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Minimum Regulatory Capital Requirements | 12 Months Ended
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Dec. 31, 2019
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, 2019 and 2018, 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 were gradually phased in between 2015 and 2019, did not have a material impact on the Corporation but does 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 is 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 increased the required levels each year through 2019. As of December 31, 2019 and 2018, 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 were 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, 2019 |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | $ | 150,093 |  |  | 11.86 | % |  | $ | 88,587 |  |  | 7.000 | % |  | $ | 82,260 |  |  | 6.50 | %
Consolidated | 159,794 |  |  | 12.56 | % |  | 89,090 |  |  | 7.000 | % |  | N/A |  |  | N/A |
Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 150,093 |  |  | 11.86 | % |  | 107,570 |  |  | 8.500 | % |  | 101,243 |  |  | 8.00 | %
Consolidated | 159,794 |  |  | 12.56 | % |  | 108,180 |  |  | 8.500 | % |  | N/A |  |  | N/A |
Total capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 158,032 |  |  | 12.49 | % |  | 132,881 |  |  | 10.500 | % |  | 126,554 |  |  | 10.00 | %
Consolidated | 167,733 |  |  | 13.18 | % |  | 133,635 |  |  | 10.500 | % |  | N/A |  |  | N/A |
Tier 1 capital to average assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 150,093 |  |  | 8.54 | % |  | 70,288 |  |  | 4.00 | % |  | 87,861 |  |  | 5.00 | %
Consolidated | 159,794 |  |  | 9.01 | % |  | 70,945 |  |  | 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, 2018 |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | $ | 143,429 |  |  | 11.75 | % |  | $ | 77,826 |  |  | 6.375 | % |  | $ | 79,352 |  |  | 6.50 | %
Consolidated | 154,705 |  |  | 12.58 | % |  | 78,431 |  |  | 6.375 | % |  | N/A |  |  | N/A |
Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 143,429 |  |  | 11.75 | % |  | 96,138 |  |  | 7.875 | % |  | 97,664 |  |  | 8.00 | %
Consolidated | 154,705 |  |  | 12.58 | % |  | 96,885 |  |  | 7.875 | % |  | N/A |  |  | N/A |
Total capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 151,804 |  |  | 12.43 | % |  | 120,554 |  |  | 9.875 | % |  | 122,080 |  |  | 10.00 | %
Consolidated | 163,080 |  |  | 13.26 | % |  | 121,491 |  |  | 9.875 | % |  | N/A |  |  | N/A |
Tier 1 capital to average assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 143,429 |  |  | 8.07 | % |  | 71,085 |  |  | 4.000 | % |  | 88,856 |  |  | 5.00 | %
Consolidated | 154,705 |  |  | 8.72 | % |  | 70,996 |  |  | 4.000 | % |  | N/A |  |  | N/A |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 + Details
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