Regulatory Capital

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Regulatory Capital

REGULATORY CAPITAL

The Company is subject to the regulatory capital requirements administered by federal banking regulators and the Federal Reserve. Failure to meet minimum capital requirements can initiate certain mandatory and possible 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 must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Parent Company, like all bank holding companies, is not subject to the prompt corrective action provisions. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and tier 1 capital to risk-weighted assets, and of tier 1 capital to average assets, as defined in the regulations. As of December 31, 2017, the Company exceeded all capital adequacy requirements to which it is subject.

The Company’s actual capital amounts and ratios and selected minimum regulatory thresholds and prompt corrective action provisions as of December 31, 2017 and 2016 are presented in the following tables:

	Actual				Adequately Capitalized  Basel III Phase-In Schedule				Adequately Capitalized Basel III Fully Phased-In				Well Capitalized (1)
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2017
Total risk-based capital:
Consolidated	$	1,112.5	12.76	%	$	806.5	9.25	%	$	915.5	10.50	%	$	871.9	10.00	%
FIB	1,066.6		12.29		802.7		9.25		911.2		10.50		867.8		10.00
Tier 1 risk-based capital:
Consolidated	1,040.3		11.93		632.1		7.25		741.1		8.50		697.5		8.00
FIB	994.4		11.46		629.1		7.25		737.6		8.50		694.2		8.00
Common equity tier 1 risk-based capital:
Consolidated	962.4		11.04		501.3		5.75		610.3		7.00		566.7		6.50
FIB	994.4		11.46		499.0		5.75		607.4		7.00		564.1		6.50
Leverage capital ratio:
Consolidated	1,040.3		8.86		469.9		4.00		469.9		4.00		587.4		5.00
FIB	994.4		8.48		469.1		4.00		469.1		4.00		586.3		5.00

	Actual				Adequately Capitalized  Basel III Phase-In Schedule				Adequately Capitalized Basel III Fully Phased-In				Well Capitalized (1)
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2016
Total risk-based capital:
Consolidated	$	974.5	15.13	%	$	555.7	8.63	%	$	676.1	10.50	%	$	643.9	10.00	%
FIB	842.0		13.13		553.5		8.63		673.4		10.50		641.3		10.00
Tier 1 risk-based capital:
Consolidated	894.3		13.89		426.9		6.63		547.3		8.50		515.1		8.00
FIB	765.8		11.94		425.2		6.63		545.1		8.50		513.1		8.00
Common equity tier 1 risk-based capital:
Consolidated	814.3		12.65		330.3		5.13		450.7		7.00		418.5		6.50
FIB	765.8		11.94		329.0		5.13		448.9		7.00		416.9		6.50
Leverage capital ratio:
Consolidated	894.3		10.11		353.8		4.00		353.8		4.00		442.3		5.00
FIB	765.8		8.69		352.3		4.00		352.3		4.00		440.4		5.00

(1) The ratios for the well capitalized requirement are only applicable to FIB. However, the Company manages its capital position as if the requirement applies to the consolidated entity and has presented the ratios as if they also applied on a consolidated basis.

On July 2, 2013, the Board of Governors of the Federal Reserve Bank issued a final rule implementing a revised regulatory capital framework for U.S. banks in accordance with the Basel III international accord and satisfying related mandates under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The revised regulatory capital framework (the "Basel III Capital Rules") substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions by defining the components of capital and addressing other issues affecting the numerator in banking institutions’ regulatory capital ratios, addressing risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replacing the existing risk-weighting approach with a more risk-sensitive approach. The Basel III Capital Rules became effective for the Company on January 1, 2015, subject to a phase-in period for certain provisions.

When fully phased in on January 1, 2019, the Basel III Capital Rules will require the Company to maintain (i) a minimum ratio of common equity tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% tier 1 capital to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of tier 1 capital to average quarterly assets.

The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to us. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of common equity tier 1 capital to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. As of December 31, 2017, the Company's capital conservation buffer was 4.76% for the consolidated company and 4.29% for FIB.