Note 14 - Regulatory

3 Months Ended

Mar. 31, 2013

Regulatory Capital Requirements under Banking Regulations [Text Block]

14. Regulatory

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.

At March 31, 2013, the 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 Bank’s compliance:

(Dollars in thousands)	Amount		Percent of Assets
Tier I (leverage) capital:
Capital level	$	427,849		9.78	%
Requirement to be well capitalized		218,655		5.00
Excess		209,194		4.78
Tier I risk-based capital:
Capital level	$	427,849		14.33	%
Requirement to be well capitalized		179,162		6.00
Excess		248,687		8.33
Total risk-based capital:
Capital level	$	458,876		15.37	%
Requirement to be well capitalized		298,603		10.00
Excess		160,273		5.37

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. At March 31, 2013, the Holding Company’s Tier I (leverage) capital, Tier I risk-based capital and Total risk-based capital was 10.16%, 14.89%, and 15.93%, respectively.