XML 43 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 21 - Regulatory Requirements and Restrictions
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]
Note
2
1
.
Regulatory Requirements and Restrictions
 
The Company
and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, which applies only to the Bank, the Bank must meet specific capital guidelines that involve quantitative measures of the entity’s balance sheet assets and off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In addition, the Company and the Bank are subject to various regulatory restrictions related to the payment of dividends, including requirements to maintain capital at or above regulatory minimums.
 
The current risk-based capital requirements, based on the international capital standards known as Basel III,
requires the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier
1
capital, Tier
1
capital, and total capital to risk-weighted assets, and of Tier
1
capital to average consolidated assets (“Tier
1
leverage ratio”), as defined in the regulations. On
January 1, 2016,
Basel III’s capital conservation buffer, which is intended to absorb losses during periods of economic stress, became effective at
0.625%,
and will be phased in over a
four
-year period (increasing by an additional
0.625%
each year until it reaches
2.5%
on
January 1, 2019).
 
The
following tables present actual and required capital ratios, under Basel III capital rules, as of the dates indicated:
 
   
December 31, 2017
  
 
 
Actual
    
Minimum Basel III
Requirement
    
Minimum Basel III
Requirement - Fully
Phased-In
    
Well Capitalized
Requirement
(1)
  
(Amounts in thousands)
  
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
The Company
                                                                
Common equity Tier 1 ratio
   $
251,052
      
13.98
 %   $
80,816
      
4.50
 %   $
125,713
      
7.00
 %  
N/A
    
N/A
  
Tier 1 risk-based capital ratio
    
251,052
      
13.98
 %    
107,754
      
6.00
 %    
152,652
      
8.50
 %  
N/A
    
N/A
  
Total risk-based capital ratio
    
270,394
      
15.06
 %    
143,672
      
8.00
 %    
188,570
      
10.50
 %  
N/A
    
N/A
  
Tier 1 Leverage ratio
    
251,052
      
11.06
 %    
90,822
      
4.00
 %    
90,822
      
4.00
 %  
N/A
    
N/A
  
                                                                 
The Bank
                                                                
Common equity Tier 1 ratio
   $
222,856
      
12.47
 %   $
80,447
      
4.50
 %   $
125,139
      
7.00
 %   $
116,201
      
6.50
 %
Tier 1 risk-based capital ratio
    
222,856
      
12.47
 %    
107,262
      
6.00
 %    
151,955
      
8.50
 %    
178,771
      
8.00
 %
Total risk-based capital ratio
    
242,218
      
13.55
 %    
143,016
      
8.00
 %    
187,709
      
10.50
 %    
143,016
      
10.00
 %
Tier 1 Leverage ratio
    
222,856
      
9.84
 %    
90,604
      
4.00
 %    
90,604
      
4.00
 %    
113,255
      
5.00
 %
 
(
1
)
Based on prompt corrective action provisions
 
   
December 31, 2016
  
 
  
Actual
    
Minimum Basel III
Requirement
    
Minimum Basel III
Requirement - Fully
Phased-In
    
Well Capitalized
Requirement
(1)
  
(Amounts in thousands)
  
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
The Company
                                                                
Common equity Tier 1 ratio
   $
241,671
      
13.88
 %   $
78,362
      
4.50
 %   $
121,897
      
7.00
 %  
N/A
    
N/A
  
Tier 1 risk-based capital ratio
    
256,671
      
14.74
 %    
104,483
      
6.00
 %    
148,018
      
8.50
 %  
N/A
    
N/A
  
Total risk-based capital ratio
    
274,953
      
15.79
 %    
139,311
      
8.00
 %    
182,846
      
10.50
 %  
N/A
    
N/A
  
Tier 1 Leverage ratio
    
256,671
      
11.07
 %    
92,742
      
4.00
 %    
92,742
      
4.00
 %  
N/A
    
N/A
  
                                                                 
The Bank
                                                                
Common equity Tier 1 ratio
   $
223,944
      
12.93
 %   $
77,956
      
4.50
 %   $
121,264
      
7.00
 %   $
112,603
      
6.50
 %
Tier 1 risk-based capital ratio
    
223,944
      
12.93
 %    
103,941
      
6.00
 %    
147,249
      
8.50
 %    
138,588
      
8.00
 %
Total risk-based capital ratio
    
242,218
      
13.98
 %    
138,588
      
8.00
 %    
181,897
      
10.50
 %    
173,235
      
10.00
 %
Tier 1 Leverage ratio
    
223,944
      
9.71
 %    
92,274
      
4.00
 %    
92,274
      
4.00
 %    
115,343
      
5.00
 %
 
(
1
)
Based on prompt corrective action provisions