Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2017
Banking and Thrift [Abstract]  

Note 14


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 capital (as defined in the regulations) to risk-weighted assets (as defined) and of tier 1 capital (as defined) to average assets (as defined). Under the Basel III rules, the Company must hold a capital conservation buffer above the well capitalized risk-based capital ratios. The capital conservation buffer is being phased in as follows: 1.25% in 2017, 1.875% in 2018, and 2.50% in 2019. Management believes, at December 31, 2017 and 2016, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

At December 31, 2017, 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, 2017 and 2016 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
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%
Common Equity Tier 1:
CCBG $   220,211 12.61% $ 78,587 4.50% * *
CCB 268,811 15.44% 78,356 4.50% $ 113,182 6.50%
Tier 1 Capital:
CCBG 270,801 15.51% 104,783 6.00% * *
CCB 268,811 15.44% 104,475 6.00% 139,300 8.00%
Total Capital:
CCBG 284,232 16.28% 139,710 8.00% * *
CCB 282,242 16.21% 139,300 8.00% 174,126 10.00%
Tier 1 Leverage:
CCBG 270,801 10.23% 105,909 4.00% * *
CCB 268,811 10.18% 105,652 4.00% 132,066 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 2018, the bank subsidiary may declare dividends without regulatory approval of $3.4 million plus an additional amount equal to net profits of the Company’s subsidiary bank for 2018 up to the date of any such dividend declaration.