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Capital Requirements and Regulatory Restrictions
 12 Months Ended
Dec. 31, 2018
Regulatory Capital Requirements [Abstract]  
Capital Requirements and Regulatory Restrictions

Note 2
Capital Requirements and Regulatory Restrictions

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in 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, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’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 regulators to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier I capital and common equity Tier I capital to risk-weighted assets, and of Tier I capital to average assets. Management believes that as of December 31, 2018 and 2017, the Company and the Bank met all capital adequacy requirements to which they are subject.

Effective July 2, 2013, the Federal Reserve Board approved final rules known as the “Basel III Capital Rules” that substantially revised the risk-based capital and leverage capital requirements applicable to bank holding companies and depository institutions, including the Company and the Bank. The Basel III Capital Rules implement aspects of the Basel III capital framework agreed upon by the Basel Committee and incorporate changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the Basel III Capital Rules establish stricter capital requirements and calculation standards, as well as more restrictive risk weightings for certain loans and facilities. The Basel III Capital Rules were effective for the Company and the Bank on January 1, 2015, subject to a phase-in period that ended on December 31, 2018.

The Bank is also subject to the regulatory framework for prompt corrective action. As of December 31, 2018, the most recent notification from the regulatory agencies categorized the Bank as well-capitalized. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, common equity Tier I risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Company has traditionally paid a quarterly cash dividend to its shareholders. Subsidiary dividends can be a significant source of funds for payment of dividends by the Company to its shareholders. 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 Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its “well capitalized” status, at December 31, 2018, unappropriated retained earnings of $37,150,000 were available at the Bank for the declaration of dividends to the Company without prior approval from regulatory authorities. In addition to regulatory requirements and considerations, any payment of dividends in the future will depend on the Company’s earnings, financial condition and other factors considered relevant by the Company’s Board of Directors.

There were no restricted funds on deposit used to meet regulatory reserve requirements at December 31, 2018 and 2017.

The Company’s and the Bank’s actual and required capital amounts and ratios are as follows:

Capital Requirement to be
Actual Requirements Well-Capitalized
(In thousands)       Amount Ratio       Amount Ratio       Amount Ratio
At December 31, 2018                  
Total capital (to risk-weighted assets)
       Cass Information Systems, Inc. $      244,660 21.38 % $      91,550 8.00 % $      N/A       N/A %
       Cass Commercial Bank 137,894 18.31 60,257 8.00 75,321 10.00
Common Equity Tier I Capital (to risk-weighted assets)
       Cass Information Systems, Inc. 234,435 20.49 51,497 4.50 N/A N/A
       Cass Commercial Bank 130,037 17.26 33,895 4.50 48,959 6.50
Tier I capital (to risk-weighted assets)
       Cass Information Systems, Inc. 234,435 20.49 68,662 6.00 N/A N/A
       Cass Commercial Bank 130,037 17.26 45,193 6.00 60,257 8.00
Tier I capital (to average assets)
       Cass Information Systems, Inc. 234,435 13.89 67,500 4.00 N/A N/A
       Cass Commercial Bank 130,037 15.35 33,884 4.00 42,354 5.00
At December 31, 2017
Total capital (to risk-weighted assets)
       Cass Information Systems, Inc. $ 234,389 22.53 % $ 83,233 8.00 % $ N/A N/A %
       Cass Commercial Bank 122,440 17.01 57,568 8.00 71,960 10.00
Common Equity Tier I Capital (to risk-weighted assets)
       Cass Information Systems, Inc. 224,184 21.55 46,819 4.50 N/A N/A
       Cass Commercial Bank 114,603 15.93 32,382 4.50 46,774 6.50
Tier I capital (to risk-weighted assets)
       Cass Information Systems, Inc. 224,184 21.55 62,425 6.00 N/A N/A
       Cass Commercial Bank 114,603 15.93 43,176 6.00 57,568 8.00
Tier I capital (to average assets)
       Cass Information Systems, Inc. 224,184 13.87 64,649 4.00 N/A N/A
       Cass Commercial Bank 114,603 14.99 30,581 4.00 38,227 5.00