Regulatory Capital Matters

3 Months Ended

Mar. 31, 2022

Banking And Thrift Disclosure [Abstract]

Regulatory Capital Matters

Regulatory Capital Matters

The amount of dividends payable to the parent company from the subsidiary bank is limited by various banking regulatory agencies. Upon approval by regulatory authorities, the Bank may pay cash dividends to the parent company in excess of regulatory limitations.

The Company is subject to various regulatory capital requirements administered by 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company 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 Company’s capital amounts and classifications 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 Company to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets.  As of March 31, 2022, the interim final Basel III rules (“Basel III”) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets.  These amounts and ratios as defined in regulations are presented hereafter.  Management believes, as of March 31, 2022, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action.  In the opinion of management, there are no events or conditions since prior notification of capital adequacy from the regulators that have changed the institution’s category.

The Basel III rules also require the implementation of a new capital conservation buffer comprised of common equity Tier 1 capital.  The capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by 0.625% until reaching its final level of 2.5% on January 1, 2019.

The Board of Governors of the Federal Reserve raised the threshold for determining applicable of the Small Bank Holding Company and Savings and Loan Company Policy Statement in August 2018 from $1 billion to $3 billion in consolidated total assets to provide regulatory burden relief, therefore, the Company is no longer subject to the minimum capital requirements on a consolidated basis.

The following table summarizes regulatory capital information as of March 31, 2022 and December 31, 2021 on a consolidated basis and for the subsidiary, as defined.  Regulatory capital ratios for March 31, 2022 and December 31, 2021

were calculated in accordance with the Basel III rules.

(dollars in thousands)	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of March 31, 2022
Total Capital to Risk-Weighted Assets
Consolidated	$	265,390	15.40	%	$	137,865	8.00	%	N/A		N/A
Colony Bank	227,722		13.23		137,695		8.00		$	172,119	10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated	252,471		14.65		103,401		6.00		N/A		N/A
Colony Bank	214,803		12.48		103,272		6.00		137,695		8.00
Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated	228,971		13.29		77,530		4.50		N/A		N/A
Colony Bank	214,803		12.48		77,454		4.50		111,877		6.50
Tier 1 Capital to Average Assets
Consolidated	252,471		9.47		106,640		4.00		N/A		N/A
Colony Bank	214,803		8.16		105,245		4.00		131,557		5.00

(dollars in thousands)	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2021
Total Capital to Risk-Weighted Assets
Consolidated	$	207,366	12.05	%	$	137,670	8.00	%	N/A		N/A
Colony Bank	203,265		12.18		133,507		8.00		$	166,884	10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated	194,456		11.28		103,434		6.00		N/A		N/A
Colony Bank	190,355		11.41		100,099		6.00		133,465		8.00
Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated	170,956		9.87		77,943		4.50		N/A		N/A
Colony Bank	190,355		11.41		75,074		4.50		108,441		6.50
Tier 1 Capital to Average Assets
Consolidated	194,456		7.25		107,286		4.00		N/A		N/A
Colony Bank	190,355		7.53		101,118		4.00		126,398		5.00