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Minimum Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2013
Banking and Thrift [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]
Note 16.
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, 2013 and 2012, that Cornerstone and the Bank meet all capital adequacy requirements to which they are subject.
 
As of December 31, 2013, 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, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital to risk-weighted assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
34,820
 
 
11.3
%
$
24,634
 
 
8.0
%
 
N/A
 
 
N/A
 
Cornerstone Community Bank
 
 
39,342
 
 
12.8
%
 
24,552
 
 
8.0
%
$
30,691
 
 
10.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier I capital to risk-weighted assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
31,617
 
 
10.3
%
 
12,317
 
 
4.0
%
 
N/A
 
 
N/A
 
Cornerstone Community Bank
 
 
36,139
 
 
11.8
%
 
12,276
 
 
4.0
%
 
18,414
 
 
6.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier I capital to average assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
31,617
 
 
7.5
%
 
16,885
 
 
4.0
%
 
N/A
 
 
N/A
 
Cornerstone Community Bank
 
 
36,139
 
 
8.6
%
 
16,870
 
 
4.0
%
 
21,087
 
 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%