Stockholders' Equity and Regulatory Requirements

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 16 - Stockholders’ Equity and Regulatory Requirements

On September 15, 2011, the Company issued $ 11.25 million in nonvoting senior preferred stock to the Treasury under the Small Business Lending Fund Program (“SBLF Program”). Under the Securities Purchase Agreement, the Company issued to the Treasury a total of 11,250 shares of the Company’s Senior Noncumulative Perpetual Preferred Stock, Series B, having a liquidation value of $1,000 per share. Simultaneously, using the proceeds from the issuance of the SBLF Preferred Stock, the Company redeemed from the Treasury, all 10,000 outstanding shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, liquidation amount $1,000 per share, for a redemption price of $10,041,667, including accrued but unpaid dividends up to the date of redemption. The current dividend rate is 1.0% and will increase to 9.0% on March 15, 2016. The Company expects to repurchase all outstanding $11.25 million SBLF preferred stock by March 31, 2016.

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, an certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervisions’ capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi- year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Capital amounts and ratios for December 31, 2014 are calculated using Basel I rules. Management believes as of December 31, 2015, the Bank and the Parent Corporation meet all capital adequacy requirements which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is growth and expansion, and capital restoration plans are required. At year-end, 2015 and 2014, the most recent regulatory notifications categorized the Banks as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The following is a summary of the Bank’s and the Parent Corporation’s actual capital amounts and ratios as of December 31, 2015 and 2014, compared to the FRB and FDIC minimum capital adequacy requirements and the FRB and FDIC requirements for classification as a well-capitalized institution.

							For Classification
							Under Corrective
				Minimum			Action Plan
				Capital Adequacy			as Well Capitalized
	Amount		Ratio	Amount		Ratio	Amount		Ratio
The Bank	(dollars in thousands)
December 31, 2015
Leverage (Tier 1)
capital	$	372,979	9.96%	$	149,724	4.00%	$	187,154	5.00%
Risk-Based
Capital:
CET 1	$	372,979	10.55%	$	159,028	4.50%	$	229,707	6.50%
Tier 1		372,979	10.55%		212,037	6.00%		282,716	8.00%
Total		399,551	11.31%		282,716	8.00%		353,395	10.00%
December 31, 2014
Leverage (Tier 1)
capital	$	300,399	9.33%	$	128,729	4.00%	$	160,911	5.00%
Risk-Based
Capital:
Tier 1	$	300,399	10.40%	$	115,493	4.00%	$	173,239	6.00%
Total		314,769	10.90%		230,986	8.00%		288,732	10.00%

				Minimum Capital			For Classification
				Adequacy			as Well Capitalized
	Amount		Ratio	Amount		Ratio	Amount	Ratio
The Company	(dollars in thousands)
December 31, 2015
Leverage (Tier 1)
capital	$	339,544	9.07%	$	149,776	4.00%	N/A	N/A
Risk-Based
Capital:
CET 1	$	323,139	9.14%	$	159,078	4.50%	N/A	N/A
Tier 1		339,544	9.61%		212,104	6.00%	N/A	N/A
Total		416,116	11.77%		282,805	8.00%	N/A	N/A
December 31, 2014
Leverage (Tier 1)
capital	$	301,593	9.37%	$	128,747	4.00%	N/A	N/A
Risk-Based
Capital:
Tier 1	$	301,593	10.44%	$	115,561	4.00%	N/A	N/A
Total		315,963	10.94%		231,121	8.00%	N/A	N/A