Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended March 31, 2025

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Rhinebeck Bancorp (NASDAQ:RBKB) reported strong Q1 2025 financial results with net income of $2.3 million ($0.21 per share), a 104.1% increase from $1.1 million in Q1 2024. The improvement was driven by higher net interest income and non-interest income, partially offset by increased credit loss provisions and expenses.

Key highlights include:

Net interest income rose 25.2% to $11.0 million
Interest rate spread improved to 3.13% from 2.19%
Net interest margin increased to 3.79% from 2.90%
Return on average assets reached 0.73% vs 0.34% year-over-year
Return on average equity improved to 7.49% from 3.92%

Total assets remained stable at $1.26 billion, with loans receivable growing 0.5% to $976.5 million. Credit quality improved with past due loans decreasing 18.9% to $13.6 million (1.38% of total loans). Total deposits increased by $13.5 million to $1.03 billion, while stockholders' equity grew 3.4% to $126.0 million.

Positive

Net income more than doubled to $2.3 million, up 104.1% year-over-year
Net interest income increased 25.2% to $11.0 million
Net interest margin expanded significantly to 3.79% from 2.90%
Credit quality improved with past due loans decreasing 18.9%
Total deposits grew by $13.5 million to $1.03 billion

Negative

Net charge-offs increased to $510,000 from $250,000 year-over-year
Provision for credit losses rose 325.3% to $353,000
Non-interest expenses increased 7.1% to $9.5 million
Investment advisory income declined 11.8% due to market conditions

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On the day this news was published, RBKB gained 1.77%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

04/24/2025 - 04:25 PM

POUGHKEEPSIE, NY / ACCESS Newswire / April 24, 2025 / Rhinebeck Bancorp, Inc. (the "Company") (NASDAQ:RBKB), the holding company of Rhinebeck Bank (the "Bank"), reported net income for the three months ended March 31, 2025 of $2.3 million ($0.21 per basic and diluted share), which was $1.2 million, or 104.1%, higher than the comparable prior year period of $1.1 million ($0.10 per basic and diluted share).

The increase in net income for the quarter ended March 31, 2025 as compared to the quarter ended March 31, 2024 was primarily due to increases in net interest income and non-interest income, partially offset by increases in the provision for credit losses and non-interest expense. The Company's return on average assets and return on average equity were 0.73% and 7.49% for the first quarter of 2025, respectively, as compared to 0.34% and 3.92% for the first quarter of 2024, respectively.

President and Chief Executive Officer Michael J. Quinn said, "We're very pleased with our first quarter results, which saw earnings more than double to $2.3 million from $1.1 million a year ago. This performance reflects the positive impact of the balance sheet restructuring we executed in the second half of 2024, which took advantage of the interest rate environment. As a result, we delivered significant expansion in both our interest rate spread, up from 2.19% to 3.13%, and our net interest margin, which increased from 2.90% to 3.79%. Profitability metrics improved across the board, with return on average assets rising to 0.73% and return on average equity reaching 7.49%. We also drove meaningful improvement in operating efficiency and maintained strong credit quality. We believe these results set a solid foundation for continued growth as we move through 2025."

Income Statement Analysis

Net interest income increased $2.2 million, or 25.2%, to $11.0 million for the three months ended March 31, 2025, from $8.8 million for the three months ended March 31, 2024. The increase was primarily due to higher yields on interest earning assets and lower costs on interest bearing liabilities. Interest rate spread improved 94 basis points from 2.19% for the three months ended March 31, 2024 to 3.13% for the three months ended March 31, 2025, reflecting better pricing on assets versus liabilities. A balance sheet restructuring in the second half of 2024 significantly increased the yield on our available for sale securities.

For the three months ended March 31, 2025, when compared to the three months ended March 31, 2024, the average yield improved by 60 basis points to 5.71% while the average balance of interest-earning assets decreased by $42.2 million, or 3.5%, to $1.18 billion. The average balance of interest-bearing liabilities decreased by $46.2 million, or 5.0%, primarily due to a $48.0 million decrease in the average balance of FHLB advances, while the cost of interest-bearing liabilities decreased by 34 basis points to 2.58%. The overall net interest margin increased by 89 basis points to 3.79% and the overall interest rate spread increased by 94 basis points to 3.13% for the three months ended March 31, 2025.

The provision for credit losses on loans increased by $270,000, or 325.3%, from $83,000 for the quarter ended March 31, 2024 to $353,000 for the current quarter. The increase was primarily attributable to increased loan production during the quarter and increased charge-offs. Net charge-offs increased $260,000 from $250,000 for the first quarter of 2024 to $510,000 for the first quarter of 2025. The increase was primarily due to increased net charge-offs of $162,000 and $139,000 in indirect automobile loans and commercial loans, respectively.

The percentage of overdue account balances to total loans decreased to 1.38% as of March 31, 2025 from 1.71% as of December 31, 2024, while non-performing assets decreased $622,000, or 15.0%, to $3.5 million at March 31, 2025.

Non-interest income totaled $1.8 million for the three months ended March 31, 2025, an increase of $161,000, or 10.1%, from the comparable period in 2024, due primarily to an increase of $166,000, or 66.4%, in other non-interest income investment as swap income increased. Service charges on deposit accounts also increased by $30,000, or 4.0%, as deposits increased. These increases were partially offset by a decrease in investment advisory income of $45,000, or 11.8%, resulting from a decline in the market due to unpredictable economic conditions. Gains on sales of loans also decreased $8,000 as we sold $385,000 of residential mortgage loans in the first quarter of 2025 as compared to sales of $2.0 million in the first quarter of 2024.

For the first quarter of 2025, non-interest expense rose to $9.5 million, reflecting a $631,000, or 7.1%, increase compared to the same period in 2024. The increase was broad-based, with almost all major expense categories rising. Other non-interest expense grew by $256,000, or 16.8%, driven by higher retail banking costs. Salaries and benefits rose $142,000, primarily due to increased production commissions. Marketing expense rose by $79,000, or 65.3%, largely due to promotional initiatives associated with the launch of higher-yielding deposit products. Additionally, professional fees, FDIC insurance expense, and data processing fees increased by $63,000, $44,000, and $30,000, respectively.

Balance Sheet Analysis

Total assets increased slightly by $159,000 to remain relatively stable at $1.26 billion as of March 31, 2025. Cash and cash equivalents rose by $13.0 million, or 34.8%, driven by higher deposits held at the FHLB and the Federal Reserve Bank of New York, funded by proceeds from maturing securities. Loans receivable grew by $4.7 million, or 0.5%, to $976.5 million, primarily reflecting a $17.9 million increase in commercial real estate loans and a $4.3 million increase in residential real estate loans. This was partially offset by a decline of $17.7 million in indirect automobile loans, in line with a strategic decision to reduce their share of the portfolio. These increases were largely offset by a $15.1 million, or 9.4%, decrease in available-for-sale securities, primarily due to $18.1 million in paydowns, calls, and maturities, partially offset by a $2.3 million reduction in unrealized losses.

Past due loans decreased $3.2 million, or 18.9%, between December 31, 2024 and March 31, 2025, finishing at $13.6 million, or 1.38% of total loans, down from $16.7 million, or 1.71% of total loans at year-end 2024. The decrease was most notable in indirect automobile loans, reflecting the positive impact of more conservative underwriting standards. The allowance for credit losses was 0.86% of total loans and 239.35% of non-performing loans at March 31, 2025 as compared to 0.88% of total loans and 206.56% of non-performing loans at December 31, 2024. Non-performing assets totaled $3.5 million at March 31, 2025, a decrease of $622,000, from $4.1 million at December 31, 2024.

Total liabilities decreased by $4.0 million, or 0.4%, to $1.13 billion at March 31, 2025. The decline was primarily driven by a $15.9 million, or 22.8%, reduction in borrowings and a $1.8 million, or 19.1%, decrease in mortgagors' escrow accounts. These decreases were largely offset by a $13.5 million, or 1.3%, increase in deposits. The growth in deposits was almost entirely attributable to a $13.6 million, or 1.7%, increase in interest-bearing deposits, while non-interest-bearing deposits declined slightly by $174,000, or 0.1%. The increase in savings and money market accounts reflected the Bank's promotion of higher-yielding products in response to customer demand for better interest rates. Uninsured deposits were approximately 27.8% and 26.9% of the Bank's total deposits as of March 31, 2025 and December 31, 2024, respectively.

Stockholders' equity increased $4.1 million, or 3.4%, to $126.0 million at March 31, 2025. The increase was primarily due to $2.3 million in net income and a $1.8 million decrease in accumulated other comprehensive loss reflecting the results of the balance sheet restructuring. The Company's ratio of average equity to average assets was 9.77% for the three months ended March 31, 2025 and 9.23% for the year ended December 31, 2024.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. is a Maryland corporation organized as the mid-tier holding company of Rhinebeck Bank and is the majority-owned subsidiary of Rhinebeck Bancorp, MHC. The Bank is a New York chartered stock savings bank, which provides a full range of banking and financial services to consumer and commercial customers through its thirteen branches and two representative offices located in Dutchess, Ulster, Orange, and Albany counties in New York State. Financial services including comprehensive brokerage, investment advisory services, financial product sales and employee benefits are offered through Rhinebeck Asset Management, a division of the Bank.

Forward Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events or results and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe", "expect", "anticipate", "estimate", "intend", "predict", "forecast", "improve", "continue", "will", "would", "should", "could", or "may". Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, inflation, changes in the interest rate environment, fluctuations in real estate values, general economic conditions or conditions within the securities markets, potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, our ability to access cost-effective funding, changes in asset quality, loan sale volumes, charge-offs and credit loss provisions, changes in economic assumptions that may impact our allowance for credit losses calculation, changes in demand for our products and services, legislative, accounting, tax and regulatory changes, including changes in the monetary and fiscal policies of the Board of Governors of the Federal Reserve System, the effect of our rating under the Community Reinvestment Act, political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters, such as earthquakes, drought, pandemic diseases, extreme weather events, or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's or the Bank's financial condition and results of operations and the business in which the Company and the Bank are engaged.

Accordingly, you should not place undue reliance on forward-looking statements. Rhinebeck Bancorp, Inc. undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

The Company's summary consolidated statements of income and financial condition and other selected financial data follow:

Rhinebeck Bancorp, Inc. and Subsidiary
Consolidated Statements of Income (Unaudited)
(In thousands, except share and per share data)

	Three Months Ended March 31,
	2025		2024
Interest and Dividend Income
Interest and fees on loans	$	15,008	$	14,297
Interest and dividends on securities		1,351		1,037
Other income		279		217
Total interest and dividend income		16,638		15,551
Interest Expense
Interest expense on deposits		4,762		5,134
Interest expense on borrowings		839		1,605
Total interest expense		5,601		6,739
Net interest income		11,037		8,812
Provision for Credit Losses		353		83
Net interest income after provision for credit losses		10,684		8,729
Non-interest Income
Service charges on deposit accounts		773		743
Net gain on sales of loans		38		46
Increase in cash surrender value of life insurance		188		184
Net gain from sale of other real estate owned		-		4
Net loss on disposal of premises and equipment		-		(18	)
Investment advisory income		336		381
Other		416		250
Total non-interest income		1,751		1,590
Non-interest Expense
Salaries and employee benefits		5,134		4,992
Occupancy		1,071		1,053
Data processing		525		495
Professional fees		477		414
Marketing		200		121
FDIC deposit insurance and other insurance		297		253
Amortization of intangible assets		20		21
Other		1,784		1,528
Total non-interest expense		9,508		8,877
Net income before income taxes		2,927		1,442
Net Provision for Income Taxes		639		321
Net income	$	2,288	$	1,121

Earnings per common share:
Basic	$	0.21	$	0.10
Diluted	$	0.21	$	0.10

Weighted average shares outstanding, basic		10,777,044		10,748,006
Weighted average shares outstanding, diluted		10,923,364		10,844,287

Rhinebeck Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition (Unaudited)
(In thousands, except share and per share data)

	March 31,			December 31,
	2025			2024
Assets
Cash and due from banks	$	23,194		$	18,561
Federal funds sold		26,759			18,309
Interest bearing depository accounts		564			614
Total cash and cash equivalents		50,517			37,484

Available for sale securities (at fair value)		144,872			159,947
Loans receivable (net of allowance for credit losses of $8,406 and $8,539, respectively)		976,502			971,779
Federal Home Loan Bank stock		3,245			3,960
Accrued interest receivable		4,632			4,435
Cash surrender value of life insurance		30,381			30,193
Deferred tax assets (net of valuation allowance of $1,211 and $1,336, respectively)		7,201			8,114
Premises and equipment, net		13,903			14,105
Goodwill		2,235			2,235
Intangible assets, net		146			166
Other assets		22,290			23,347
Total assets	$	1,255,924		$	1,255,765
Liabilities and Stockholders' Equity
Liabilities
Deposits
Non-interest bearing	$	237,952		$	238,126
Interest bearing		796,289			782,657
Total deposits		1,034,241			1,020,783

Mortgagors' escrow accounts		7,626			9,425
Advances from the Federal Home Loan Bank		53,873			69,773
Subordinated debt		5,155			5,155
Accrued expenses and other liabilities		29,054			28,796
Total liabilities		1,129,949			1,133,932

Stockholders' Equity
Preferred stock (par value $0.01 per share; 5,000,000 authorized, no shares issued)		-			-
Common stock (par value $0.01; authorized 25,000,000; issued and outstanding 11,094,828 at March 31, 2025 and December 31, 2024)		111			111
Additional paid-in capital		45,955			45,946
Unearned common stock held by the employee stock ownership plan		(3,000	)		(3,055	)
Retained earnings		94,054			91,766
Accumulated other comprehensive loss:
Net unrealized loss on available for sale securities, net of taxes		(8,690	)		(10,480	)
Defined benefit pension plan, net of taxes		(2,455	)		(2,455	)
Total accumulated other comprehensive loss		(11,145	)		(12,935	)
Total stockholders' equity		125,975			121,833
Total liabilities and stockholders' equity	$	1,255,924		$	1,255,765

Rhinebeck Bancorp, Inc. and Subsidiary
Average Balance Sheet (Unaudited)
(Dollars in thousands)

	For the Three Months Ended March 31,
	2025							2024
	Average		Interest and					Average		Interest and
	Balance		Dividends		Yield/Cost⁽³⁾			Balance		Dividends		Yield/Cost⁽³⁾
Assets:
Interest bearing depository accounts and federal funds sold	$	28,428	$	279		3.98	%	$	17,274	$	217		5.05	%
Loans⁽¹⁾		992,023		15,008		6.14	%		1,009,612		14,297		5.70	%
Available for sale securities		157,219		1,261		3.25	%		190,900		870		1.83	%
Other interest-earning assets		4,349		90		8.39	%		6,441		167		10.43	%
Total interest-earning assets		1,182,019		16,638		5.71	%		1,224,227		15,551		5.11	%
Non-interest-earning assets		87,097							88,866
Total assets	$	1,269,116						$	1,313,093
Liabilities and equity:
NOW accounts	$	126,085	$	53		0.17	%	$	123,779	$	42		0.14	%
Money market accounts		206,019		1,235		2.43	%		188,896		1,259		2.68	%
Savings accounts		132,949		124		0.38	%		147,116		132		0.36	%
Certificates of deposit		329,337		3,330		4.10	%		333,342		3,681		4.44	%
Total interest-bearing deposits		794,390		4,742		2.42	%		793,133		5,114		2.59	%
Escrow accounts		7,575		21		1.12	%		7,017		20		1.15	%
Federal Home Loan Bank advances		74,963		752		4.07	%		122,993		1,507		4.93	%
Subordinated debt		5,155		86		6.77	%		5,155		98		7.65	%
Total other interest-bearing liabilities		87,693		859		3.97	%		135,165		1,625		4.84	%
Total interest-bearing liabilities		882,083		5,601		2.58	%		928,298		6,739		2.92	%
Non-interest-bearing deposits		234,295							243,017
Other non-interest-bearing liabilities		28,802							26,620
Total liabilities		1,145,180							1,197,935
Total stockholders' equity		123,936							115,158
Total liabilities and stockholders' equity	$	1,269,116						$	1,313,093
Net interest income			$	11,037						$	8,812
Interest rate spread						3.13	%						2.19	%
Net interest margin⁽²⁾						3.79	%						2.90	%
Average interest-earning assets to average interest-bearing liabilities						134.00	%						131.88	%

⁽¹⁾ Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $53,000 and $17,000 for the three months ended March 31, 2025 and 2024, respectively.
⁽²⁾ Represents the difference between interest earned and interest paid, divided by average total interest earning assets.
⁽³⁾ Annualized.

Rhinebeck Bancorp, Inc. and Subsidiary
Selected Ratios (Unaudited)

	Three Months Ended						Year Ended
	March 31,						December 31,
	2025			2024			2024
Performance Ratios⁽¹⁾:
Return on average assets ⁽²⁾		0.73	%		0.34	%		(0.67	)%
Return on average equity⁽³⁾		7.49	%		3.92	%		(7.31	)%
Net interest margin ⁽⁴⁾		3.79	%		2.90	%		3.21	%
Efficiency ratio, excluding impact of securities loss restructure⁽⁷⁾		74.35	%		85.34	%		82.34	%
Average interest-earning assets to average interest-bearing liabilities		134.00	%		131.88	%		133.68	%
Total gross loans to total deposits		94.75	%		95.84	%		95.51	%
Average equity to average assets⁽⁵⁾		9.77	%		8.77	%		9.23	%

Asset Quality Ratios:
Allowance for credit losses on loans as a percent of total gross loans		0.86	%		0.80	%		0.88	%
Allowance for credit losses on loans as a percent of non-performing loans		239.35	%		174.85	%		206.56	%
Net charge-offs to average outstanding loans during the period		(0.05	)%		(0.02	)%		(0.24	)%
Non-performing loans as a percent of total gross loans		0.36	%		0.46	%		0.42	%
Non-performing assets as a percent of total assets		0.28	%		0.35	%		0.33	%

Capital Ratios⁽⁶⁾:
Tier 1 capital (to risk-weighted assets)		12.10	%		12.26	%		11.81	%
Total capital (to risk-weighted assets)		12.91	%		12.99	%		12.63	%
Common equity Tier 1 capital (to risk-weighted assets)		12.10	%		12.26	%		11.81	%
Tier 1 leverage ratio (to average total assets)		10.17	%		10.28	%		10.07	%

Other Data:
Book value per common share	$	11.35		$	10.32		$	10.98
Tangible book value per common share⁽⁷⁾	$	11.14		$	10.10		$	10.76

(1) Performance ratios for the three month periods ended March 31, 2025 and 2024 are annualized.
(2) Represents net income divided by average total assets.
(3) Represents net income divided by average equity.
(4) Represents net interest income as a percent of average interest-earning assets.
(5) Represents average equity divided by average total assets.
(6) Capital ratios are for Rhinebeck Bank only. Rhinebeck Bancorp, Inc. is not subject to the minimum consolidated capital requirements as a small bank holding company with assets of less than $3.0 billion.
(7) Represents a non-GAAP financial measure, see table below for a reconciliation of the non-GAAP financial measures.

NON-GAAP FINANCIAL INFORMATION

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Such non-GAAP financial information includes the following measures: tangible book value per common share, efficiency ratio and earnings per share excluding securities loss. Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below. Loss on available-for-sale securities is excluded from the following calculations as management believes that this presentation provides further comparability of net income (loss), earnings (loss) per share and the efficiency ratio and is consistent with industry practice.

(In thousands, except per share data)	March 31,						December 31,
	2025			2024			2024
Book value per common share
Total shareholders' equity (book value) (GAAP)	$	125,975		$	114,272		$	121,833
Total shares outstanding		11,095			11,073			11,095
Book value per common share	$	11.35		$	10.32		$	10.98

Tangible common equity
Total shareholders' equity (book value) (GAAP)	$	125,975		$	114,272		$	121,833
Goodwill		(2,235	)		(2,235	)		(2,235	)
Intangible assets, net		(146	)		(225	)		(166	)
Tangible common equity (non-GAAP)	$	123,594		$	111,812		$	119,432

Tangible book value per common share
Tangible common equity (non-GAAP)	$	123,594		$	111,812		$	119,432
Total shares outstanding		11,095			11,073			11,095
Tangible book value per common share (non-GAAP)	$	11.14		$	10.10		$	10.76

Related Links
http://www.Rhinebeckbank.com

Contact:

Michael Quinn
President & CEO
(845)454-8555
mquinn@rhinebeckbank.com

SOURCE: Rhinebeck Bancorp

View the original press release on ACCESS Newswire

FAQ

What was Rhinebeck Bancorp's (RBKB) earnings per share in Q1 2025?

RBKB reported earnings of $0.21 per basic and diluted share in Q1 2025, compared to $0.10 per share in Q1 2024.

How much did RBKB's net interest margin improve in Q1 2025?

RBKB's net interest margin increased by 89 basis points to 3.79% in Q1 2025 compared to Q1 2024.

What is RBKB's loan quality status as of March 2025?

Past due loans decreased to $13.6 million (1.38% of total loans) with non-performing assets at $3.5 million, showing improved credit quality.

How much are Rhinebeck Bancorp's (RBKB) uninsured deposits as of Q1 2025?

Uninsured deposits were approximately 27.8% of the Bank's total deposits as of March 31, 2025.

What was RBKB's return on equity in Q1 2025?

RBKB's return on average equity was 7.49% in Q1 2025, up from 3.92% in Q1 2024.

Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended March 31, 2025