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Note 11 - Regulatory and Operational Matters
 9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]
Note 11: Regulatory and Operational Matters
 
 
The Company’s and the Bank’s capital and capital ratios at September 30, 2016 and December 31, 2015 are as follows:
 
 
 
 
 
 
 
 
 
 
  
Capital Requirements
  
 
  
Actual
    
Minimum
    
Minimum
with
Capital Buffer
    
Well
Capitalized
  
(in thousands)
  
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
                                                                 
September 30, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 Leverage Capital (to Average Assets)
   $ 60,794       9.72 %   $ 25,009       4.00 %     N/A       N/A       N/A       N/A  
Common Equity Tier 1 Capital (to Risk Weighted Assets)
     52,794       8.99 %     26,435       4.50 %     N/A       N/A       N/A       N/A  
Tier 1 Capital (to Risk Weighted Assets)
     60,794       10.35 %     35,247       6.00 %     N/A       N/A       N/A       N/A  
Total Capital (to Risk Weighted Assets)
     68,130       11.60 %     46,996       8.00 %     N/A       N/A       N/A       N/A  
                                                                 
The Bank
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 Leverage Capital (to Average Assets)
   $ 60,523       9.68 %   $ 24,998       4.00 %     N/A       N/A     $ 31,248       5.00 %
Common Equity Tier 1 Capital (to Risk Weighted Assets)
     60,523       10.34 %     26,337       4.50 %     29,994       5.125 %     38,042       6.50 %
Tier 1 Capital (to Risk Weighted Assets)
     60,523       10.34 %     35,115       6.00 %     38,773       6.625 %     46,821       8.00 %
Total Capital (to Risk Weighted Assets)
     67,839       11.59 %     46,821       8.00 %     50,478       8.625 %     58,526       10.00 %
                                                                 
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital (to Risk Weighted Assets)
   $ 59,595       9.77 %   $ 24,401       4.00 %     N/A       N/A       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       N/A       N/A  
Tier 1 Capital (to Risk Weighted Assets)
     59,595       11.60 %     30,826       6.00 %     N/A       N/A       N/A       N/A  
Tier 1 Capital (to Average Assets)
     64,845       12.62 %     41,101       8.00 %     N/A       N/A       N/A       N/A  
                                                                 
The Bank
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital (to Risk Weighted Assets)
   $ 59,958       9.83 %   $ 24,393       4.00 %     N/A       N/A     $ 30,491       5.00 %
Common Equity Tier 1 Capital (to Risk Weighted Assets)
     59,958       11.72 %     23,029       4.50 %     N/A       N/A       33,265       6.50 %
Tier 1 Capital (to Risk Weighted Assets)
     59,958       11.72 %     30,706       6.00 %     N/A       N/A       40,941       8.00 %
Tier 1 Capital (to Average Assets)
     65,207       12.74 %     40,941       8.00 %     N/A       N/A       51,177       10.00 %
 
Under the final capital rules that became effective on January 1, 2015, there was a requirement for a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets, which is in addition to the other minimum risk-based capital standards in the rule. Institutions that do not maintain this required capital buffer become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. The capital buffer requirement is being phased in over three years beginning in 2016. We have included the 0.625% increase for 2016 in our minimum capital adequacy ratios in the table above. The capital buffer requirement effectively raises the minimum required common equity Tier 1 capital ratio to 7.0%, the Tier 1 capital ratio to 8.5%, and the total capital ratio to 10.5% on a fully phased-in basis, which will be as of January 1, 2019. Management believes that, as of September 30, 2016, the Company would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if all such requirements were currently in effect.