Regulatory Matters

9 Months Ended

Sep. 30, 2015

Banking and Thrift [Abstract]

Regulatory Matters

Note 29 - Regulatory Matters

The Company is subject to various regulatory capital requirements administered by federal banking 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 consolidated financial statements. 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.

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, Tier 1, and common equity Tier 1capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of September 30, 2015, that the Company meets all capital adequacy requirements to which it is subject.

The following table presents actual and required capital ratios as of September 30, 2015 for the Company and the Bank under Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of September 30, 2015 based on the phased-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

	Actual					Minimum Capital Required – Basel III Phase-in Schedule					Minimum Capital Required – Basel III Fully Phased In					Required to be Considered Well Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
As of September 30, 2015:
Total Capital
(to Risk Weighted Assets):
Consolidated	$	465,201		15.17	%	$	245,283		8.00	%	$	321,934		10.50	%		N/A		N/A
Tri Counties Bank	$	463,445		15.12	%	$	245,142		8.00	%	$	321,749		10.50	%	$	306,427		10.00	%
Tier 1 Capital
(to Risk Weighted Assets):
Consolidated	$	426,816		13.92	%	$	183,962		6.00	%	$	260,613		8.50	%		N/A		N/A
Tri Counties Bank	$	425,081		13.87	%	$	183,856		6.00	%	$	260,465		8.50	%	$	245,142		8.00	%
Common equity Tier 1 Capital
(to Risk Weighted Assets):
Consolidated	$	376,661		12.28	%	$	137,972		4.50	%	$	214,623		7.00	%		N/A		N/A
Tri Counties Bank	$	425,081		13.87	%	$	137,892		4.50	%	$	214,499		7.00	%	$	199,178		6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	426,816		11.00	%	$	155,201		4.00	%	$	155,201		4.00	%		N/A		N/A
Tri Counties Bank	$	425,081		10.96	%	$	155,127		4.00	%	$	155,127		4.00	%	$	193,909		5.00	%

The following table presents actual and required capital ratios as of December 31, 2104 for the Company and the Bank under the regulatory capital rules then in effect.

	Actual					Minimum Capital Requirement					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
As of December 31, 2014:
Total Capital (to Risk Weighted Assets):
Consolidated	$	436,955		15.63	%	$	223,603		8.0	%		N/A		N/A
Tri Counties Bank	$	433,286		15.51	%	$	223,449		8.0	%	$	279,311		10.0	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	401,971		14.38	%	$	111,801		4.0	%		N/A		N/A
Tri Counties Bank	$	398,325		14.26	%	$	111,724		4.0	%	$	167,587		6.0	%
Tier 1 Capital (to Average Assets):
Consolidated	$	401,971		10.80	%	$	148,819		4.0	%		N/A		N/A
Tri Counties Bank	$	398,325		10.71	%	$	148,734		4.0	%	$	185,918		5.0	%

As of September 30, 2015, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis. Based on the ratios presented above, capital levels as September 30, 2015 at the Company and the Bank exceed the minimum levels necessary to be considered “well capitalized”.