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Regulatory Matters
 6 Months Ended
Jun. 30, 2011
Deposits, Federal Home Loan Bank Advances and Regulatory Matters [Abstract]  
REGULATORY MATTERS
12.   REGULATORY MATTERS
    We are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and 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 weightings, and other factors, and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on our financial statements.
    The prompt corrective action regulations provide five classifications, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If an institution is not well capitalized, regulatory approval is required to accept brokered deposits. Subject to limited exceptions, no institution may make a capital distribution if, after making the distribution, it would be undercapitalized. If an institution is undercapitalized, it is subject to close monitoring by its principal federal regulator, its asset growth and expansion are restricted, and plans for capital restoration are required. In addition, further specific types of restrictions may be imposed on the institution at the discretion of the federal regulator. At June 30, 2011 and December 31, 2010, our bank was in the well capitalized category under the regulatory framework for prompt corrective action. There are no conditions or events since June 30, 2011 that we believe have changed our bank’s categorization.
    Our actual capital levels (dollars in thousands) and the minimum levels required to be categorized as adequately and well capitalized were:
                                                 
                                    Minimum Required  
                                    to be Well  
                    Minimum Required     Capitalized Under  
                    for Capital     Prompt Corrective  
    Actual     Adequacy Purposes     Action Regulations  
    Amount     Ratio     Amount     Ratio     Amount     Ratio  
June 30, 2011
                                               
Total capital (to risk weighted assets)
Consolidated
  $ 177,096       13.9 %   $ 102,314       8.0 %   $  NA     NA  
Bank
    178,542       14.0       102,231       8.0       127,788       10.0 %
Tier 1 capital (to risk weighted assets)
Consolidated
    160,829       12.6       51,157       4.0     NA     NA  
Bank
    162,288       12.7       51,116       4.0       76,673       6.0  
Tier 1 capital (to average assets)
Consolidated
    160,829       10.3       62,669       4.0     NA     NA  
Bank
    162,288       10.4       62,629       4.0       78,286       5.0  
 
                                               
December 31, 2010
                                               
Total capital (to risk weighted assets)
Consolidated
  $ 175,029       12.5 %   $ 112,480       8.0 %   $  NA     NA  
Bank
    175,122       12.5       112,398       8.0       140,497       10.0 %
Tier 1 capital (to risk weighted assets)
Consolidated
    157,111       11.2       56,240       4.0     NA     NA  
Bank
    157,217       11.2       56,199       4.0       84,299       6.0  
Tier 1 capital (to average assets)
Consolidated
    157,111       9.1       69,135       4.0     NA     NA  
Bank
    157,217       9.1       69,112       4.0       86,389       5.0  
    Our consolidated capital levels as of June 30, 2011 and December 31, 2010 include $32.0 million of trust preferred securities issued by the trust in September 2004 and December 2004 subject to certain limitations. Under applicable Federal Reserve guidelines, the trust preferred securities constitute a restricted core capital element. The guidelines provide that the aggregate amount of restricted core elements that may be included in our Tier 1 capital must not exceed 25% of the sum of all core capital elements, including restricted core capital elements, net of goodwill less any associated deferred tax liability. Our ability to include the trust preferred securities in Tier 1 capital in accordance with the guidelines is not affected by the provision of the Dodd-Frank Act generally restricting such treatment, because (i) the trust preferred securities were issued before May 19, 2010, and ii) our total consolidated assets as of December 31, 2009 were less than $15.0 billion. As of June 30, 2011 and December 31, 2010, all $32.0 million of the trust preferred securities were included in our consolidated Tier 1 capital.
    On July 9, 2010, we announced via a Form 8-K filed with the SEC that we were deferring regularly scheduled quarterly interest payments on our subordinated debentures beginning with the quarterly interest payment scheduled to be paid on July 18, 2010. The deferral of interest payments on the subordinated debentures results in the deferral of distributions on our trust preferred securities. We also announced that we were deferring regularly scheduled quarterly dividend payments on our preferred stock beginning with the quarterly dividend payment scheduled to be paid on August 15, 2010. We have not determined the duration of the deferral period.
    Our and our bank’s ability to pay cash and stock dividends is subject to limitations under various laws and regulations and to prudent and sound banking practices. In April 2010, we suspended future payments of cash dividends on our common stock until economic conditions and our financial performance improve. In addition, we are precluded from paying dividends on our common stock and preferred stock because, under the terms of our subordinated debentures, we cannot pay dividends during periods when we have deferred the payment of interest on our subordinated debentures; and, as indicated above in this Note 12, we are now deferring such interest payments. Also, pursuant to our Articles of Incorporation, we are precluded from paying dividends on our common stock while any dividends accrued on our preferred stock have not been declared and paid. Because, as indicated above in this Note 12, we have suspended the payment of dividends on our preferred stock, we are precluded from paying dividends on our common stock.