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Regulatory Capital
 9 Months Ended
Sep. 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. For a more detailed discussion see the Capital Resources section of the MD&A.
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 September 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 7.77% at September 30, 2016 (in thousands, except ratios).
 
 
At September 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)
$
124,055
13.17
%
$
106,942
11.43
%
8.63
%
10.00
%
Tier 1 Common Equity (To Risk Weighted Assets)
94,157
10.00
96,315
10.29
5.13
6.50
Tier 1 Capital (To Risk Weighted Assets)
105,993
11.25
93,315
10.29
6.63
8.00
Tier 1 Capital (To Average Assets)
105,993
9.29
96,315
8.58
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.