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RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES
12 Months Ended
Dec. 31, 2017
Equity [Abstract]  
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES
The Parent Company's principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid from the Bank to the Parent Company without prior approval of regulatory agencies. Accordingly, at December 31, 2017, $15,875,000 was available for dividend distribution from the Bank to the Parent Company in 2018.
Under current Federal Reserve regulations, the Bank is limited in the amount it may lend to the Parent Company and its nonbank subsidiary. Loans to a single affiliate may not exceed 10%, and loans to all affiliates may not exceed 20% of the bank’s capital stock, surplus, and undivided profits, plus the ALL (as defined by regulation). Loans from the Bank to nonbank affiliates, including the Parent Company, are also required to be collateralized according to regulatory guidelines. At December 31, 2017, the maximum amount the Bank has available to loan nonbank affiliates was $14,900,000. At December 31, 2017, there were no loans from the Bank to any nonbank affiliate, including the Parent Company.