Regulatory Matters

3 Months Ended

Mar. 31, 2019

Banking And Thrift [Abstract]

Regulatory Matters

Note 14—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.

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 March 31, 2019 and December 31, 2018 are presented in the following tables and as shown, are above the thresholds necessary to be considered “well-capitalized”. Management believes that no events or changes have occurred after March 31, 2019 that would change this designation.

	Consolidated Company					Bank
(In thousands)	Amount		Ratio			Amount		Ratio
March 31, 2019
Tier 1 leverage	$	1,717,530		10.0	%	$	1,889,679		11.1	%
Common equity tier 1 capital		1,717,530		10.4			1,839,679		11.2
Tier 1 risk-based capital		1,717,530		10.4			1,889,679		11.5
Total risk-based capital		1,959,393		11.9			2,020,268		12.3
Minimum requirement:
Tier 1 leverage		683,890		4.0			683,640		4.0
Common equity tier 1 capital		740,657		4.5			740,358		4.5
Tier 1 risk-based capital		987,543		6.0			987,144		6.0
Total risk-based capital		1,316,724		8.0			1,316,192		8.0
Well capitalized requirement:
Tier 1 leverage	N/A		N/A				854,551		5.0
Common equity tier 1 capital	N/A		N/A				1,069,406		6.5
Tier 1 risk-based capital		987,543		6.0			1,316,192		8.0
Total risk-based capital		1,645,905		10.0			1,645,240		10.0

	Consolidated Company					Bank
(In thousands)	Amount		Ratio			Amount		Ratio
December 31, 2018
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

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 March 31, 2019 and December 31, 2018, the required reserve balance with the Federal Reserve Bank was approximately $211.5 million and $91.5 million, respectively.