§ 13-3-304 — Dividends

(a) The board of directors may, quarterly, semiannually or
annually, declare a dividend of so much of the net profits of
the bank as they judge proper, except that no dividends shall be
declared until the surplus fund of the bank equals its common
capital unless there has been carried to the surplus fund not
less than ten percent (10%) of the bank's net profits of the
preceding six (6) consecutive months in the case of quarterly or
semiannual dividends, or not less than ten percent (10%) of its
net profits of the preceding twelve (12) consecutive months in
the case of annual dividends. For the purposes of this section,
any amounts paid into a fund for the retirement of any preferred
stock of any bank out of its net profits for such period are
deemed to be additions to its surplus fund if, upon retirement
of the preferred stock, the amounts paid into the retirement
fund may then properly be carried to surplus. In such case, the
bank is obligated to transfer to surplus the amounts paid into
the retirement fund on account of the preferred stock as the
stock is retired.
(b) The approval of the state banking commissioner is
required if the total of all dividends declared by the bank in
any calendar year shall exceed the total of its net profits of
that year combined with its retained net profits of the
preceding two (2) years, less any required transfers to surplus
or a fund for the retirement of any preferred stock.
(c) For the purpose of this section:
(i) "Net profits" means the net income or loss
reported by a bank in its report of condition and income;
(ii) "Retained net profits" for any period shall be
equal to the net income or loss reported in the report of
condition and income less any common or preferred stock
dividends declared or otherwise charged to the undivided profits
of the period for which the retained net profits are computed.
(d) No dividend shall be declared by the board of
directors of any bank which is operating under any form of
regulatory action without prior written approval of the state
banking commissioner.