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Capital Adequacy
 3 Months Ended
Mar. 31, 2012
Capital Adequacy
Note 3 – Capital Adequacy

The Company (on a consolidated basis) is subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements results in certain discretionary and required actions by regulators that could have an effect on the Company’s operations. The regulations require the Company to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Capital Adequacy and Ratios

To be considered well capitalized and adequately capitalized (as defined) under the regulatory framework for prompt corrective action, the Bank must maintain minimum Tier 1 leverage, Tier 1 risk-based, and total risk-based ratios. At March 31, 2012 the Company maintained capital ratios exceeding the requirement to be considered adequately capitalized.  These minimum amounts and ratios along with the actual amounts and ratios for the Company as of March 31, 2012 and December 31, 2011 are presented in the following tables.
 
March 31, 2012
  
Well Capitalized Requirement
  
Adequately Capitalized Requirement
  
Actual
   
Amount
  
Ratio
  
Amount
  
Ratio
  
Amount
  
Ratio
Tier 1 Capital (to Average Assets)
                                    
TIB Financial Corp.
     N/A       N/A     $ ³ 8,197       ³ 4.0 %   $ 200,424       97.8 %
                                                 
                                                 
Tier 1 Capital ( to Risk Weighted Assets)
                                                
TIB Financial Corp.
     N/A       N/A     $ ³ 8,182       ³ 4.0 %   $ 200,424       98.0 %
                                                 
                                                 
Total Capital (to Risk Weighted Assets)
                                                
TIB Financial Corp.
     N/A       N/A     $ ³ 16,364       ³ 8.0 %   $ 200,424       98.0 %
                                                 
 
December 31, 2011
  
Well Capitalized Requirement
  
Adequately Capitalized Requirement
  
Actual
   
Amount
  
Ratio
  
Amount
  
Ratio
  
Amount
  
Ratio
Tier 1 Capital (to Average Assets)
                                    
TIB Financial Corp.
     N/A       N/A     $ ³ 8,231       ³ 4.0 %   $ 198,337       96.4 %
                                                 
                                                 
Tier 1 Capital ( to Risk Weighted Assets)
                                                
TIB Financial Corp.
     N/A       N/A     $ ³ 8,065       ³ 4.0 %   $ 198,337       98.4 %
                                                 
                                                 
Total Capital (to Risk Weighted Assets)
                                                
TIB Financial Corp.
     N/A       N/A     $ ³ 16,129       ³ 8.0 %   $ 198,337       98.4 %
                                                 
 
Management believes, as of March 31, 2012, that the Company meets all capital requirements to which they are subject. Tier 1 Capital for the Company includes the trust preferred securities that were issued in September 2000, July 2001 and June 2006 to the extent allowable.

On September 22, 2010 the Federal Reserve Bank of Atlanta (“FRB”) and the Company entered into a written agreement (the “Written Agreement”) where the Company agreed, among other things, that it would not make any payments on the outstanding trust preferred securities or declare or pay any dividends without the prior written approval of the FRB. On September 28, 2011, pursuant to approval by the FRB of a written request by the Company, the Company resumed payments of all amounts due for current and deferred interest through the subsequent payment date for each of its trust preferred securities. On November 8, 2011, the FRB notified the Company that the Written Agreement was terminated effective April 30, 2011 given that TIB Bank was merged into Capital Bank NA and that the condition of the Company was subsequently upgraded.

On January 18, 2011, the Company concluded a rights offering (the "Rights Offering") wherein legacy shareholders received rights to purchase up to 1,489 shares of common stock, at a price of $15.00 per share, acquired 533 shares of newly issued common stock. The rights offering resulted in net proceeds of $7,763. The record date for the rights offering was July 12, 2010.

Subsidiary Dividend Limitations

In August 2010, Capital Bank, NA entered into an Operating Agreement (the “OCC Operating Agreement”) with the Office of the Comptroller of the Currency (the “OCC”). ,Currently, the OCC Operating Agreement with Capital Bank, NA prohibits the Bank from paying a dividend for three years following July 16, 2010, the date Capital Bank, NA acquired the assets and certain deposits of three failed banks from the Federal Deposit Insurance Corporation. Once the three-year period has elapsed, the agreement imposes other restrictions on Capital Bank, NA’s ability to pay dividends including requiring prior approval from the OCC before any distribution is made.
 
Dividends that may be paid by a national bank without express approval of the OCC are limited to that bank’s retained net profits for the preceding two years plus retained net profits up to the date of any dividend declaration in the current calendar year. Based on the retained net profits of the Bank, declaration of dividends by the Bank to the Company during 2012, if not subject to other restrictions, would have been limited to approximately $11,222.