XML 33 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Regulatory Capital
9 Months Ended
Sep. 30, 2018
Regulatory Capital Requirements [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]
14.
Regulatory Capital
The Company is subject to various capital requirements administered by the federal banking agencies. 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. 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. For a more detailed discussion see the Capital Resources section of the M.D. & A.
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 and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets, and common equity Tier I capital (as defined in the regulations) to risk-weighted assets (RWA) (as defined). Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of September 30, 2018, the Bank was categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as Well Capitalized, the Bank must maintain minimum Total Capital, Common Equity Tier 1 Capital, Tier 1 Capital, and Tier 1 leverage ratios as set forth in the table (in thousands, except ratios).
 
 
 
At September 30, 2018
 
 
 
COMPANY
 
 
BANK
 
MINIMUM
REQUIRED
FOR
CAPITAL
ADEQUACY
PURPOSES
 
TO BE WELL
CAPITALIZED
UNDER PROMPT
CORRECTIVE
ACTION
REGULATIONS*
 
 
 
AMOUNT
 
RATIO
 
 
AMOUNT
 
RATIO
 
RATIO
 
RATIO
Total Capital (To Risk Weighted 
Assets)
 
 
$
129,026
 
 
 
13.13
 
 
$
115,394
 
 
 
11.76
 
 
8.00
 
 
10.00
Tier 1 Common Equity (To Risk Weighted Assets)
 
 
 
99,320
 
 
 
10.10
 
 
 
 
105,038
 
 
 
10.71
 
 
 
4.50
 
 
 
6.50
 
Tier 1 Capital (To Risk Weighted Assets)
 
 
 
111,188
 
 
 
11.31
 
 
 
 
105,038
 
 
 
10.71
 
 
 
6.00
 
 
 
8.00
 
Tier 1 Capital (To Average Assets)
 
 
 
111,188
 
 
 
9.57
 
 
 
 
105,038
 
 
 
9.16
 
 
 
4.00
 
 
 
5.00
 
 
 
 
 
At December 31, 2017
 
 
 
COMPANY
 
 
BANK
 
MINIMUM

REQUIRED

FOR

CAPITAL

ADEQUACY

PURPOSES
 
TO BE WELL

CAPITALIZED

UNDER PROMPT

CORRECTIVE

ACTION

REGULATIONS*
 
 
 
AMOUNT
 
RATIO
 
 
AMOUNT
 
RATIO
 
RATIO
 
RATIO
Total Capital (To Risk Weighted Assets)
 
 
$
126,276
 
 
 
13.21
%
 
 
$
110,681
 
 
 
11.64
%
 
 
8.00
%
 
 
10.00
%
Tier 1 Common Equity (To Risk Weighted Assets)
 
 
 
95,882
 
 
 
10.03
 
 
 
 
99,552
 
 
 
10.47
 
 
 
4.50
 
 
 
6.50
 
Tier 1 Capital (To Risk Weighted Assets)
 
 
 
107,682
 
 
 
11.26
 
 
 
 
99,552
 
 
 
10.47
 
 
 
6.00
 
 
 
8.00
 
Tier 1 Capital (To Average Assets)
 
 
 
107,682
 
 
 
9.32
 
 
 
 
99,552
 
 
 
8.75
 
 
 
4.00
 
 
 
5.00
 
 
 
*
Applies to the Bank only.
Additionally, while not a regulatory capital ratio, the Company’s tangible common equity ratio was 7.37% at September 30, 2018. See the discussion of the tangible common equity ratio under the “Balance Sheet” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations (M.D. & A.).