Note 12 - Regulatory

9 Months Ended

Sep. 30, 2011

Regulatory Capital Requirements under Banking Regulations [Text Block]

12.           Regulatory

On July 21, 2011, under provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Savings Bank’s primary regulator, the Office of Thrift Supervision (“OTS”), was merged into the Office of the Comptroller of the Currency (“OCC”) and the Holding Company’s primary regulator, which had been the OTS, became the Federal Reserve. The OCC, on July 21, 2011, issued an Interim Final Rule containing the regulations issued by the OTS that the OCC has authority to promulgate and enforce as of July 21, 2011. This Interim Final Rule was effective as of July 21, 2011. The Savings Bank and the Holding Company will continue to file regulatory reports through the end of 2011 in accordance with the requirements that existed under the OTS. Beginning with the quarter ended March 31, 2012, the Savings Bank and the Holding Company will file regulatory reports in accordance with the requirements of the OCC and the Federal Reserve, respectively. Under the regulations of the OTS, the Holding Company was not required to meet capital requirements. Under the regulations of the Federal Reserve, the Holding Company will be required to meet capital requirements similar to that of the Savings Bank. If the Holding Company had been subject to the capital requirements that applied to the Savings Bank, its capital ratios would have been slightly higher than those of the Savings Bank and it would have been considered “well-capitalized” under regulatory requirements.

Under current regulatory capital requirements, the Savings Bank is required to comply with each of three separate capital adequacy standards.  At September 30, 2011, the Savings Bank exceeded each of the three capital requirements and is categorized as “well-capitalized” under the prompt corrective action regulations.  Set forth below is a summary of the Savings Bank’s compliance:

(Dollars in thousands)	Amount		Percent of Assets
Core Capital:
Capital level	$	407,084		9.51	%
Well capitalized		213,862		5.00
Excess		193,222		4.51
Tier 1 Risk-Based Capital:
Capital level	$	407,084		14.24	%
Well capitalized		171,489		6.00
Excess		235,595		8.24
Risk-Based Capital:
Capital level	$	436,687		15.28	%
Well capitalized		285,816		10.00
Excess		150,871		5.28