Regulatory Capital

3 Months Ended

Mar. 31, 2018

FDIC Loss-Sharing Related

Regulatory Capital

Note 10 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 Basel III rules, effective January 1, 2016, changed the components of regulatory capital, changed the way in which risk ratings are assigned to various categories of bank assets and defined a new Tier 1 common risk-based ratio. In addition, a capital conservative buffer requirement, designed to strengthen an institution’s financial resilience during economic cycles through the restriction of capital distributions and other payments, became effective in 2017, with full phase-in beginning January 1, 2019. When fully phased-in, the capital conservation buffer adds a 2.5% capital requirement above existing regulatory minimum ratios.

Under the Basel III requirements, at March 31, 2018 and December 31, 2017, the Company and the Bank met all capital requirements and the Bank had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as detailed in the tables below.

	March 31, 2018
				Required to be			Required to be
				well capitalized under			considered
				prompt corrective			adequately
	Actual			action provisions			capitalized(1)
	Ratio	Amount		Ratio	Amount		Ratio	Amount
Tier 1 leverage ratio:
Consolidated	9.6%	$	527,873	N/A		N/A	4.0%	$	220,218
NBH Bank	8.8%		482,069	5.0%	$	273,067	4.0%		218,454
Common equity tier 1 risk-based capital:
Consolidated	12.4%	$	527,873	N/A		N/A	7.0%	$	385,382
NBH Bank	11.4%		482,069	6.5%	$	354,987	7.0%		382,294
Tier 1 risk-based capital ratio:
Consolidated	12.4%	$	527,873	N/A		N/A	8.5%	$	361,114
NBH Bank	11.4%		482,069	8.0%	$	338,103	8.5%		359,234
Total risk-based capital ratio:
Consolidated	13.2%	$	559,623	N/A		N/A	10.5%	$	446,082
NBH Bank	12.2%		513,819	10.0%	$	422,628	10.5%		443,760

	December 31, 2017
				Required to be			Required to be
				well capitalized under			considered
				prompt corrective			adequately
	Actual			action provisions			capitalized(1)
	Ratio	Amount		Ratio	Amount		Ratio	Amount
Tier 1 leverage ratio:
Consolidated	9.8%	$	470,877	N/A		N/A	4.0%	$	191,559
NBH Bank	8.1%		382,918	5.0%	$	237,772	4.0%		190,217
Common equity tier 1 risk-based capital:
Consolidated	12.9%	$	470,877	N/A		N/A	7.0%	$	335,228
NBH Bank	10.6%		382,918	6.5%	$	309,103	7.0%		332,881
Tier 1 risk-based capital ratio:
Consolidated	12.9%	$	470,877	N/A		N/A	8.5%	$	309,400
NBH Bank	10.6%		382,918	8.0%	$	289,022	8.5%		307,086
Total risk-based capital ratio:
Consolidated	13.8%	$	502,917	N/A		N/A	10.5%	$	382,200
NBH Bank	11.5%		414,958	10.0%	$	361,277	10.5%		379,341

(1) As of the fully phased-in date of January 1, 2019, including the capital conservation buffer.