Regulatory Capital

12 Months Ended

Dec. 31, 2020

Regulatory Capital [Abstract]

Regulatory Capital

Note 10 -- Regulatory Capital

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Bank holding companies follow minimum regulatory requirements established by the Board of Governors of the Federal Reserve System (“Federal Reserve System”), and First Mid Bank follow similar minimum regulatory

requirements established for national banks by the Office of the Comptroller of the Currency (“OCC”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.

Quantitative measures established by each regulatory capital standards to ensure capital adequacy require the Company and its subsidiary bank to maintain a minimum capital amounts and ratios (set forth in the table below). Management believes that, as of December 31, 2020 and 2019, the Company and First Mid Bank all capital adequacy requirements.

As of December 31, 2020 and 2019, the most recent notification from the primary regulators categorized First Mid Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, minimum total risk-based capital, Tier 1 risk-based capital, Common Equity Tier 1 risk-based capital, and Tier 1 leverage ratios must be maintained as set forth in the table below. At December 31, 2020, there were no conditions or events since the most recent notification that management believes have changed this categorization.

	Actual					Required Minimum For Capital Adequacy Purposes with Capital Buffer			To Be Well-Capitalized Under Prompt Corrective Action Provisions
($ in thousands)	Amount		Ratio			Amount		Ratio	Amount		Ratio
December 31, 2020
Total Capital (to risk-weighted assets)
Company	$	589,352		18.82	%	$	328,865	>10.50%	N/A		N/A
First Mid Bank		446,308		14.30	%		327,685	>10.50%	$	312,081	> 10.00%
Tier 1 Capital (to risk-weighted assets)
Company		458,325		14.63	%		266,224	> 8.50	N/A		N/A
First Mid Bank		409,534		13.12	%		265,269	> 8.50		249,665	> 8.00
Common Equity Tier 1 Capital (to risk-weighted assets)
Company		439,299		14.03	%		219,243	> 7.00	N/A		N/A
First Mid Bank		409,534		13.12	%		218,457	> 7.00		202,853	> 6.50
Tier 1 Capital (to average assets)
Company		458,325		10.22	%		179,302	> 4.00	N/A		N/A
First Mid Bank		409,534		9.18	%		178,497	> 4.00		223,121	> 5.00
December 31, 2019
Total Capital (to risk-weighted assets)
Company	$	444,305		15.74	%	$	296,378	>10.50%	N/A		N/A
First Mid Bank		411,196		14.65	%		294,703	>10.50%	$	280,670	> 10.00%
Tier 1 Capital (to risk-weighted assets)
Company		417,394		14.79	%		239,925	> 8.50	N/A		N/A
First Mid Bank		384,285		13.69	%		238,569	> 8.50		224,536	> 8.00
Common Equity Tier 1 Capital (to risk-weighted assets)
Company		398,536		14.12	%		197,585	> 7.00	N/A		N/A
First Mid Bank		384,285		13.69	%		196,469	> 7.00		182,435	> 6.50
Tier 1 Capital (to average assets)
Company		417,394		11.20	%		149,044	> 4.00	N/A		N/A
First Mid Bank		384,285		10.37	%		148,268	> 4.00		185,335	> 5.00

The Company's risk-weighted assets, capital and capital ratios for December 31, 2020 and 2019 were computed in accordance with Basel III capital rules which were effective January 1, 2015. Prior periods were computed following previous rules. See heading "Basel III" in the Overview section of this report for a more detailed description of Basel III rules. As of December 31, 2020 and 2019, the Company and First Mid Bank had capital ratios above the required minimums for regulatory capital adequacy, and First Mid Bank had capital ratios that qualified it for treatment as well-capitalized under the regulatory framework for prompt corrective action with respect to banks.