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Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2018
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, 2018 and 2017, 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, 2018 and 2017, 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, 2018 and 2017 the Buffer was 1.875% and 1.250%, 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 2.5%.

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, 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
%
 
                    
As of December 31, 2017
                    
Tier I Capital (to average assets)
                    
Company
 
$
810,445
   
9.14
%
  
4.00
%
      
5.00
%
NBT Bank
  
756,521
   
8.59
%
  
4.00
%
      
5.00
%
Common Equity Tier 1 Capital
                    
Company
  
713,445
   
10.06
%
  
4.50
%
  
5.750
%
  
6.50
%
NBT Bank
  
756,521
   
10.74
%
  
4.50
%
  
5.750
%
  
6.50
%
Tier I Capital (to risk-weighted assets)
                    
Company
  
810,445
   
11.42
%
  
6.00
%
  
7.250
%
  
8.00
%
NBT Bank
  
756,521
   
10.74
%
  
6.00
%
  
7.250
%
  
8.00
%
Total Capital (to risk-weighted assets)
                    
Company
  
880,874
   
12.42
%
  
8.00
%
  
9.250
%
  
10.00
%
NBT Bank
  
826,950
   
11.74
%
  
8.00
%
  
9.250
%
  
10.00
%