Regulatory Capital

12 Months Ended

Dec. 31, 2020

Banking and Thrift [Abstract]

Regulatory Capital

REGULATORY CAPITAL

The Company and the Bank are subject to various regulatory capital requirements administered by federal banking regulators and the Federal Reserve. 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 Company’s and the Bank’s financial statements. 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 the Company’s and Bank’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. The Company’s and the Bank’s 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, 2020, the Company exceeded all capital adequacy requirements to which it is subject.

As of December 31, 2020, the most recent notification from the regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the most recent notification that management believes have changed the Bank's categories.

As an approved mortgage seller, the Bank is required to maintain a minimum level of capital specified by the United States Department of Housing and Urban Development. At December 31, 2020 and 2019, the Bank met these requirements.

The Company’s actual capital amounts and ratios and selected minimum regulatory thresholds and prompt corrective action provisions as of December 31, 2020 and 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)
December 31, 2020	Amount		Ratio	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital:
Consolidated	$	1,575.7	14.19	$	888.3	8.00	%	$	1,165.8	10.50	%	$	1,110.3	10.00	%
FIB	1,426.8		12.89	885.6		8.00		1,162.3		10.50		1,107.0		10.00
Tier 1 risk-based capital:
Consolidated	1,369.0		12.33	666.2		6.00		943.8		8.50		888.3		8.00
FIB	1,320.1		11.93	664.2		6.00		940.9		8.50		885.6		8.00
Common equity tier 1 risk-based capital:
Consolidated	1,284.9		11.57	499.6		4.50		777.2		7.00		721.7		6.50
FIB	1,320.1		11.93	498.1		4.50		774.9		7.00		719.5		6.50
Leverage capital ratio:
Consolidated	1,369.0		8.16	671.0		4.00		671.0		4.00		838.7		5.00
FIB	1,320.1		7.88	669.7		4.00		669.7		4.00		837.2		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.

In connection with the adoption of CECL, or ASC 326, the Company 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.

	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 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.