STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2014

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 20 - STOCKHOLDERS’ EQUITY

The Company’s principal source of funds for dividend payments to shareholders is dividends received from the subsidiary Banks.  Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies.  Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, as defined, combined with the retained net profits of the preceding two years, subject to the capital requirements and additional restrictions as discussed below.  During 2015 the Banks could, without prior approval, declare dividends to the Company of approximately $5.5 million plus any 2015 net profits retained to the date of the dividend declaration.

The Company and the subsidiary Banks 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 Banks must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.

These quantitative measures established by regulation to ensure capital adequacy require the Company and Banks to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  Management believes, as of   December 31, 2014 the Company and the Banks meet all quantitative capital adequacy requirements to which they are subject.

As of December 31, 2014 and 2013, the most recent notification from each of the Banks’ primary Federal regulators categorized the subsidiary Banks as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, the Banks must maintain minimum Total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the following table.  There are no conditions or events since that notification that management believes have changed the Banks’ categories.

The Company’s and the subsidiary Banks’ capital amounts and ratios as of December 31, 2014 and December 31, 2013 are presented in the table below.

											To Be Well Capitalized
						For Capital					Under Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (to Risk-Weighted Assets):
Consolidated (1)	$	122,432		14.6	%	$	67,246		8	%	$	84,058		10	%
Premier Bank, Inc.		92,854		15.2			48,943		8			61,178		10
Citizens Deposit Bank		36,740		16.1			18,258		8			22,822		10
Tier I Capital (to Risk-Weighted Assets):
Consolidated (1)	$	112,085		13.3	%	$	33,623		4	%	$	50,435		6	%
Premier Bank, Inc.		85,203		13.9			24,471		4			36,707		6
Citizens Deposit Bank		34,319		15.0			9,129		4			13,693		6
Tier I Capital (to Average Assets):
Consolidated (1)	$	112,085		9.1	%	$	49,323		4	%	$	61,654		5	%
Premier Bank, Inc.		85,203		9.9			34,342		4			42,928		5
Citizens Deposit Bank		34,319		9.2			14,918		4			18,648		5
2013
Total Capital (to Risk-Weighted Assets):
Consolidated (1)	$	128,756		18.2	%	$	56,685		8	%	$	70,857		10	%
Premier Bank, Inc.		95,508		19.2			39,738		8			49,672		10
Citizens Deposit Bank		37,158		17.7			16,819		8			21,023		10
Tier I Capital (to Risk-Weighted Assets):
Consolidated (1)	$	119,872		16.9	%	$	28,343		4	%	$	42,514		6	%
Premier Bank, Inc.		89,274		18.0			19,869		4			29,803		6
Citizens Deposit Bank		34,591		16.5			8,409		4			12,614		6
Tier I Capital (to Average Assets):
Consolidated (1)	$	119,872		11.0	%	$	43,495		4	%	$	54,369		5	%
Premier Bank, Inc.		89,274		12.4			28,892		4			36,115		5
Citizens Deposit Bank		34,591		9.5			14,538		4			18,172		5
(1) Consolidated company is not subject to Prompt Corrective Action Provisions