Regulatory Capital Matters

3 Months Ended

Mar. 31, 2015

Regulatory Capital Matters [Abstract]

Regulatory Capital Matters

(12) 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.

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, 2015, 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, 2015, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action.  There is no threshold for well-capitalized status for bank holding companies.  In the opinion of management, there have been no events or conditions occur since March 31, 2015, or since the most recent notification of capital adequacy from the regulators, which 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 will be 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 following table summarizes regulatory capital information as of March 31, 2015 and December 31, 2014 on a consolidated basis and for the subsidiary, as defined.  Regulatory capital ratios for March 31, 2015 were calculated in accordance with the Basel III rules, whereas the December 31, 2014 regulatory ratios were calculated in accordance with the Basel I rules.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount			Ratio
As of March 31, 2015
Total Capital to Risk-Weighted Assets
Consolidated	$	136,946		17.34	%	$	63,179		8.00	%		N/	A		N/	A
Colony Bank		129,606		16.44			63,083		8.00		$	78,854			10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		128,569		16.28			47,385		6.00			N/	A		N/	A
Colony Bank		121,229		15.37			47,312		6.00			63,083			8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		77,069		9.76			35,538		4.50			N/	A		N/	A
Colony Bank		121,229		15.37			35,484		4.50			51,255			6.50
Tier I Capital to Average Assets
Consolidated		128,569		11.14			46,180		4.00			N/	A		N/	A
Colony Bank		121,229		10.53			46,033		4.00			57,541			5.00

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount			Ratio
As of December 31, 2014
Total Capital to Risk-Weighted Assets
Consolidated	$	136,022		17.95	%	$	60,639		8.00	%		N/	A		N/	A
Colony Bank		127,833		16.89			60,542		8.00		$	75,678			10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated		127,220		16.78			30,320		4.00			N/	A		N/	A
Colony Bank		119,031		15.73			30,271		4.00			45,407			6.00
Tier 1 Capital to Average Assets
Consolidated		127,220		11.18			45,509		4.00			N/	A		N/	A
Colony Bank		119,031		10.50			45,364		4.00			56,705			5.00