Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2015

To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and common equity Tier 1 ratios as set forth in the second table below. The most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action as of December 31, 2015. There are no conditions or events since that notification that Management believes have changed the Bank’s categories and we expect the Bank to remain well capitalized under the minimum requirements for capital adequacy in accordance with Basel III rules for prompt corrective action pursuant to Section 38 of the Federal Deposit Insurance Act on a fully phased-in basis.

The Bancorp’s and Bank's capital adequacy ratios as of December 31, 2015 and 2014 are presented in the following tables. Bancorp's Tier 1 capital includes the subordinated debentures, which are not included at the Bank level. We continued to deploy capital in 2015 accumulated from net income into lending and investing.



Capital Ratios for Bancorp (dollars in thousands)	Actual Ratio				Ratio for Capital Adequacy Purposes
As of December 31, 2015	Amount		Ratio		Amount		Ratio
Total Capital (to risk-weighted assets)	$	227,269	13.37	%	≥ $	135,996	≥ 8.0	%
Tier 1 Capital (to risk-weighted assets)	$	211,521	12.44	%	≥ $	101,997	≥ 6.0	%
Tier 1 Capital (to average assets)	$	211,521	10.67	%	≥ $	79,296	≥ 4.0	%
Common Equity Tier 1 (to risk-weighted assets)	$	206,724	12.16	%	≥ $	76,498	≥ 4.5	%

As of December 31, 2014
Total Capital (to risk-weighted assets)	$	210,067	13.94	%	≥ $	120,580	≥ 8.0	%
Tier 1 Capital (to risk-weighted assets)	$	193,956	12.87	%	≥ $	60,290	≥ 4.0	%
Tier 1 Capital (to average assets)	$	193,956	10.62	%	≥ $	73,079	≥ 4.0	%



Capital Ratios for the Bank (dollars in thousands)	Actual Ratio				Ratio for Capital Adequacy Purposes				Ratio to be Well Capitalized under Prompt Corrective Action Provisions
As of December 31, 2015	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to risk-weighted assets)	$	222,830	13.11	%	≥ $	135,968	≥ 8.0	%	≥ $	169,960	≥ 10.0	%
Tier 1 Capital (to risk-weighted assets)	$	207,082	12.18	%	≥ $	101,976	≥ 6.0	%	≥ $	135,968	≥ 8.0	%
Tier 1 Capital (to average assets)	$	207,082	10.45	%	≥ $	79,268	≥ 4.0	%	≥ $	99,085	≥ 5.0	%
Common Equity Tier 1 (to risk-weighted assets)	$	207,082	12.18	%	≥ $	76,482	≥ 4.5	%	≥ $	110,474	≥ 6.5	%

As of December 31, 2014
Total Capital (to risk-weighted assets)	$	206,465	13.70	%	≥ $	120,553	≥ 8.0	%	≥ $	150,692	≥ 10.0	%
Tier 1 Capital (to risk-weighted assets)	$	190,354	12.63	%	≥ $	60,277	≥ 4.0	%	≥ $	90,415	≥ 6.0	%
Tier 1 Capital (to average assets)	$	190,354	10.42	%	≥ $	73,064	≥ 4.0	%	≥ $	91,330	≥ 5.0	%