Rule 80-1-12-.01 - Dividends(1) The Board of Directors of any state-chartered bank in this State may declare and the bank may pay dividends on its outstanding capital stock without any requirement to notify the Department or request the approval of the Department under the following conditions:(a) Total adversely classified assets at the most recent examination of the bank, the conclusions of which may have been presented to the Board of Directors, do not exceed eighty (80) percent of Tier 1 Capital plus the allowances for credit losses as reflected at such examination; and(b) The aggregate amount of dividends declared or anticipated to be declared in the calendar year: (i) does not exceed fifty (50) percent of the net income that is attributable to the bank that is a Subchapter C-Corporation for the previous calendar year as reported on the Consolidated Reports of Income, Schedule RI-Income Statement; or(ii) does not exceed seventy-five (75) percent of the net income that is attributable to the bank that is a Subchapter S-Corporation for the previous calendar year as reported on the Consolidated Reports of Income, Schedule RI-Income Statement; and(c) The ratio of Tier 1 Capital to Average Total Assets shall not be less than six (6) percent.(2) Any dividend to be declared by the Board of Directors of a bank at a time when each of the foregoing conditions does not exist must be approved, in writing, by the Department prior to the payment thereof pursuant to the provisions of Section 7-1-460(a)(3) of the Code of Georgia. Requests for approval of dividends shall be on forms prescribed by the Department.(3) The definition of Tier 1 Capital and Average Total Assets as used herein shall be consistent with the definition utilized by the Federal Regulatory Agencies.Ga. Comp. R. & Regs. R. 80-1-12-.01
O.C.G.A. §§ 7-1-61, 7-1-460.
Original Rule entitled "Dividends" adopted. F. May 1, 1975; eff. May 21, 1975.Repealed: New Rule of the same title adopted. F. Mar. 23, 1982; eff. Apr. 12, 1982.Amended: F. July 14, 1998; eff. August 3, 1998.Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001.Amended: F. Aug. 29, 2014; eff. Sept. 18, 2014.Amended: F. Jan. 8, 2021; eff. Jan. 28, 2021.Amended: F. July 7, 2021; eff. July 27, 2021.Amended: F. July 7, 2022; eff. July 27, 2022.