Capital Requirements and Regulatory Restrictions

12 Months Ended

Dec. 31, 2014

Capital Requirements and Regulatory Restrictions [Abstract]

Capital Requirements and Regulatory Restrictions

Note 2
Capital Requirements and Regulatory Restrictions

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 result in 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, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's and the Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulators to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets, and of Tier I capital to average assets. Management believes that as of December 31, 2014 and 2013, the Company and the Bank met all capital adequacy requirements to which they are subject.

Effective July 2, 2013, the Federal Reserve Board approved final rules known as the “Basel III Capital Rules” that substantially revise the risk-based capital and leverage capital requirements applicable to bank holding companies and depository institutions, including the Company and the Bank. The Basel III Capital Rules implement aspects of the Basel III capital framework agreed upon by the Basel Committee and incorporate changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the Basel III Capital Rules establish stricter capital requirements and calculation standards, as well as more restrictive risk weightings for certain loans and facilities. The Basel III Capital Rules will come into effect for the Company and the Bank on January 1, 2015 (subject to a phase-in period).

The Bank is also subject to the regulatory framework for prompt corrective action. As of December 31, 2014 and 2013, the most recent notification from the regulatory agencies categorized the Bank as well-capitalized. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank's category.

Subsidiary dividends can be a significant source of funds for payment of dividends by the Company to its shareholders. At December 31, 2014, unappropriated retained earnings of $23,801,000 were available at the Bank for the declaration of dividends to the Company without prior approval from regulatory authorities. However, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank's capital to be reduced below applicable minimum capital requirements.

There were no restricted funds on deposit used to meet regulatory reserve requirements at December 31, 2014 and 2013.

The Company's and the Bank's actual and required capital amounts and ratios as are as follows:

					Capital				Requirement to be
	Actual				Requirements				Well-Capitalized
(In thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2014
Total capital (to risk-weighted assets)
Cass Information Systems, Inc.	$	207,468	21.91	%	$	75,761	8.00	%	$	N/A	N/A	%
Cass Commercial Bank		91,249	15.88			45,977	8.00			57,472	10.00
Tier I capital (to risk-weighted assets)
Cass Information Systems, Inc.		195,630	20.66			37,880	4.00			N/A	N/A
Cass Commercial Bank		84,049	14.62			22,989	4.00			34,483	6.00
Tier I capital (to average assets)
Cass Information Systems, Inc.		195,630	13.42			43,742	3.00			N/A	N/A
Cass Commercial Bank		84,049	11.94			21,124	3.00			35,207	5.00
At December 31, 2013
Total capital (to risk-weighted assets)
Cass Information Systems, Inc.	$	191,984	22.27	%	$	68,956	8.00	%	$	N/A	N/A	%
Cass Commercial Bank		83,168	15.38			43,256	8.00			54,071	10.00
Tier I capital (to risk-weighted assets)
Cass Information Systems, Inc.		181,198	21.02			34,478	4.00			N/A	N/A
Cass Commercial Bank		76,395	14.13			21,628	4.00			32,442	6.00
Tier I capital (to average assets)
Cass Information Systems, Inc.		181,198	13.12			41,438	3.00			N/A	N/A
Cass Commercial Bank		76,395	11.37			20,162	3.00			33,603	5.00