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Regulatory Capital | 3 Months Ended
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Mar. 31, 2014
Regulatory Capital Requirements [Abstract] |
Regulatory Capital | Regulatory Capital The Corporation and the Banks are subject to various regulatory capital requirements administered by Federal and State of Wisconsin banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Banks’ assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. The Corporation’s and the Banks’ capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Corporation regularly reviews and updates when appropriate its Capital and Liquidity Action Plan (the “Capital Plan”), which is designed to help ensure appropriate capital adequacy, to plan for future capital needs and to ensure that the Corporation serves as a source of financial strength to the Banks. The Corporation’s and the Banks’ Boards of Directors and management teams adhere to the appropriate regulatory guidelines on decisions which affect their respective capital positions, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness. As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Board of Governors of the Federal Reserve system (the “Federal Reserve”). Federal Reserve guidance urges companies to strongly consider eliminating, deferring or significantly reducing dividends if: (i) net income available to common shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. The Banks are also subject to certain legal, regulatory and other restrictions on their ability to pay dividends to the Corporation. As a bank holding company, the payment of dividends by the Banks to the Corporation is one of the sources of funds the Corporation could use to pay dividends, if any, in the future and to make other payments. Future dividend decisions by the Banks and the Corporation will continue to be subject to compliance with various legal, regulatory and other restrictions as defined from time to time. Qualitative measures established by regulation to ensure capital adequacy require the Corporation and the Banks to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. Tier 1 capital generally consists of stockholders’ equity plus certain qualifying debentures and other specified items less intangible assets such as goodwill. Risk-based capital requirements presently address credit risk related to both recorded and off-balance-sheet commitments and obligations. Management believes, as of March 31, 2014, that the Corporation and the Banks met all applicable capital adequacy requirements. As of March 31, 2014, the most recent notification from the Federal Deposit Insurance Corporation and the State of Wisconsin Department of Financial Institutions categorized the Banks as well capitalized under the regulatory framework for prompt corrective action. The following table summarizes the Corporation’s and Banks’ capital ratios and the ratios required by their federal regulators at March 31, 2014 and December 31, 2013, respectively:
|  | Actual |  | Minimum Required for Capital Adequacy Purposes |  | Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
|  | (Dollars in Thousands)
As of March 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
Total capital |  |  |  |  |  |  |  |  |  |  |  |
(to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 144,202 |  |  | 12.92 | % |  | $ | 89,289 |  |  | 8.00 | % |  | N/A |  |  | N/A |
First Business Bank |  | 125,025 |  |  | 12.61 |  |  | 79,293 |  |  | 8.00 |  |  | $ | 99,116 |  |  | 10.00 | %
First Business Bank — Milwaukee |  | 18,276 |  |  | 14.30 |  |  | 10,223 |  |  | 8.00 |  |  | 12,778 |  |  | 10.00 |
Tier 1 capital |  |  |  |  |  |  |  |  |  |  |  |
(to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 122,323 |  |  | 10.96 | % |  | $ | 44,644 |  |  | 4.00 | % |  | N/A |  |  | N/A |
First Business Bank |  | 112,634 |  |  | 11.36 |  |  | 39,647 |  |  | 4.00 |  |  | $ | 59,470 |  |  | 6.00 | %
First Business Bank — Milwaukee |  | 16,694 |  |  | 13.06 |  |  | 5,111 |  |  | 4.00 |  |  | 7,667 |  |  | 6.00 |
Tier 1 capital |  |  |  |  |  |  |  |  |  |  |  |
(to average assets) |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 122,323 |  |  | 9.67 | % |  | $ | 50,602 |  |  | 4.00 | % |  | N/A |  |  | N/A |
First Business Bank |  | 112,634 |  |  | 10.66 |  |  | 42,269 |  |  | 4.00 |  |  | $ | 52,836 |  |  | 5.00 | %
First Business Bank — Milwaukee |  | 16,694 |  |  | 7.65 |  |  | 8,725 |  |  | 4.00 |  |  | 10,907 |  |  | 5.00 |
|  | Actual |  | Minimum Required for Capital Adequacy Purposes |  | Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
|  | (Dollars in Thousands)
As of December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |
Total capital |  |  |  |  |  |  |  |  |  |  |  |
(to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 145,352 |  |  | 13.16 | % |  | $ | 88,373 |  |  | 8.00 | % |  | N/A |  |  | N/A |
First Business Bank |  | 123,331 |  |  | 12.57 |  |  | 78,516 |  |  | 8.00 |  |  | $ | 98,145 |  |  | 10.00 | %
First Business Bank — Milwaukee |  | 17,944 |  |  | 14.66 |  |  | 9,790 |  |  | 8.00 |  |  | 12,238 |  |  | 10.00 |
Tier 1 capital |  |  |  |  |  |  |  |  |  |  |  |
(to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 119,617 |  |  | 10.83 |  |  | $ | 44,186 |  |  | 4.00 | % |  | N/A |  |  | N/A |
First Business Bank |  | 111,062 |  |  | 11.32 |  |  | 39,258 |  |  | 4.00 |  |  | $ | 58,887 |  |  | 6.00 | %
First Business Bank — Milwaukee |  | 16,414 |  |  | 13.41 |  |  | 4,895 |  |  | 4.00 |  |  | 7,343 |  |  | 6.00 |
Tier 1 capital |  |  |  |  |  |  |  |  |  |  |  |
(to average assets) |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 119,617 |  |  | 9.35 |  |  | $ | 51,153 |  |  | 4.00 | % |  | N/A |  |  | N/A |
First Business Bank |  | 111,062 |  |  | 10.35 |  |  | 42,913 |  |  | 4.00 |  |  | $ | 53,641 |  |  | 5.00 | %
First Business Bank — Milwaukee |  | 16,414 |  |  | 7.64 |  |  | 8,595 |  |  | 4.00 |  |  | 10,744 |  |  | 5.00 |

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958570-112826 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958568-112826 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958573-112826 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958574-112826 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958575-112826 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958569-112826 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=7881181&loc=d3e65071-112826 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958577-112826 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958572-112826 + Details
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