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Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2015
Banking and Thrift [Abstract]  
Regulatory Capital Requirements
Regulatory Capital Requirements
 
The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors.

The Basel III Capital Rules became effective for the Company and the Bank on January 1, 2015, subject to a phase-in period for certain provisions. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”).

When fully phased in on January 1, 2019, the Basel III Capital Rules will require the Company and the Bank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5%, plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0% upon full implementation); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0%, plus the capital conservation buffer (resulting in a minimum Total capital ratio of 10.5% upon full implementation); and 4) a minimum Leverage Ratio of 4.0%.

The implementation of the capital conservation buffer will began on January 1, 2016 at the 0.625% level and will phase in over a four-year period increasing by increments of that amount on each subsequent January 1 until it reaches 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees.
The following table presents actual and required capital ratios as of December 31, 2015 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2015 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.
 
Actual
 
Minimum Capital Required - Basel III Phase-In Schedule
 
Minimum Capital Required - Basel III Fully Phased-In
 
Minimum Required to be Considered Well Capitalized
 
Capital Amount
 
Ratio
 
Capital Amount
 
Ratio
 
Capital Amount
 
Ratio
 
Capital Amount
 
Ratio
As of December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
100,839

 
10.11
%
 
$
44,881

 
4.50
%
 
$
69,815

 
7.00
%
 
N/A

 
N/A

Bank
104,434

 
10.50
%
 
44,768

 
4.50
%
 
69,639

 
7.00
%
 
64,664

 
6.50
%
Tier 1 capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
100,839

 
10.11
%
 
59,842

 
6.00
%
 
84,776

 
8.50
%
 
N/A

 
N/A

Bank
104,434

 
10.50
%
 
59,690

 
6.00
%
 
84,561

 
8.50
%
 
79,587

 
8.00
%
Total capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
122,190

 
12.25
%
 
79,789

 
8.00
%
 
104,723

 
10.50
%
 
N/A

 
N/A

Bank
112,785

 
11.34
%
 
79,587

 
8.00
%
 
104,458

 
10.50
%
 
99,484

 
10.00
%
Leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
100,839

 
8.28
%
 
48,713

 
4.00
%
 
48,713

 
4.00
%
 
N/A

 
N/A

Bank
104,434

 
8.59
%
 
48,636

 
4.00
%
 
48,636

 
4.00
%
 
60,796

 
5.00
%

The following table presents actual and required capital ratios as of December 31, 2014 for the Company and the Bank under the regulatory capital rules then in effect.
 
 
Actual
 
Minimum
Capital
Requirement
 
Minimum to be
Well Capitalized
Under Prompt
Corrective Actions
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
As of December 31, 2014:
 
 

 
 

 
 

 
 

 
 

 
 

Tier 1 capital to risk-weighted assets
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
$
92,233

 
12.55
%
 
$
29,388

 
4.00
%
 
N/A

 
N/A

Bank
 
83,377

 
11.38
%
 
29,300

 
4.00
%
 
43,950

 
6.00
%
Total capital to risk-weighted assets
 
 

 
 

 
 

 
 

 
 

 
 

Consolidated
 
101,033

 
13.75
%
 
58,777

 
8.00
%
 
N/A

 
N/A

Bank
 
89,177

 
12.17
%
 
58,600

 
8.00
%
 
73,250

 
10.00
%
Leverage ratio
 
 

 
 
 
 
 
 

 
 
 
 
Consolidated
 
92,233

 
9.87
%
 
37,381

 
4.00
%
 
N/A

 
N/A

Bank
 
83,377

 
8.94
%
 
37,303

 
4.00
%
 
46,629

 
5.00
%