Regulatory Capital

3 Months Ended

Mar. 31, 2019

Regulatory Capital

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, 2015, 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 conservation buffer requirement, which was fully phased in on January 1, 2019, added a 2.5% capital requirement above existing regulatory minimum ratios.

Under the Basel III requirements, at March 31, 2019 and December 31, 2018, 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, 2019
				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	10.6%	$	595,782	N/A		N/A	4.0%	$	224,123
NBH Bank	8.9%		499,314	5.0%	$	279,602	4.0%		223,682
Common equity tier 1 risk-based capital:
Consolidated	12.8%	$	595,782	N/A		N/A	7.0%	$	392,215
NBH Bank	10.8%		499,314	6.5%	$	363,483	7.0%		391,443
Tier 1 risk-based capital ratio:
Consolidated	12.8%	$	595,782	N/A		N/A	8.5%	$	394,452
NBH Bank	10.8%		499,314	8.0%	$	370,298	8.5%		393,441
Total risk-based capital ratio:
Consolidated	13.7%	$	636,902	N/A		N/A	10.5%	$	487,264
NBH Bank	11.7%		540,434	10.0%	$	462,872	10.5%		486,016

	December 31, 2018
				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	10.5%	$	580,504	N/A		N/A	4.0%	$	220,988
NBH Bank	9.0%		498,283	5.0%	$	275,703	4.0%		220,563
Common equity tier 1 risk-based capital:
Consolidated	12.9%	$	580,504	N/A		N/A	7.0%	$	386,728
NBH Bank	11.1%		498,283	6.5%	$	358,414	7.0%		385,984
Tier 1 risk-based capital ratio:
Consolidated	12.9%	$	580,504	N/A		N/A	8.5%	$	382,306
NBH Bank	11.1%		498,283	8.0%	$	358,938	8.5%		381,372
Total risk-based capital ratio:
Consolidated	13.8%	$	620,275	N/A		N/A	10.5%	$	472,261
NBH Bank	12.0%		538,054	10.0%	$	448,672	10.5%		471,106

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

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