Annual report pursuant to Section 13 and 15(d)

REGULATORY MATTERS

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REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2015
Banking and Thrift [Abstract]  
REGULATORY MATTERS

Note 14

REGULATORY MATTERS

 

Regulatory Capital Requirements. The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

 

The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 (subject to a phase-in period for certain provisions). Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, total and tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2015 and 2014, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

 

As of December 31, 2015, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum common equity tier 1, total risk-based, tier 1 risk based and tier 1 leverage ratios as set forth in the following tables. There are not conditions or events since the notification that management believes have changed the Bank’s category. The Company and Bank’s actual capital amounts and ratios as of December 31, 2015 and 2014 are also presented in the table.

 

                            To Be Well-  
                            Capitalized Under  
                Required     Prompt  
                For Capital     Corrective  
    Actual     Adequacy Purposes     Action Provisions  
(Dollars in Thousands)   Amount     Ratio     Amount     Ratio     Amount     Ratio  
2015                                                
Common Equity Tier 1:                                                
CCBG   $ 215,075       12.84 %   $ 75,385       4.50 %     *       *  
CCB     266,138       15.93 %     75,162       4.50 %   $ 108,567       6.50 %
                                                 
Tier 1 Capital:                                                
CCBG     275,075       16.42 %     100,513       6.00 %     *       *  
CCB     266,138       15.93 %     100,216       6.00 %     133,621       8.00 %
                                                 
Total Capital:                                                
CCBG     289,028       17.25 %     134,018       8.00 %     *       *  
CCB     280,091       16.77 %     133,621       8.00 %     167,026       10.00 %
                                                 
Tier 1 Leverage:                                                
CCBG     275,075       10.65 %     103,342       4.00 %     *       *  
CCB     266,138       10.33 %     103,095       4.00 %     128,869       5.00 %
                                                 
2014                                                
Tier 1 Capital:                                                
CCBG   $ 269,503       16.67 %   $ 64,656       4.00 %     *       *  
CCB     261,655       16.24 %     64,458       4.00 %   $ 96,687       6.00 %
                                                 
Total Capital:                                                
CCBG     287,042       17.76 %     129,313       8.00 %     *       *  
CCB     279,194       17.33 %     128,916       8.00 %     161,145       10.00 %
                                                 
Tier 1 Leverage:                                                
CCBG     269,503       10.99 %     98,090       4.00 %     *       *  
CCB     261,655       10.70 %     97,834       4.00 %     122,293       5.00 %

 

  * Not applicable to bank holding companies.

 

Dividend Restrictions. In the ordinary course of business, the Company is dependent upon dividends from its banking subsidiary to provide funds for the payment of dividends to shareowners and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Company’s banking subsidiary to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits of the banking subsidiary for that year combined with the retained net profits for proceeding two years. In 2016, the bank subsidiary may declare dividends without regulatory approval of $0.2 million plus an additional amount equal to net profits of the Company’s subsidiary bank for 2016 up to the date of any such dividend declaration.