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Note 20 - Regulatory Matters
 12 Months Ended
Dec. 31, 2014
Disclosure Text Block [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 20 – Regulatory Matters


The Company and Bank are subject to various regulatory capital requirements administered by 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 the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors.


Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain amounts and ratios (set forth in the table below) of total capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2014 and 2013, that the Company and Bank met all capital adequacy requirements to which they are subject.


The actual capital amounts and ratios for the Company and Bank as of December 31, 2014 and 2013 are presented in the table below:


   

Company

   

Bank

   

For Capital

Adequacy

   

To Be Well Capitalized Under

 

(dollars in thousands)

 

Actual

Amount

   

Ratio

   

Actual

Amount

   

Ratio

   

Purposes Ratio

   

Prompt Corrective Action

Provision Ratio *

 
                                                 

As of December 31, 2014

                                               

Total capital (to risk weighted assets)

  $ 631,340       12.97 %   $ 568,637       11.73 %     8.0 %     10.0 %

Tier 1 capital (to risk weighted assets)

    505,864       10.39 %     522,637       10.78 %     4.0 %     6.0 %

Tier 1 capital (to average assets)

    505,864       10.69 %     522,637       11.09 %     3.0 %     5.0 %
                                                 

As of December 31, 2013

                                               

Total capital (to risk weighted assets)

  $ 440,332       13.01 %   $ 403,910       12.00 %     8.0 %     10.0 %

Tier 1 capital (to risk weighted assets)

    390,111       11.53 %     363,166       10.79 %     4.0 %     6.0 %

Tier 1 capital (to average assets)

    390,111       10.93 %     363,166       10.22 %     3.0 %     5.0 %

* Applies to Bank only


Bank and holding company regulations, as well as Maryland law, impose certain restrictions on dividend payments by the Bank, as well as restricting extensions of credit and transfers of assets between the Bank and the Company. At December 31, 2014, the Bank could pay dividends to the parent to the extent of its earnings so long as it maintained required capital ratios.