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Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2018
Regulatory Capital Requirements [Abstract]  
Regulatory Capital Requirements Regulatory Capital Requirements

The ability of the Company to pay cash dividends to its shareholders depends primarily on receipt of dividends from its subsidiary, the Bank. The Bank may pay dividends to its parent out of so much of its net income as the Bank's directors deem appropriate, subject to the limitation that the total of all dividends declared by the Bank in any calendar year may not exceed the total of its net income of that year combined with its retained net income of the preceding two years and subject to minimum regulatory capital requirements. The amount available for dividends in 2019 will be 2019 earnings plus retained earnings of $21,391,000 from 2018 and 2017.
The payment of dividends by the Company is also affected by various regulatory requirements and policies, such as the requirements to maintain adequate capital. In addition, if, in the opinion of the applicable regulatory authority, a bank under its jurisdiction is engaged in or is about to engage in an unsafe or unsound practice (which, depending on the financial condition of the bank, could include the payment of dividends), that authority may require, after notice and hearing, that such bank cease and desist from that practice. The Federal Reserve Bank and the Comptroller of the Currency have each indicated that paying dividends that deplete a bank's capital base to an inadequate level would be an unsafe and unsound banking practice. The Federal Reserve Bank, the Comptroller of the Currency and the Federal Deposit Insurance Corporation have issued policy statements which provide that bank holding companies and insured banks should generally only pay dividends out of current operating earnings.
In addition to the effect on the payment of dividends, failure to meet minimum capital requirements can also result in mandatory and discretionary actions by regulators that, if undertaken, could have an impact on the Company's operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measurements of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
Financial institution regulators have established guidelines for minimum capital ratios for banks and bank holding companies. The net unrealized gain or loss on securities available for sale is generally not included in computing regulatory capital. During the first quarter of 2015, the Company adopted the new Basel III regulatory capital framework as approved by the federal banking agencies. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. Additionally, under the new rule, in order to avoid limitations on capital distributions, including dividend payments, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. As of December 31, 2018, the Company's capital conservation buffer was 7.11%, and met both the 2018 minimum requirement of 2.25% and the fully phased-in 2019 minimum requirement.
As of December 31, 2018, the most recent notification from the Office of the Comptroller of the Currency classified the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since this notification that Management believes have changed the institution's category.

The actual and minimum capital amounts and ratios for the Bank are presented in the following table:

 
Actual
 
For capital
adequacy
purposes
 
To be well-capitalized
under prompt corrective
action provisions
As of December 31, 2018
 
 
 
 
 
Tier 2 capital to
$
175,448,000

 
$
92,892,000

 
$
116,115,000

risk-weighted assets
15.11
%
 
8.00
%
 
10.00
%
Tier 1 capital to
$
164,116,000

 
$
69,669,000

 
$
92,892,000

risk-weighted assets
14.13
%
 
6.00
%
 
8.00
%
Common equity Tier 1 capital to
$
164,116,000

 
$
52,252,000

 
$
75,474,000

     risk-weighted assets
14.13
%
 
4.50
%
 
6.50
%
Tier 1 capital to
$
164,116,000

 
$
77,269,000

 
$
96,586,000

average assets
8.51
%
 
4.00
%
 
5.00
%
As of December 31, 2017
 

 
 

 
 

Tier 2 capital to
$
162,355,000

 
$
86,063,000

 
$
107,579,000

risk-weighted assets
15.09
%
 
8.00
%
 
10.00
%
Tier 1 capital to
$
151,526,000

 
$
64,548,000

 
$
86,063,000

risk-weighted assets
14.09
%
 
6.00
%
 
8.00
%
Common equity Tier 1 capital to
$
151,526,000

 
$
48,411,000

 
$
69,926,000

     risk-weighted assets
14.09
%
 
4.50
%
 
6.50
%
Tier 1 capital to
$
151,526,000

 
$
71,386,000

 
$
89,233,000

average assets
8.49
%
 
4.00
%
 
5.00
%

The actual and minimum capital amounts and ratios for the Company, on a consolidated basis, are presented in the following table:

 
Actual
 
For capital
adequacy
purposes
 
To be well-capitalized
under prompt corrective
action provisions
As of December 31, 2018
 
 
 
 
 
Tier 2 capital to
$
176,349,000

 
$
92,892,000

 
n/a
risk-weighted assets
15.19
%
 
8.00
%
 
n/a
Tier 1 capital to
$
165,117,000

 
$
69,669,000

 
n/a
risk-weighted assets
14.22
%
 
6.00
%
 
n/a
Common equity Tier 1 capital to
$
165,117,000

 
$
52,252,000

 
n/a
     risk-weighted assets
14.22
%
 
4.50
%
 
n/a
Tier 1 capital to
$
165,117,000

 
$
76,810,000

 
n/a
average assets
8.60
%
 
4.00
%
 
n/a
As of December 31, 2017
 
 
 
 
 
Tier 2 capital to
$
163,943,000

 
$
86,070,000

 
n/a
risk-weighted assets
15.24
%
 
8.00
%
 
n/a
Tier 1 capital to
$
153,114,000

 
$
64,553,000

 
n/a
risk-weighted assets
14.23
%
 
6.00
%
 
n/a
Common equity Tier 1 capital to
$
153,114,000

 
$
48,415,000

 
n/a
     risk-weighted assets
14.23
%
 
4.50
%
 
n/a
Tier 1 capital to
$
153,114,000

 
$
71,435,000

 
n/a
average assets
8.57
%
 
4.00
%
 
n/a