STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

12. STOCKHOLDERS’ EQUITY

(a) Regulatory Capital Requirements – The Corporation and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined).

As a result of the Consent Order the Bank entered into with the FDIC and KDFI described in greater detail in Note 2, the Bank is categorized as a "troubled institution" by bank regulators, which by definition does not permit the Bank to be considered "well-capitalized".

On March 9, 2012, the Bank entered into a new Consent Order with the FDIC and KDFI. The 2012 Consent Order requires the Bank to achieve the same minimum capital ratios mandated by the January 2011 Consent Order, which are set forth below. See Note 2 for additional information.

Our actual and required capital amounts and ratios are presented below.

(Dollars in thousands)						For Capital
	Actual					Adequacy Purposes
As of March 31, 2013:	Amount		Ratio			Amount		Ratio
Total risk-based capital (to risk- weighted assets)
Consolidated	$	68,756		11.39	%	$	48,311		8.00	%
Bank		74,517		12.33			48,334		8.00
Tier I capital (to risk-weighted assets)
Consolidated		57,473		9.52			24,156		4.00
Bank		66,853		11.07			24,167		4.00
Tier I capital (to average assets)
Consolidated		57,473		5.88			39,083		4.00
Bank		66,853		6.84			39,096		4.00

(Dollars in thousands)						For Capital
	Actual					Adequacy Purposes
As of December 31, 2012:	Amount		Ratio			Amount		Ratio
Total risk-based capital (to risk- weighted assets)
Consolidated	$	68,791		11.36	%	$	48,438		8.00	%
Bank		73,951		12.21			48,439		8.00
Tier I capital (to risk-weighted assets)
Consolidated		57,471		9.49			24,219		4.00
Bank		66,256		10.94			24,219		4.00
Tier I capital (to average assets)
Consolidated		57,471		5.67			40,580		4.00
Bank		66,256		6.53			40,608		4.00

The 2012 Consent Order requires the Bank to achieve the minimum capital ratios presented below.

	Actual as of			Ratio Required
	3/31/2013			by Consent Order
Total capital to risk-weighted assets		12.33	%		12.00	%
Tier 1 capital to average total assets		6.84	%		9.00	%