Regulatory Capital Requirements and Dividend Restrictions

12 Months Ended

Dec. 31, 2012

Regulatory Capital Requirements and Dividend Restrictions

20. Regulatory Capital Requirements and Dividend Restrictions

Capital Requirements

The following table summarizes the Company’s and the Bank’s actual and required capital ratios at the dates indicated (dollars in thousands). The Company and the Bank were classified in the well-capitalized category at December 31, 2012 and 2011. Since December 31, 2012, no conditions or events have occurred, of which the Company is aware, that have resulted in a material change in the Company’s or the Bank’s risk category other than as reported in this Annual Report on Form 10-K.

	Actual					For capital adequacy purposes					To be well capitalized under prompt corrective action provisions
	amount		ratio			amount		ratio			amount		ratio
At December 31, 2012
Total capital to risk-weighted assets
Company	$	115,182		14.42	%	$	63,892		8.00	%		n/a		n/a
Bank		115,077		14.41			63,892		8.00		$	79,865		10.00	%
Tier 1 capital to risk-weighted assets
Company		105,098		13.16			31,946		4.00			n/a		n/a
Bank		104,993		13.15			31,946		4.00			47,919		6.00
Tier 1 leverage ratio
Company		105,098		9.18			45,771		4.00			n/a		n/a
Bank		104,993		9.18			45,771		4.00			57,213		5.00
At December 31, 2011
Total capital to risk-weighted assets
Company	$	116,864		13.49	%	$	69,280		8.00	%		n/a		n/a
Bank		115,985		13.39			69,285		8.00		$	86,607		10.00	%
Tier 1 capital to risk-weighted assets
Company		105,852		12.22			34,640		4.00			n/a		n/a
Bank		104,972		12.12			34,643		4.00			51,964		6.00
Tier 1 leverage ratio
Company		105,852		8.59			49,270		4.00			n/a		n/a
Bank		104,972		8.52			49,271		4.00			61,589		5.00

We are subject to certain regulatory requirements and restrictions including requirements to continue to improve credit quality and earnings, a restriction prohibiting dividend payments without prior approval from the Supervisory Authorities and the maintenance of a specified leverage capital ratio.