645,262         11.57 %    $ 3,478,429         8.05 % 

Minimum for capital adequacy purposes

      1,417,588         4.50        1,890,117         6.00        2,520,156         8.00        1,729,021         4.00   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Excess

    $ 2,060,841         6.54 %    $ 1,588,312         5.04 %    $ 1,125,106         3.57 %    $ 1,749,408         4.05 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

     Risk-Based Capital        
At December 31, 2014    Tier 1     Total     Leverage Capital  
(dollars in thousands)    Amount      Ratio     Amount      Ratio     Amount      Ratio  

Total regulatory capital

    $ 3,285,870         12.02 %    $ 3,461,741         12.66 %    $ 3,285,870         7.73 % 

Minimum for capital adequacy purposes

      1,093,835         4.00        2,187,669         8.00        1,701,174         4.00   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Excess

    $ 2,192,035         8.02 %    $ 1,274,072         4.66 %    $ 1,584,696         3.73 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

The following tables present the actual capital amounts and ratios for the Commercial Bank at December 31, 2015 and 2014 in comparison to the minimum amounts and ratios required for capital adequacy purposes:

 

           Risk-Based Capital        
At December 31, 2015    Common Equity
Tier 1		     Tier 1     Total     Leverage Capital  
(dollars in thousands)    Amount      Ratio     Amount      Ratio     Amount      Ratio     Amount      Ratio  

Total capital

    $ 384,221         14.15 %    $ 384,221         14.15 %    $ 400,058         14.74 %    $ 384,221         10.01 % 

Minimum for capital adequacy purposes

      122,152         4.50        162,870         6.00        217,160         8.00        153,507         4.00   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Excess

    $ 262,069         9.65 %    $ 221,351         8.15 %    $ 182,898         6.74 %    $ 230,714         6.01 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

     Risk-Based Capital        
At December 31, 2014    Tier 1     Total     Leverage Capital  
(dollars in thousands)    Amount      Ratio     Amount      Ratio     Amount      Ratio  

Total regulatory capital

    $ 364,591         12.08 %    $ 376,538         12.47 %    $ 364,591         9.25 % 

Minimum for capital adequacy purposes

      120,755         4.00        241,509         8.00        157,599         4.00   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Excess

    $   243,836         8.08 %    $   135,029         4.47 %    $   206,992         5.25 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

As Basel III took effect on January 1, 2015, common equity Tier 1 capital was not measured at December 31, 2014 for the Company or the Banks.