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Regulatory Capital

12 Months Ended

Dec. 31, 2023

Note 14 Regulatory Capital

As a bank holding company that has elected to be treated as a financial holding company, the Company, NBH Bank and Bank of Jackson Hole Trust are subject to regulatory capital adequacy requirements implemented by the Federal Reserve and, for

NBH Bank and Bank of Jackson Hole Trust, the FDIC, including maintaining capital positions at the “well-capitalized” level. The federal banking agencies have risk-based capital adequacy regulations intended to provide a measure of capital adequacy that reflects the degree of risk associated with a banking organization’s operations. Under these regulations, assets are assigned to one of several risk categories, and nominal dollar amounts of assets and credit equivalent amounts of off-balance-sheet items are multiplied by a risk-adjustment percentage for the category. Regulatory authorities can initiate certain mandatory actions if the Company, NBH Bank or Bank of Jackson Hole Trust fail to meet the minimum capital requirements, which could have a material effect on our financial statements.

Under the Basel III requirements, at December 31, 2023 and 2022, the Company and the Banks met all capital requirements, including the capital conservation buffer of 2.5%. The Company and the Banks had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as detailed in the tables below:


	December 31, 2023
				Required to be			Required to be
				well capitalized under			considered
				prompt corrective			adequately
	Actual			action provisions			capitalized⁽¹⁾
	Ratio	Amount		Ratio	Amount		Ratio	Amount
Tier 1 leverage ratio:
Consolidated	9.7%	$	941,369	N/A		N/A	4.0%	$	386,775
NBH Bank	8.9%		856,243	5.0%	$	481,685	4.0%		385,348
Bank of Jackson Hole Trust	30.0%		11,609	5.0%		1,936	4.0%		1,549
Common equity tier 1 risk based capital:
Consolidated	11.9%	$	941,369	N/A		N/A	7.0%	$	554,325
NBH Bank	10.9%		856,243	6.5%	$	512,408	7.0%		551,824
Bank of Jackson Hole Trust	71.2%		11,609	6.5%		1,059	7.0%		1,141
Tier 1 risk based capital ratio:
Consolidated	11.9%	$	941,369	N/A		N/A	8.5%	$	673,109
NBH Bank	10.9%		856,243	8.0%	$	630,656	8.5%		670,072
Bank of Jackson Hole Trust	71.2%		11,609	8.0%		1,304	8.5%		1,385
Total risk based capital ratio:
Consolidated	13.8%	$	1,092,800	N/A		N/A	10.5%	$	831,487
NBH Bank	12.1%		952,674	10.0%	$	788,319	10.5%		827,735
Bank of Jackson Hole Trust	71.2%		11,609	10.0%		1,629	10.5%		1,711


	December 31, 2022
				Required to be			Required to be
				well capitalized under			considered
				prompt corrective			adequately
	Actual			action provisions			capitalized⁽¹⁾
	Ratio	Amount		Ratio	Amount		Ratio	Amount
Tier 1 leverage ratio:
Consolidated	9.3%	$	857,403	N/A		N/A	4.0%	$	369,335
NBH Bank	8.6%		788,462	5.0%	$	458,593	4.0%		366,874
Bank of Jackson Hole Trust	31.0%		11,238	5.0%		1,373	4.0%		1,099
Common equity tier 1 risk based capital:
Consolidated	10.5%	$	857,403	N/A		N/A	7.0%	$	574,339
NBH Bank	9.7%		788,462	6.5%	$	528,334	7.0%		568,975
Bank of Jackson Hole Trust	71.6%		11,238	6.5%		1,020	7.0%		1,098
Tier 1 risk based capital ratio:
Consolidated	10.5%	$	857,403	N/A		N/A	8.5%	$	697,412
NBH Bank	9.7%		788,462	8.0%	$	650,257	8.5%		690,898
Bank of Jackson Hole Trust	71.6%		11,238	8.0%		1,255	8.5%		1,333
Total risk based capital ratio:
Consolidated	12.2%	$	1,000,398	N/A		N/A	10.5%	$	861,509
NBH Bank	10.8%		876,458	10.0%	$	812,821	10.5%		853,462
Bank of Jackson Hole Trust	71.6%		11,238	10.0%		1,569	10.5%		1,647


(1)		Includes the capital conservation buffer of 2.5%.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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