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Regulatory Capital Requirements | 12 Months Ended
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Dec. 31, 2019
Regulatory Capital Requirements [Abstract] |
Regulatory Capital Requirements | 16. Regulatory Capital Requirements The Company and the Bank are 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 consolidated 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 NBT Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications 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 Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 Capital to risk-weighted assets and of Tier 1 capital to average assets. As of December 31, 2019 and 2018, the Company and the Bank meet all capital adequacy requirements to which they were subject. Under their prompt corrective action regulations, regulatory authorities are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on an institution’s financial statements. The regulations establish a framework for the classification of banks into five categories: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. As of December 31, 2019 and 2018, the most recent notifications from the Bank’s 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 total risk-based, Tier 1 risk-based and Tier 1 Capital to Average Asset ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. Beginning in 2016, in addition to maintaining minimum capital ratios, the Company began to be subject to a capital conservation buffer ("Buffer") above the minimum to avoid restriction on capital distributions and discretionary bonus paychecks to officers. At December 31, 2019 and 2018 the Buffer was 2.500% and 1.875%, respectively. The Buffer regulatory minimum ratio is in the process of being phased in over four years, which started in 2016 with the minimum requirement of 0.625%, and is fully phased in for fiscal year 2019 with a requirement of 2.500%. The Company and NBT Bank’s actual capital amounts and ratios are presented as follows:
|  | Actual |  |  | Regulatory Ratio Requirements |
(Dollars in thousands) |  | Amount |  |  | Ratio |  |  | Minimum Capital Adequacy |  |  | Minimum plus Buffer |  |  | For Classification as Well- Capitalized |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier I Capital (to average assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 963,147 |  |  |  | 10.33 | % |  |  | 4.00 | % |  |  |  |  |  | 5.00 | %
NBT Bank |  |  | 894,407 |  |  |  | 9.64 | % |  |  | 4.00 | % |  |  |  |  |  | 5.00 | %
Common Equity Tier 1 Capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  |  | 866,147 |  |  |  | 11.29 | % |  |  | 4.50 | % |  |  | 7.000 | % |  |  | 6.50 | %
NBT Bank |  |  | 894,407 |  |  |  | 11.76 | % |  |  | 4.50 | % |  |  | 7.000 | % |  |  | 6.50 | %
Tier I Capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  |  | 963,147 |  |  |  | 12.56 | % |  |  | 6.00 | % |  |  | 8.500 | % |  |  | 8.00 | %
NBT Bank |  |  | 894,407 |  |  |  | 11.76 | % |  |  | 6.00 | % |  |  | 8.500 | % |  |  | 8.00 | %
Total Capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  |  | 1,037,041 |  |  |  | 13.52 | % |  |  | 8.00 | % |  |  | 10.500 | % |  |  | 10.00 | %
NBT Bank |  |  | 968,301 |  |  |  | 12.73 | % |  |  | 8.00 | % |  |  | 10.500 | % |  |  | 10.00 | %
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier I Capital (to average assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  | $ | 880,448 |  |  |  | 9.52 | % |  |  | 4.00 | % |  |  |  |  |  |  | 5.00 | %
NBT Bank |  |  | 825,863 |  |  |  | 8.98 | % |  |  | 4.00 | % |  |  |  |  |  |  | 5.00 | %
Common Equity Tier 1 Capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  |  | 783,448 |  |  |  | 10.49 | % |  |  | 4.50 | % |  |  | 6.375 | % |  |  | 6.50 | %
NBT Bank |  |  | 825,863 |  |  |  | 11.14 | % |  |  | 4.50 | % |  |  | 6.375 | % |  |  | 6.50 | %
Tier I Capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  |  | 880,448 |  |  |  | 11.79 | % |  |  | 6.00 | % |  |  | 7.875 | % |  |  | 8.00 | %
NBT Bank |  |  | 825,863 |  |  |  | 11.14 | % |  |  | 6.00 | % |  |  | 7.875 | % |  |  | 8.00 | %
Total Capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company |  |  | 954,232 |  |  |  | 12.78 | % |  |  | 8.00 | % |  |  | 9.875 | % |  |  | 10.00 | %
NBT Bank |  |  | 899,647 |  |  |  | 12.14 | % |  |  | 8.00 | % |  |  | 9.875 | % |  |  | 10.00 | %

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826 + Details
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