Stockholders' Equity, Regulatory Capital and Dividend Restrictions

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Stockholders' Equity, Regulatory Capital and Dividend Restrictions

Note 7. Stockholders’ Equity, Regulatory Capital and Dividend Restrictions

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier I, and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of March 31, 2015, that the Company and the Bank meets all capital adequacy requirements to which they are subject.

As of March 31, 2015, the most recent notification of the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for Prompt Corrective Action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, common equity Tier I,Tier I risk-based, and Tier I leverage ratios. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The following table summarizes the Company and the Bank’s compliance with its regulatory capital requirements:

	Actual					Minimum for Capital Adequacy Purposes					Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Percent			Amount		Percent			Amount		Percent
Bank as of March 31, 2015:
Tier I capital  (to average assets)	$	24,434		9.75	%	$	10,024		4.00	%	$	12,531	5.00%
Tier I capital common equity  (to risk weighted assets)		24.434		14.17	%		7,759		4.50	%		11,208	6.50%
Tier I capital  (to risk weighted assets)		24,434		14.17	%		10,346		6.00	%		13,795	8.00%
Total risk based capital  (to risk weighted assets)		26,627		15.44	%		13,724		8.00	%		17,243	10.00%
Company as of March 31, 2015
Tier I capital  (to average assets)		24,556		9.80	%		10,022		4.00	%		N/A	N/A
Tier I capital common equity  (to risk weighted assets)		24,556		14.21	%		7,760		4.50	%		N/A	N/A
Tier I capital  (to risk weighted assets)		24,556		14.21	%		10,370		6.00	%		N/A	N/A
Total risk based capital  (to risk weighted assets)		26,749		15.48	%		13,827		8.00	%		N/A	N/A
Bank as of December 31, 2014:
Tier I capital  (to average assets)		25,380		9.90	%		10,255		4.00	%		12,819	5.00%
Tier I capital  (to risk weighted assets)		25,380		13.58	%		7,478		4.00	%		11,217	6.00%
Total capital  (to risk weighted assets)		27,566		14.74	%		14,956		8.00	%		18,695	10.00%