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Regulatory Matters
12 Months Ended
Jun. 30, 2019
Regulatory Matters [Abstract]  
Regulatory Matters
Note 18.  Regulatory Matters

The Bank of Greene County and its wholly-owned subsidiary, Greene County Commercial Bank, are subject to various regulatory capital requirements administered by federal banking agencies.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material impact on the Company’s consolidated financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Commercial Bank must meet specific guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.  As of June 30, 2019, the most recent notification from regulators categorized the banks as “well capitalized” under the regulatory framework for prompt corrective action.  There are no conditions or events since that notification that management believes have changed the Bank’s category.

Quantitative measures established by regulation to ensure capital adequacy require The Bank of Greene County and Greene County Commercial Bank to maintain minimum amounts and ratios (set forth in the table below). In July 2013, the Office of the Comptroller of the Currency and the other federal bank regulatory agencies issued a final rule that will revise their leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act.  Among other things, the rule establishes a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), increases the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets) and assigns a higher risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property.  The final rule also requires unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital unless a one-time opt-out is exercised.  Additional constraints will also be imposed on the inclusion in regulatory capital of mortgage-servicing assets, defined tax assets and minority interests.  The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements.  The final rule became effective for The Bank of Greene County and Greene County Commercial Bank on January 1, 2015.  The capital conservation buffer requirement was phased in, increasing incrementally by 0.625% each year, beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer requirement became effective.  Management believes that, as of June 30, 2019, The Bank of Greene County and Greene County Commercial Bank met all capital adequacy requirements to which they are subject.

(Dollars in thousands)
 
Actual
  
For Capital
Adequacy
Purposes
  
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
  
Capital Conservation
Buffer
 
The Bank of Greene County
 
Amount
  
Ratio
  
Amount
  
Ratio
  
Amount
  
Ratio
  
Actual
  
Required
 
As of June 30, 2019:
                        
                         
Total risk-based capital
 
$
118,113
   
15.8
%
 
$
59,842
   
8.0
%
 
$
74,802
   
10.0
%
  
7.790
%
  
2.50
%
Tier 1 risk-based capital
  
108,716
   
14.5
   
44,881
   
6.0
   
59,842
   
8.0
   
8.534
   
2.50
 
Common equity tier 1 capital
  
108,716
   
14.5
   
33,661
   
4.5
   
48,621
   
6.5
   
10.034
   
2.50
 
Tier 1 leverage ratio
  
108,716
   
8.7
   
50,049
   
4.0
   
62,561
   
5.0
   
4.689
   
2.50
 
                                 
As of June 30, 2018:
                                
                                 
Total risk-based capital
 
$
102,549
   
15.5
%
 
$
53,024
   
8.0
%
 
$
66,280
   
10.0
%
  
7.472
%
  
1.875
%
Tier 1 risk-based capital
  
94,148
   
14.2
   
39,768
   
6.0
   
53,024
   
8.0
   
8.205
   
1.875
 
Common equity tier 1 capital
  
94,148
   
14.2
   
29,826
   
4.5
   
43,082
   
6.5
   
9.705
   
1.875
 
Tier 1 leverage ratio
  
94,148
   
8.2
   
45,789
   
4.0
   
57,236
   
5.0
   
4.225
   
1.875
 
                                 
Greene County Commercial Bank
As of June 30, 2019:
                                
                                 
Total risk-based capital
 
$
47,366
   
47.4
%
 
$
7,996
   
8.0
%
 
$
9,996
   
10.0
%
  
39.387
%
  
2.50
%
Tier 1 risk-based capital
  
47,366
   
47.4
   
5,997
   
6.0
   
7,996
   
8.0
   
41.387
   
2.50
 
Common equity tier 1 capital
  
47,366
   
47.4
   
4,498
   
4.5
   
6,497
   
6.5
   
42.887
   
2.50
 
Tier 1 leverage ratio
  
47,366
   
9.6
   
19,678
   
4.0
   
24,597
   
5.0
   
5.628
   
2.50
 
                                 
As of June 30, 2018:
                                
                                 
Total risk-based capital
 
$
40,286
   
47.1
%
 
$
6,837
   
8.0
%
 
$
8,546
   
10.0
%
  
39.139
%
  
1.875
%
Tier 1 risk-based capital
  
40,286
   
47.1
   
5,128
   
6.0
   
6,837
   
8.0
   
41.139
   
1.875
 
Common equity tier 1 capital
  
40,286
   
47.1
   
3,846
   
4.5
   
5,555
   
6.5
   
42.639
   
1.875
 
Tier 1 leverage ratio
  
40,286
   
9.1
   
17,747
   
4.0
   
22,184
   
5.0
   
5.080
   
1.875