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Note 20 - Regulatory Capital Matters
 12 Months Ended
Dec. 31, 2015
Disclosure Text Block [Abstract]  
Regulatory Capital Requirements under Banking Regulations [Text Block]

(20) 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. Additionally, the Company suspended the payment of dividends to its stockholders in the third quarter of 2009.    


The Company is subject to various regulatory capital requirements administered by the 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 classification 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 I capital to risk-weighted assets, and of Tier I capital to average assets. As of December 31, 2015, 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 December 31, 2015, 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 conditions or events 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 will be 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 December 31, 2015 and December 31, 2014 on a consolidated basis and for the subsidiary, as defined. Regulatory capital ratios for December 31, 2015 were calculated in accordance with the Basel III rules, whereas the December 31, 2014 regulatory ratios were calculated in accordance with the Basel I rules.


The following table summarizes regulatory capital information as of December 31, 2015 and 2014 on a consolidated basis and for its wholly-owned subsidiary, as defined:


   

 

 

 

Actual

    

 

 

For Capital

Adequacy Purposes

    

To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

  
   

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

  

As of December 31, 2015

  

(In Thousands)

  
                                                 

Total Capital to Risk-Weighted Assets

                                                

Consolidated

   $ 131,948       16.60 %   $ 63,602       8.00 %     N/A       N/A  

Colony Bank

     126,939       15.99       63,500       8.00     $ 79,375       10.00 %
                                                 

Tier I Capital to Risk-Weighted Assets

                                                

Consolidated

     123,344       15.51       47,702       6.00       N/A       N/A  

Colony Bank

     118,335       14.91       47,625       6.00       63,500       8.00  
                                                 

Common Equity Tier 1 Capital to Risk-Weighted Assets

                                                

Consolidated

     81,823       10.29       35,776       4.50       N/A       N/A  

Colony Bank

     118,335       14.91       35,719       4.50       51,594       6.50  
                                                 

Tier I Capital to Average Assets

                                                

Consolidated

     123,344       10.69       46,149       4.00       N/A       N/A  

Colony Bank

     118,335       10.27       46,074       4.00       57,592       5.00  
                                                 

As of December 31, 2014

                                                
                                                 

Total Capital to Risk-Weighted Assets

                                                

Consolidated

   $ 136,022       17.95 %   $ 60,639       8.00 %     N/A       N/A  

Colony Bank

     127,833       16.89       60,542       8.00     $ 75,678       10.00 %
                                                 

Tier I Capital to Risk-Weighted Assets

                                                

Consolidated

     127,220       16.78       30,320       4.00       N/A       N/A  

Colony Bank

     119,031       15.73       30,271       4.00       45,407       6.00  
                                                 

Tier I Capital to Average Assets

                                                

Consolidated

     127,220       11.18       45,509       4.00       N/A       N/A  

Colony Bank

     119,031       10.50       45,364       4.00       56,705       5.00  

In 2015, the Bank obtained approval of its regulators and paid a $10,000,000 dividend to the Company. The dividend was utilized to redeem 9,979 shares of Preferred Stock. Effective October 22, 2014, the Board Resolution (BR) the Bank had been operating under was lifted. The BR required that, prior to declaring or paying any cash dividend to the Company, the Bank must obtain written consent of its regulators. In November 2014, the Bank paid a $12,000,000 dividend to the Company. This dividend was utilized to bring the interest payments of the Trust Preferred Securities and the dividend payments of the Preferred Stock to a current status and to fund holding company operations for the coming year.