Restriction on Transfers of Funds to Parent

12 Months Ended

Dec. 31, 2016

Restriction on Transfers of Funds to Parent

Restriction on Transfers of Funds to Parent

Note 15. Restriction on Transfers of Funds to Parent

There are legal limitations on the ability of the Bank to provide funds to the Bancorp, which may be used for, among other things, holding Company operating costs, and the payment of dividends to the holders of the Company's common stock. Under certain circumstances, the Bank may need to seek approval from the DBO prior to paying any dividends to the Bancorp. Additionally, Section 23A of the Federal Reserve Act restricts the Bank from extending credit to the Bancorp and other affiliates amounting to more than 20 percent of its contributed capital and retained earnings.