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Note 15 - Regulatory and Operational Matters
 12 Months Ended
Dec. 31, 2015
Disclosure Text Block [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 15.

Regulatory and Operational Matters


On September 29, 2014, Patriot National Bancorp, Inc. was notified by the Office of the Comptroller of the Currency (the "OCC") that the formal agreement between Patriot National Bank (the "Bank") and the OCC, dated February 9, 2009, had been terminated. This action was taken because the OCC no longer considers the Bank to be in "troubled condition". The decision to terminate the formal agreement was due to, among other things, the satisfactory ratings of the Bank's asset quality, liquidity, management and regulatory capital position following the Bank’s successful control recapitalization and turnaround plan.


State and Federal regulatory authorities have adopted standards for the maintenance of adequate levels of capital by the Company. Beginning January 1, 2015, Federal banking agencies impose four minimum capital requirements on the Company's risk-based capital ratios based on total capital, Tier 1 capital, CET 1 capital, and a leverage capital ratio. The risk-based capital ratios measure the adequacy of a bank's capital against the riskiness of its assets and off-balance sheet activities. Failure to maintain adequate capital is a basis for "prompt corrective action" or other regulatory enforcement action. In assessing a bank's capital adequacy, regulators also consider other factors such as interest rate risk exposure; liquidity, funding and market risks; quality and level or earnings; concentrations of credit; quality of loans and investments; risks of any nontraditional activities; effectiveness of bank policies; and management's overall ability to monitor and control risks.


Capital adequacy is one of the most important factors used to determine the safety and soundness of individual banks and the banking system. Under the regulatory framework for prompt correction action, to be considered “well capitalized,” an institution must generally have a leverage capital ratio of at least 5.0%, Common Equity Tier 1 capital ratio at least 6.5%, a Tier 1 risk-based capital ratio of at least 8.0% and a total risk-based capital ratio of at least 10%. However, the OCC has the discretion to require increased capital ratios, and dividend restrictions in 2013, 2014 and 2015.


Management continuously assesses the adequacy of the Bank’s capital with the goal to maintain a “well capitalized” classification.


The Company’s and the Bank’s actual capital amounts and ratios at December 31, 2015 and 2014 were:


                                    To Be Well  
                                    Capitalized Under  
                   

For Capital

    

Prompt Corrective

  
   

Actual

    

Adequacy Purposes

    

Action Provisions

  

(dollars in thousands)

  

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

  

2015

                                                

The Company:

                                                
                                                 

Tier 1 Leverage Capital (to Average Assets)

   $ 59,595       9.77 %   $ 24,401       4.00 %     N/A       N/A  

Common Equity Tier 1 Capital (to Risk Weighted Assets)

     51,595       10.04 %     23,119       4.50 %     N/A       N/A  

Tier 1 Capital (to Risk Weighted Assets)

     59,595       11.60 %     30,826       6.00 %     N/A       N/A  

Total Capital (to Risk Weighted Assets)

     64,845       12.62 %     41,101       8.00 %     N/A       N/A  
                                                 

The Bank:

                                                
                                                 

Tier 1 Leverage Capital (to Average Assets)

   $ 59,958       9.83 %   $ 24,393       4.00 %   $ 30,491       5.00 %

Common Equity Tier 1 Capital (to Risk Weighted Assets)

     59,958       11.72 %     23,029       4.50 %     33,265       6.50 %

Tier 1 Capital (to Risk Weighted Assets)

     59,958       11.72 %     30,706       6.00 %     40,941       8.00 %

Total Capital (to Risk Weighted Assets)

     65,207       12.74 %     40,941       8.00 %     51,177       10.00 %
                                                 

2014

                                                

The Company:

                                                
                                                 

Total Capital (to Risk Weighted Assets)

   $ 63,142       14.08 %   $ 35,884       8.00 %     N/A       N/A  

Common Equity Tier 1 Capital (to Risk Weighted Assets)

     N/A       N/A       N/A       N/A       N/A       N/A  

Tier 1 Capital (to Risk Weighted Assets)

     58,218       12.98 %     17,942       4.00 %     N/A       N/A  

Tier 1 Capital (to Average Assets)

     58,218       9.62 %     24,210       4.00 %     N/A       N/A  
                                                 

The Bank:

                                                
                                                 

Total Capital (to Risk Weighted Assets)

   $ 63,151       14.08 %   $ 35,891       8.00 %     N/A       N/A  

Common Equity Tier 1 Capital (to Risk Weighted Assets)

     N/A       N/A       N/A       N/A       N/A       N/A  

Tier 1 Capital (to Risk Weighted Assets)

     58,227       12.98 %     17,946       4.00 %     N/A       N/A  

Tier 1 Capital (to Average Assets)

     58,227       9.63 %     24,198       4.00 %     N/A       N/A