Note 12 - Regulatory Capital Matters

9 Months Ended

Sep. 30, 2018

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

September 30, 2018,

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

September 30, 2018,

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

September 30, 2018

and

December 31, 2017

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

September 30, 2018

and

December 31, 2017

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 September 30, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	131,968		15.88	%	$	66,466		8.00	%		N/A		N/A
Colony Bank		128,955		15.54			66,371		8.00		$	82,964		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		124,813		15.02			49,849		6.00			N/A		N/A
Colony Bank		121,800		14.68			49,778		6.00			66,371		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		101,313		12.19			37,387		4.50			N/A		N/A
Colony Bank		121,800		14.68			37,334		4.50			53,926		6.50
Tier I Capital to Average Assets
Consolidated		124,813		10.45			47,794		4.00			N/A		N/A
Colony Bank		121,800		10.21			47,720		4.00			59,650		5.00

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2017
Total Capital to Risk-Weighted Assets
Consolidated	$	127,786		15.56	%	$	65,718		8.00	%		N/A		N/A
Colony Bank		127,470		15.54			65,628		8.00		$	82,036		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		120,279		14.64			49,289		6.00			N/A		N/A
Colony Bank		119,963		14.62			49,221		6.00			65,628		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		96,779		11.78			36,967		4.50			N/A		N/A
Colony Bank		119,963		14.62			36,916		4.50			53,323		6.50
Tier I Capital to Average Assets
Consolidated		120,279		9.89			48,635		4.00			N/A		N/A
Colony Bank		119,963		9.88			48,566		4.00			60,708		5.00