XML 38 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
Capital Requirements
 12 Months Ended
Dec. 31, 2012
Capital Requirements [Abstract]  
Capital Requirements

NOTE 16. 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 Company 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 to average assets (as defined). Management believes that the Company and the Bank met all capital adequacy requirements to which they are subject at December 31, 2012 and 2011.

 

At December 31, 2012, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the tables. There are no conditions or events since the notification that management believes have changed the Bank's category. The following table presents the Company's and the Bank's actual capital amounts and ratios at December 31, 2012 and 2011:

                    Minimum  
                    To Be Well  
            Minimum     Capitalized Under  
            Capital     Prompt Corrective  
  Actual       Requirement     Action Provisions  
  Amount Ratio     Amount Ratio     Amount Ratio  
            (dollars in thousands)          
December 31, 2012:                        
Total Capital to Risk Weighted Assets                        
Consolidated $ 72,304 17.98 % $ 32,171 8.00 %   N/A    
Bank of Clarke County $ 66,891 16.74 % $ 31,968 8.00 % $ 39,960 10.00 %
Tier 1 Capital to Risk Weighted Assets                        
Consolidated $ 67,258 16.73 % $ 16,085 4.00 %   N/A    
Bank of Clarke County $ 61,876 15.48 % $ 15,984 4.00 % $ 23,976 6.00 %
Tier 1 Capital to Average Assets                        
Consolidated $ 67,258 11.70 % $ 22,990 4.00 %   N/A    
Bank of Clarke County $ 61,876 10.86 % $ 22,787 4.00 % $ 28,484 5.00 %
 
December 31, 2011:                        
Total Capital to Risk Weighted Assets                        
Consolidated $ 67,155 16.96 % $ 31,670 8.00 %   N/A    
Bank of Clarke County $ 60,930 15.55 % $ 31,338 8.00 % $ 39,172 10.00 %
Tier 1 Capital to Risk Weighted Assets                        
Consolidated $ 62,159 15.70 % $ 15,835 4.00 %   N/A    
Bank of Clarke County $ 55,986 14.29 % $ 15,669 4.00 % $ 23,503 6.00 %
Tier 1 Capital to Average Assets                        
Consolidated $ 62,159 10.88 % $ 22,844 4.00 %   N/A    
Bank of Clarke County $ 55,986 9.86 % $ 22,706 4.00 % $ 28,382 5.00 %