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SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL
 3 Months Ended
Mar. 31, 2017
Equity [Abstract]  
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, 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. Failure to meet capital requirements can initiate regulatory action. The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. Banks are being phased in through January 1, 2019. Under these rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer for the Company was 0.625% for 2016 and is 1.25% for 2017, with a total buffer of 2.50% being phased in through 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes at March 31, 2017 the Company and the Bank meet all capital adequacy requirements to which they are subject.
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to 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 and capital restoration plans are required. At March 31, 2017, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category.


Capital amounts and ratios at March 31, 2017 and December 31, 2016, are presented in the following table.  
 
Actual
 
For Capital Adequacy Purposes
(includes applicable capital conservation buffer)
 
To Be Well
Capitalized Under
Prompt Corrective Action Provisions
(Dollars in thousands)
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Total Capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
141,288

 
14.3
%
 
$
91,230

 
9.250
%
 
n/a

 
n/a

Bank
129,419

 
13.1
%
 
91,162

 
9.250
%
 
$
98,554

 
10.0
%
Tier 1 (Core) Capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
128,928

 
13.1
%
 
71,504

 
7.250
%
 
n/a

 
n/a

Bank
117,068

 
11.9
%
 
71,452

 
7.250
%
 
78,843

 
8.0
%
Common Tier 1 (CET1) to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
128,928

 
13.1
%
 
56,710

 
5.750
%
 
n/a

 
n/a

Bank
117,068

 
11.9
%
 
56,668

 
5.750
%
 
64,060

 
6.5
%
Tier 1 (Core) Capital to average assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
128,928

 
9.1
%
 
56,607

 
4.0
%
 
n/a

 
n/a

Bank
117,068

 
8.3
%
 
56,622

 
4.0
%
 
70,778

 
5.0
%
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Total Capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
139,033

 
14.6
%
 
$
82,391

 
8.625
%
 
n/a

 
n/a

Bank
126,408

 
13.2
%
 
82,328

 
8.625
%
 
$
95,453

 
10.0
%
Tier 1 (Core) Capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
127,033

 
13.3
%
 
63,286

 
6.625
%
 
n/a

 
n/a

Bank
114,417

 
12.0
%
 
63,238

 
6.625
%
 
76,363

 
8.0
%
Common Tier 1 (CET1) to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
127,033

 
13.3
%
 
48,957

 
5.125
%
 
n/a

 
n/a

Bank
114,417

 
12.0
%
 
48,920

 
5.125
%
 
62,045

 
6.5
%
Tier 1 (Core) Capital to average assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
127,033

 
9.3
%
 
54,453

 
4.0
%
 
n/a

 
n/a

Bank
114,417

 
8.4
%
 
54,500

 
4.0
%
 
68,126

 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 

In September 2015, the Board of Directors of the Company authorized a share repurchase program under which the Company may repurchase up to 5% of the Company's outstanding shares of common stock, or approximately 416,000 shares, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. When and if appropriate, repurchases may be made in open market or privately negotiated transactions, depending on market conditions, regulatory requirements and other corporate considerations, as determined by management. Share repurchases may not occur and may be discontinued at any time. At March 31, 2017, 82,725 shares had been repurchased under the program at a total cost of $1,438,000, or $17.38 per share.
On April 27, 2017, the Board declared a cash dividend of $0.10 per common share, to be paid on May 15, 2017 to shareholders of record at May 8, 2017.