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Regulatory Capital
 6 Months Ended
Jun. 30, 2016
Regulatory Capital [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]

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, Tier 1 capital to average assets, and 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. As of June 30, 2016, 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 7.72% at June 30, 2016 (in thousands, except ratios). 
 
 
 
 
 
 
 
At June 30, 2016
  
 
Company
 
Bank
 
Minimum Required
For Capital Adequacy Purposes
 
To be Well Capitalized Under
Prompt
Corrective
Action
Regulations*
  
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Ratio
 
Ratio
  
 
(In Thousands, Except Ratios)
Total Capital (To Risk Weighted Assets)
 
$
122,086
 
 
 
13.04
% 
 
$
105,968
 
 
 
11.39
% 
 
 
8.63
% 
 
 
10.00
% 
Tier 1 Common Equity (To Risk Weighted Assets)
 
 
92,670
 
 
 
9.90
 
 
 
95,358
 
 
 
10.25
 
 
 
5.13
 
 
 
6.50
 
Tier 1 Capital (To Risk Weighted Assets)
 
 
104,046
 
 
 
11.11
 
 
 
95,358
 
 
 
10.25
 
 
 
6.63
 
 
 
8.00
 
Tier 1 Capital (To Average Assets)
 
 
104,046
 
 
 
9.29
 
 
 
95,358
 
 
 
8.65
 
 
 
4.00
 
 
 
5.00
 
 
 
 
 
 
 
 
 
At December 31, 2015
  
 
Company
 
Bank
 
Minimum Required
For Capital Adequacy Purposes
 
To be Well Capitalized Under
Prompt
Corrective
Action
Regulations*
  
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Ratio
 
Ratio
  
 
(In Thousands, Except Ratios)
Total Capital (To Risk Weighted Assets)
 
$
144,096
 
 
 
15.55
% 
 
$
106,890
 
 
 
11.67
% 
 
 
8.00
% 
 
 
10.00
% 
Tier 1 Common Equity (To Risk Weighted Assets)
 
 
93,202
 
 
 
10.06
 
 
 
96,092
 
 
 
10.49
 
 
 
4.50
 
 
 
6.50
 
Tier 1 Capital (To Risk Weighted Assets)
 
 
125,648
 
 
 
13.56
 
 
 
96,092
 
 
 
10.49
 
 
 
6.00
 
 
 
8.00
 
Tier 1 Capital (To Average Assets)
 
 
125,648
 
 
 
11.41
 
 
 
96,092
 
 
 
8.97
 
 
 
4.00
 
 
 
5.00
 
*
Applies to the Bank only.
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.