Regulatory Matters

12 Months Ended

Dec. 31, 2014

Regulatory Capital Requirements [Abstract]

Regulatory Matters

NOTE 18: REGULATORY MATTERS

FFI 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 FFI and the Bank’s financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of FFI and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. FFI’s and 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 the regulators to ensure capital adequacy require FFI and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to assets (as defined). Management believes, as of December 31, 2014 that FFI and the Bank met all capital adequacy requirements.

The following table presents the regulatory standards for well-capitalized institutions and the capital ratios for FFI and the Bank as of:

	Actual					For Capital Adequacy Purposes					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
FFI
December 31, 2014
Tier 1 leverage ratio	$	95,582		7.32	%	$	52,200		4.00	%
Tier 1 risk-based capital ratio		95,582		11.01	%		34,711		4.00	%
Total risk-based capital ratio		106,426		12.26	%		69,423		8.00	%
December 31, 2013
Tier 1 leverage ratio	$	85,268		8.67	%	$	39,321		4.00	%
Tier 1 risk-based capital ratio		85,268		13.04	%		26,150		4.00	%
Total risk-based capital ratio		93,465		14.30	%		52,300		8.00	%
BANK
December 31, 2014
Tier 1 leverage ratio	$	105,261		8.09	%	$	52,036		4.00	%	$	65,045		5.00	%
Tier 1 risk-based capital ratio		105,261		12.18	%		34,572		4.00	%		51,858		6.00	%
Total risk-based capital ratio		115,811		13.40	%		69,144		8.00	%		86,430		10.00	%
December 31, 2013
Tier 1 (core) capital ratio	$	84,243		8.61	%	$	39,115		4.00	%	$	48,894		5.00	%
Tier 1 risk-based capital ratio		84,243		12.95	%		26,017		4.00	%		39,025		6.00	%
Total risk-based capital ratio		92,399		14.21	%		52,034		8.00	%		65,042		10.00	%

As of each of the dates set forth in the above table, the Company (on a consolidated basis) exceeded the minimum required capital ratios applicable to it and FFB (on a stand-alone basis) qualified as a well-capitalized depository institution under the capital adequacy guidelines.