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Minimum Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2014
Banking and Thrift [Abstract]  
Minimum Regulatory Capital Requirements

Note 15 – Minimum Regulatory Capital Requirements

The Company (on a consolidated basis) and the 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 and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their 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 weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of: total risk-based capital and Tier I capital to risk-weighted assets (as defined in the regulations), and Tier I capital to adjusted total assets (as defined). Management believes, as of December 31, 2014, that the Bank meets all the capital adequacy requirements to which it is subject.

As of December 31, 2014 the most recent notification from the FDIC indicated the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have to maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as disclosed in the table to follow. There are no conditions or events since the most recent notification that management believes have changed the Bank’s prompt corrective action category.

The Company and the Bank’s actual and required capital amounts and ratios as of December 31, 2014 and 2013 are as follows:

 

                               To Be Well Capitalized  
     Actual            For Capital
Adequacy Purposes		     Under the Prompt
Corrective Action
Provisions		  
As of December 31, 2014    (000’s)
Amount		      Ratio     (000’s)
Amount		      Ratio     (000’s)
Amount		      Ratio  

Total Risk-Based Capital (to Risk Weighted Assets)

                

Consolidated

    $ 114,702         16.68 %    $ 55,028         8.00 %    $ N/A         N/A   

Farmers & Merchants State Bank

      98,154         14.35 %      54,710         8.00 %      68,388         10.00 % 

Tier 1 Capital (to Risk Weighted Assets)

                

Consolidated

      108,590         15.79 %      27,514         4.00 %      N/A         N/A   

Farmers & Merchants State Bank

      92,042         13.46 %      27,355         4.00 %      41,033         6.00 % 

Tier 1 Capital (to Adjusted Total Assets)

                

Consolidated

      108,590         11.70 %      37,111         4.00 %      N/A         N/A   

Farmers & Merchants State Bank

      92,042         10.01 %      36,785         4.00 %      45,981         5.00 % 

 

                               To Be Well Capitalized  
     Actual            For Capital
Adequacy Purposes		     Under the Prompt
Corrective Action
Provisions		  
As of December 31, 2013    (000’s)
Amount		      Ratio     (000’s)
Amount		      Ratio     (000’s)
Amount		      Ratio  

Total Risk-Based Capital (to Risk Weighted Assets)

                

Consolidated

    $ 107,752         16.34 %    $ 52,756         8.00 %      N/A         N/A   

Farmers & Merchants State Bank

      92,838         14.10 %      52,674         8.00 %    $ 65,843         10.00 % 

Tier 1 Capital (to Risk Weighted Assets)

                

Consolidated

      102,395         15.53 %      26,378         4.00 %      N/A         N/A   

Farmers & Merchants State Bank

      87,481         13.29 %      26,337         4.00 %      39,506         6.00 % 

Tier 1 Capital (to Adjusted Total Assets)

                

Consolidated

      102,395         10.88 %      37,644         4.00 %      N/A         N/A   

Farmers & Merchants State Bank

      87,481         9.40 %      37,228         4.00 %      46,535         5.00 %