Long-Term Debt and FHLB Stock |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and FHLB Stock | 8. Long-Term Debt and FHLB Stock FHLB Borrowings and Stock The Company is a member of the FHLB. At December 31, 2019 and 2018, the Company had access to a preapproved secured line of credit with the FHLB of $486,906 and $441,134, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2019 and 2018, the Company had pledged assets of $168,230 and $145,805, respectively. At December 31, 2019 and 2018, the Company had outstanding overnight line of credit balances with FHLB of $22,500 and $0, respectively. These borrowings mature the following business day. The interest rate was 1.81% at December 31, 2019. At December 31, 2019, the Company also had structured borrowings in the amount of $43,804. The outstanding principal amounts and the related terms and rates at December 31, 2019 were as follows:
No impairment was recognized at either December 31, 2019 or 2018. The Company 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 Company evaluates for impairment based on the ultimate recovery ability of the cost. Subordinated Debt During 2005, the Company formed RSB Capital Trust I (“Trust”) and owns all of the Trust’s common securities. The Trust has no independent assets or operations and was created for the sole purpose of issuing trust securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures issued by the Company. 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% (3.91% at December 31, 2019 and 4.80% at December 31, 2018) mature on May 23, 2035. Other Borrowings In December 2018 the Company entered into an agreement with Atlantic Community Bankers Bank to provide it with a $5,000 bank holding company line of credit at a rate equal to the Wall Street Journal prime rate of interest, floating, plus 0.50%. The term of this line is the earlier of the closing of the reorganization or 90 days from the loan closing. The purpose of the line was to provide short term availability of funds which strategically would be down-streamed to the Bank to be used as capital to support year end capital ratios that were impacted by the reorganization and stock offering. After the closing of the offering, the facility was converted to Rhinebeck Bancorp, Inc. and has remained in place for backstop liquidity purposes. At December 31, 2018, the Company had $5,000 of advances outstanding to Rhinebeck Bancorp, MHC which was paid in full on January 16, 2019 at the close of the Company’s offering. At December 31, 2019, there were no advances under this line. The Company also has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at December 31, 2019 and 2018. |