Regulatory Capital

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Regulatory Capital

Regulatory Capital

The Federal Reserve has adopted capital adequacy guidelines that are used to assess the adequacy of capital in supervising a bank holding company. The federal banking agencies implemented final rules (“Final Rules”) to establish a new comprehensive regulatory capital framework with a phase-in period beginning on January 1, 2015 and ending on January 1, 2019. The Final Rules implemented certain regulatory amendments based on the recommendation of the Basel Committee on Banking Supervision and certain requirements of the Dodd-Frank Act and substantially amended the regulatory risk-based capital rules applicable to the Company. The Final Rules require the Company to hold a conservation buffer designed to absorb losses during periods of economic stress. The capital conservation buffer for 2018 is 1.875 percent. The Company has elected to opt-out of the requirement to include most components of accumulated other comprehensive income. As of December 31, 2018, management believes the Company and Bank meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide the following classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. If undercapitalized, capital distributions (including payment of a dividend) are generally restricted, as is paying management fees to its bank holding company. Failure to meet minimum capital requirements set forth in the table below 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. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

At December 31, 2018 and 2017, the most recent regulatory notifications categorized the Company and Bank as well capitalized under the regulatory framework for prompt corrective action. To be well capitalized, the Bank must maintain minimum total capital, Tier 1 capital, Common Tier 1 capital and Tier 1 Leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2018 that management believes have changed the Company’s or Bank’s risk-based capital category.

Note 11. Regulatory Capital

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.

The following tables illustrate the FRB’s adequacy guidelines and the Company’s and the Bank’s compliance with those guidelines:

	December 31, 2018
	Actual				Required for Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Regulations
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)
Consolidated	$	1,437,889	14.70	%	$	782,453	8.00	%	N/A		N/A
Glacier Bank	1,401,991		14.35	%	781,430		8.00	%	$	976,787	10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	1,308,017		13.37	%	586,840		6.00	%	N/A		N/A
Glacier Bank	1,279,778		13.10	%	586,072		6.00	%	781,430		8.00	%
Common Equity Tier 1 (to risk-weighted assets)
Consolidated	1,183,517		12.10	%	440,130		4.50	%	N/A		N/A
Glacier Bank	1,279,778		13.10	%	439,554		4.50	%	634,911		6.50	%
Tier 1 capital (to average assets)
Consolidated	1,308,017		11.35	%	461,130		4.00	%	N/A		N/A
Glacier Bank	1,279,778		11.08	%	462,072		4.00	%	577,590		5.00	%

	December 31, 2017
	Actual				Required for Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Regulations
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)
Consolidated	$	1,232,089	15.64	%	$	630,109	8.00	%	N/A		N/A
Glacier Bank	1,182,509		15.04	%	628,823		8.00	%	$	786,029	10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	1,133,125		14.39	%	472,582		6.00	%	N/A		N/A
Glacier Bank	1,083,744		13.79	%	471,617		6.00	%	628,823		8.00	%
Common Equity Tier 1 (to risk-weighted assets)
Consolidated	1,009,276		12.81	%	354,437		4.50	%	N/A		N/A
Glacier Bank	1,083,744		13.79	%	353,713		4.50	%	510,919		6.50	%
Tier 1 capital (to average assets)
Consolidated	1,133,125		11.90	%	380,770		4.00	%	N/A		N/A
Glacier Bank	1,083,744		11.47	%	377,809		4.00	%	472,261		5.00	%

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N/A - Not applicable