Note 14 - Regulatory Capital

12 Months Ended

Dec. 31, 2012

Regulatory Capital Requirements under Banking Regulations [Text Block]

14. Regulatory Capital

The Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) imposes a number of mandatory supervisory measures on banks and thrift institutions. Among other matters, FDICIA established five capital zones or classifications (well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized). Such classifications are used by bank regulatory agencies to determine matters ranging from each institution’s quarterly FDIC deposit insurance premium assessments, to approvals of applications authorizing institutions to grow their asset size or otherwise expand business activities. Under current capital regulations, the Bank is required to comply with each of three separate capital adequacy standards. As of December 31, 2012, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	December 31, 2012					December 31, 2011
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	425,149		9.62	%	$	410,356		9.63	%
Requirement to be well capitalized		220,980		5.00			213,156		5.00
Excess		204,169		4.62			197,200		4.63
Tier I risk-based capital:
Capital level	$	425,149		14.38	%	$	410,356		14.26	%
Requirement to be well capitalized		177,401		6.00			172,611		6.00
Excess		247,748		8.38			237,745		8.26
Total risk-based capital:
Capital level	$	456,252		15.43	%	$	440,700		15.32	%
Requirement to be well capitalized		295,668		10.00			287,684		10.00
Excess		160,584		5.43			153,016		5.32

As a result of its conversion to a bank holding company on February 28, 2013, the Holding Company became subject to the same regulatory capital requirements as the Bank. If the Holding Company had been subject to regulatory capital requirements at December 31, 2012, its tangible, leverage and core, and risk-based capital ratios would have been 10.06%, 14.89%, and 15.95%, respectively, and it would have been categorized “well-capitalized” under regulatory guidelines at December 31, 2012.