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REGULATORY CAPITAL
 12 Months Ended
Dec. 31, 2017
Regulatory Capital [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]

23.  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 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 I capital to risk-weighted assets, and of Tier I capital to average assets. As of December 31, 2017 and 2016, the Federal Reserve categorized the Company as Well Capitalized under the regulatory framework for prompt corrective action. The Company believes that no conditions or events have occurred that would change this conclusion. To be categorized as well capitalized, the Company must maintain minimum total risk-based, common equity Tier I risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. Additionally, while not a regulatory capital ratio, the Company’s tangible common equity ratio was 7.20% and 7.31% for 2017 and 2016, respectively.
 
 
 
AT DECEMBER 31, 2017
  
 
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)
 
$
126,276
 
 
 
13.21
% 
 
$
110,681
 
 
 
11.64
% 
 
 
8.00
% 
 
 
10.00
% 
Tier 1 Common Equity (To Risk Weighted Assets)
 
 
95,882
 
 
 
10.03
 
 
 
99,552
 
 
 
10.47
 
 
 
4.50
 
 
 
6.50
 
Tier 1 Capital (To Risk Weighted Assets)
 
 
107,682
 
 
 
11.26
 
 
 
99,552
 
 
 
10.47
 
 
 
6.00
 
 
 
8.00
 
Tier 1 Capital (To Average Assets)
 
 
107,682
 
 
 
9.32
 
 
 
99,552
 
 
 
8.75
 
 
 
4.00
 
 
 
5.00
 
 
 
 
 
AT DECEMBER 31, 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)
 
$
125,131
 
 
 
13.15
% 
 
$
107,618
 
 
 
11.35
% 
 
 
8.00
% 
 
 
10.00
% 
Tier 1 Common Equity (To Risk Weighted Assets)
 
 
95,028
 
 
 
9.99
 
 
 
96,796
 
 
 
10.21
 
 
 
4.50
 
 
 
6.50
 
Tier 1 Capital (To Risk Weighted Assets)
 
 
106,868
 
 
 
11.23
 
 
 
96,796
 
 
 
10.21
 
 
 
6.00
 
 
 
8.00
 
Tier 1 Capital (To Average Assets)
 
 
106,868
 
 
 
9.35
 
 
 
96,796
 
 
 
8.61
 
 
 
4.00
 
 
 
5.00
 
 
*
Applies to the Bank only.
On July 2, 2013, the Federal Reserve 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 on January 1, 2015, with an implementation period that stretches to 2019. For a more detailed discussion see the Capital Resources section of the MD&;A.