Regulatory Capital Matters

9 Months Ended

Sep. 30, 2011

Regulatory Capital Matters [Abstract]

Regulatory Capital Matters

(20) 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.  Additionally, in the third quarter of 2009, the Company suspended the payment of dividends to common shareholders.  At September 30, 2011, the Company is subject to certain regulatory restrictions that preclude the declaration of or payment of any dividends to its common stockholders, without prior approval from the Federal Reserve Bank.

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.  The amounts and ratios as defined in regulations are presented hereafter.  Management believes, as of September 30, 2011, 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 conditions or events since prior notification of capital adequacy from the regulators that have changed the institution's category.

The following table summarizes regulatory capital information as of September 30, 2011 and December 31, 2010 on a consolidated basis and for each significant subsidiary, as defined.

											To Be Well Capitalized
						For Capital					Under Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
As of September 30, 2011	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital to Risk-Weighted Assets
Consolidated	$	117,529		16.64	%	$	56,495		8.00	%	NA		NA
Colony Bank		114,946		16.32			56,357		8.00		$	70,446		10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated		108,602		15.38			28,248		4.00		NA		NA
Colony Bank		106,040		15.05			28,178		4.00			42,268		6.00
Tier 1 Capital to Average Assets
Consolidated		108,602		9.33			46,536		4.00		NA		NA
Colony Bank		106,040		9.13			46,441		4.00			58,052		5.00

											To Be Well Capitalized
						For Capital					Under Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2010
Total Capital to Risk-Weighted Assets
Consolidated	$	116,914		14.85	%	$	62,981		8.00	%	NA		NA
Colony Bank		113,119		14.39			62,905		8.00		$	78,631		10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated		106,845		13.57			31,491		4.00		NA		NA
Colony Bank		103,062		13.11			31,452		4.00			47,179		6.00
Tier 1 Capital to Average Assets
Consolidated		106,845		8.59			49,748		4.00		NA		NA
Colony Bank		103,062		8.30			49,697		4.00			62,122		5.00

The Bank is currently subject to a memorandum of understanding (MOU) which requires, among other things, that the Bank maintain minimum capital ratios at specified levels higher than those otherwise required by applicable regulations as follows:  Tier 1 capital to total average assets of 8% and total risk-based capital to total risk-weighted assets of 10% during the life of the MOU.  Additionally, the MOU also requires that prior to declaring or paying any cash dividend to the Company, the Bank must obtain written consent of its regulators.