Note 12 - Regulatory Capital Matters

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

(

1

2

) 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

June 30, 2019,

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

June 30, 2019,

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 was 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

June 30, 2019

and

December 31, 2018

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

June 30, 2019

and

December 31, 2018

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 June 30, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	136,952		13.37	%	$	81,961		8.00	%		N/A		N/A
Colony Bank		148,554		14.52			81,856		8.00		$	102,320		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		130,163		12.70			61,470		6.00			N/A		N/A
Colony Bank		141,765		13.86			61,392		6.00			81,856		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		106,663		10.41			46,103		4.50			N/A		N/A
Colony Bank		141,765		13.86			46,044		4.50			66,508		6.50
Tier I Capital to Average Assets
Consolidated		130,163		9.34			55,765		4.00			N/A		N/A
Colony Bank		141,765		10.18			55,684		4.00			69,606		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, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	133,900		15.86	%	$	67,527		8.00	%		N/A		N/A
Colony Bank		131,723		15.63			67,418		8.00		$	84,272		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		126,623		15.00			50,645		6.00			N/A		N/A
Colony Bank		124,446		14.77			50,563		6.00			67,418		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		103,123		12.22			37,984		4.50			N/A		N/A
Colony Bank		124,446		14.77			37,923		4.50			54,777		6.50
Tier I Capital to Average Assets
Consolidated		126,623		10.24			49,478		4.00			N/A		N/A
Colony Bank		124,446		10.08			49,396		4.00			61,745		5.00