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Minimum Regulatory Capital Requirements | 12 Months Ended
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Dec. 31, 2020
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, 2020 and 2019, 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. The common equity tier 1 capital ratio has a minimum requirement of 4.50%. The minimum standard for primary, or Tier 1 capital is 6.00% and the minimum standard for total capital is 8.00%. As of December 31, 2020 and 2019, 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, 2020 |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | $ | 153,102 |  |  | 12.28 | % |  | $ | 87,273 |  |  | 7.000 | % |  | $ | 81,039 |  |  | 6.50 | %
Consolidated | 162,532 |  |  | 12.97 | % |  | 87,675 |  |  | 7.000 | % |  | N/A |  | N/A
Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 153,102 |  |  | 12.28 | % |  | 105,975 |  |  | 8.500 | % |  | 99,741 |  |  | 8.00 | %
Consolidated | 162,532 |  |  | 12.97 | % |  | 106,462 |  |  | 8.500 | % |  | N/A |  | N/A
Total capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 162,846 |  |  | 13.06 | % |  | 130,910 |  |  | 10.500 | % |  | 124,676 |  |  | 10.00 | %
Consolidated | 172,276 |  |  | 13.75 | % |  | 131,512 |  |  | 10.500 | % |  | N/A |  | N/A
Tier 1 capital to average assets |  |  |  |  |  |  |  |  |  |  |
Isabella Bank | 153,102 |  |  | 7.97 | % |  | 76,814 |  |  | 4.00 | % |  | 96,018 |  |  | 5.00 | %
Consolidated | 162,532 |  |  | 8.37 | % |  | 77,671 |  |  | 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, 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 |  |  | 4.000 | % |  | 87,861 |  |  | 5.00 | %
Consolidated | 159,794 |  |  | 9.01 | % |  | 70,945 |  |  | 4.000 | % |  | N/A |  | N/A

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- 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. + 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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&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=117337116&loc=d3e65071-112826 + Details
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