Annual report pursuant to Section 13 and 15(d)

REGULATORY MATTERS

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REGULATORY MATTERS
 12 Months Ended
Dec. 31, 2018
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. A detailed description of these regulatory capital requirements is provided in the section captioned “Regulatory Considerations – Capital Regulations” section on page 14.

Management believes, at December 31, 2018 and 2017, that the Company and the Bank meet all capital adequacy requirements to which they are subject. At December 31, 2018, 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 at December 31, 2018 and 2017 are presented in the following 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
2018
Common Equity Tier 1:
CCBG $   249,774 13.58% $ 82,748 4.50% * *
CCB 290,014 15.82% 82,503 4.50% $ 119,172 6.50%
Tier 1 Capital:
CCBG    300,774 16.36% 110,331 6.00% * *
CCB 290,014 15.82% 110,005 6.00% 146,673 8.00%
Total Capital:
CCBG 314,984 17.13% 147,108 8.00% * *
CCB 304,224 16.59% 146,673 8.00% 183,341 10.00%
Tier 1 Leverage:
CCBG 300,774 10.89% 110,491 4.00% * *
CCB 290,014 10.53% 110,216 4.00% 137,770 5.00%
2017
Common Equity Tier 1:
CCBG $   234,477 13.42% $ 78,648 4.50% * *
CCB 275,796 15.83% 78,418 4.50% $ 113,270 6.50%
Tier 1 Capital:
CCBG 285,477 16.33% 104,864 6.00% * *
CCB 275,796 15.83% 104,557 6.00% 139,410 8.00%
Total Capital:
CCBG 298,784 17.10% 139,819 8.00% * *
CCB 289,103 16.59% 139,410 8.00% 174,262 10.00%
Tier 1 Leverage:
CCBG 285,477 10.47% 109,082 4.00% * *
CCB 275,796 10.14% 108,764 4.00% 135,956 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 2019, the bank subsidiary may declare dividends without regulatory approval of $17.0 million plus an additional amount equal to net profits of the Company’s subsidiary bank for 2019 up to the date of any such dividend declaration.