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Regulatory Matters
 12 Months Ended
Dec. 31, 2013
Banking And Thrift [Abstract]  
Regulatory Matters

14. Regulatory Matters

The Bank is subject to regulatory capital requirements administered by the OCC. 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 Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Dividends paid by the Bank are the primary source of funds available to the Company. Banking regulations limit the amount of dividends that may be paid without prior approval of the regulatory authorities. These restrictions for the Bank are based on the level of regulatory classified assets, prior earnings, and the ratio of equity capital to total assets. The Bank may not declare dividends without prior regulatory approval.

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

As of December 31, 2013, the most recent notification from the OCC categorized the Bank as “well capitalized” under the OCC regulatory classification framework. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and tangible capital ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

 

The Bank’s actual capital amounts and ratios are also presented in the following table.

 

(dollars in thousands)

    Actual     Minimum
For Capital
Adequacy
Purposes		     To Be Well
Capitalized
Under Prompt
Corrective
Action
Provisions		  

December 31, 2013

                

Tier 1 risk-based capital:

    $ 139,182         20.84 %    $ 26,712         4.0 %    $ 40,068         6.0 % 

Total risk-based capital:

      146,100         21.88 %      53,424         8.0 %      66,780         10.0 % 

Tier 1 leverage capital:

      139,182         14.17 %      14,730         4.0 %      49,100         5.0 % 

December 31, 2012

                

Tier 1 risk-based capital:

    $ 130,002         20.97 %    $ 24,796         4.0 %    $ 37,195         6.0 % 

Total risk-based capital:

      135,322         21.83 %      49,593         8.0 %      61,991         10.0 % 

Tier 1 leverage capital:

      130,002         13.67 %      38,050         4.0 %      47,562         5.0 %