XML 23 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2016
Regulatory Capital Requirements [Abstract]  
Regulatory Capital Requirements



4.Regulatory Capital Requirements

We require capital to fund loans, satisfy our obligations under the Bank’s letters of credit, meet the deposit withdrawal demands of the Bank’s customers, and satisfy our other monetary obligations.  To the extent that deposits are not adequate to fund our capital requirements, we can rely on a number of funding sources, including an unsecured Fed Funds lines of credit with upstream correspondent banks; secured advances with the FHLB of Atlanta, which are collateralized by eligible one to four family residential mortgage loans, home equity lines of credit, commercial real estate loans, and various securities.  Cash may also be pledged as collateral.  In addition, First United Corporation has a secured line of credit with the Fed Discount Window for use in borrowing funds up to 90 days, using municipal securities as collateral; brokered deposits, including CDs and money market funds; and One Way Buy CDARS/ ICS funding, which is a form of brokered deposits that has become a viable supplement to brokered deposits obtained directly. At December 31, 2016, the Bank had $70.0 million available through unsecured lines of credit with correspondent banks, $10.6 million through a secured line of credit with the Fed Discount Window and approximately $172.4 million at the FHLB.  Management is not aware of any demands, commitments, events or uncertainties that are likely to materially affect our ability to meet our future capital requirements.







 

 

 

 

 

 

 

 

 



 

Actual

 

For Capital Adequacy Purposes

 

To Be Well Capitalized Under Prompt Corrective Action Provisions

(in thousands)

 

Amount

Ratio

 

Amount

Ratio

 

Amount

Ratio

December 31, 2016

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

  Consolidated

$

 164,081  16.71% 

$

 78,577  8.00% 

$

 98,221  10.00% 

  First United Bank & Trust

 

 155,992  16.70% 

 

 74,733  8.00% 

 

 93,416  10.00% 

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

         

 

  Consolidated

 

 145,008  14.76% 

 

 58,933  6.00% 

 

 78,577  8.00% 

  First United Bank & Trust

 

 146,013  15.63% 

 

 56,050  6.00% 

 

 74,733  8.00% 

Common Equity Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

  Consolidated

 

 105,523  10.74% 

 

 44,200  4.50% 

 

 63,844  6.50% 

  First United Bank & Trust

 

 146,013  15.63% 

 

 42,037  4.50% 

 

 60,721  6.50% 

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

        

  Consolidated

 

 145,008  10.95% 

 

 53,124  4.00% 

 

 66,404  5.00% 

  First United Bank & Trust

 

 146,013  11.11% 

 

 52,321  4.00% 

 

 65,401  5.00% 



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Actual

 

For Capital Adequacy Purposes

 

To Be Well Capitalized Under Prompt Corrective Action Provisions

(in thousands)

 

Amount

Ratio

 

Amount

Ratio

 

Amount

Ratio

December 31, 2015

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

  Consolidated

$

 173,124  17.21% 

$

 79,276  8.00% 

$

 99,095  10.00% 

  First United Bank & Trust

 

 149,775  16.29% 

 

 73,714  8.00% 

 

 92,143  10.00% 

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

         

 

  Consolidated

 

 153,283  15.24% 

 

 59,457  6.00% 

 

 79,276  8.00% 

  First United Bank & Trust

 

 138,243  15.03% 

 

 55,286  6.00% 

 

 73,714  8.00% 

Common Equity Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

  Consolidated

 

 100,485  9.99% 

 

 44,593  4.50% 

 

 64,412  6.50% 

  First United Bank & Trust

 

 138,243  15.03% 

 

 41,464  4.50% 

 

 59,893  6.50% 

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

        

  Consolidated

 

 153,283  11.64% 

 

 52,833  4.00% 

 

 66,041  5.00% 

  First United Bank & Trust

 

 138,243  10.53% 

 

 52,346  4.00% 

 

 65,432  5.00% 



As of December 31, 2016 and 2015, the most recent notifications from the regulators categorized First United Corporation and the Bank as “well capitalized” under the regulatory framework for prompt corrective action.  On a consolidated basis, there was a slight decline in the capital ratios when comparing December 31, 2016 to December 31, 2015 due to the dividend of $10.0 million from the Bank to the holding company in December 2015 and the Corporation’s subsequent repayment of $10.0 million of its outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”) in February 2016.  The consolidated total risk-based capital ratios include $40.3 million of First United Corporation’s junior subordinated debentures (“TPS Debentures”) which qualified as Tier 1 capital at December 31, 2016 under guidance issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). 



At the Bank level, the ratios increased from December 31, 2015 to December 31, 2016. As of December 31, 2016, we were in compliance with the requirements as set forth in the final rules.



First United Corporation’s Board of Directors suspended the payment of dividends on the common stock in December 2010.