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Capital Requirements and Restrictions on Retained Earnings
 12 Months Ended
Dec. 31, 2014
Banking and Thrift [Abstract]  
Capital Requirements and Restrictions on Retained Earnings

18.  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, 2014 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, 2014 and 2013, 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, 2014 and 2013:

 

     Actual    

For Capital

Adequacy Purposes

    

To Be Well Capitalized

Under Prompt Corrective

Action Provisions

  
    

Amount

     

Ratio

    

Amount

     

Ratio

    

Amount

     

Ratio

  

December 31, 2014

                

Total Capital to Risk Weighted Assets

                

Consolidated

      $199,034         14.30 %      $111,374         8.0 %      N/A      

Bank

      $180,597         13.16 %      $109,758         8.0 %      $137,198         10.0 % 

Tier 1 (Core) Capital to Risk Weighted Assets

                

Consolidated

      $181,661         13.05 %      $55,687         4.0 %      N/A      

Bank

      $164,835         12.01 %      $54,879         4.0 %      $82,319         6.0 % 

Tier 1 (Core) Capital to Average Assets

                

Consolidated

      $181,661         8.39 %      $86,641         4.0 %      N/A      

Bank

      $164,835         7.71 %      $85,503         4.0 %      $106,878         5.0 % 

December 31, 2013

                

Total Capital to Risk Weighted Assets

                

Consolidated

      $183,984         13.72 %      $107,316         8.0 %      N/A      

Bank

      $166,440         12.57 %      $105,912         8.0 %      $132,390         10.0 % 

Tier 1 (Core) Capital to Risk Weighted Assets

                

Consolidated

      $167,773         12.51 %      $53,658         4.0 %      N/A      

Bank

      $151,585         11.45 %      $52,956         4.0 %      $79,434         6.0 % 

Tier 1 (Core) Capital to Average Assets

                

Consolidated

      $167,773         7.96 %      $84,332         4.0 %      N/A      

Bank

      $151,585         7.39 %      $82,078         4.0 %      $102,597         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, 2014, $26,407 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 described above.