22. Capital Requirements and Other Regulatory Matters

Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state 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 accompanying consolidated financial statements of the Company and the Bank. 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. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets and to maintain minimum amounts and ratios of Tier 1 capital to average assets. Management believes, as of December 31, 2013 and 2012, that the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2013, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. At December 31, 2013 and 2012, management believes the Bank has met the ratios for being considered well-capitalized. The Company and the Bank’s actual capital amounts and ratios as of December 31 were as follows (in thousands):


	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2013
Tier 1 leverage capital:
First NBC Bank Holding Company	$	375,355		11.76	%	$	127,625		4.00	%		NA		NA
First NBC Bank		349,104		10.96	%		127,435		4.00	%	$	159,294		5.00	%

Tier 1 risk-based capital:
First NBC Bank Holding Company		375,355		13.26	%		113,254		4.00	%		NA		NA
First NBC Bank		349,104		12.34	%		113,170		4.00	%	$	169,755		6.00	%

Total risk-based capital:
First NBC Bank Holding Company		407,648		14.40	%		226,508		8.00	%		NA		NA
First NBC Bank		381,396		13.48	%		226,340		8.00	%	$	282,924		10.00	%

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2012
Tier 1 leverage capital:
First NBC Bank Holding Company	$	243,791		9.04	%	$	107,814		4.00	%		NA		NA
First NBC Bank		256,848		9.91	%		103,704		4.00	%	$	129,630		5.00	%

Tier 1 risk-based capital:
First NBC Bank Holding Company		243,791		11.26	%		86,592		4.00	%		NA		NA
First NBC Bank		256,848		11.88	%		86,457		4.00	%	$	129,686		6.00	%

Total risk-based capital:
First NBC Bank Holding Company		270,810		12.51	%		173,184		8.00	%		NA		NA
First NBC Bank		283,867		13.13	%		172,914		8.00	%	$	216,143		10.00	%