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Regulatory Capital
 12 Months Ended
Dec. 31, 2012
Banking and Thrift [Abstract]  
Regulatory Capital
Note 12. Regulatory Capital

The FRB has adopted capital adequacy guidelines pursuant to which it assesses the adequacy of capital in supervising a bank holding company. As a result of combining the eleven bank subsidiaries into Glacier Bank on April 30, 2012, there were changes in the regulatory capital ratios at the subsidiary level which are reflected in the following tables for December 31, 2012 and December 31, 2011. For additional information relating to the combination of the bank subsidiaries, see Note 1. The following table illustrates the FRB’s adequacy guidelines and the Company’s and the Bank's compliance with those guidelines as of December 31, 2012:

 
Actual
 
Minimum Capital
Requirement
 
Well Capitalized
Requirement
(Dollars in thousands)
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
923,574

 
20.09
%
 
367,701

 
8.00
%
 
459,627

 
10.00
%
Glacier Bank
851,819

 
18.79
%
 
362,711

 
8.00
%
 
453,388

 
10.00
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
865,213

 
18.82
%
 
183,851

 
4.00
%
 
275,776

 
6.00
%
Glacier Bank
794,228

 
17.52
%
 
181,355

 
4.00
%
 
272,033

 
6.00
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
865,213

 
11.31
%
 
306,005

 
4.00
%
 
N/A

 
N/A

Glacier Bank
794,228

 
10.55
%
 
301,013

 
4.00
%
 
376,267

 
5.00
%
Note 12. Regulatory Capital (continued)

The following table illustrates the FRB’s adequacy guidelines and the Company’s and bank subsidiaries’ compliance with those guidelines as of December 31, 2011:

 
Actual
 
Minimum Capital
Requirement
 
Well Capitalized
Requirement
(Dollars in thousands)
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
883,954

 
20.27
%
 
348,950

 
8.00
%
 
436,187

 
10.00
%
Glacier Bank
187,082

 
19.95
%
 
75,033

 
8.00
%
 
93,792

 
10.00
%
Mountain West Bank
149,280

 
20.42
%
 
58,474

 
8.00
%
 
73,092

 
10.00
%
First Security Bank of Missoula
121,181

 
17.18
%
 
56,414

 
8.00
%
 
70,517

 
10.00
%
Western Security Bank
69,646

 
17.07
%
 
32,632

 
8.00
%
 
40,790

 
10.00
%
1st Bank
68,729

 
19.48
%
 
28,225

 
8.00
%
 
35,282

 
10.00
%
Valley Bank of Helena
34,117

 
14.01
%
 
19,476

 
8.00
%
 
24,345

 
10.00
%
Big Sky Western Bank
68,661

 
25.43
%
 
21,601

 
8.00
%
 
27,002

 
10.00
%
First Bank of Wyoming
41,860

 
19.95
%
 
16,789

 
8.00
%
 
20,987

 
10.00
%
Citizens Community Bank
29,011

 
13.85
%
 
16,763

 
8.00
%
 
20,954

 
10.00
%
First Bank of Montana
22,757

 
15.05
%
 
12,100

 
8.00
%
 
15,124

 
10.00
%
Bank of the San Juans
21,127

 
13.63
%
 
12,402

 
8.00
%
 
15,503

 
10.00
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
828,404

 
18.99
%
 
174,475

 
4.00
%
 
261,712

 
6.00
%
Glacier Bank
175,066

 
18.67
%
 
37,517

 
4.00
%
 
56,275

 
6.00
%
Mountain West Bank
139,809

 
19.13
%
 
29,237

 
4.00
%
 
43,855

 
6.00
%
First Security Bank of Missoula
112,198

 
15.91
%
 
28,207

 
4.00
%
 
42,310

 
6.00
%
Western Security Bank
64,520

 
15.82
%
 
16,316

 
4.00
%
 
24,474

 
6.00
%
1st Bank
64,267

 
18.22
%
 
14,113

 
4.00
%
 
21,169

 
6.00
%
Valley Bank of Helena
31,059

 
12.76
%
 
9,738

 
4.00
%
 
14,607

 
6.00
%
Big Sky Western Bank
65,218

 
24.15
%
 
10,801

 
4.00
%
 
16,201

 
6.00
%
First Bank of Wyoming
39,670

 
18.90
%
 
8,395

 
4.00
%
 
12,592

 
6.00
%
Citizens Community Bank
26,358

 
12.58
%
 
8,382

 
4.00
%
 
12,572

 
6.00
%
First Bank of Montana
20,854

 
13.79
%
 
6,050

 
4.00
%
 
9,075

 
6.00
%
Bank of the San Juans
19,161

 
12.36
%
 
6,201

 
4.00
%
 
9,302

 
6.00
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
828,404

 
11.81
%
 
280,602

 
4.00
%
 
N/A

 
N/A

Glacier Bank
175,066

 
13.00
%
 
53,846

 
4.00
%
 
67,308

 
5.00
%
Mountain West Bank
139,809

 
12.81
%
 
43,660

 
4.00
%
 
54,575

 
5.00
%
First Security Bank of Missoula
112,198

 
10.49
%
 
42,793

 
4.00
%
 
53,492

 
5.00
%
Western Security Bank
64,520

 
8.28
%
 
31,159

 
4.00
%
 
38,949

 
5.00
%
1st Bank
64,267

 
8.49
%
 
30,279

 
4.00
%
 
37,849

 
5.00
%
Valley Bank of Helena
31,059

 
6.94
%
 
17,906

 
4.00
%
 
22,382

 
5.00
%
Big Sky Western Bank
65,218

 
17.33
%
 
15,057

 
4.00
%
 
18,821

 
5.00
%
First Bank of Wyoming
39,670

 
10.40
%
 
15,264

 
4.00
%
 
19,080

 
5.00
%
Citizens Community Bank
26,358

 
7.65
%
 
13,783

 
4.00
%
 
17,228

 
5.00
%
First Bank of Montana
20,854

 
8.33
%
 
10,008

 
4.00
%
 
12,510

 
5.00
%
Bank of the San Juans
19,161

 
8.48
%
 
9,042

 
4.00
%
 
11,303

 
5.00
%

Note 12. Regulatory Capital (continued)

The Federal Deposit Insurance Corporation Improvement Act generally restricts a depository institution from making any capital distribution (including payment of a dividend) or paying any management fee to its bank holding company if the institution would thereafter be capitalized at less than 8 percent Total capital (to risk-weighted assets), 4 percent Tier 1 capital (to risk-weighted assets), or 4 percent Tier 1 capital (to average assets).

At December 31, 2012 for the Bank and at December 31, 2011 for each of the bank subsidiaries, the capital measures exceeded the well capitalized threshold, which requires Total capital (to risk-weighted assets) of at least 10 percent, Tier 1 capital (to risk-weighted assets) of at least 6 percent, and Tier 1 capital (to average assets) of at least 5 percent. 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 and Bank’s financial condition. There are no conditions or events since year end that management believes have changed the Company’s or Bank's risk-based capital category.

Current guidance from the Federal Reserve provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. The Bank is also subject to Montana state law and cannot declare a dividend greater than the previous two years' net earnings without providing notice to the state.