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Regulatory Matters
 12 Months Ended
Dec. 31, 2015
Banking and Thrift [Abstract]  
Regulatory Matters

Note 20. Regulatory Matters

The Bank is 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 Bank’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 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.

The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective January 1, 2015, with full compliance of all the requirements being phased in over a multi-year schedule, and becoming fully phased in by January 1, 2019. As part of the new requirements, the common equity Tier 1 capital ratio is calculated and utilized in the assessment of capital for all institutions. Capital amounts and ratios for December 31, 2014 were calculated using Basel I rules, which were effective until January 1, 2015.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total (as defined in the regulations), Tier 1 (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined), and of Tier 1 capital to average assets. Management believes, as of December 31, 2015 and December 31, 2014, that the Bank met all capital adequacy requirements to which it is subject.

As of 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, the Bank must maintain minimum risk-based capital and leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank declared and paid cash dividends on common stock to the Company totaling $13.5 million during 2015. A comparison of the capital of the Bank at December 31, 2015 and December 31, 2014 with the minimum regulatory guidelines were as follows (dollars in thousands):

 

     Actual     Minimum Capital
Requirement		     Minimum
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions		  
     Amount      Ratio     Amount      Ratio     Amount      Ratio  

December 31, 2015:

                

Total Capital (to Risk-Weighted Assets)

    $ 61,513         13.86 %    $ 35,497         8.00 %    $ 44,372         10.00 % 

Tier 1 Capital (to Risk-Weighted Assets)

    $ 55,989         12.62 %    $ 26,623         6.00 %    $ 35,497         8.00 % 

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

    $ 55,989         12.62 %    $ 19,967         4.50 %    $ 28,842         6.50 % 

Tier 1 Capital (to Average Assets)

    $ 55,989         8.12 %    $ 27,571         4.00 %    $ 34,464         5.00 % 

December 31, 2014:

                

Total Capital (to Risk-Weighted Assets)

    $ 71,941         19.14 %    $ 30,077         8.00 %    $ 37,596         10.00 % 

Tier 1 Capital (to Risk-Weighted Assets)

    $ 67,217         17.88 %    $ 15,038         4.00 %    $ 22,557         6.00 % 

Tier 1 Capital (to Average Assets)

    $ 67,217         12.90 %    $ 20,841         4.00 %    $ 26,051         5.00 %