Note 15 - Regulatory Capital

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

15. Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As of June 30, 2016, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. In 2016, a Capital Conservation Buffer (“CCB”) requirement became effective for banks. The CCB is designed to establish a capital range above minimum capital requirements and impose constraints on dividends, share buybacks and discretionary bonus payments when capital levels fall below prescribed levels. The minimum CCB in 2016 is 0.625% and increases 0.625% annually through 2019 to 2.5%. The CCB for the Bank at June 30, 2016 was 4.7%.

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

	June 30, 2016					December 31, 2015
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	522,961		8.89	%	$	494,690		8.89	%
Requirement to be well capitalized		294,004		5.00			278,175		5.00
Excess		228,957		3.89			216,515		3.89
Common Equity Tier I risk-based capital:
Capital level	$	522,961		12.20	%	$	494,690		12.62
Requirement to be well capitalized		278,653		6.50			254,768		6.50
Excess		244,308		5.70			239,922		6.12
Tier 1 risk-based capital:
Capital level	$	522,961		12.20	%	$	494,690		12.62	%
Requirement to be well capitalized		342,958		8.00			313,560		8.00
Excess		180,003		4.20			181,130		4.62
Total risk-based capital:
Capital level	$	545,159		12.72	%	$	516,226		13.17	%
Requirement to be well capitalized		428,697		10.00			391,950		10.00
Excess		116,462		2.72			124,276		3.17

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of June 30, 2016, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at June 30, 2016 was 4.6%.

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

	June 30, 2016					December 31, 2015
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	516,551		8.80	%	$	490,919		8.84	%
Requirement to be well capitalized		293,532		5.00			277,611		5.00
Excess		223,019		3.80			213,308		3.84
Common Equity Tier I risk-based capital:
Capital level	$	490,015		11.45	%	$	462,883		11.83
Requirement to be well capitalized		278,140		6.50			254,335		6.50
Excess		211,875		4.95			208,548		5.33
Tier 1 risk-based capital:
Capital level	$	516,551		12.07	%	$	490,919		12.55	%
Requirement to be well capitalized		342,326		8.00			313,028		8.00
Excess		174,225		4.07			177,891		4.55
Total risk-based capital:
Capital level	$	538,749		12.59	%	$	512,454		13.10	%
Requirement to be well capitalized		427,907		10.00			391,285		10.00
Excess		110,842		2.59			121,169		3.10