XML 129 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Regulatory Capital
 12 Months Ended
Dec. 31, 2013
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. The following tables illustrate the FRB’s adequacy guidelines and the Company’s and the Bank’s compliance with those guidelines:
 
December 31, 2013
 
Actual
 
Minimum Capital
Requirement
 
Well Capitalized
Requirement
(Dollars in thousands)
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
1,005,980

 
18.97
%
 
$
424,322

 
8.00
%
 
$
530,402

 
10.00
%
Glacier Bank
948,618

 
17.93
%
 
423,235

 
8.00
%
 
529,044

 
10.00
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
938,887

 
17.70
%
 
$
212,161

 
4.00
%
 
$
318,241

 
6.00
%
Glacier Bank
881,692

 
16.67
%
 
211,618

 
4.00
%
 
317,426

 
6.00
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
938,887

 
12.11
%
 
$
310,082

 
4.00
%
 
N/A

 
N/A

Glacier Bank
881,692

 
11.44
%
 
308,281

 
4.00
%
 
$
385,351

 
5.00
%
Note 12. Regulatory Capital (continued)

 
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
%

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, 2013 and 2012, the Bank’s 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.