Stockholders' Equity, Regulatory Capital and Dividend Restrictions

9 Months Ended

Sep. 30, 2015

Banking and Thrift [Abstract]

Stockholders' Equity, Regulatory Capital and Dividend Restrictions

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

The Bank is 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 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 Bank to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier I, Tier I capital and total 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 September 30, 2015, that the Bank meets all capital adequacy requirements to which they are subject.

As of September 30, 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 Bank’s compliance with its regulatory capital requirements:

											Minimum to Be Well
						Minimum					Capitalized Under
						for Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Percent			Amount		Percent			Amount		Percent
Bank as of September 30, 2015:
Tier I capital (to average assets)	$	28,221		10.37	%	$	10,884		4.00	%	$	13,605		5.00	%
Tier I capital common equity (to risk weighted assets)		28,221		11.37	%		11,166		4.50	%		16,129		6.50	%
Tier I capital (to risk weighted assets)		28,221		11.37	%		14,889		6.00	%		19,851		8.00	%
Total risk based capital (to risk weighted assets)		30,384		12.24	%		19,851		8.00	%		24,814		10.00	%
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	%