Regulatory Matters

12 Months Ended

Dec. 31, 2018

Banking And Thrift [Abstract]

Regulatory Matters

Note 15—Regulatory Matters

Cadence and Cadence Bank are each required to comply with regulatory capital requirements established by federal and state banking agencies.Failure to meet minimum capital requirements can subject the Company and the Bank to certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. These regulatory capital requirements involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items, and qualitative judgments by the regulators. Management believes that no events or changes have occurred after December 31, 2018 that would change this designation.

Quantitative measures established by regulation to ensure capital adequacy require institutions to maintain minimum ratios of common equity Tier 1, Tier 1, and total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average tangible assets (the “Leverage” ratio).

The actual capital amounts and ratios for the Company and the bank as of December 31, 2018 and 2017 are presented in the following tables and as shown, are above the thresholds necessary to be considered “well-capitalized”.

	Consolidated Company					Bank
(In thousands)	Amount		Ratio			Amount		Ratio
December 31, 2018
Actual:
Tier 1 leverage	$	1,209,407		10.1	%	$	1,327,974		11.1	%
Common equity tier 1 capital		1,172,454		9.8			1,277,974		10.7
Tier 1 risk-based capital		1,209,407		10.1			1,327,974		11.1
Total risk-based capital		1,403,311		11.8			1,447,719		12.1
Minimum requirement:
Tier 1 leverage		479,940		4.0	%		479,667		4.0	%
Common equity tier 1 capital		536,930		4.5			536,285		4.5
Tier 1 risk-based capital		715,907		6.0			715,047		6.0
Total risk-based capital		954,542		8.0			953,396		8.0
Well capitalized requirement:
Tier 1 leverage	N/A		N/A				599,584		5.0	%
Common equity tier 1 capital	N/A		N/A				774,634		6.5
Tier 1 risk-based capital		715,907		6.0			953,396		8.0
Total risk-based capital		1,193,178		10.0			1,191,745		10.0

	Consolidated Company					Bank
(In thousands)	Amount		Amount			Amount		Ratio
December 31, 2017
Actual:
Tier 1 leverage	$	1,096,438		10.7	%	$	1,198,234		11.7	%
Common equity tier 1		1,058,888		10.6			1,149,181		11.5
Tier 1 risk-based capital		1,096,438		10.9			1,198,234		12.0
Total risk-based capital		1,283,561		12.8			1,311,376		13.1
Minimum requirement:
Tier 1 leverage		410,770		4.0	%		410,743		4.0	%
Common equity tier 1		450,951		4.5			450,874		4.5
Tier 1 risk-based capital		601,269		6.0			601,165		6.0
Total risk-based capital		801,691		8.0			801,553		8.0
Well capitalized requirement:
Tier 1 leverage	N/A		N/A				513,429		5.0	%
Common equity tier 1	N/A		N/A				651,262	6.5
Tier 1 risk-based capital		601,269		6.0			801,553		8.0
Total risk-based capital		1,002,114		10.0			1,001,941		10.0

Under regulations controlling national banks, the payment of any dividends by a bank without prior approval of the OCC is limited to the current year’s net profits (as defined by the OCC) and retained net profits of the two preceding years. The Federal Reserve, as primary regulator for bank holding companies, has also stated that all common stock dividends should be paid out of current income. As the Company does not generate income on a stand-alone basis, it does not have the capability to pay common stock dividends without receiving dividends from the Bank.

The Bank is required to maintain average reserve balances in the form of cash or deposits with the Federal Reserve Bank. The reserve balance varies depending upon the types and amounts of deposits. At December 31, 2018 and 2017, the required reserve balance with the Federal Reserve Bank was approximately $91.5 million and $70.9 million, respectively.