Note 13 - Regulatory Capital

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

13.

       

Regulatory Capital

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

four

separate capital adequacy standards. As of

September 30, 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

September 30, 2017

was

6.60%.

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

	September 30, 2017					December 31, 2016
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	629,748		10.10	%	$	607,033		10.12	%
Requirement to be well capitalized		311,625		5.00			299,848		5.00
Excess		318,123		5.10			307,185		5.12
Common Equity Tier I risk-based capital:
Capital level	$	629,748		14.04	%	$	607,033		14.12	%
Requirement to be well capitalized		291,614		6.50			279,443		6.50
Excess		338,134		7.54			327,590		7.62
Tier 1 risk-based capital:
Capital level	$	629,748		14.04	%	$	607,033		14.12	%
Requirement to be well capitalized		358,910		8.00			343,930		8.00
Excess		270,838		6.04			263,103		6.12
Total risk-based capital:
Capital level	$	655,017		14.60	%	$	629,262		14.64	%
Requirement to be well capitalized		448,637		10.00			429,913		10.00
Excess		206,380		4.60			199,349		4.64

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

September 30, 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

September 30, 2017

was

6.61%.

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

	September 30, 2017					December 31, 2016
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	565,265		9.07	%	$	539,228		9.00	%
Requirement to be well capitalized		311,475		5.00			299,654		5.00
Excess		253,790		4.07			239,574		4.00
Common Equity Tier I risk-based capital:
Capital level	$	530,442		11.84	%	$	506,432		11.79	%
Requirement to be well capitalized		291,325		6.50			279,121		6.50
Excess		239,117		5.34			227,311		5.29
Tier 1 risk-based capital:
Capital level	$	565,265		12.61	%	$	539,228		12.56	%
Requirement to be well capitalized		358,554		8.00			343,534		8.00
Excess		206,711		4.61			195,694		4.56
Total risk-based capital:
Capital level	$	665,534		14.85	%	$	636,457		14.82	%
Requirement to be well capitalized		448,193		10.00			429,417		10.00
Excess		217,341		4.85			207,040		4.82