Regulatory Capital

3 Months Ended

Mar. 31, 2020

Banking and Thrift, Other Disclosures [Abstract]

Regulatory Capital

Regulatory Capital

As of March 31, 2020 and December 31, 2019, the Company exceeded all capital adequacy requirements to which it is subject. Actual capital amounts and ratios for the Company and its subsidiary Bank, as of March 31, 2020 and December 31, 2019 are presented in the following tables: 

	Actual				Minimum Required for Capital Adequacy Purposes				For Capital Adequacy Purposes Plus Capital Conservation Buffer				Minimum to Be Well Capitalized Under Prompt Corrective Action Requirements(1)
March 31, 2020	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital:
Consolidated	$	1,460.3	13.67	%	$	854.8	8.000	%	$	1,121.9	10.50	%	$	1,068.5	10.00	%
FIB	1,339.7		12.58		852.3		8.000		1,118.6		10.50		1,065.3		10.00
Tier 1 risk-based capital:
Consolidated	1,367.7		12.80		641.1		6.000		908.2		8.50		854.8		8.00
FIB	1,247.1		11.71		639.2		6.000		905.5		8.50		852.3		8.00
Common equity tier 1 risk-based capital:
Consolidated	1,283.6		12.01		480.8		4.500		747.9		7.00		694.5		6.50
FIB	1,247.1		11.71		479.4		4.500		745.7		7.00		692.5		6.50
Leverage capital ratio:
Consolidated	1,367.7		9.90		552.5		4.000		552.5		4.00		690.6		5.00
FIB	1,247.1		9.05		551.2		4.000		551.2		4.00		689.0		5.00

In connection with the adoption of ASC 326, we recognized an after-tax cumulative effect reduction to retained earnings totaling $24.1 million. In March 2020, the Office of the Comptroller of Currency, the Board of Governors of the Federal Reserve System, and the FDIC issued an interim final rule that allows banking organizations to mitigate the effects of

ASC 326 on their regulatory capital computations. This interim rule is in addition to the three-year transition period already in place under the capital transition rule previously issued in February 2019. Banking organizations can elect to mitigate the estimated cumulative regulatory capital effects for an additional two years. This rule allows an institution to defer transitioning the impact of ASC 326 into its regulatory capital calculation, including ratios, over an extended period. Additionally, the interim rule extends the transition period whereby an institution can defer the impact from ASC 326 on the current period, determined based on the difference between the new ASC 326 allowance for credit losses and the allowance for loan losses under the incurred loss method from previous GAAP, for up to two years. The total impact related to ASC 326 would then be transitioned into regulatory capital and the associated ratios over a three-year transition period, beginning after the initial two-year deferral period, for a total transition period of five years. The Company has elected to opt into the transition election and is adopting transition relief over the permissible five-year period. Accordingly, a CECL transitional amount totaling $29.0 million has been added back to CET1. The CECL transitional amount includes $30.0 million related to the cumulative effect of adopting CECL and $6.5 million related to the estimated regulatory incremental effect of CECL during the three months ended March 31, 2020.

	Actual				Minimum Required for Capital Adequacy Purposes				For Capital Adequacy Purposes Plus Capital Conservation Buffer				Minimum to Be Well Capitalized Under Prompt Corrective Action Requirements(1)
December 31, 2019	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital:
Consolidated	$	1,495.3	14.10	%	$	848.5	8.00	%	$	1,113.6	10.50	%	$	1,060.6	10.00	%
FIB	1,321.4		12.50		845.8		8.00		1,110.1		10.50		1,057.2		10.00
Tier 1 risk-based capital:
Consolidated	1,422.3		13.41		636.3		6.00		901.5		8.50		848.5		8.00
FIB	1,248.4		11.81		634.3		6.00		898.6		8.50		845.8		8.00
Common equity tier 1 risk-based capital:
Consolidated	1,338.2		12.62		477.3		4.50		742.4		7.00		689.4		6.50
FIB	1,248.4		11.81		475.7		4.50		740.0		7.00		687.2		6.50
Leverage capital ratio:
Consolidated	1,422.3		10.13		561.6		4.00		561.6		4.00		702.0		5.00
FIB	1,248.4		8.91		560.4		4.00		560.4		4.00		700.4		5.00

(1) The ratios for the requirements to be deemed “well capitalized” are only applicable to FIB. However, the Company manages its capital position as if the requirements apply to the consolidated company and has presented the ratios as if they also applied on a consolidated basis.