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Minimum Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2018
Banking and Thrift [Abstract]  
Minimum Regulatory Capital Requirements
Minimum Regulatory Capital Requirements
The Corporation (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the FRB and the FDIC. Failure to meet minimum capital requirements can initiate mandatory and possibly additional discretionary actions by the FRB and the FDIC that, if undertaken, could have a material effect on our financial statements. Under regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that include quantitative measures of assets, liabilities, capital, and certain off-balance-sheet items, as calculated under regulatory accounting standards. Our capital amounts and classifications are also subject to qualitative judgments by the FRB and the FDIC about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.
Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the following table) of total capital, tier 1 capital, and common equity tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and tier 1 capital to average assets (as defined). We believe, as of December 31, 2018 and 2017, that we met all capital adequacy requirements.
The FRB has established minimum risk-based capital guidelines. Pursuant to these guidelines, a framework has been established that assigns risk weights to each category of on and off-balance-sheet items to arrive at risk adjusted total assets. Regulatory capital is divided by the risk adjusted assets with the resulting ratio compared to the minimum standard to determine whether a corporation has adequate capital. On July 2, 2013, the FRB published revised BASEL III Capital standards for banks. The final rules redefine what is included or deducted from equity capital, changes risk weighting for certain on and off-balance sheet assets, increases the minimum required equity capital to be considered well capitalized, and introduces a capital cushion buffer. The rules, which are being gradually phased in between 2015 and 2019, are not expected to have a material impact on the Corporation but will require us to hold more capital than we have historically.
Effective January 1, 2015, the minimum standard for primary, or tier 1, capital increased from 4.00% to 6.00%. The minimum standard for total capital remained at 8.00%. Also effective January 1, 2015 was the new common equity tier 1 capital ratio which had a minimum requirement of 4.50%. Beginning on January 1, 2016 the capital conservation buffer went into effect which will further increase the required levels each year through 2019.
As of December 31, 2018 and 2017, the most recent notifications from the FRB and the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain total risk-based, Tier 1 risk-based, Common Equity Tier 1, and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notifications that we believe have changed our categories. Our actual capital amounts and ratios are also presented in the table.
 
Actual
 
Minimum
Capital
Requirement
 
Minimum To Be Well
Capitalized Under Prompt
Corrective Action Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
$
143,429

 
11.75
%
 
$
48,832

 
6.375
%
 
$
73,248

 
6.50
%
Consolidated
154,705

 
12.58
%
 
49,212

 
6.375
%
 
 N/A

 
N/A

Tier 1 capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
143,429

 
11.75
%
 
48,832

 
7.875
%
 
73,248

 
8.00
%
Consolidated
154,705

 
12.58
%
 
49,212

 
7.875
%
 
 N/A

 
N/A

Total capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
151,804

 
12.43
%
 
97,664

 
9.875
%
 
122,080

 
10.00
%
Consolidated
163,080

 
13.26
%
 
98,423

 
9.875
%
 
 N/A

 
N/A

Tier 1 capital to average assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
143,429

 
8.07
%
 
71,085

 
4.00
%
 
88,856

 
5.00
%
Consolidated
154,705

 
8.72
%
 
70,996

 
4.00
%
 
 N/A

 
N/A

 
Actual
 
Minimum
Capital
Requirement
 
Minimum To Be Well
Capitalized Under Prompt Corrective Action Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
$
139,897

 
11.56
%
 
$
48,404

 
5.750
%
 
$
72,605

 
6.50
%
Consolidated
149,013

 
12.23
%
 
48,744

 
5.750
%
 
 N/A

 
N/A

Tier 1 capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
139,897

 
11.56
%
 
48,404

 
7.250
%
 
72,605

 
8.00
%
Consolidated
149,013

 
12.23
%
 
48,744

 
7.250
%
 
 N/A

 
N/A

Total capital to risk weighted assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
147,597

 
12.20
%
 
96,807

 
9.250
%
 
121,009

 
10.00
%
Consolidated
156,713

 
12.86
%
 
97,488

 
9.250
%
 
 N/A

 
N/A

Tier 1 capital to average assets
 
 
 
 
 
 
 
 
 
 
 
Isabella Bank
139,897

 
8.07
%
 
69,373

 
4.000
%
 
86,717

 
5.00
%
Consolidated
149,013

 
8.54
%
 
69,827

 
4.000
%
 
 N/A

 
N/A