IMB Bank is rethinking its dividend policy, which may mean a target annual dividend of 25 cents cannot be maintained.Michael Cole, chair of the IMB board, wrote in the annual report that the board "initiated a review of the non-binding, indicative Dividend Guideline released in 2012."This had stated that while IMB's capital adequacy ratio was above 14 per cent and profits were maintained or increased, it was the board's intention to pay a full year dividend of 25 cents per share.Cole wrote that "the level of future dividends will be determined after consideration of a range of factors, including but not limited to IMB's financial performance, strategic growth objectives, the current and expected operating environments and prudential requirements."Coles also cautioned on any assumption by owners of further buy backs in the tradeable, ordinary shares in the Wollongong-based bank."It remains the board's intention to continue to seek to retire all ordinary shares on issue through a series of buybacks, subject to the minimum capital requirements previously stated," he said."However a caveat must be added: initiating the buyback action at any time is always subject to a number of factors including the requirement of a more efficient cost of capital outcome for IMB. "Shareholder members should not assume that share buy-backs will take place annually or regardless of the share price."