Regulatory Capital

12 Months Ended

Dec. 31, 2012

Regulatory Capital

Note 19: Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Effective in 2012, the Company was subject to new holding company capital requirements due to the transition to a bank holding company.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital to average assets (as defined). As of December 31, 2012 and 2011, the Company and Bank meet all capital adequacy requirements to which it is subject.

The Company’s and Bank’s actual capital amounts and ratios are presented in the table below.

	December 31, 2012
	Actual  Capital Levels					Minimum  Regulatory  Capital Levels					Minimum  Required  To be Considered  Well-Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Leverage Capital Level(1):
MutualFirst Consolidated	$	125,770		8.8	%	$	57,137		4.0	%	$	N/A		N/A
MutualBank		132,254		9.3			57,121		4.0			71,401		5.0
Tier 1 Risk-Based Capital Level (2) :
MutualFirst Consolidated	$	125,770		13.2	%	$	38,248		4.0	%	$	57,372		6.0	%
MutualBank		132,254		13.8			38,217		4.0			57,326		6.0
Total Risk-Based Capital Level (3) :
MutualFirst Consolidated	$	137,764		14.4	%	$	76,496		8.0	%	$	95,620		10.0	%
MutualBank		144,247		15.1			76,434		8.0			95,543		10.0

⁽¹⁾ Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2012

⁽²⁾ Tier 1 Capital to Risk-Weighted Assets of $955.4 million for the Bank and $956.2 million for the Company at December 31, 2012.

⁽³⁾ Total Capital to Risk-Weighted Assets.

The Bank’s capital amounts and ratios are presented in the table below.

	December 31, 2011
	Actual					Required for Adequate Capital					To Be Well- Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2011
Total Risk-Based Capital Level	$	130,450		14.3	%	$	72,905		8.0	%	$	91,131		10.0	%
Tier 1 Risk-Based Capital Level		125,782		13.1			36,452		4.0			54,679		6.0
Core Capital (to adjusted total assets)		125,782		9.0			56,200		4.0			70,250		5.0
Core Capital (to adjusted tangible assets)		125,782		9.0			28,100		2.0			N/A		N/A
Tangible Capital (to adjusted total assets)		125,782		9.0			21,075		1.5			N/A		N/A