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REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended
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Dec. 31, 2017
Regulatory Capital Requirements [Abstract] |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Corporation and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel III rules became effective for the Corporation on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under Basel III rules, the Corporation must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.00% for 2015 to 2.50% by 2019. The capital conservation buffer for 2017 is 1.250%. and for 2016 is 0.625%. The net unrealized gain or loss on available for sale securities and changes in the funded status of the defined benefit pension plan and other benefit plans are not included in computing regulatory capital. Management believes as of December 31, 2017, the Corporation and the Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2017 and 2016, the most recent regulatory notifications categorized the Corporation and the Bank as well categorized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category. As of December 31, 2017, the most recent notification from the Federal Reserve Bank of New York categorized 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 below. There have been no conditions or events since that notification that management believes have changed the Bank's or the Corporation's capital category. The Corporation’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net income, combined with the retained net income of the preceding two years, subject to the capital requirements in the table below. During 2018, the Bank could, without prior approval, declare dividends of approximately $13.8 million plus any 2018 net income retained to the date of the dividend declaration. The actual capital amounts and ratios of the Corporation and the Bank are presented in the following tables (in thousands):
|  | Actual |  | Minimal Capital Adequacy |  | Minimal Capital Adequacy with Capital Buffer |  | To Be Well Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2017 |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
Total Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 153,020 |  |  | 11.82 | % |  | $ | 103,527 |  |  | 8.00 | % |  | $ | 119,703 |  |  | 9.250 | % |  | N/A |  |  | N/A |
Bank |  | $ | 146,129 |  |  | 11.31 | % |  | $ | 103,390 |  |  | 8.00 | % |  | $ | 119,545 |  |  | 9.250 | % |  | $ | 129,238 |  |  | 10.00 | %
Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 136,660 |  |  | 10.56 | % |  | $ | 77,645 |  |  | 6.00 | % |  | $ | 93,821 |  |  | 7.250 | % |  | N/A |  |  | N/A |
Bank |  | $ | 129,881 |  |  | 10.05 | % |  | $ | 77,543 |  |  | 6.00 | % |  | $ | 93,697 |  |  | 7.250 | % |  | $ | 103,390 |  |  | 8.00 | %
Common Equity Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 136,660 |  |  | 10.56 | % |  | $ | 58,234 |  |  | 4.50 | % |  | $ | 74,410 |  |  | 5.750 | % |  | N/A |  |  | N/A |
Bank |  | $ | 129,881 |  |  | 10.05 | % |  | $ | 58,157 |  |  | 4.50 | % |  | $ | 74,312 |  |  | 5.750 | % |  | $ | 84,004 |  |  | 6.50 | %
Tier 1 Capital (to Average Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 136,660 |  |  | 8.02 | % |  | $ | 68,200 |  |  | 4.00 | % |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |
Bank |  | $ | 129,881 |  |  | 7.63 | % |  | $ | 68,045 |  |  | 4.00 | % |  | N/A |  |  | N/A |  |  | $ | 85,057 |  |  | 5.00 | %
|  | Actual |  | Minimum Capital Adequacy |  | Minimal Capital Adequacy with Capital Buffer |  | To Be Well Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2016 |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
Total Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 145,269 |  |  | 12.14 | % |  | $ | 95,748 |  |  | 8.00 | % |  | $ | 103,229 |  |  | 8.625 | % |  | N/A |  |  | N/A |
Bank |  | $ | 140,020 |  |  | 11.71 | % |  | $ | 95,640 |  |  | 8.00 | % |  | $ | 103,112 |  |  | 8.625 | % |  | $ | 119,550 |  |  | 10.00 | %
Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 130,911 |  |  | 10.94 | % |  | $ | 71,811 |  |  | 6.00 | % |  | $ | 79,292 |  |  | 6.625 | % |  | N/A |  |  | N/A |
Bank |  | $ | 125,736 |  |  | 10.52 | % |  | $ | 71,730 |  |  | 6.00 | % |  | $ | 79,202 |  |  | 6.625 | % |  | $ | 95,640 |  |  | 8.00 | %
Common Equity Tier 1 Capital (to Risk Weighted Assets): |  |
Consolidated |  | $ | 130,911 |  |  | 10.94 | % |  | $ | 53,858 |  |  | 4.50 | % |  | $ | 61,339 |  |  | 5.125 | % |  | N/A |  |  | N/A |
Bank |  | $ | 125,736 |  |  | 10.52 | % |  | $ | 53,798 |  |  | 4.50 | % |  | $ | 61,270 |  |  | 5.125 | % |  | $ | 77,708 |  |  | 6.50 | %
Tier 1 Capital (to Average Assets): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 130,911 |  |  | 7.81 | % |  | $ | 67,031 |  |  | 4.00 | % |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |
Bank |  | $ | 125,736 |  |  | 7.52 | % |  | $ | 66,919 |  |  | 4.00 | % |  | N/A |  |  | N/A |  |  | $ | 83,649 |  |  | 5.00 | %

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- 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
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