Regulatory Matters

6 Months Ended

Jun. 30, 2014

Regulated Operations [Abstract]

Regulatory Matters

Regulatory Matters

Bancorp and the Bank are subject to various regulatory capital requirements administered by the federal and state 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Bancorp 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. Bancorp’s and the Bank’s 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 Bancorp and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Tier 1 capital to average assets and Tier 1 and total capital to risk-weighted assets (all as defined in the regulations).

Federal banking regulators are required to take prompt corrective action if an insured depository institution fails to satisfy certain minimum capital requirements. Such actions could potentially include a leverage capital limit, a risk-based capital requirement, and any other measure of capital deemed appropriate by the federal banking regulator for measuring the capital adequacy of an insured depository institution. In addition, payment of dividends by Bancorp and the Bank are subject to restriction by state and federal regulators and availability of retained earnings.

Bancorp’s actual and required capital amounts and ratios as of June 30, 2014 and December 31, 2013 are presented in the following table (dollars in thousands): 

	Actual				Regulatory minimum to be "adequately capitalized"				Regulatory minimum to be "well capitalized"
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
June 30, 2014
Tier 1 leverage (to average assets)	$	162,953	9.8	%	$	66,415	4.0	%	$	83,019	5.0	%
Tier 1 capital (to risk-weighted assets)	162,953		10.6		61,544		4.0		92,315		6.0
Total capital (to risk-weighted assets)	182,211		11.8		123,087		8.0		153,859		10.0
December 31, 2013
Tier 1 leverage (to average assets)	$	142,937	10.5	%	$	54,527	4.0	%	$	68,159	5.0	%
Tier 1 capital (to risk-weighted assets)	142,937		13.0		44,021		4.0		66,031		6.0
Total capital (to risk-weighted assets)	156,787		14.3		88,041		8.0		110,052		10.0

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

	Actual				Regulatory minimum to be "adequately capitalized"				Regulatory minimum to be "well capitalized"
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
June 30, 2014
Tier 1 leverage (to average assets)	$	157,125	9.5	%	$	66,191	4.0	%	$	82,739	5.0	%
Tier 1 capital (to risk-weighted assets)	157,125		10.3		61,324		4.0		91,986		6.0
Total capital (to risk-weighted assets)	176,315		11.5		122,648		8.0		153,310		10.0
December 31, 2013
Tier 1 leverage (to average assets)	$	142,964	10.5	%	$	54,529	4.0	%	$	68,162	5.0	%
Tier 1 capital (to risk-weighted assets)	142,964		13.0		43,939		4.0		65,909		6.0
Total capital (to risk-weighted assets)	156,788		14.3		87,879		8.0		109,848		10.0