REGULATORY MATTERS

12 Months Ended

Dec. 31, 2014

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

NOTE P:  REGULATORY MATTERS

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

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum total core capital to risk-weighted assets of 8%, and Tier I capital to risk-weighted assets and Tier I capital to average assets of 4%.  Management believes, as of December 31, 2014, that the Company and Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2014, the most recent notification from the Office of the Comptroller of the Currency (“OCC”) categorized the Company and Bank as “well capitalized” under the regulatory framework for prompt corrective action.  To be categorized as “well capitalized,” the Company and Bank must maintain minimum total core capital to risk-weighted assets of 10%, Tier I capital to risk-weighted assets of 6% and Tier I capital to average assets of 5%.  There are no conditions or events since that notification that management believes have changed the institution’s category.

The capital ratios and amounts of the Company and the Bank as of December 31 are presented below:

	2014						2013
(000's omitted)	Company			Bank			Company			Bank
Tier 1 capital to average assets
Amount	$	705,163		$	584,014		$	643,286		$	547,464
Ratio		9.96	%		8.27	%		9.29	%		7.93	%
Minimum required amount	$	283,255		$	282,517		$	276,918		$	276,226
Tier 1 capital to risk-weighted assets
Amount	$	705,163		$	584,014		$	643,286		$	547,464
Ratio		17.61	%		14.64	%		16.42	%		14.03	%
Minimum required amount	$	160,214		$	159,603		$	156,661		$	156,083
Total core capital to risk-weighted assets
Amount	$	750,942		$	629,793		$	687,946		$	592,124
Ratio		18.75	%		15.78	%		17.57	%		15.17	%
Minimum required amount	$	320,428		$	319,206		$	313,322		$	312,166