Long-Term Debt and FHLB Stock

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt and FHLB Stock

8. Long-Term Debt and FHLB Stock

FHLB Borrowings and Stock

The Bank is a member of the FHLB. At March 31, 2019 and December 31, 2018, the Bank had access to a preapproved secured line of credit with the FHLB of $442,413 and $441,134, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At March 31, 2019 and December 31, 2018, the Bank had pledged assets of $149,112 and $145,805, respectively. At March 31, 2019 and December 31, 2018, the Bank had outstanding overnight line of credit balances with FHLB of $59,800 and $0, respectively. These borrowings mature the following business day. The interest rate was 2.66% at March 31, 2019. At March 31, 2019, the Bank also had structured borrowings in the amount of $17,045. The outstanding principal amounts and the related terms and rates at March 31, 2019 were as follows:

Term	Principal		Maturity	Rate			Due in one year		Long term
1 year amortizing		1,262	May 15, 2019		2.50	%		1,262		-
1 year amortizing		1,681	June 7, 2019		2.53	%		1,681		-
2 year amortizing		3,157	May 15, 2020		2.78	%		2,517		640
2 year amortizing		3,364	June 8, 2020		2.76	%		2,511		853
3 year amortizing		7,581	May 17, 2021		2.92	%		3,308		4,273
Total	$	17,045	Weighted Average Rate		2.62	%	$	11,279	$	5,766

The Bank is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Bank evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either March 31, 2019 or December 31, 2018.

Subordinated Debt

As part of the reorganization completed on January 16, 2019, the Company acquired both of the common securities and related obligations of the RSB Capital Trust I (“Trust”). The Trust, which has no independent assets or operations, was formed in 2005 for the sole purpose of issuing trust preferred securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures. Trust preferred securities are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The trust securities also bear interest at 3-month LIBOR plus 2.00%. The duration of the Trust is 30 years.

The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, other than trust securities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at 3-month LIBOR plus 2.00% (4.651% at March 31, 2019 and 4.653% at December 31, 2018) mature on May 23, 2035.

Other Borrowings

In December 2018 Rhinebeck Bancorp, MHC entered into an agreement with Atlantic Community Bankers Bank to provide it with a $5,000 line of credit at a rate equal to the Wall Street Journal prime rate of interest plus 0.50% to provide a temporary source of additional funds. At December 31, 2018 the entire line was drawn and the funds were down-streamed to the Bank as capital to support year-end capital ratios that were impacted by the influx of cash for subscription orders related to the reorganization and stock offering. On January 15, 2019 the Bank paid a $5,100 dividend to Rhinebeck Bancorp, MHC which then paid off the borrowing. After the closing of the offering, the facility converted to Rhinebeck Bancorp, Inc. and remains in place for backstop liquidity purposes. On March 31, 2019, the Company had no amount outstanding on the line.

The Bank also has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at March 31, 2019 and December 31, 2018.