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Regulatory Capital Requirements | 9 Months Ended
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Sep. 30, 2016
Banking and Thrift [Abstract] |
Regulatory Capital Requirements under Banking Regulations [Text Block] |
| 8. | Regulatory Capital Requirements
Banks and bank holding companies are subject to regulatory capital requirements administered by 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. Failure to meet capital requirements can initiate regulatory action. Management believed that as of September 30, 2016, the Company and the Bank met all capital adequacy requirements to which they were subject at that time. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. On January 1, 2015, the Company and the Bank became subject to new capital rules (the “Basel III Rules”) that implemented the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally, non-public bank holding companies with consolidated assets of less than $1.0 billion). The Basel III Rules have maintained the general structure of the prompt corrective action framework, while incorporating increased requirements. The Basel III Rules include a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer began on January 1, 2016 at 0.625% of risk-weighted assets, and will increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. The capital conservation buffer increases the common equity Tier 1 capital ratio, Tier 1 capital and total risk based capital ratios as of March 31 of each year until the final level of 2.5% is reached. The Bank made the one-time accumulated other comprehensive income (“AOCI”) opt-out election on its first Call Report filed after January 1, 2015, which allowed banks under $250 billion a one-time opt-out election to remove the impact of certain unrealized capital gains and losses from the calculation of capital. As of September 30, 2016 and December 31, 2015, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action then in effect. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a comparison of the Company’s regulatory capital to minimum capital requirements at September 30, 2016 and December 31, 2015:
(Dollars in thousands) |  |  |  |  | For capital |
|  | Actual |  | adequacy purposes* |
|  | Amount |  | Ratio |  | Amount |  | Ratio |
As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage |  | $ | 87,248 |  |  | 9.95 | % | $ | 35,087 |  |  | 4.0 | %
Common Equity Tier 1 Capital |  |  | 66,705 |  |  | 12.40 | % |  | 27,577 |  |  | 5.1 | %
Tier 1 Capital |  |  | 87,248 |  |  | 16.21 | % |  | 35,648 |  |  | 6.6 | %
Total Risk Based Capital |  |  | 93,150 |  |  | 17.31 | % |  | 46,410 |  |  | 8.6 | %
As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage |  | $ | 80,401 |  |  | 9.43 | % | $ | 34,092 |  |  | 4.0 | %
Common Equity Tier 1 Capital |  |  | 60,375 |  |  | 11.05 | % |  | 24,584 |  |  | 4.5 | %
Tier 1 Capital |  |  | 80,401 |  |  | 14.72 | % |  | 32,779 |  |  | 6.0 | %
Total Risk Based Capital |  |  | 87,214 |  |  | 15.96 | % |  | 43,706 |  |  | 8.0 | %
*The ratios for September 30, 2016 include a capital conservation buffer of 0.625%. The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at September 30, 2016 and December 31, 2015:
|  |  |  |  |  |  |  |  |  | To be well-capitalized |
|  |  |  |  |  |  |  |  |  | under prompt |
(Dollars in thousands) |  |  |  |  |  | For capital |  | corrective |
|  | Actual |  | adequacy purposes* |  | action provisions |
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |
As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage |  | $ | 85,833 |  |  | 9.81 | % | $ | 34,983 |  |  | 4.0 | % | $ | 43,729 |  |  | 5.0 | %
Common Equity Tier 1 Capital |  |  | 85,833 |  |  | 16.01 | % |  | 27,475 |  |  | 5.1 | % |  | 34,847 |  |  | 6.5 | %
Tier 1 Capital |  |  | 85,833 |  |  | 16.01 | % |  | 35,517 |  |  | 6.6 | % |  | 42,888 |  |  | 8.0 | %
Total Risk Based Capital |  |  | 91,490 |  |  | 17.07 | % |  | 46,239 |  |  | 8.6 | % |  | 53,610 |  |  | 10.0 | %
As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage |  | $ | 79,857 |  |  | 9.40 | % | $ | 33,993 |  |  | 4.0 | % | $ | 42,491 |  |  | 5.0 | %
Common Equity Tier 1 Capital |  |  | 79,857 |  |  | 14.66 | % |  | 24,519 |  |  | 4.5 | % |  | 35,416 |  |  | 6.5 | %
Tier 1 Capital |  |  | 79,857 |  |  | 14.66 | % |  | 32,692 |  |  | 6.0 | % |  | 43,589 |  |  | 8.0 | %
Total Risk Based Capital |  |  | 85,929 |  |  | 15.77 | % |  | 43,589 |  |  | 8.0 | % |  | 54,486 |  |  | 10.0 | %
*The ratios for September 30, 2016 include a capital conservation buffer of 0.625%.

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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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