Regulatory Matters

6 Months Ended

Jun. 30, 2024

Regulatory Matters

Regulatory Matters

10.  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 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 Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

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 additional Tier I capital (as defined in 12 C.F.R. § 324.20) to risk-weighted assets and of Tier I capital to average assets. Management believes, as of June 30, 2024 and December 31, 2023, 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
	June 30, 2024
Rhinebeck Bank
Total capital (to risk-weighted assets)	$	146,906	13.29	%	$	88,406	8.00	%	$	110,508	10.00	%
Tier 1 capital (to risk-weighted assets)		139,078	12.59	%		66,305	6.00	%		88,406	8.00	%
Common equity tier one capital (to risk weighted assets)		139,078	12.59	%		49,729	4.50	%		71,830	6.50	%
Tier 1 capital (to average assets)		139,078	10.60	%		52,498	4.00	%		65,622	5.00	%

	December 31, 2023
Rhinebeck Bank
Total capital (to risk-weighted assets)	$	144,675	12.70	%	$	91,154	8.00	%	$	113,942	10.00	%
Tier 1 capital (to risk-weighted assets)		136,295	11.96	%		68,365	6.00	%		91,154	8.00	%
Common equity tier one capital (to risk weighted assets)		136,295	11.96	%		51,274	4.50	%		74,062	6.50	%
Tier 1 capital (to average assets)		136,295	10.10	%		53,990	4.00	%		67,488	5.00	%