Regulatory Matters

12 Months Ended

Dec. 31, 2023

Regulatory Matters [Abstract]

Regulatory Matters

21.REGULATORY MATTERS

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table that follows) of Common Equity Tier I, Total Capital, and Tier I Capital (as defined in FRB regulations) to risk-weighted assets (as defined in FRB regulations), and of Tier I capital (as defined in FRB regulations) to average assets (as defined in FRB regulations). Management believes that as of December 31, 2023 and 2022 the Bank met all capital adequacy requirements to which they are subject.

The most recent notification from their regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum Common Equity Tier I, total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category rating.

The Bank’s actual capital amounts and ratios were as follows:

		December 31, 2023
	(in thousands)
	Bank				Minimum for Capital Adequacy Purposes				Minimum to be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common Equity Tier I
(to Risk Weighted Assets)	$	239,167	14.33	%	$	75,080	4.5	%	$	108,449	6.5	%
Total Capital
(to Risk Weighted Assets)	$	260,038	15.59	%	$	133,476	8.0	%	$	166,845	10.0	%
Tier I Capital
(to Risk Weighted Assets)	$	239,167	14.33	%	$	100,107	6.0	%	$	133,476	8.0	%
Tier I Capital
(to Average Assets)	$	239,167	10.84	%	$	88,258	4.0	%	$	110,322	5.0	%

	December 31, 2022
	(in thousands)
	Bank				Minimum for Capital Adequacy Purposes				Minimum to be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common Equity Tier I
(to Risk Weighted Assets)	$	215,262	13.16	%	$	73,627	4.5	%	$	106,350	6.5	%
Total Capital
(to Risk Weighted Assets)	$	234,700	14.34	%	$	130,893	8.0	%	$	163,616	10.0	%
Tier I Capital
(to Risk Weighted Assets)	$	215,262	13.16	%	$	98,170	6.0	%	$	130,893	8.0	%
Tier I Capital
(to Average Assets)	$	215,262	9.77	%	$	88,174	4.0	%	$	110,217	5.0	%

Dividends are paid as declared by the Board of Directors. Under New York law, the Company may pay dividends only if it is solvent and would not be rendered insolvent by the dividend payment and only from unrestricted and unreserved earned surplus, or if there is no surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.

The Company and the Bank are subject to dividend restrictions imposed by the FRB and the OCC, respectively. In general, it is the policy of the FRB that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the holding company is consistent with the organization’s capital needs, asset quality and overall financial condition. Dividends may be paid by the Bank only if it would not impair the Bank’s capital structure, if the Bank’s surplus is at least equal to its common capital and if the dividends declared in any year do not exceed the total of retained net profits in that year combined with retained profits of the preceding two years.

‎