Note 14 - Regulatory Capital

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

14. Regulatory Capital

Under current capital regulations, the Bank is required to comply with

four

separate capital adequacy standards. As of

March

31,

2017,

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

2017

is

1.25%

and increases

0.625%

annually through

2019

to

2.5%.

The CCB for the Bank at

March

31,

2017

was

6.3%.

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

	March 31, 2017					December 31, 2016
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	616,017		9.98	%	$	607,033		10.12	%
Requirement to be well capitalized		308,535		5.00			299,848		5.00
Excess		307,482		4.98			307,185		5.12
Common Equity Tier I risk-based capital:
Capital level	$	616,017		13.80	%	$	607,033		14.12	%
Requirement to be well capitalized		290,046		6.50			279,443		6.50
Excess		325,971		7.30			327,590		7.62
Tier I risk-based capital:
Capital level	$	616,017		13.80	%	$	607,033		14.12	%
Requirement to be well capitalized		356,980		8.00			343,930		8.00
Excess		259,037		5.80			263,103		6.12
Total risk-based capital:
Capital level	$	638,228		14.30	%	$	629,262		14.64	%
Requirement to be well capitalized		446,225		10.00			429,913		10.00
Excess		192,003		4.30			199,349		4.64

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of

March

31,

2017,

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

March

31,

2017

was

6.3%.

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

	March 31, 2017					December 31, 2016
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	550,055		8.92	%	$	539,228		9.00	%
Requirement to be well capitalized		308,284		5.00			299,654		5.00
Excess		241,771		3.92			239,574		4.00
Common Equity Tier I risk-based capital:
Capital level	$	516,706		11.59	%	$	506,432		11.79	%
Requirement to be well capitalized		289,733		6.50			279,121		6.50
Excess		226,973		5.09			227,311		5.29
Tier I risk-based capital:
Capital level	$	550,055		12.34	%	$	539,228		12.56	%
Requirement to be well capitalized		356,594		8.00			343,534		8.00
Excess		193,461		4.34			195,694		4.56
Total risk-based capital:
Capital level	$	647,266		14.52	%	$	636,457		14.82	%
Requirement to be well capitalized		445,743		10.00			429,417		10.00
Excess		201,523		4.52			207,040		4.82