XML 24 R10.htm IDEA: XBRL DOCUMENT
v3.19.1

Regulatory Matters | 12 Months Ended
--- | ---
Dec. 31, 2018
Regulatory Matters [Abstract] |
Regulatory Matters | Note 2. Regulatory Matters ﻿ The Bank is limited as to the amount it may lend to the Corporation, unless such loans are collateralized by specific obligations. State regulations also limit the amount of dividends the Bank can pay to the Corporation and are generally limited to the Bank’s accumulated net earnings, which were $96.1 million at December 31, 2018. In addition, dividends paid by the Bank to the Corporation would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. The Corporation and the Bank are subject to various regulatory capital requirements administered by 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 Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. ﻿ Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Although not adopted in regulation form, the Pennsylvania Department of Banking utilizes capital standards requiring a minimum leverage capital ratio of 6% and a risk-based capital ratio of 10%, defined substantially the same as those by the FDIC. Management believes, as of December 31, 201 8, that the Corporation and the Bank met all capital adequacy requirements to which it is subject. ﻿ In July 201 3, Federal banking regulators approved the final rules from the Basel Committee on Banking Supervision for the regulation of capital requirements for bank holding companies and U.S banks, generally referred to as “Basel III.” The Basel III standards were effective for the Corporation and the Bank, effective January 1, 2015 (subject to a phase-in period for certain provisions). Basel III imposes significantly higher capital requirements and more restrictive leverage and liquidity ratios than those previously in place. The capital ratios to be considered “well capitalized” under Basel III are: (1) Common Equity Tier 1(CET1) of 6.5%, (2) Tier 1 Leverage of 5%, (3)Tier 1 Risk-Based Capital of 8%, and (4) Total Risk-Based Capital of 10%. The rules also include changes in the risk weights of certain assets to better reflect credit and other risk exposure s. In addition, a capital conservation buffer is phased-in beginning in at 0.625% for 2016, 1.25% for 2017, 1.875% for 2018 and 2.50% for 2019 and thereafter. The capital conservation buffer i s applicable to all of the capital ratios except for the Tier 1 Leverage ratio. The capital conservation buffer is equal to the lowest value of the three applicable capital ratios less the regulatory minimum for each respective capital measurement. The Bank’s capital conservation buffer at December 31, 2018 was 7.06% (total risk-based capital 15.06% less 8.00%) compared to the 2017 regulatory buffer of 1.875%. Com pliance with the capital conservation buffer is required in order to avoid limiting certain capital distributions. As of December 31, 2018, the Bank was “well capitalized’ under the Basel III requirements and believes it would be “well capitalized” on a fully-phased in basis had such a requirement been in effect. ﻿ The following table presents the regulatory capital ratio requirements for the Corporation and the Bank. ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | As of December 31, 2018
﻿ |  |  |  |  |  |  | Regulatory Ratios
﻿ |  |  |  |  |  |  | Adequately Capitalized |  | Well Capitalized
﻿ |  | Actual |  | Minimum |  | Minimum
﻿(Dollars in thousands) |  |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
﻿Common Equity Tier 1 Risk-based Capital Ratio (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 115,760 |  | 13.96% |  | $ | 37,328 |  | 4.50% |  |  | N/A |  | N/A
﻿Bank |  |  | 115,326 |  | 13.80% |  |  | 37,605 |  | 4.50% |  | $ | 54,319 |  | 6.50%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Tier 1 Risk-based Capital Ratio (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 115,760 |  | 13.96% |  | $ | 49,771 |  | 6.00% |  |  | N/A |  | N/A
﻿Bank |  |  | 115,326 |  | 13.80% |  |  | 50,140 |  | 6.00% |  | $ | 66,854 |  | 8.00%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Total Risk-based Capital Ratio (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 126,129 |  | 15.21% |  | $ | 66,361 |  | 8.00% |  |  | N/A |  | N/A
﻿Bank |  |  | 125,825 |  | 15.06% |  |  | 66,854 |  | 8.00% |  | $ | 83,567 |  | 10.00%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Tier 1 Leverage Ratio (4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 115,760 |  | 9.78% |  | $ | 47,323 |  | 4.00% |  |  | N/A |  | N/A
﻿Bank |  |  | 115,326 |  | 9.68% |  |  | 47,675 |  | 4.00% |  | $ | 59,593 |  | 5.00%
﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | As of December 31, 2017
﻿ |  |  |  |  |  |  | Regulatory Ratios
﻿ |  |  |  |  |  |  | Adequately Capitalized |  | Well Capitalized
﻿ |  | Actual |  | Minimum |  | Minimum
﻿(Dollars in thousands) |  |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
﻿Common Equity Tier 1 Risk-based Capital Ratio (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 112,315 |  | 14.06% |  | $ | 35,953 |  | 4.50% |  |  | N/A |  | N/A
﻿Bank |  |  | 111,496 |  | 13.93% |  |  | 36,010 |  | 4.50% |  | $ | 52,014 |  | 6.50%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Tier 1 Risk-based Capital Ratio (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 112,315 |  | 14.06% |  | $ | 47,938 |  | 6.00% |  |  | N/A |  | N/A
﻿Bank |  |  | 111,496 |  | 13.93% |  |  | 48,013 |  | 6.00% |  | $ | 64,018 |  | 8.00%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Total Risk-based Capital Ratio (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 122,324 |  | 15.31% |  | $ | 63,917 |  | 8.00% |  |  | N/A |  | N/A
﻿Bank |  |  | 121,521 |  | 15.19% |  |  | 64,018 |  | 8.00% |  | $ | 80,022 |  | 10.00%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Tier 1 Leverage Ratio (4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Corporation |  | $ | 112,315 |  | 9.73% |  | $ | 46,175 |  | 4.00% |  |  | N/A |  | N/A
﻿Bank |  |  | 111,496 |  | 9.64% |  |  | 46,242 |  | 4.00% |  | $ | 57,802 |  | 5.00%
﻿
| (1) |  | Common equity Tier 1 capital / total risk-weighted assets, (2) Tier 1 capital / total risk-weighted assets, (3) Total risk-based capital / total risk-weighted assets, (4) Tier 1 capital / average quarterly assets

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://fasb.org/us-gaap/role/ref/legacyRef -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 2: http://fasb.org/us-gaap/role/ref/legacyRef -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 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -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 4: http://fasb.org/us-gaap/role/ref/legacyRef -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 5: http://fasb.org/us-gaap/role/ref/legacyRef -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 6: http://fasb.org/us-gaap/role/ref/legacyRef -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 7: http://fasb.org/us-gaap/role/ref/legacyRef -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 8: http://fasb.org/us-gaap/role/ref/legacyRef -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://fasb.org/us-gaap/role/ref/legacyRef -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 + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration