Regulatory Capital

12 Months Ended

Dec. 31, 2012

Regulatory Capital [Abstract]

Regulatory Capital

Note 12 — Regulatory Capital

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

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to adjusted average assets. Management believes, as of December 31, 2012, that the Company and the Bank met all capital adequacy requirements to which it is subject.

The Bank is also subject to individual minimum capital ratios established by the OCC requiring the Bank to maintain a Tier 1 leverage capital ratio of at least equal to 8.00% of adjusted average assets, to maintain a Tier 1 risk-based capital ratio at least equal to 10.50% of risk-weighted assets, and to maintain a total risk-based capital ratio at least equal to 12.00% of risk-weighted assets. At December 31, 2012, the Bank met all three capital ratios.

The Bank's actual capital amounts and ratios are presented in the following table: (dollars in thousands)

						Minimum					Minimum to be "Well
						for capital					Capitalized" under prompt
	Actual capital ratios					adequacy					corrective action provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2012
Total Capital (to risk-weighted assets)	$	162,458		18.05	%	$	72,020		8.00	%	$	90,025		10.00	%
Tier 1 Capital (to risk-weighted assets)		151,121		16.79	%		36,010		4.00	%		54,015		6.00	%
Tier 1 Capital (to average assets)		151,121		9.74	%		62,092		4.00	%		77,615		5.00	%
As of December 31, 2011
Total Capital (to risk-weighted assets)	$	146,990		14.21	%	$	82,756		8.00	%	$	103,445		10.00	%
Tier 1 Capital (to risk-weighted assets)		133,716		12.93	%		41,378		4.00	%		62,067		6.00	%
Tier 1 Capital (to average assets)		133,716		8.81	%		60,726		4.00	%		75,907		5.00	%

At December 31, 2012, the Company's Tier 1 leverage capital ratio was 9.79% of adjusted average assets, Tier 1 risk-based capital ratio was 16.89% of risk-weighted assets, and total risk-based capital ratio was 18.15% of risk-weighted assets. At December 31, 2011, the Company's Tier 1 leverage capital ratio was 8.85% of adjusted average assets, Tier 1 risk-based capital ratio was 12.98% of risk-weighted assets, and total risk-based capital ratio was 14.26% of risk-weighted assets.