Regulatory Matters
 12 Months Ended
Dec. 31, 2016
Regulatory Matters [Abstract]  
Regulatory Matters

Note 14: Regulatory Matters

 

As of December 31, 2016, based on its call report computations, State Bank was classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2016 that management believes have changed State Bank’s capital classification.

 

State Bank’s actual capital amounts and ratios are presented in the following table. Capital levels are presented for the State Bank only as the Company is now exempt from quarterly reporting at the holding company level:

 

              To Be Well Capitalized 
        For Capital Adequacy  Under Prompt Corrective 
  Actual  Purposes  Action Procedures 
($ in thousands) Amount  Ratio  Amount  Ratio  Amount  Ratio 
As of December 31, 2016                  
Tier I Capital to average assets $74,183   9.31% $31,875   4.0% $39,844   5.0%
Tier I Common equity capital to risk-weighted assets  74,183   10.28%  32,477   4.5%  46,912   6.5%
                         
Tier I Capital to risk-weighted assets  74,183   10.28%  43,303   6.0%  57,738   8.0%
Total Risk-based capital to risk-weighted assets  81,908   11.35%  57,738   8.0%  72,172   10.0%
                         
As of December 31, 2015                        
Tier I Capital to average assets $64,914   9.10% $28,534   4.0% $35,668   5.0%
Tier I Common equity capital to risk-weighted assets  64,914   10.23%  28,545   4.5%  41,231   6.5%
                         
Tier I Capital to risk-weighted assets  64,914   10.23%  38,059   6.0%  50,746   8.0%
Total Risk-based capital to risk-weighted assets  71,904   11.34%  50,746   8.0%  63,432   10.0%

 

The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer is phasing in from 0.0 percent for 2015 to 2.50 percent for 2019. The capital conservation buffer was 0.625 percent at December 31, 2016. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2016, State Bank met all capital adequacy requirements to which they are subject.