Note 8 - Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2016

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 8 – REGULATORY CAPITAL REQUIREMENTS

The Company (on a consolidated basis) 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 and subsidiary banks’ financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The 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 the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of March 31, 2016 and December 31, 2015, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject.

Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of March 31, 2016 and December 31, 2015 are also presented in the following table (dollars in thousands). As of March 31, 2016 and December 31, 2015, each of the subsidiary banks met the requirements to be “well capitalized”.

						For Capital						To Be Well
						Adequacy Purposes						Capitalized Under
						With Capital						Prompt Corrective
	Actual					Conservation Buffer*						Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
As of March 31, 2016:
Company:
Total risk-based capital	$	282,957		12.68	%	$	192,416	>		8.625	%	$	223,091	>		10.0	%
Tier 1 risk-based capital		255,372		11.45	%		147,797	>		6.625			178,472	>		8.0
Tier 1 leverage		255,372		9.85	%		103,728	>		4.000			129,660	>		5.0
Common equity Tier 1		225,582		10.11	%		114,334	>		5.125			145,009	>		6.5
Quad City Bank & Trust:
Total risk-based capital	$	137,161		12.01	%	$	98,496	>		8.625	%	$	114,198	>		10.0	%
Tier 1 risk-based capital		124,668		10.92	%		75,656	>		6.625			91,358	>		8.0
Tier 1 leverage		124,668		9.12	%		54,680	>		4.000			68,351	>		5.0
Common equity Tier 1		124,668		10.92	%		58,526	>		5.125			74,229	>		6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	106,576		13.98	%	$	65,729	>		8.625	%	$	76,208	>		10.0	%
Tier 1 risk-based capital		97,032		12.73	%		50,488	>		6.625			60,966	>		8.0
Tier 1 leverage		97,032		11.03	%		35,197	>		4.000			43,996	>		5.0
Common equity Tier 1		97,032		12.73	%		39,056	>		5.125			49,535	>		6.5
Rockford Bank & Trust:
Total risk-based capital	$	39,201		12.03	%	$	28,096	>		8.625	%	$	32,575	>		10.0	%
Tier 1 risk-based capital		35,125		10.78	%		21,581	>		6.625			26,060	>		8.0
Tier 1 leverage		35,125		9.52	%		14,758	>		4.000			18,447	>		5.0
Common equity Tier 1		35,125		10.78	%		16,695	>		5.125			21,174	>		6.5

	Actual				For Capital Adequacy Purposes*					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio			Amount		Ratio
As of December 31, 2015:
Company:
Total risk-based capital	$	280,273		13.11%	$	170,969	>	8.0%	%	$	213,711	>	10.0%
Tier 1 risk-based capital		253,891		11.88%		128,227	>	6.0			170,969	>	8.0
Tier 1 leverage		253,891		9.75%		104,163	>	4.0			130,203	>	5.0
Common equity Tier 1		220,800		10.33%		96,170	>	4.5			138,912	>	6.5
Quad City Bank & Trust:
Total risk-based capital	$	135,477		12.50%	$	86,726	>	8.0%	%	$	108,407	>	10.0%
Tier 1 risk-based capital		123,498		11.39%		65,044	>	6.0			86,726	>	8.0
Tier 1 leverage		123,498		8.87%		55,718	>	4.0			69,648	>	5.0
Common equity Tier 1		123,498		11.39%		48,783	>	4.5			70,465	>	6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	105,285		14.39%	$	58,537	>	8.0%	%	$	73,172	>	10.0%
Tier 1 risk-based capital		96,118		13.14%		43,903	>	6.0			58,537	>	8.0
Tier 1 leverage		96,118		10.96%		35,079	>	4.0			43,848	>	5.0
Common equity Tier 1		96,118		13.14%		32,927	>	4.5			47,562	>	6.5
Rockford Bank & Trust:
Total risk-based capital	$	38,544		11.96%	$	25,772	>	8.0%	%	$	32,216	>	10.0%
Tier 1 risk-based capital		34,514		10.71%		19,329	>	6.0			25,772	>	8.0
Tier 1 leverage		34,514		9.59%		14,401	>	4.0			18,001	>	5.0
Common equity Tier 1		34,514		10.71%		14,497	>	4.5			20,940	>	6.5

*The minimums under Basel III phase in higher by .625% (the capital conservation buffer) annually until 2019. The fully phased-in minimums are 10.5% (Total risk-based capital), 8.5% (Tier 1 risk-based capital), and 7.0% (Common equity Tier 1). At December 31, 2015, the New Basel III minimums mirrored the minimums required for capital adequacy purposes. The first phase-in of the Basel III capital conservation buffer occured in 2016.