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Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2013
Banking and Thrift [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]
Note 12:
Regulatory Capital Requirements
 
The Company and the Bank are each subject to regulatory capital requirements administered by federal banking regulatory 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 consolidated 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 assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. These capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the regulators of the Company and Bank could require adjustments to regulatory capital not reflected in these consolidated financial statements.
 
Quantitative measures that have been established by regulation to ensure capital adequacy require the Company to maintain minimum capital 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).
 
To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. As of December 31, 2013, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s categories.
 
During 2013, we changed the methodology we use to determine a component of our risk-weighted assets for regulatory capital purposes. The old methodology overstated the risk to which we were exposed on these assets, as we reported as assets sold with recourse loans we had sold to investors who had no right to return them. We discussed our intention to make this change with our regulators and began using the new methodology in the Company’s June 30, 2013 regulatory filings. We subsequently amended the Company’s December 31, 2012 and March 31, 2013 regulatory filings to conform the computation of these regulatory capital ratios to the new methodology. The change in methodology had no impact on our financial statements prepared in accordance with GAAP because the transfers of the assets to the investors were considered true sales under relevant accounting guidance.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum to be
 
 
 
 
 
 
 
 
 
Minimum
 
 
Well Capitalized
 
 
 
 
 
 
 
 
 
Capital
 
 
Under Prompt
 
 
 
Actual
 
 
Requirement
 
 
Corrective Actions
 
 
 
Amount
 
Ratio
 
 
Amount
 
Ratio
 
 
Amount
 
Ratio
 
As of December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
96,981
 
17.1
%
 
$
45,386
 
8.0
%
 
 
N/A
 
N/A
 
Bank
 
 
77,862
 
13.8
%
 
 
45,287
 
8.0
%
 
$
56,609
 
10.0
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
88,555
 
15.6
%
 
 
22,693
 
4.0
%
 
 
N/A
 
N/A
 
Bank
 
 
72,436
 
12.8
%
 
 
22,644
 
4.0
%
 
 
33,965
 
6.0
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
88,555
 
11.7
%
 
 
30,385
 
4.0
%
 
 
N/A
 
N/A
 
Bank
 
 
72,436
 
9.6
%
 
 
30,329
 
4.0
%
 
 
37,911
 
5.0
%
As of December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
60,489
 
13.5
%
 
$
35,960
 
8.0
%
 
 
N/A
 
N/A
 
Bank
 
 
59,678
 
13.3
%
 
 
35,937
 
8.0
%
 
$
44,921
 
10.0
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
54,844
 
12.2
%
 
 
17,980
 
4.0
%
 
 
N/A
 
N/A
 
Bank
 
 
54,036
 
12.0
%
 
 
17,969
 
4.0
%
 
 
26,953
 
6.0
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
54,844
 
8.9
%
 
 
24,667
 
4.0
%
 
 
N/A
 
N/A
 
Bank
 
 
54,036
 
8.8
%
 
 
24,653
 
4.0
%
 
 
30,817
 
5.0
%