Regulatory Matters

12 Months Ended

Dec. 31, 2012

Regulatory Matters [Abstract]

Regulatory Matters

NOTE 21 – Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company 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 the assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank 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. Total capital includes Tier 1 and Tier 2 capital. Tier 2 capital consists of the allowance for loan losses subject to certain limitations. Management believes, as of December 31, 2012, that the Company and Bank exceed all well capitalized requirements to which they are subject.

The OCC notified the Bank that, effective December 19, 2012, it is no longer subject to the Formal Written Agreement (the “Formal Agreement”) entered into on June 8, 2010. In addition, the OCC notified the Bank that, effective December 19, 2012, it is no longer subject to the Individual Minimum Capital Ratios established for the Bank on May 24, 2010, which required the Bank to maintain a tier 1 leverage capital ratio of at least 8.00%, a tier 1 risk-based capital ratio of at least 10.00%, and a total risk-based capital ratio of at least 12.00%.

The following table summarizes the capital amounts and ratios of the Bank and the Company and the regulatory minimum requirements at December 31, 2012 and 2011.

	Actual					OCC Required Capital Ratio Minimum					For capital adequacy purposes minimum					To be well capitalized under prompt corrective action provisions minimum
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2012
The Bank
Total Capital (to risk weighted assets)	$	83,763		13.0	%		n/a		n/a			51,498		8.0	%		64,372		10.0	%
Tier 1 Capital (to risk weighted assets)		75,704		11.8	%		n/a		n/a			25,749		4.0	%		38,623		6.0	%
Tier 1 Capital (to average assets)		75,704		9.6	%		n/a		n/a			31,492		4.0	%		39,366		5.0	%
The Company
Total Capital (to risk weighted assets)		84,006		13.1	%		n/a		n/a			51,498		8.0	%		n/a		n/a
Tier 1 Capital (to risk weighted assets)		75,947		11.8	%		n/a		n/a			25,749		4.0	%		n/a		n/a
Tier 1 Capital (to average assets)		75,947		9.7	%		n/a		n/a			31,492		4.0	%		n/a		n/a
As of December 31, 2011
The Bank
Total Capital (to risk weighted assets)	$	80,885		13.1	%		74,095		12.0	%		49,397		8.0	%		61,746		10.0	%
Tier 1 Capital (to risk weighted assets)		73,152		11.9	%		61,746		10.0	%		24,698		4.0	%		37,047		6.0	%
Tier 1 Capital (to average assets)		73,152		9.5	%		69,571		9.0	%		30,920		4.0	%		38,651		5.0	%
The Company
Total Capital (to risk weighted assets)		82,231		13.3	%		n/a		n/a			49,397		8.0	%		n/a		n/a
Tier 1 Capital (to risk weighted assets)		74,498		12.1	%		n/a		n/a			24,698		4.0	%		n/a		n/a
Tier 1 Capital (to average assets)		74,498		9.6	%		n/a		n/a			30,920		4.0	%		n/a		n/a