Note 11 - Regulatory Matters

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

11.

Regulatory Matters

The Company and its subsidiary bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements will initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, banks must meet specific capital guidelines that involve quantitative measures of the bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and its subsidiary bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The regulatory ratios of the consolidated Company and its subsidiary bank were as follows for the dates indicated:

	March 31, 2017												December 31, 2016
	Common Equity Tier 1 Risk-based Capital 1			Tier 1 Risk-based Capital 1			Total Risk-based Capital 1			Tier 1 Leverage 2			Common Equity Tier 1 Risk-based Capital 1			Tier 1 Risk-based Capital 1			Total Risk-based Capital 1			Tier 1 Leverage 2
Consolidated		16.37	%		19.17	%		19.99	%		13.36	%		16.43	%		19.28	%		20.10	%		13.20	%
United Bank & Capital Trust Company		15.55			15.55			16.37			10.86			*			*			*			*
Farmers Bank & Capital Trust Company		*			*			*			*			16.53			16.53			17.23			9.80
United Bank & Trust Company		*			*			*			*			15.54			15.54			16.47			12.38
First Citizens Bank		*			*			*			*			13.56			13.56			14.16			9.76
Citizens Bank of Northern Kentucky, Inc.		*			*			*			*			15.24			15.24			16.40			10.68

1

Common Equity Tier

1

Risked-based, Tier

1

Risk-based, and Total Risk-based Capital ratios are computed by dividing a bank’s Common Equity Tier

1,

Tier

1

or Total Capital, as defined by regulation, by a risk-weighted sum of the bank’s assets, with the risk weighting determined by general standards established by regulation.

2

Tier

1

Leverage ratio is computed by dividing a bank’s Tier

1

Capital by its total quarterly average assets, as defined by regulation

.

*In

February

2017,

the Company merged

United Bank & Trust Company

, First Citizens Bank, Inc.

, and Citizens Bank of Northern Kentucky, Inc. into Farmers Bank & Capital Trust Company in Frankfort, KY, the name of which was immediately changed to United Bank & Capital Trust Company.