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Note 12 - Minimum Regulatory Capital Requirement | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 12 : Minimum Regulatory Capital Requirement The Company (on a consolidated basis) and its subsidiary 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 possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the 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 regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period continuing through January 2, 2019 for certain provisions). Basel III Capital Rules established quantitative measures to ensure capital adequacy. The rules set forth minimum amounts and ratios for Common Equity Tier 1 capital (“CET1”), Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). The Company’s and the Bank’s CET1 capital include common stock and related surplus and retained earnings. Basel III Capital Rules provide an option to exclude components of accumulated other comprehensive income (loss) from CET1 capital. Once made, the election is final and cannot be changed. The Company and the Bank elected to exclude components of accumulated other comprehensive income from CET1 capital. Tier 1 Capital includes CET1 capital and additional Tier 1 capital components. At December 31, 2016 and 2015, neither the Company nor the Bank held any additional Tier 1 capital beyond CET1 capital. Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital for both the Company and the Bank includes the allowance for loan losses. Risk-weighted assets at December 31, 2016 were $718,739 for the Company and $715,294 for the Bank. Risk-weighted assets at December 31, 2015 were $721,012 for the Company and $719,077 for the Bank. Management believes, as of December 31, 2016 and 2015, that the Company and the Bank met all capital adequacy requirements to which they are subject. As of December 31, 2016, the most recent notifications from the Office of the Comptroller of the Currency 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, Common Equity Tier 1 risk-based and Tier 1 leverage ratios, as set forth in the following tables. There are no conditions or events since these notifications that management believes have changed the bank’s category. The Company’s and the bank’s actual capital amounts and ratios as of December 31, 2016 and 2015 are also presented in the following tables.
|  | Actual |  |  | Minimum Capital Requirement (1) |  |  | Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
December 31, 201 6 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 191,006 |  |  |  | 26.575 | % |  | $ | 57,499 |  |  |  | 8.625 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 188,095 |  |  |  | 26.296 | % |  |  | 57,224 |  |  |  | 8.625 | % |  | $ | 71,529 |  |  |  | 10.000 | %
Tier 1 capital (to risk weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 182,706 |  |  |  | 25.420 | % |  | $ | 43,124 |  |  |  | 6.625 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 179,795 |  |  |  | 25.136 | % |  |  | 42,918 |  |  |  | 6.625 | % |  | $ | 57,224 |  |  |  | 8.000 | %
Common Equity Tier 1 capital (to risk weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 182,706 |  |  |  | 25.420 | % |  | $ | 32,343 |  |  |  | 5.125 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 179,795 |  |  |  | 25.136 | % |  |  | 32,188 |  |  |  | 5.125 | % |  | $ | 46,494 |  |  |  | 6.500 | %
Tier 1 capital (to average assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 182,706 |  |  |  | 15.121 | % |  | $ | 48,333 |  |  |  | 4.000 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 179,795 |  |  |  | 14.964 | % |  |  | 48,060 |  |  |  | 4.000 | % |  | $ | 60,075 |  |  |  | 5.000 | %
| (1) | Except with regard to the Company ’s and the Bank’s Tier 1 capital to average assets ratio, the minimum capital requirement includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer (0.625%) which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer is being phased in through four equal annual installments of 0.625% from 2016 to 2019, with full implementation in January 2019 (2.5%). The Company’s and the Bank’s capital conservation buffer must consist of additional CET1 above regulatory minimum requirement. Failure to maintain the prescribed levels would result in limitations on capital distributions and discretionary bonuses to executives.
|  | 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) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 184,054 |  |  |  | 25.527 | % |  | $ | 57,681 |  |  |  | 8.000 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 181,926 |  |  |  | 25.300 | % |  |  | 57,526 |  |  |  | 8.000 | % |  | $ | 71,908 |  |  |  | 10.000 | %
Tier 1 capital (to risk weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 175,757 |  |  |  | 24.376 | % |  | $ | 43,261 |  |  |  | 6.000 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 173,629 |  |  |  | 24.146 | % |  |  | 43,145 |  |  |  | 6.000 | % |  | $ | 57,526 |  |  |  | 8.000 | %
Common Equity Tier 1 capital (to risk weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 175,757 |  |  |  | 24.376 | % |  | $ | 32,446 |  |  |  | 4.500 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 173,629 |  |  |  | 24.146 | % |  |  | 32,358 |  |  |  | 4.500 | % |  | $ | 46,740 |  |  |  | 6.500 | %
Tier 1 capital (to average assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NBI consolidated |  | $ | 175,757 |  |  |  | 15.088 | % |  | $ | 46,594 |  |  |  | 4.000 | % |  |  | N/A |  |  |  | N/A |
NBB |  |  | 173,629 |  |  |  | 14.888 | % |  |  | 46,648 |  |  |  | 4.000 | % |  | $ | 58,310 |  |  |  | 5.000 | %

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958577-112826 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958572-112826 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958574-112826 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=35709795&loc=d3e65071-112826 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958569-112826 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958570-112826 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958575-112826 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958568-112826 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958573-112826 + Details
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