XML 40 R26.htm IDEA: XBRL DOCUMENT
v3.8.0.1

REGULATORY MATTERS | 12 Months Ended
--- | ---
Dec. 31, 2017
REGULATORY MATTERS |
REGULATORY MATTERS | NOTE 18: REGULATORY MATTERS Regulatory Capital Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off‑balance‑sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The Company and Bank’s Common Equity Tier 1 capital includes common stock and related capital surplus, net of treasury stock and retained earnings. In connection with the adoption of the Basel III Capital Rules, the Company and Bank elected to opt‑out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1. Common Equity Tier 1 for both the Company and Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. When fully phased in on January 1, 2019, the Basel III Capital Rules will require the Company and Bank to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk‑weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk‑weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk‑weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk‑weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will be phased in over a four‑year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Company and Bank. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk‑weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk‑weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of December 31, 2017 and 2016 for the Company and Bank under the Basel III Capital Rules:
|  |  |  |  |  |  |  | Minimum |  |  | Minimum |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Capital |  |  | Capital |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Required-Basel |  |  | Required-Basel |  |  | Required to be |
|  |  |  |  |  |  |  | III Phase-in |  |  | III Fully |  |  | Considered Well |
|  | Actual |  |  | Schedule |  |  | Phased-in |  |  | Capitalized |
(Dollars in thousands) |  | Amount |  | Ratio |  |  | Amount |  | Ratio |  |  | Amount |  | Ratio |  |  | Amount |  | Ratio |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier I to Risk-Weighted Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 361,322 |  | 14.2 | % |  | $ | 114,628 |  | 4.5 | % |  | $ | 178,310 |  | 7.0 | % |  | $ | 165,573 |  | 6.5 | %
Bank Only |  | $ | 322,414 |  | 12.7 | % |  | $ | 114,252 |  | 4.5 | % |  | $ | 178,150 |  | 7.0 | % |  | $ | 165,425 |  | 6.5 | %
Tier I Capital to Risk-Weighted Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 367,722 |  | 14.4 | % |  | $ | 152,837 |  | 6.0 | % |  | $ | 216,519 |  | 8.5 | % |  | $ | 203,782 |  | 8.0 | %
Bank Only |  | $ | 322,414 |  | 12.7 | % |  | $ | 152,700 |  | 6.0 | % |  | $ | 216,325 |  | 8.5 | % |  | $ | 203,600 |  | 8.0 | %
Total Capital to Risk-Weighted Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 392,878 |  | 15.4 | % |  | $ | 203,782 |  | 8.0 | % |  | $ | 267,464 |  | 10.5 | % |  | $ | 254,728 |  | 10.0 | %
Bank Only |  | $ | 347,569 |  | 13.7 | % |  | $ | 203,600 |  | 8.0 | % |  | $ | 267,726 |  | 10.5 | % |  | $ | 254,501 |  | 10.0 | %
Tier 1 Leverage Capital to Average Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 367,722 |  | 12.3 | % |  | $ | 119,769 |  | 4.0 | % |  | $ | 119,769 |  | 4.0 | % |  | $ | 149,712 |  | 5.0 | %
Bank Only |  | $ | 322,414 |  | 10.8 | % |  | $ | 119,403 |  | 4.0 | % |  | $ | 119,403 |  | 4.0 | % |  | $ | 149,253 |  | 5.0 | %
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier I to Risk-Weighted Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 274,516 |  | 11.5 | % |  | $ | 107,272 |  | 4.5 | % |  | $ | 166,867 |  | 7.0 | % |  | $ | 154,948 |  | 6.5 | %
Bank Only |  | $ | 304,058 |  | 12.8 | % |  | $ | 107,209 |  | 4.5 | % |  | $ | 166,770 |  | 7.0 | % |  | $ | 154,844 |  | 6.5 | %
Tier I Capital to Risk-Weighted Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 280,916 |  | 11.8 | % |  | $ | 143,029 |  | 6.0 | % |  | $ | 202,624 |  | 8.5 | % |  | $ | 190,705 |  | 8.0 | %
Bank Only |  | $ | 304,058 |  | 12.8 | % |  | $ | 142,946 |  | 6.0 | % |  | $ | 202,507 |  | 8.5 | % |  | $ | 190,594 |  | 8.0 | %
Total Capital to Risk-Weighted Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 306,287 |  | 12.9 | % |  | $ | 190,705 |  | 8.0 | % |  | $ | 250,300 |  | 10.5 | % |  | $ | 238,381 |  | 10.0 | %
Bank Only |  | $ | 329,428 |  | 13.8 | % |  | $ | 190,594 |  | 8.0 | % |  | $ | 250,155 |  | 10.5 | % |  | $ | 238,243 |  | 10.0 | %
Tier 1 Leverage Capital to Average Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 280,916 |  | 9.8 | % |  | $ | 114,872 |  | 4.0 | % |  | $ | 114,872 |  | 4.0 | % |  | $ | 143,590 |  | 5.0 | %
Bank Only |  | $ | 304,058 |  | 10.6 | % |  | $ | 114,872 |  | 4.0 | % |  | $ | 114,872 |  | 4.0 | % |  | $ | 143,590 |  | 5.0 | %
Management believes that, as of December 31, 2017 and 2016, the Company and its bank subsidiary, CommunityBank of Texas, National Association, were “well capitalized” based on the ratios presented above. The Company and Bank are subject to the regulatory capital requirements administered by the Federal Reserve Board and, for the Bank, the OCC. Regulatory authorities can initiate certain mandatory actions if the Company or Bank fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of December 31, 2017 and 2016, that the Company and Bank meet all capital adequacy requirements to which they are subject. Dividend Restrictions In the ordinary course of business, the Company may be dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years.

X
- References No definition available. + Details
Name: | us-gaap_BankingAndThriftAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration