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Note 8 - Regulatory Capital Requirements | 9 Months Ended
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Sep. 30, 2016
Notes to Financial Statements |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 8 – REGULATORY CAPITAL REQUIREMENTS 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 common equity Tier 1 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 September 30, 2016 and December 31, 2015, 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, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of September 30, 2016 and December 31, 2015 are also presented in the following table (dollars in thousands). As of September 30, 2016 and December 31, 2015, each of the subsidiary banks met the requirements to be “well capitalized”.
|  |  |  |  |  |  |  |  |  | For Capital |  |  | To Be Well |
|  |  |  |  |  |  |  |  |  | Adequacy Purposes |  |  | Capitalized Under |
|  |  |  |  |  |  |  |  |  | With Capital |  |  | Prompt Corrective |
|  | Actual |  |  | Conservation Buffer* |  |  | Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  | Ratio |  |  | Amount |  | Ratio |
As of September 30, 2016: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 316,063 |  |  |  | 11.33 | % |  | $ | 240,629 |  | > |  |  | 8.625 | % |  | $ | 278,991 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 287,015 |  |  |  | 10.29 | % |  |  | 184,831 |  | > |  |  | 6.625 |  |  |  | 223,192 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 287,015 |  |  |  | 10.09 | % |  |  | 113,737 |  | > |  |  | 4.000 |  |  |  | 142,172 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 257,119 |  |  |  | 9.22 | % |  |  | 142,983 |  | > |  |  | 5.125 |  |  |  | 181,344 |  | > |  |  | 6.5 |
Quad City Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 138,333 |  |  |  | 11.71 | % |  | $ | 101,861 |  | > |  |  | 8.625 | % |  | $ | 118,100 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 125,410 |  |  |  | 10.62 | % |  |  | 78,241 |  | > |  |  | 6.625 |  |  |  | 94,480 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 125,410 |  |  |  | 8.86 | % |  |  | 56,628 |  | > |  |  | 4.000 |  |  |  | 70,785 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 125,410 |  |  |  | 10.62 | % |  |  | 60,526 |  | > |  |  | 5.125 |  |  |  | 76,765 |  | > |  |  | 6.5 |
Cedar Rapids Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 104,206 |  |  |  | 13.13 | % |  | $ | 68,474 |  | > |  |  | 8.625 | % |  | $ | 79,390 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 94,266 |  |  |  | 11.87 | % |  |  | 52,596 |  | > |  |  | 6.625 |  |  |  | 63,512 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 94,266 |  |  |  | 10.36 | % |  |  | 36,407 |  | > |  |  | 4.000 |  |  |  | 45,509 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 94,266 |  |  |  | 11.87 | % |  |  | 40,687 |  | > |  |  | 5.125 |  |  |  | 51,604 |  | > |  |  | 6.5 |
Community State Bank: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 67,008 |  |  |  | 14.09 | % |  | $ | 41,031 |  | > |  |  | 8.625 | % |  | $ | 47,572 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 66,735 |  |  |  | 14.03 | % |  |  | 31,516 |  | > |  |  | 6.625 |  |  |  | 38,058 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 66,735 |  |  |  | 11.74 | % |  |  | 22,745 |  | > |  |  | 4.000 |  |  |  | 28,431 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 66,735 |  |  |  | 14.03 | % |  |  | 24,381 |  | > |  |  | 5.125 |  |  |  | 30,922 |  | > |  |  | 6.5 |
Rockford Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 41,130 |  |  |  | 11.95 | % |  | $ | 29,680 |  | > |  |  | 8.625 | % |  | $ | 34,412 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 36,821 |  |  |  | 10.70 | % |  |  | 22,798 |  | > |  |  | 6.625 |  |  |  | 27,529 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 36,821 |  |  |  | 9.45 | % |  |  | 15,587 |  | > |  |  | 4.000 |  |  |  | 19,484 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 36,821 |  |  |  | 10.70 | % |  |  | 17,636 |  | > |  |  | 5.125 |  |  |  | 22,367 |  | > |  |  | 6.5 |
Part I Item 1 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | To Be Well Capitalized Under |
|  |  |  |  |  |  |  |  |  | For Capital |  |  | Prompt Corrective |
|  | Actual |  |  | Adequacy Purposes* |  |  | Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  |  | Ratio |  |  | Amount |  |  |  | Ratio |
As of December 31, 2015: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 280,273 |  |  |  | 13.11 | % |  | $ | 170,969 |  | > |  |  | 8.0 | % |  | $ | 213,711 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 253,891 |  |  |  | 11.88 | % |  |  | 128,227 |  | > |  |  | 6.0 |  |  |  | 170,969 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 253,891 |  |  |  | 9.75 | % |  |  | 104,163 |  | > |  |  | 4.0 |  |  |  | 130,203 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 220,800 |  |  |  | 10.33 | % |  |  | 96,170 |  | > |  |  | 4.5 |  |  |  | 138,912 |  | > |  |  | 6.5 |
Quad City Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 135,477 |  |  |  | 12.50 | % |  | $ | 86,726 |  | > |  |  | 8.0 | % |  | $ | 108,407 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 123,498 |  |  |  | 11.39 | % |  |  | 65,044 |  | > |  |  | 6.0 |  |  |  | 86,726 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 123,498 |  |  |  | 8.87 | % |  |  | 55,718 |  | > |  |  | 4.0 |  |  |  | 69,648 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 123,498 |  |  |  | 11.39 | % |  |  | 48,783 |  | > |  |  | 4.5 |  |  |  | 70,465 |  | > |  |  | 6.5 |
Cedar Rapids Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 105,285 |  |  |  | 14.39 | % |  | $ | 58,537 |  | > |  |  | 8.0 | % |  | $ | 73,172 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 96,118 |  |  |  | 13.14 | % |  |  | 43,903 |  | > |  |  | 6.0 |  |  |  | 58,537 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 96,118 |  |  |  | 10.96 | % |  |  | 35,079 |  | > |  |  | 4.0 |  |  |  | 43,848 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 96,118 |  |  |  | 13.14 | % |  |  | 32,927 |  | > |  |  | 4.5 |  |  |  | 47,562 |  | > |  |  | 6.5 |
Rockford Bank & Trust: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital |  | $ | 38,544 |  |  |  | 11.96 | % |  | $ | 25,772 |  | > |  |  | 8.0 | % |  | $ | 32,216 |  | > |  |  | 10.0 | %
Tier 1 risk-based capital |  |  | 34,514 |  |  |  | 10.71 | % |  |  | 19,329 |  | > |  |  | 6.0 |  |  |  | 25,772 |  | > |  |  | 8.0 |
Tier 1 leverage |  |  | 34,514 |  |  |  | 9.59 | % |  |  | 14,401 |  | > |  |  | 4.0 |  |  |  | 18,001 |  | > |  |  | 5.0 |
Common equity Tier 1 |  |  | 34,514 |  |  |  | 10.71 | % |  |  | 14,497 |  | > |  |  | 4.5 |  |  |  | 20,940 |  | > |  |  | 6.5 |
*The minimums under Basel III phase in higher by .625% (the capital conservation buffer) annually until 2019. The fully phased-in minimums are 10.5% (Total risk-based capital), 8.5% (Tier 1 risk-based capital), and 7.0% (Common equity Tier 1). At December 31, 2015, the New Basel III minimums mirrored the minimums required for capital adequacy purposes. The first phase-in of the Basel III capital conservation buffer occurred in 2016. On October 27, 2016, the Company filed a universal shelf registration statement on Form S-3 with the SEC. When declared effective by the SEC, the registration statement will allow the Company to offer and sell various types of securities, including common stock, preferred stock, debt securities and/or warrants, from time to time up to an aggregate amount of $100 million. The Company utilized $30.1 million of its previous $100 million shelf registration filing through the offer and sale of its common stock in the second quarter of 2016 to help fund the acquisition of CSB. This Form S-3 filing will replenish the amount available to the previous level of $100 million. The specific terms and prices of any securities offered pursuant to the registration statement will be determined at the time of any future offering and described in a separate prospectus supplement, which would be filed with the SEC at the time of the particular offering, if any.

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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 1G -URI http://asc.fasb.org/extlink&oid=35709795&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=35709795&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=35709795&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=35709795&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=35709795&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=35709795&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=35709795&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=35709795&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=35709795&loc=SL5958573-112826 + Details
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