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Capital Requirements
 12 Months Ended
Dec. 31, 2015
Banking and Thrift [Abstract]  
Capital Requirements
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.

In July 2013, the Federal Reserve Bank issued a final rule that makes technical changes to its market risk capital rules to align them with the BASEL III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. The phase-in period for the final rules began January 1, 2015 with full compliance with the final rules to be phased in by January 1, 2019. As a part of this final rule, the Bank was required to begin calculating and disclosing Common Equity Tier 1 Capital to risk weighted assets in 2015. Although not required by the final rule, the Company also began calculating and disclosing Common Equity Tier 1 Capital to risk weighted assets in 2015.
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 capital, Tier 1 capital, and common equity 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, 2015 and 2014.

At December 31, 2015, 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, Tier 1 leverage, and common equity Tier 1 ratios as set forth in the following 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, 2015 and 2014:
 
 
 
 
 
 
 
 
 
 
 
Minimum
To Be Well
 
 
 
 
 
 
Minimum
Capital
 
Capitalized Under
Prompt Corrective
 
 
Actual
 
Requirement
 
Action Provisions
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
 
(dollars in thousands)
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Common Equity Tier 1 Capital to Risk
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
77,170

 
15.22
%
 
$
22,819

 
4.50
%
 
N/A
Bank of Clarke County
 
$
74,034

 
14.72
%
 
$
22,633

 
4.50
%
 
$
32,692

 
6.50
%
Total Capital to Risk Weighted Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
82,156

 
16.20
%
 
$
40,567

 
8.00
%
 
N/A
Bank of Clarke County
 
$
78,997

 
15.71
%
 
$
40,237

 
8.00
%
 
$
50,296

 
10.00
%
Tier 1 Capital to Risk Weighted Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
77,170

 
15.22
%
 
$
30,425

 
6.00
%
 
N/A
Bank of Clarke County
 
$
74,034

 
14.72
%
 
$
30,177

 
6.00
%
 
$
40,237

 
8.00
%
Tier 1 Capital to Average Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
77,170

 
12.13
%
 
$
25,438

 
4.00
%
 
N/A
Bank of Clarke County
 
$
74,034

 
11.65
%
 
$
25,426

 
4.00
%
 
$
31,783

 
5.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital to Risk Weighted Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
83,923

 
19.06
%
 
$
35,222

 
8.00
%
 
N/A
Bank of Clarke County
 
$
80,035

 
18.24
%
 
$
35,107

 
8.00
%
 
$
43,883

 
10.00
%
Tier 1 Capital to Risk Weighted Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
78,817

 
17.90
%
 
$
17,611

 
4.00
%
 
N/A
Bank of Clarke County
 
$
74,929

 
17.07
%
 
$
17,553

 
4.00
%
 
$
26,330

 
6.00
%
Tier 1 Capital to Average Assets
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
78,817

 
12.86
%
 
$
24,515

 
4.00
%
 
N/A
Bank of Clarke County
 
$
74,929

 
12.28
%
 
$
24,416

 
4.00
%
 
$
30,520

 
5.00
%