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Minimum Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2012
Banking and Thrift [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]
Note 17.Minimum Regulatory Capital Requirements

 

Cornerstone (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the Tennessee Department of Financial Institutions and the 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 Cornerstone’s and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Cornerstone and the Bank must meet specific capital guidelines that involve quantitative measures of Cornerstone’s and the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Cornerstone’s and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

 

Quantitative measures established by regulation to ensure capital adequacy require Cornerstone and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2012 and 2011, that Cornerstone and the Bank meet all capital adequacy requirements to which they are subject.

 

As of December 31, 2012, the most recent notification from the Federal Deposit Insurance Corporation (FDIC) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total-risk based, Tier I risk-based, and Tier I leverage ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank's prompt corrective action category. Cornerstone’s and the Bank's capital amounts and ratios are also presented in the table. Dollar amounts are presented in thousands.

 

              To be Well 
              Capitalized Under 
        For Capital  Prompt Corrective 
  Actual  Adequacy Purposes  Action Provisions 
  Amount  Ratio  Amount  Ratio  Amount  Ratio 
As of December 31, 2012:                        
Total capital to risk-weighted assets:                        
Consolidated $35,795   11.8% $24,179   8.0%  N/A   N/A 
Cornerstone Community Bank  38,930   12.9%  24,123   8.0% $30,154   10.0%
                         
Tier I capital to risk-weighted assets:                        
Consolidated  31,988   10.6%  12,090   4.0%  N/A   N/A 
Cornerstone Community Bank  35,132   11.7%  12,061   4.0%  18,092   6.0%
                         
Tier I capital to average assets:                        
Consolidated  31,988   7.6%  16,807   4.0%  N/A   N/A 
Cornerstone Community Bank  35,132   8.4%  16,787   4.0%  20,984   5.0%
                         
As of December 31, 2011:                        
Total capital to risk-weighted assets:                        
Consolidated $35,246   12.2% $23,043   8.0%  N/A   N/A 
Cornerstone Community Bank  37,158   13.0%  22,876   8.0% $28,594   10.0%
                         
Tier I capital to risk-weighted assets:                        
Consolidated  31,599   11.0%  11,521   4.0%  N/A   N/A 
Cornerstone Community Bank  33,536   11.7%  11,438   4.0%  17,157   6.0%
                         
Tier I capital to average assets:                        
Consolidated  31,599   7.6%  16,713   4.0%  N/A   N/A 
Cornerstone Community Bank  33,536   8.0%  16,686   4.0%  20,857   5.0%