Regulatory Capital

12 Months Ended

Dec. 31, 2012

Regulatory Capital [Abstract]

Regulatory Capital

Regulatory Capital

The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2012 and 2011, no retained earnings were available for dividend declaration without prior regulatory approval.

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by state and 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 Company’s financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Intermountain and the Bank are required by applicable regulations to maintain certain minimum capital levels and ratios of total and Tier 1 capital to risk-weighted assets, and of Tier I capital to average assets. Intermountain and the Bank plan to maintain their capital resources and regulatory capital ratios through the retention of earnings and the management of the level and mix of assets. At December 31, 2012, Intermountain exceeded the minimum published regulatory capital requirements to be considered “well-capitalized” pursuant to Federal Financial Institutions Examination Council “FFIEC” regulations.

The following table sets forth the amounts and ratios regarding actual and minimum core Tier 1 risk-based and total risk-based capital requirements, together with the amounts and ratios required in order to meet the published definition of a “well-capitalized” institution (in thousands).

	Actual				Capital Requirements				Published Well-Capitalized Requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of December 31, 2012
Total capital (to risk-weighted assets):
The Company	$	124,058	20.51	%	$	48,399	8	%	$	60,499	10	%
Panhandle State Bank	115,418		19.07	%	48,409		8	%	60,511		10	%
Tier I capital (to risk-weighted assets):
The Company	116,491		19.26	%	24,200		4	%	36,299		6	%
Panhandle State Bank	107,849		17.82	%	24,204		4	%	36,307		6	%
Tier I capital (to average assets):
The Company	116,491		12.54	%	37,160		4	%	46,451		5	%
Panhandle State Bank	107,849		11.60	%	37,197		4	%	46,497		5	%
As of December 31, 2011
Total capital (to risk-weighted assets):
The Company	$	74,807	12.58	%	$	47,587	8	%	$	59,484	10	%
Panhandle State Bank	81,614		13.74	%	47,524		8	%	59,405		10	%
Tier I capital (to risk-weighted assets):
The Company	67,316		11.32	%	23,793		4	%	35,690		6	%
Panhandle State Bank	74,123		12.48	%	23,762		4	%	35,643		6	%
Tier I capital (to average assets):
The Company	67,316		7.32	%	36,775		4	%	45,968		5	%
Panhandle State Bank	74,123		8.07	%	36,723		4	%	45,904		5	%