Capital Requirements and Regulatory Matters

12 Months Ended

Dec. 31, 2016

Capital Requirements And Regulatory Matters [Abstract]

Capital Requirements And Regulatory Matters

Note 16:  Capital Requirements and Regulatory Matters

We and Bank SNB are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our andBank SNB’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we and Bank SNB must meet specific capital guidelines that involve quantitative measures of our and Bank SNB’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our and Bank SNB’s capital amounts and classifications 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 us and Bank SNB to maintain minimum amounts of Total, Tier I Capital (as defined in the regulations), and CET1 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 that, as of December 31, 2016 and December 31, 2015, we and Bank SNB met all capital adequacy requirements.

As of December 31, 2016 and December 31, 2015, Bank SNB was categorized as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, CET1 risk-based, and Tier I leverage ratios as set forth in the following table.

A summary of actual capital amounts and ratios as of December 31, 2016 are presented below.

					Required to be Considered				For Capital
	Actual				Well-Capitalized				Adequacy Purposes
(Dollars in thousands)	Amount		Ratio			Amount	Ratio			Amount	Ratio
As of December 31, 2016:
Total CET1 Capital (to risk-weighted assets)
Southwest	$	272,882	12.36	%	$	143,488	6.50	%	$	99,338	4.50	%
Bank SNB		301,023	13.66			143,189	6.50			99,131	4.50
Total Capital (to risk-weighted assets)
Southwest		345,597	15.66			220,751	10.00			176,601	8.00
Bank SNB		328,681	14.92			220,291	10.00			176,232	8.00
Tier 1 Capital (to risk-weighted assets)
Southwest		317,882	14.40			176,601	8.00			132,450	6.00
Bank SNB		301,023	13.66			176,232	8.00			132,174	6.00
Tier 1 Leverage (to average assets)
Southwest		317,882	13.02			122,046	5.00			97,637	4.00
Bank SNB		301,023	12.37			121,686	5.00			97,349	4.00

A summary of actual capital amounts and ratios as of December 31, 2015 are presented below.

					Required to be Considered				For Capital
	Actual				Well-Capitalized				Adequacy Purposes
(Dollars in thousands)	Amount		Ratio			Amount	Ratio			Amount	Ratio
As of December 31, 2015:
Total CET1 Capital (to risk-weighted assets)
Southwest	$	282,737	13.21	%	$	139,122	6.50	%	$	96,316	4.50	%
Bank SNB		291,125	13.65			138,637	6.50			95,980	4.50
Total Capital (to risk-weighted assets)
Southwest		359,300	16.79			214,034	10.00			171,228	8.00
Bank SNB		317,865	14.90			213,288	10.00			170,631	8.00
Tier 1 Capital (to risk-weighted assets)
Southwest		332,468	15.53			171,228	8.00			128,421	6.00
Bank SNB		291,125	13.65			170,631	8.00			127,973	6.00
Tier 1 Leverage (to average assets)
Southwest		332,468	14.41			115,371	5.00			92,297	4.00
Bank SNB		291,125	12.66			114,939	5.00			91,951	4.00

The approval of the Oklahoma State Banking Department and the Federal Reserve Bank is required if the total of all dividends declared by Bank SNB in any calendar year exceeds the total of its net profits of that year combined with its retained net profits of the preceding two years. In addition, Bank SNB may not pay a dividend if, after paying the dividend, Bank SNB would be undercapitalized.