XML 1092 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Capital Requirements and Restrictions on Retained Earnings
 12 Months Ended
Dec. 31, 2012
Capital Requirements and Restrictions on Retained Earnings [Abstract]  
Capital Requirements and Restrictions on Retained Earnings

17.  Capital Requirements and Restrictions on Retained Earnings

Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, for the Bank, prompt corrective action (PCA) 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. Failure to meet capital requirements can result in regulatory enforcement actions. Management believes as of December 31, 2012 the Corporation and Bank meet all capital adequacy requirements to which they are subject.

The PCA regulations provide five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms alone do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion; brokered deposits may not be accepted, renewed or rolled over; and capital restoration plans are required. As of December 31, 2012 and 2011, the most recent regulatory notifications categorized the Bank as well capitalized under the PCA regulatory framework. There are no events or conditions since this notification that management believes have changed the Bank’s capital category.

Actual and required capital amounts and ratios are presented below as of December 31, 2012 and 2011:

 

                                                 
    Actual     For Capital
Adequacy Purposes		     To Be Well Capitalized
Under Prompt Corrective
Action Provisions		  
   

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

  

December 31, 2012

                                                

Total Capital to Risk Weighted Assets

                                                

Consolidated

     $152,968       15.28 %      $80,073       8.0 %      N/A          

Bank

     $131,788       13.46 %      $78,324       8.0 %      $97,905       10.0 % 
             

Tier 1 (Core) Capital to Risk Weighted Assets

                                                

Consolidated

     $140,426       14.03 %      $40,036       4.0 %      N/A          

Bank

     $119,534       12.21 %      $39,162       4.0 %      $58,743       6.0 % 
             

Tier 1 (Core) Capital to Average Assets

                                                

Consolidated

     $140,426       8.06 %      $69,726       4.0 %      N/A          

Bank

     $119,534       6.99 %      $68,409       4.0 %      $85,512       5.0 % 
             

December 31, 2011

                                                

Total Capital to Risk Weighted Assets

                                                

Consolidated

     $141,310       15.14 %      $74,647       8.0 %      N/A          

Bank

     $121,673       13.32 %      $73,101       8.0 %      $91,376       10.0 % 
             

Tier 1 (Core) Capital to Risk Weighted Assets

                                                

Consolidated

     $129,620       13.89 %      $37,323       4.0 %      N/A          

Bank

     $110,232       12.06 %      $36,550       4.0 %      $54,826       6.0 % 
             

Tier 1 (Core) Capital to Average Assets

                                                

Consolidated

     $129,620       8.22 %      $63,083       4.0 %      N/A          

Bank

     $110,232       7.15 %      $61,684       4.0 %      $77,106       5.0 % 

 

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. At December 31, 2012, $15,845 of accumulated net earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements above.