XML 67 R19.htm IDEA: XBRL DOCUMENT v3.2.0.727
Regulatory Capital
 6 Months Ended
Jun. 30, 2015
Regulatory Capital [Abstract]  
Regulatory Capital

13.          Regulatory Capital

 

The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements.

 

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. For June 30, 2015, the final Basel III rules require the Company to maintain minimum amounts and ratios of common equity Tier I capital (as defined in the regulations) to risk-weighted assets (RWA) (as defined). Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. For December 31, 2014, regulatory capital ratios were calculated under Basel I rules. As of June 30, 2015, the Bank was categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as Well Capitalized, the Bank must maintain minimum Total Capital, Common Equity Tier 1 Capital, Tier 1 Capital, and Tier 1 leverage ratios as set forth in the table. Additionally, while not a regulatory capital ratio, the Company's tangible common equity ratio was 7.66% at June 30, 2015 (in thousands, except ratios).


 

At June 30, 2015

Actual

For Capital

Adequacy

Purposes

    

To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

  
Amount Ratio     Amount     Ratio     Amount     Ratio  
Total Capital (To RWA)                                        
   Consolidated   $ 132,879       14.63 %   $ 72,653       8.00 %   $ 90,817       10.00 %
   AmeriServ Financial Bank     106,168       11.81       71,907       8.00       89,884       10.00  
Common Equity Tier 1 Capital (To RWA)                                                
   Consolidated     90,191       9.93       40,867       4.50       59,031       6.50  
   AmeriServ Financial Bank     95,541       10.63       40,448       4.50       58,425       6.50  
Tier 1 Capital (To RWA)                                                
   Consolidated     122,252       13.46       54,490       6.00       72,653       8.00  
   AmeriServ Financial Bank     95,541       10.63       53,930       6.00       71,907       8.00  
Tier 1 Capital (To Average Assets) leverage                                                
   Consolidated     122,252       11.23       43,543       4.00       54,428       5.00  
   AmeriServ Financial Bank     95,541       9.01       42,425       4.00       53,032       5.00  


 

At December 31, 2014
Actual

For Capital

Adequacy

Purposes

    

To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

  
Amount Ratio     Amount     Ratio     Amount     Ratio  
Total Capital (To RWA)                                        
   Consolidated   $ 131,497       14.80 %   $ 71,066       8.00 %   $ 88,833       10.00 %
   AmeriServ Financial Bank     106,084       12.07       70,305       8.00       87,881       10.00  
Tier 1 Capital (To RWA)                                                
   Consolidated     120,992       13.62       35,533       4.00       53,300       6.00  
   AmeriServ Financial Bank     95,579       10.88       35,153       4.00       52,729       6.00  
Tier 1 Capital (To Average Assets)                                                
   Consolidated     120,992       11.34       42,662       4.00       53,327       5.00  
   AmeriServ Financial Bank     95,579       9.19       41,608       4.00       52,010       5.00  

 


On July 2, 2013, the Board of Governors of the Federal Reserve System approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules implement the “Basel III” regulatory capital reforms, as well as certain changes required by the Dodd-Frank Act, which will require institutions to, among other things, have more capital and a higher quality of capital by increasing the minimum regulatory capital ratios, and requiring capital buffers. The new rules became effective for the Company and the Bank on January 1, 2015, and have an implementation period that stretches to January 1, 2019. For a more detailed discussion see the Capital Resources section of the MD&A.