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Note 16 - Regulatory Capital Requirements and Restrictions on Dividends | 12 Months Ended
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Dec. 31, 2014
Disclosure Text Block [Abstract] |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 16. Regulatory Capital Requirements and Restrictions on Dividends The Company (on a consolidated basis) and the subsidiary banks are 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 Company and subsidiary banks’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks 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. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of December 31, 2014 and 2013, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject. 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 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of December 31, 2014 and 2013 are also presented in the following table (dollars in thousands). As of December 31, 2014 and 2013, the subsidiary banks met the requirements to be “well capitalized”.
|  | Actual |  |  | For Capital Adequacy Purposes |  |  | To Be Well Capitalized Under Prompt Corrective Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
As of December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 204,376 |  |  |  | 10.91 | % |  | $ | 149,876 |  |  | > | 8.0 | % |  | N/A |  |  | N/A |
Tier 1 risk-based capital |  |  | 178,364 |  |  |  | 9.52 | % |  |  | 74,938 |  |  | > | 4.0 |  |  | N/A |  |  | N/A |
Tier 1 leverage |  |  | 178,364 |  |  |  | 7.62 | % |  |  | 93,658 |  |  | > | 4.0 |  |  | N/A |  |  | N/A |
Quad City Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 104,869 |  |  |  | 11.26 | % |  | $ | 74,495 |  |  | > | 8.0 | % |  | $ | 93,119 |  |  | > | 10.0 | %
Tier 1 risk-based capital |  |  | 93,785 |  |  |  | 10.07 | % |  |  | 37,248 |  |  | > | 4.0 |  |  |  | 55,872 |  |  | > | 6.0 |
Tier 1 leverage |  |  | 93,785 |  |  |  | 7.10 | % |  |  | 52,817 |  |  | > | 4.0 |  |  |  | 66,021 |  |  | > | 5.0 |
Cedar Rapids Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 76,662 |  |  |  | 11.54 | % |  | $ | 53,126 |  |  | > | 8.0 | % |  | $ | 66,407 |  |  | > | 10.0 | %
Tier 1 risk-based capital |  |  | 68,772 |  |  |  | 10.36 | % |  |  | 26,563 |  |  | > | 4.0 |  |  |  | 39,844 |  |  | > | 6.0 |
Tier 1 leverage |  |  | 68,772 |  |  |  | 8.21 | % |  |  | 33,525 |  |  | > | 4.0 |  |  |  | 41,906 |  |  | > | 5.0 |
Rockford Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 35,906 |  |  |  | 12.56 | % |  | $ | 22,875 |  |  | > | 8.0 | % |  | $ | 28,594 |  |  | > | 10.0 | %
Tier 1 risk-based capital |  |  | 32,325 |  |  |  | 11.30 | % |  |  | 11,438 |  |  | > | 4.0 |  |  |  | 17,156 |  |  | > | 6.0 |
Tier 1 leverage |  |  | 32,325 |  |  |  | 9.16 | % |  |  | 14,112 |  |  | > | 4.0 |  |  |  | 17,640 |  |  | > | 5.0 |
|  | Actual |  |  | For Capital Adequacy Purposes |  |  | To Be Well Capitalized Under Prompt Corrective Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
As of December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 217,011 |  |  |  | 12.87 | % |  | $ | 134,935 |  |  | > | 8.0 | % |  | N/A |  |  | N/A |
Tier 1 risk-based capital |  |  | 193,044 |  |  |  | 11.45 | % |  |  | 67,468 |  |  | > | 4.0 |  |  | N/A |  |  | N/A |
Tier 1 leverage |  |  | 193,044 |  |  |  | 7.96 | % |  |  | 97,029 |  |  | > | 4.0 |  |  | N/A |  |  | N/A |
Quad City Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 101,168 |  |  |  | 12.25 | % |  | $ | 66,049 |  |  | > | 8.0 | % |  | $ | 82,562 |  |  | > | 10.0 | %
Tier 1 risk-based capital |  |  | 91,820 |  |  |  | 11.12 | % |  |  | 33,025 |  |  | > | 4.0 |  |  |  | 49,537 |  |  | > | 6.0 |
Tier 1 leverage |  |  | 91,820 |  |  |  | 7.13 | % |  |  | 51,527 |  |  | > | 4.0 |  |  |  | 64,408 |  |  | > | 5.0 |
Cedar Rapids Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 74,912 |  |  |  | 12.54 | % |  | $ | 47,808 |  |  | > | 8.0 | % |  | $ | 59,760 |  |  | > | 10.0 | %
Tier 1 risk-based capital |  |  | 67,432 |  |  |  | 11.28 | % |  |  | 23,904 |  |  | > | 4.0 |  |  |  | 35,856 |  |  | > | 6.0 |
Tier 1 leverage |  |  | 67,432 |  |  |  | 8.78 | % |  |  | 30,736 |  |  | > | 4.0 |  |  |  | 38,420 |  |  | > | 5.0 |
Rockford Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 38,778 |  |  |  | 14.59 | % |  | $ | 21,263 |  |  | > | 8.0 | % |  | $ | 26,579 |  |  | > | 10.0 | %
Tier 1 risk-based capital |  |  | 35,449 |  |  |  | 13.34 | % |  |  | 10,631 |  |  | > | 4.0 |  |  |  | 15,947 |  |  | > | 6.0 |
Tier 1 leverage |  |  | 35,449 |  |  |  | 10.54 | % |  |  | 13,459 |  |  | > | 4.0 |  |  |  | 16,824 |  |  | > | 5.0 |
The Company’s ability to pay dividends to its stockholders may be affected by both general corporate law considerations and policies of the Federal Reserve applicable to bank holding companies. The payment of dividends by any financial institution or its holding company is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. Notwithstanding the availability of funds for dividends, however, the Federal Reserve may prohibit the payment of any dividends by the subsidiary banks if the Federal Reserve determines such payment would constitute an unsafe or unsound practice. The Company also has certain contractual restrictions on its ability to pay dividends. The Company has issued junior subordinated debentures in four private placements and assumed two issues of junior subordinated debentures in connection with the Community National acquisition. Under the terms of the debentures, the Company may be prohibited, under certain circumstances, from paying dividends on shares of its common stock. These circumstances did not exist at December 31, 2014 or 2013. In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”). The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally bank holding companies with consolidated assets of less than $1 billion). The Basel III Rules not only increased most of the required minimum regulatory capital ratios, but they introduced a new Common Equity Tier 1 Capital ratio and the concept of a capital conservation buffer. The Basel III Rules also expand the definition of capital as in effect currently by establishing criteria that instruments must meet to be considered Additional Tier 1 Capital (Tier 1 Capital in addition to Common Equity) and Tier 2 Capital. A number of instruments that now qualify as Tier 1 Capital will not qualify, or their qualifications will change. The Basel III Rules also permit smaller banking organizations (including the Company and the subsidiary banks) to retain, through a one-time election, the existing treatment for accumulated other comprehensive income (“AOCI”), which currently does not affect regulatory capital. The Company will elect the existing treatment for AOCI. The Basel III Rules have maintained the general structure of the current prompt corrective action framework, while incorporating the increased requirements. The prompt corrective action guidelines were also revised to add the Common Equity Tier 1 Capital ratio. In order to be a “well-capitalized” depository institution under the new regime, a bank and holding company must maintain a Common Equity Tier 1 Capital ratio of 6.5% or more; a Tier 1 Capital ratio of 8% or more; a Total Capital ratio of 10% or more; and a leverage ratio of 5% or more. Generally, financial institutions, including the Company and subsidiary banks, became subject to the new Basel III Rules on January 1, 2015, with the first formal reporting as of March 31, 2015. Management believes that its current capital structure and the execution of its existing capital plan will be sufficient to meet and exceed the revised regulatory capital ratios as required by the new Basel III Rules.

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- 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 1B -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958570-112826 Reference 2: 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=35709795&loc=SL5958568-112826 Reference 3: 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=35709795&loc=SL5958573-112826 Reference 4: 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=35709795&loc=SL5958574-112826 Reference 5: 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=35709795&loc=SL5958575-112826 Reference 6: 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=35709795&loc=SL5958569-112826 Reference 7: 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=35709795&loc=d3e65071-112826 Reference 8: 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=35709795&loc=SL5958577-112826 Reference 9: 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=35709795&loc=SL5958572-112826 + Details
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