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Regulatory Capital
 9 Months Ended
Sep. 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 September 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 September 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 7.87% at September 30, 2015 (in thousands, except ratios).

 

At September 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 $ 134,591       14.77 %   $ 72,904       8.00 %   $ 91,130       10.00 %
AmeriServ Financial Bank     106,582       11.81       72,178       8.00       90,223       10.00  
Common Equity Tier 1 Capital (To RWA) Consolidated     91,825       10.08       41,009       4.50       59,235       6.50  
AmeriServ Financial Bank     95,906       10.63       40,600       4.50       58,645       6.50  
Tier 1 Capital (To RWA) Consolidated     123,915       13.60       54,678       6.00       72,904       8.00  
AmeriServ Financial Bank     95,906       10.63       54,134       6.00       72,178       8.00  
Tier 1 Capital (To Average Assets) leverage Consolidated     123,915       11.40       43,473       4.00       54,342       5.00  
AmeriServ Financial Bank     95,906       9.06       42,327       4.00       52,909       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.