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Regulatory Requirements
 12 Months Ended
Dec. 31, 2013
Regulatory Requirements [Abstract]  
Regulatory Requirements

(13)Regulatory Requirements

 

The OCC requires savings institutions to maintain a minimum tangible capital ratio to tangible assets of 1.5%, a minimum core capital ratio to total adjusted assets of 4.0%, and a minimum ratio of total risk-adjusted total assets of 8.0%.  

 

Under  prompt corrective action regulations, the OCC is required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution.  Such actions could have a direct material effect on the institution’s financial statements.  The regulations establish a framework for the classification of savings institutions into five categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.  Generally, an institution is considered well capitalized if it has a core capital ratio of at least 5%, a Tier 1 risk‑based capital ratio of at least 6%, and a total risk‑based capital ratio of at least 10%.

 

The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities, and certain off‑balance‑sheet items as calculated under regulatory accounting practices.  Capital amounts and classifications also are subject to qualitative judgments by the regulators about capital components, risk weighting, and other factors.

 

Management believes that as of December 31, 2013 and December 31, 2012, the Bank met all capital adequacy requirements to which it is subject.  Further, the most recent OCC notification categorized the Bank as a well‑capitalized institution under the prompt corrective action regulations.  There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.

 

Northfield Bancorp, Inc. is regulated, supervised, and examined by the FRB as a savings and loan holding company and, as such, is not subject to regulatory capital requirements.  The Dodd-Frank Act will require the federal banking agencies to establish consolidated risk-based and leverage capital requirements for insured depository institutions, depository institution holding companies and systemically important nonbank financial companies.  These requirements must be no less than those to which insured depository institutions are currently subject.  As a result, on the fifth anniversary of the effective date of the Dodd-Frank Act, we will become subject to consolidated capital requirements which we have not been subject to previously.

 

The following is a summary of the Bank’s regulatory capital amounts and ratios compared to the regulatory requirements as of December 31, 2013 and 2012, for classification as a well-capitalized institution and minimum capital (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCC Requirements

 

 

 

 

 

 

 

 

 

 

 

For Well

 

 

 

 

 

 

For Capital

 

 

Capitalized

 

 

 

 

 

 

Adequacy

 

 

Under Prompt Corrective

 

 

Actual

 

Purposes

 

 

Action Provisions

 

 

Amount

 

Ratio

 

Amount

 

Ratio

 

 

Amount

 

Ratio

 

As of December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible capital to tangible assets

$      535,007

 
19.88% 

 

$       40,363

 
1.50% 

 

$

NA

 

NA

%

Tier I capital (core) (to adjusted total assets)
535,007 

 
19.88 

 
107,635 

 
4.00 

 

 
134,544 

 
5.00 

 

Total capital (to risk-weighted assets)
559,187 

 
28.94 

 
154,570 

 
8.00 

 

 
193,213 

 
10.00 

 

As of December 31, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible capital to tangible assets

$      350,562

 
12.65% 

 

$       41,563

 
1.50% 

 

$

NA

 

NA

%

Tier I capital (core) (to adjusted total assets)
350,562 

 
12.65 

 
110,836 

 
4.00 

 

 
138,545 

 
5.00 

 

Total capital (to risk-weighted assets)
371,461 

 
22.30 

 
133,281 

 
8.00 

 

 
166,601 

 
10.00