XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Regulatory Matters | 12 Months Ended
--- | ---
Dec. 31, 2017
Banking and Thrift [Abstract] |
Regulatory Matters | Regulatory Matters We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements as set forth in the tables below can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank’s prompt corrective action classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. Capital ratios are reviewed by Management on a regular basis to ensure that capital exceeds the prescribed regulatory minimums and is adequate to meet our anticipated future needs. For all periods presented, the Bank’s ratios exceed the regulatory definition of “well capitalized” under the regulatory framework for prompt corrective action and Bancorp’s ratios exceed the required minimum ratios to be considered a well capitalized bank holding company. In addition, 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, 2017. 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 for prompt corrective action purposes. In July 2013, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency ("Agencies") finalized regulatory capital rules known as “Basel III.” The rules became effective beginning January 2015, and will be fully phased-in by January 2019. The guidelines, among other things, changed the minimum capital requirements of banks and bank holding companies, by increasing the Tier 1 capital to risk-weighted assets ratio to 6%, and introduced a new requirement to maintain a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5%. By 2019, when fully phased in, the rules will require further increases to certain minimum capital requirements and a capital conservation buffer of an additional 2.5% of risk-weighted assets. In August 2017, the Agencies published a final rule ("transitions NPR") halting the phase-in of certain Basel III capital rules for banks not using the Basel advanced approaches. The rule extends the regulatory capital treatment applicable during 2017 under the regulatory capital rules for certain items. These items include regulatory capital deductions, risk weights, and certain minority interest limitations. This effectively pauses the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests while the Agencies pursue more extensive rulemaking to simplify the treatment of assets. The transitions NPR that was effective January 1, 2018 does not apply to Bank of Marin. We have modeled our ratios under fully phased-in Basel III rules and, based on present facts, we do not expect that we will be required to raise additional capital as a result of the fully phased-in rules. The Bancorp’s and Bank's capital adequacy ratios as of December 31, 2017 and 2016 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 build capital in 2017 through stock issued in the Bank of Napa acquisition and the accumulation of net income.
Capital Ratios for Bancorp (dollars in thousands) | Actual Ratio |  | Adequately Capitalized Threshold 1 |  | Ratio to be a Well Capitalized Bank Holding Company
December 31, 2017 | Amount |  | Ratio |  |  | Amount |  | Ratio |  |  | Amount |  | Ratio |
Total Capital (to risk-weighted assets) | $ | 287,435 |  | 14.91 | % |  | ≥ $ | 178,323 |  | ≥ 9.250 | % |  | ≥ $ | 192,782 |  | ≥ 10.000 | %
Tier 1 Capital (to risk-weighted assets) | $ | 270,710 |  | 14.04 | % |  | ≥ $ | 139,767 |  | ≥ 7.250 | % |  | ≥ $ | 154,225 |  | ≥ 8.000 | %
Tier 1 Capital (to average assets) | $ | 270,710 |  | 12.13 | % |  | ≥ $ | 89,285 |  | ≥ 4.000 | % |  | ≥ $ | 111,607 |  | ≥ 5.000 | %
Common Equity Tier 1 (to risk-weighted assets) | $ | 265,119 |  | 13.75 | % |  | ≥ $ | 110,849 |  | ≥ 5.750 | % |  | ≥ $ | 125,308 |  | ≥ 6.500 | %
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to risk-weighted assets) | $ | 247,453 |  | 14.32 | % |  | ≥ $ | 149,039 |  | ≥ 8.625 | % |  | ≥ $ | 172,799 |  | ≥ 10.000 | %
Tier 1 Capital (to risk-weighted assets) | $ | 231,111 |  | 13.37 | % |  | ≥ $ | 114,479 |  | ≥ 6.625 | % |  | ≥ $ | 138,239 |  | ≥ 8.000 | %
Tier 1 Capital (to average assets) | $ | 231,111 |  | 11.39 | % |  | ≥ $ | 81,189 |  | ≥ 4.000 | % |  | ≥ $ | 101,486 |  | ≥ 5.000 | %
Common Equity Tier 1 (to risk-weighted assets) | $ | 225,925 |  | 13.07 | % |  | ≥ $ | 88,559 |  | ≥ 5.125 | % |  | ≥ $ | 112,319 |  | ≥ 6.500 | %
1 The 2017 and 2016 adequately capitalized thresholds include the capital conservation buffer that was effective January 1, 2016 and January 1, 2017, respectively. These ratios are not reflected on a fully phased-in basis.
Capital Ratios for the Bank (dollars in thousands) | Actual Ratio |  | Adequately Capitalized Threshold 1 |  | Ratio to be Well Capitalized under Prompt Corrective Action Provisions
December 31, 2017 | Amount |  | Ratio |  |  | Amount |  | Ratio |  |  | Amount |  | Ratio |
Total Capital (to risk-weighted assets) | $ | 283,885 |  | 14.73 | % |  | ≥ $ | 178,281 |  | ≥ 9.250 | % |  | ≥ $ | 192,737 |  | ≥ 10.000 | %
Tier 1 Capital (to risk-weighted assets) | $ | 267,160 |  | 13.86 | % |  | ≥ $ | 139,734 |  | ≥ 7.250 | % |  | ≥ $ | 154,189 |  | ≥ 8.000 | %
Tier 1 Capital (to average assets) | $ | 267,160 |  | 11.97 | % |  | ≥ $ | 89,275 |  | ≥ 4.000 | % |  | ≥ $ | 111,593 |  | ≥ 5.000 | %
Common Equity Tier 1 (to risk-weighted assets) | $ | 267,160 |  | 13.86 | % |  | ≥ $ | 110,824 |  | ≥ 5.750 | % |  | ≥ $ | 125,279 |  | ≥ 6.500 | %
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to risk-weighted assets) | $ | 243,468 |  | 14.09 | % |  | ≥ $ | 149,016 |  | ≥ 8.625 | % |  | ≥ $ | 172,772 |  | ≥ 10.000 | %
Tier 1 Capital (to risk-weighted assets) | $ | 222,127 |  | 13.15 | % |  | ≥ $ | 114,462 |  | ≥ 6.625 | % |  | ≥ $ | 138,218 |  | ≥ 8.000 | %
Tier 1 Capital (to average assets) | $ | 222,127 |  | 11.19 | % |  | ≥ $ | 81,176 |  | ≥ 4.000 | % |  | ≥ $ | 101,469 |  | ≥ 5.000 | %
Common Equity Tier 1 (to risk-weighted assets) | $ | 222,127 |  | 13.15 | % |  | ≥ $ | 88,546 |  | ≥ 5.125 | % |  | ≥ $ | 112,302 |  | ≥ 6.500 | %
1 The 2017 and 2016 adequately capitalized thresholds include the capital conservation buffer that was effective January 1, 2016 and January 1, 2017, respectively. These ratios are not reflected on a fully phased-in basis.

X
- References No definition available. + Details
Name: | us-gaap_BankingAndThriftAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration