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Regulatory Capital Requirements
 12 Months Ended
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
%