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REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2013
Banking and Thrift [Abstract]  
REGULATORY MATTERS
Note 23 – 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 and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank 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 the Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
 
Quantitative measures established and defined 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 average assets. As of December 31, 2013 and 2012, the capital levels of the Company and the Bank substantially exceeded all applicable capital adequacy requirements.
 
As of December 31, 2013, the most recent notification from the Bank’s primary regulator 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 total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank's category.
 
The Company's and the Bank's actual capital amounts and ratios at December 31 for the years indicated are presented in the following table:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
To Be Well
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized Under
 
 
 
 
 
 
 
 
 
For Capital
 
 
Prompt Corrective
 
 
 
Actual
 
 
Adequacy Purposes
 
 
Action Provisions
 
(Dollars in thousands)
 
Amount
 
Ratio
 
 
Amount
 
Ratio
 
 
Amount
 
Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
491,239
 
15.65
%
 
$
251,060
 
8.00
%
 
 
N/A
 
N/A
 
Sandy Spring Bank
 
$
478,023
 
15.25
%
 
$
250,817
 
8.00
%
 
$
313,521
 
10.00
%
Tier 1 Capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
452,473
 
14.42
%
 
$
125,530
 
4.00
%
 
 
N/A
 
N/A
 
Sandy Spring Bank
 
$
404,258
 
12.89
%
 
$
125,408
 
4.00
%
 
$
188,112
 
6.00
%
Tier 1 Leverage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
452,473
 
11.32
%
 
$
119,939
 
3.00
%
 
 
N/A
 
N/A
 
Sandy Spring Bank
 
$
404,258
 
10.12
%
 
$
119,866
 
3.00
%
 
$
199,777
 
5.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
456,791
 
15.40
%
 
$
237,308
 
8.00
%
 
 
N/A
 
N/A
 
Sandy Spring Bank
 
$
445,097
 
15.02
%
 
$
237,066
 
8.00
%
 
$
296,332
 
10.00
%
Tier 1 Capital to risk-weighted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
419,639
 
14.15
%
 
$
118,654
 
4.00
%
 
 
N/A
 
N/A
 
Sandy Spring Bank
 
$
372,983
 
12.59
%
 
$
118,533
 
4.00
%
 
$
177,799
 
6.00
%
Tier 1 Leverage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
 
$
419,639
 
10.98
%
 
$
114,628
 
3.00
%
 
 
N/A
 
N/A
 
Sandy Spring Bank
 
$
372,983
 
9.77
%
 
$
114,553
 
3.00
%
 
$
190,922
 
5.00
%