Regulatory Capital Matters

12 Months Ended

Dec. 31, 2013

Regulatory Capital Matters [Abstract]

Regulatory Capital Matters

(21) 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, the Company suspended the payment of dividends to its stockholders in the third quarter of 2009.  At December 31, 2013, 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 the 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 classification 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 I capital to risk-weighted assets, and of Tier I capital to average assets.  The amounts and ratios as defined in regulations are presented hereafter.  Management believes, as of December 31, 2013, 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 December 31, 2013 and 2012 on a consolidated basis and for its wholly-owned subsidiary, as defined.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013	(In Thousands)
Total Capital to Risk-Weighted Assets
Consolidated	$	129,569		17.06	%	$	60,791		8.00	%		N/A		N/A
Colony Bank		131,024		17.29			60,638		8.00		$	75,797		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		120,048		15.81			30,396		4.00			N/A		N/A
Colony Bank		121,521		16.03			30,319		4.00			45,478		6.00
Tier I Capital to Average Assets
Consolidated		120,048		10.57			45,419		4.00			N/A		N/A
Colony Bank		121,521		10.72			45,333		4.00			56,666		5.00
As of December 31, 2012
Total Capital to Risk-Weighted Assets
Consolidated	$	122,630		16.47	%	$	59,548		8.00	%		N/A		N/A
Colony Bank		123,463		16.61			59,474		8.00		$	74,342		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		113,283		15.22			29,774		4.00			N/A		N/A
Colony Bank		114,128		15.35			29,737		4.00			44,605		6.00
Tier I Capital to Average Assets
Consolidated		113,283		10.22			44,343		4.00			N/A		N/A
Colony Bank		114,128		10.31			44,282		4.00			55,352		5.00

Effective October 1, 2013, the Memorandum of Understanding (MOU) the Bank had been operating under was lifted; however, the Bank remains subject to a Board Resolution (BR) 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 percent and total risk-based capital to total risk-weighted assets of 10 percent during the life of the BR.  The BR also requires that, prior to declaring or paying any cash dividend to the Company, the Bank must obtain written consent of its regulators.  Additional requirements of the BR are discussed in Part 1, Item 1 of the Company’s December 31, 2013 Form 10-K filed with the Securities Exchange Commission on March 14, 2014.  Failure to comply with the terms of the BR could have an adverse impact on the Company’s consolidated financial condition.