Regulatory Capital

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Regulatory Capital

Note 8 Regulatory Capital

As a bank holding company, the Company is subject to regulatory capital adequacy requirements implemented by the Federal Reserve. The federal banking agencies have risk-based capital adequacy regulations intended to provide a measure of capital adequacy that reflects the degree of risk associated with a banking organization’s operations. Under these regulations, assets are assigned to one of several risk categories, and nominal dollar amounts of assets and credit equivalent amounts of off-balance-sheet items are multiplied by a risk adjustment percentage for the category.

The new Basel III rules, effective January 1, 2015, changed the components of regulatory capital and changed the way in which risk ratings are assigned to various categories of bank assets. Also, a new Tier I common risk-based ratio was defined. Under the Basel III requirements, at June 30, 2016, the Company and the Bank met all capital adequacy requirements and the Bank had regulatory capital ratios in excess of the levels established for well-capitalized institutions.

In February 2016, the Bank received approval from the Colorado Division of Banking and the Federal Reserve Bank of Kansas City to permanently reduce the Bank's capital by $140.0 million. As a result, the Bank distributed $140.0 million cash to the Company in February 2016.

At June 30, 2016 and December 31, 2015, the most recent regulatory notification categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized”, the Bank must maintain total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the Bank’s category.

	June 30, 2016
				Required to be			Required to be
				well capitalized under			considered
				prompt corrective			adequately
	Actual			action provisions			capitalized
	Ratio	Amount		Ratio	Amount		Ratio	Amount
Tier 1 leverage ratio:
Consolidated	11.0%	$	520,384	N/A		N/A	4.0%	$	188,492
NBH Bank	8.3%		387,176	4.5%	$	209,989	4.0%		186,657
Common equity tier 1 risk-based capital:
Consolidated	16.2%	$	520,384	N/A		N/A	4.5%	$	212,053
NBH Bank	12.1%		387,176	6.5%	$	303,318	4.5%		209,989
Tier 1 risk-based capital ratio:
Consolidated	16.2%	$	520,384	N/A		N/A	6.0%	$	192,336
NBH Bank	12.1%		387,176	8.0%	$	255,409	6.0%		191,556
Total risk-based capital ratio:
Consolidated	17.5%	$	560,302	N/A		N/A	8.0%	$	256,448
NBH Bank	13.4%		427,095	10.0%	$	319,216	8.0%		255,409

	December 31, 2015
				Required to be			Required to be
				well capitalized under			considered
				prompt corrective			adequately
	Actual			action provisions			capitalized
	Ratio	Amount		Ratio	Amount		Ratio	Amount
Tier 1 leverage ratio:
Consolidated	11.8%	$	550,368	N/A		N/A	4.0%	$	187,325
NBH Bank	11.2%		519,766	5.0%	$	464,078	4.0%		185,631
Common equity tier 1 risk-based capital:
Consolidated	17.5%	$	550,368	N/A		N/A	4.5%	$	210,741
NBH Bank	16.6%		519,766	6.5%	$	301,651	4.5%		208,835
Tier 1 risk-based capital ratio:
Consolidated	17.5%	$	550,368	N/A		N/A	6.0%	$	189,101
NBH Bank	16.6%		519,766	8.0%	$	344,989	6.0%		188,176
Total risk-based capital ratio:
Consolidated	18.4%	$	578,448	N/A		N/A	8.0%	$	252,134
NBH Bank	17.5%		547,846	10.0%	$	376,352	8.0%		250,901