Dividends and other distributions.

CFR · 2024-01-01 · US · Title 12

(a) (1) (2) (b) (c) (2) “Retained net income” in a calendar year is equal to the bank's net income (as reported in its Report of Condition and Income for such year), less any dividends declared during such year. (d) (2) A member bank may not permit any portion of its permanent capital to be withdrawn unless the withdrawal has been approved by the Board and by at least two-thirds of the shareholders of each class of stock outstanding. (3) If a member bank has capital surplus in excess of that required by law, the excess amount may be transferred to the bank's undivided profits account and be available for the payment of dividends if: (i) The amount transferred came from the earnings of prior periods, excluding earnings transferred as a result of stock dividends; (ii) The bank's board of directors approves the transfer of funds; and (iii) The transfer has been approved by the Board. (e) (f)

official document · source cfr-2024 · id 12:§ 208.5