The board of Capital City Bank Group Inc. in Tallahassee, Fla., has suspended its common stock dividend.

An informal agreement reached in February 2010 required the $2.5 billion-asset company to seek approval from the Federal Reserve Board to declare and pay dividends. The company said in a press release late Wednesday that it had not yet received permission to pay a fourth-quarter dividend.

"Given the uncertainty over the dividend approval, the prolonged economic recession in Florida and Georgia, and our desire to preserve and protect our capital position, our board of directors has determined a suspension of the dividend is prudent at this time," said William G. Smith, Jr., Capital City’s chairman, president and chief executive, in the release.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.