Note 12 - Regulatory Capital Matters

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

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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 common 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, 2016, 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, 2016, 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 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, 2016 and December 31, 2015 on a consolidated basis and for the subsidiary, as defined.  Regulatory capital ratios for March 31, 2016 and December 31, 2015 were calculated in accordance with the Basel III rules.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of March 31, 2016
Total Capital to Risk-Weighted Assets
Consolidated	$	134,531		17.13	%	$	62,813		8.00	%		N/A		N/A
Colony Bank		130,136		16.60			62,722		8.00		$	78,403		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		124,982		15.92			47,109		6.00			N/A		N/A
Colony Bank		120,587		15.38			47,042		6.00			62,722		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		83,461		10.63			35,332		4.50			N/A		N/A
Colony Bank		120,587		15.38			35,281		4.50			50,962		6.50
Tier I Capital to Average Assets
Consolidated		124,982		10.70			46,707		4.00			N/A		N/A
Colony Bank		120,587		10.34			46,633		4.00			58,291		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, 2015
Total Capital to Risk-Weighted Assets
Consolidated	$	131,948		16.60	%	$	63,602		8.00	%		N/A		N/A
Colony Bank		126,939		15.99			63,500		8.00		$	79,375		10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated		123,344		15.51			47,702		6.00			N/A		N/A
Colony Bank		118,335		14.91			47,625		6.00			63,500		8.00
Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated		81,823		10.29			35,776		4.50			N/A		N/A
Colony Bank		118,335		14.91			35,719		4.50			51,594		6.50
Tier 1 Capital to Average Assets
Consolidated		123,344		10.69			46,149		4.00			N/A		N/A
Colony Bank		118,335		10.27			46,074		4.00			57,592		5.00