REGULATORY MATTERS

12 Months Ended

Dec. 31, 2016

Regulatory Capital Requirements [Abstract]

REGULATORY MATTERS

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 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 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 the Bank to maintain minimum amounts and ratios (set forth in the table below) of common equity Tier 1 capital, Tier 1 and total capital (as defined in the regulations) to risk-weighted assets (as defined) and to average assets (as defined).

As of December 31, 2016, the most recent notifications from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum common equity Tier I, total risk-based, Tier I risk-based, and Tier I leverage capital ratios as set forth in the table (in thousands). There are no conditions or events since those notifications that management believes has changed the Bank’s category.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below (in thousands):

	Actual				Required for Minimum Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2016:
Common equity Tier I capital to risk-weighted assets:
Company	$	131,091	8.81	%	$	66,937	4.50	%	N/A		N/A
Bank	$	178,587	12.00	%	$	66,980	4.50	%	$	96,749	6.50	%
Total capital to risk-weighted assets:
Company	$	212,366	14.28	%	$	118,999	8.00	%	N/A		N/A
Bank	$	197,265	13.25	%	$	119,076	8.00	%	$	148,845	10.00	%
Tier I capital to risk-weighted assets:
Company	$	193,700	13.02	%	$	89,249	6.00	%	N/A		N/A
Bank	$	178,587	12.00	%	$	89,307	6.00	%	$	119,076	8.00	%
Tier I capital to average assets:
Company	$	193,700	10.11	%	$	76,609	4.00	%	N/A		N/A
Bank	$	178,587	9.32	%	$	76,623	4.00	%	$	95,779	5.00	%

	Actual				Required for Minimum Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2015:
Common equity Tier I capital to risk-weighted assets:
Company	$	128,470	8.91	%	$	64,907	4.50	%	N/A		N/A
Bank	$	177,057	12.27	%	$	64,947	4.50	%	$	93,812	6.50	%
Total capital to risk-weighted assets:
Company	$	209,132	14.50	%	$	115,390	8.00	%	N/A		N/A
Bank	$	195,111	13.52	%	$	115,461	8.00	%	$	144,326	10.00	%
Tier I capital to risk-weighted assets:
Company	$	191,089	13.25	%	$	86,543	6.00	%	N/A		N/A
Bank	$	177,057	12.27	%	$	86,595	6.00	%	$	115,461	8.00	%
Tier I capital to average assets:
Company	$	191,089	10.10	%	$	75,689	4.00	%	N/A		N/A
Bank	$	177,057	9.36	%	$	75,683	4.00	%	$	94,603	5.00	%

In July 2013, the Federal bank regulatory agencies issued a final rule that will revise their risk-based capital requirements and the method for calculating components of capital and of computing risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. The Basel III rules became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). The final rule applied to all depository institutions, top-tier bank holding companies with total consolidated assets of $500 million or more and top-tier savings and loan holding companies. The rule established a new common equity Tier 1 minimum capital requirement, increased the minimum capital ratios and assigned a higher risk weight to certain assets based on the risk associated with these assets. Certain provisions of the new rules will be phased in through January 1, 2019.