Regulatory Matters

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Regulatory Matters

13.   Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Bank must maintain a capital conservation buffer consisting of common equity tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. The conservation buffers for the Bank exceed the fully phased in minimum capital requirement as of December 31, 2019.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the tables below) of total, common equity Tier 1 and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2019 and December 31, 2018, that the Bank met all capital adequacy requirements to which they are subject.

The most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity Tier 1, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since then, which management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios were:

									To be Well Capitalized under
					For Capital Adequacy				Prompt Corrective Action
	Actual				Purposes				Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	December 31, 2019
Rhinebeck Bank
Total capital (to risk-weighted assets)	$	109,799	12.83	%	$	68,481	8.00	%	$	85,602	10.00	%
Tier 1 capital (to risk-weighted assets)		103,845	12.13	%		51,361	6.00	%		68,481	8.00	%
Common equity tier one capital (to risk weighted assets)		103,845	12.13	%		38,521	4.50	%		55,641	6.50	%
Tier 1 capital (to average assets)		103,845	10.84	%		38,325	4.00	%		47,907	5.00	%

	December 31, 2018
Rhinebeck Bank
Total capital (to risk-weighted assets)	$	81,222	11.07	%	$	58,694	8.00	%	$	73,368	10.00	%
Tier 1 capital (to risk-weighted assets)		74,576	10.16	%		44,021	6.00	%		58,694	8.00	%
Common equity tier one capital (to risk weighted assets)		74,576	10.16	%		33,016	4.50	%		47,689	6.50	%
Tier 1 capital (to average assets)		74,576	8.80	%		33,901	4.00	%		42,376	5.00	%