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Regulatory Matters
 9 Months Ended
Sep. 30, 2019
Banking and Thrift [Abstract]  
Regulatory Matters

(9) Regulatory Matters. The Bank is subject to various regulatory capital requirements administered by the bank regulatory agencies. 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 and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
   
  The Bank is subject to the Basel III capital level threshold requirements under the Prompt Corrective Action regulations with full compliance phased in over a multi-year schedule. These new regulations were designed to ensure that banks maintain strong capital positions even in the event of severe economic downturns or unforeseen losses.
   
  The Bank is subject to the capital conservation buffer rules which place limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers. In order to avoid these limitations, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. As of September 30, 2019, the Bank’s capital conservation buffer exceeds the minimum requirements of 2.50%.

 

  The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at September 30, 2019 and December 31, 2018 (dollars in thousands):

 

    Actual    

For Capital

Adequacy Purposes

    

Minimum

To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

  
    Amount     %     Amount     %     Amount     %  
As of September 30, 2019:                                                
Total Capital to Risk-Weighted Assets   $ 12,243       12.70 %   $ 7,713       8.00 %   $ 9,641       10.00 %
Tier I Capital to Risk-Weighted Assets     11,027       11.44       5,785       6.00       7,713       8.00  
Common equity Tier I capital to Risk-Weighted Assets     11,027       11.44       4,339       4.50       6,267       6.50  
Tier I Capital to Total Assets     11,027       9.76       4,518       4.00       5,467       5.00  
                                                 
As of December 31, 2018:                                                
Total Capital to Risk-Weighted Assets   $ 12,155       15.86 %   $ 6,132       8.00 %   $ 7,665       10.00 %
Tier I Capital to Risk-Weighted Assets     11,181       14.59       4,599       6.00       6,132       8.00  
Common equity Tier I capital to Risk-Weighted Assets     11,181       14.59       3,449       4.50       4,983       6.50  
Tier I Capital to Total Assets     11,181       11.68       3,828       4.00       4,785       5.00  
   
 

Company Written Agreement with Federal Reserve Bank of Atlanta (“FRB”). On June 22, 2010, the Company and the FRB entered into a Written Agreement with respect to certain aspects of the operation and management of the Company. The Written Agreement prohibits, without the prior approval of the FRB, the payment of cash dividends, taking dividends or payments from the Bank, making any interest, principal or other distributions on account of the Debenture, incurring, increasing or guaranteeing any debt, purchasing or redeeming any shares of stock, or appointing any new director or senior executive officer.

 

On September 11, 2019, the FRB notified the Company that the Written Agreement was terminated based upon the improvements noted at the June 7, 2019 off-site review.