Note 12 - Regulatory Capital Matters

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

(

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.

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,

2017,

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,

2017,

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,

2017

and

December

31,

2016

on a consolidated basis and for the subsidiary, as defined.  Regulatory capital ratios for

March

31,

2017

and

December

31,

2016

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 3 1 , 201 7
Total Capital to Risk-Weighted Assets
Consolidated	$	123,052		15.39	%	$	63,981		8.00	%		N/A		N/A
Colony Bank		125,211		15.68			63,894		8.00		$	79,867		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		114,188		14.28			47,986		6.00			N/A		N/A
Colony Bank		116,347		14.57			47,920		6.00			63,894		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		90,688		11.34			35,989		4.50			N/A		N/A
Colony Bank		116,347		14.57			35,940		4.50			51,914		6.50
Tier I Capital to Average Assets
Consolidated		114,188		9.47			48,229		4.00			N/A		N/A
Colony Bank		116,347		9.66			48,161		4.00			60,201		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, 2016
Total Capital to Risk-Weighted Assets
Consolidated	$	130,785		16.64	%	$	62,880		8.00	%		N/A		N/A
Colony Bank		127,646		16.26			62,796		8.00		$	78,495		10.00	%
Tier 1 Capital to Risk-Weighted Assets
Consolidated		121,862		15.50			47,160		6.00			N/A		N/A
Colony Bank		118,723		15.12			47,097		6.00			62,796		8.00
Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated		89,002		11.32			35,370		4.50			N/A		N/A
Colony Bank		118,723		15.12			35,323		4.50			51,022		6.50
Tier 1 Capital to Average Assets
Consolidated		121,862		10.29			47,368		4.00			N/A		N/A
Colony Bank		118,723		10.04			47,290		4.00			59,113		5.00