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Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2014
Regulatory Capital Requirements Abstract  
Regulatory Capital Requirements Under Banking Regulations Text Block

NOTE 18 - REGULATORY CAPITAL REQUIREMENTS

 

 

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico 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 Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Pursuant to the Dodd-Frank Act, federal banking regulators have adopted new capital rules that became effective January 1, 2014 for advanced approaches banking organizations and will become effective January 1, 2015 for all other covered organizations (subject to certain phase-in periods through January 1, 2019) and that will replace their general risk-based capital rules, advanced approaches rule, market risk rule, and leverage rules. Quantitative measures established by regulation to ensure capital adequacy currently require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations) and of Tier 1 capital to average total assets (as defined in the regulations). As of December 31, 2014 and 2013, the Company and the Bank met all capital adequacy requirements to which they are subject. As of December 31, 2014 and 2013, the Bank is “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage capital ratios as set forth in the tables presented below.

The Company's and the Bank's actual capital amounts and ratios as of December 31, 2014 and December 31, 2013 are as follows:

      Minimum Capital Minimum to be Well
 Actual  Requirement Capitalized
 Amount  Ratio  Amount  Ratio   Amount Ratio
 (Dollars in thousands)
Company Ratios              
As of December 31, 2014              
Total capital to risk-weighted assets$ 851,437 17.57% $ 387,772 8.00% $ 484,715 10.00%
Tier 1 capital to risk-weighted assets$ 776,525 16.02% $ 193,886 4.00% $ 290,829 6.00%
Tier 1 capital to average total assets$ 776,525 10.61% $ 292,738 4.00% $ 365,922 5.00%
As of December 31, 2013              
Total capital to risk-weighted assets$ 827,459 16.16% $ 409,514 8.00% $ 511,893 10.00%
Tier 1 capital to risk-weighted assets$ 736,106 14.38% $ 204,757 4.00% $ 307,136 6.00%
Tier 1 capital to average total assets$ 736,106 9.06% $ 324,910 4.00% $ 406,138 5.00%

               
               
      Minimum Capital Minimum to be Well
 Actual  Requirement Capitalized
 Amount  Ratio  Amount  Ratio  Amount  Ratio
 (Dollars in thousands)
Bank Ratios              
As of December 31, 2014              
Total capital to risk-weighted assets$ 820,884 16.99% $ 386,444 8.00% $ 483,055 10.00%
Tier 1 capital to risk-weighted assets$ 746,177 15.45% $ 193,222 4.00% $ 289,833 6.00%
Tier 1 capital to average total assets$ 746,177 10.26% $ 290,879 4.00% $ 363,599 5.00%
As of December 31, 2013              
Total capital to risk-weighted assets$ 779,414 15.30% $ 407,637 8.00% $ 509,547 10.00%
Tier 1 capital to risk-weighted assets$ 688,349 13.51% $ 203,819 4.00% $ 305,728 6.00%
Tier 1 capital to average total assets$ 688,349 8.54% $ 322,395 4.00% $ 402,993 5.00%