Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Regulatory Capital Requirements

NOTE W   REGULATORY CAPITAL REQUIREMENTS

As of December 31, 2011, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized “well capitalized” the Bank must maintain minimum leverage capital ratios and minimum amounts of capital to total "risk weighted" assets, as set forth in the table. Management philosophy and plans are directed to enhancing the financial stability of the Bank to ensure the continuity of operations.

The Bank's actual capital amounts and ratios are also presented in the table. (Dollars in thousands)

	December 31, 2011
					Required
					to be Well
			Required		Capitalized Under
			for Capital		Prompt Corrective
	Actual		Adequacy Purposes		Action Provisions
	Amount	Ratio	Amount	Ratio	Amount	Ratio
Tier I Capital (to Average Assets)	$12,187	13.49%	$3,612	4.00%	$4,516	5.00%
Tier I Capital (to Risk-Weighted Assets)	$12,187	20.50%	$2,378	4.00%	$3,567	6.00%
Total Capital (to Risk-Weighted Assets)	$12,943	21.77%	$4,756	8.00%	$5,945	10.00%

	December 31, 2010
						Required
						to be Well
				Required		Capitalized Under
				for Capital		Prompt Corrective
	Actual			Adequacy Purposes		Action Provisions
	Amount	Ratio		Amount	Ratio	Amount	Ratio
Tier I Capital (to Average Assets)	$12,096	12.83%	$3,771		4.00%	$4,714	5.00%
Tier I Capital (to Risk-Weighted Assets)	$12,096	18.58%	$2,603		4.00%	$3,905	6.00%
Total Capital (to Risk-Weighted Assets)	$12,922	19.85%	$5,207		8.00%	$6,509	10.00%