Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended June 30, 2024

Rhea-AI Summary

Rhinebeck Bancorp (NASDAQ:RBKB) reported a decrease in net income for Q2 2024, with earnings of $975,000 ($0.09 per share), down 31.9% from $1.4 million ($0.13 per share) in Q2 2023. The decline was primarily due to increased provision for credit losses and decreased net interest income. For the first half of 2024, net income was $2.1 million ($0.19 per share), a 6.0% decrease from the same period last year.

Key financial metrics for Q2 2024:

• Return on average assets: 0.31% (down from 0.43% in Q2 2023)
• Return on average equity: 3.43% (down from 5.17% in Q2 2023)
• Net interest margin: 3.08% (up 11 basis points)
• Tangible book value per share: $10.27 (up 8.5% year-over-year)

The company's total assets decreased by 2.8% to $1.28 billion, with loans receivable down $26.5 million to $982.4 million. Deposits increased slightly by 0.1%, while borrowings decreased by 37.7%.

Positive

• Tangible book value per share increased by 8.5% year-over-year to $10.27
• Net interest margin improved by 11 basis points to 3.08% in Q2 2024
• Non-interest income increased by 11.5% to $1.5 million in Q2 2024
• Non-interest expense decreased by 3.7% to $8.9 million in Q2 2024
• Past due loans decreased by 18.8% to $15.6 million, representing 1.58% of total loans

Negative

• Net income decreased by 31.9% to $975,000 in Q2 2024 compared to Q2 2023
• Return on average assets declined to 0.31% from 0.43% year-over-year
• Return on average equity decreased to 3.43% from 5.17% year-over-year
• Net interest income decreased by 1.8% to $9.1 million in Q2 2024
• Provision for credit losses increased by 198.9% to $447,000 in Q2 2024
• Total assets decreased by 2.8% to $1.28 billion
• Loans receivable decreased by $26.5 million to $982.4 million

Insights

Financial Analyst

Rhinebeck Bancorp's Q2 2024 results reveal a mixed financial picture with some concerning trends. The company reported a $975,000 net income ($0.09 per share), a 31.9% decrease from the previous year. This decline is primarily attributed to increased credit loss provisions and decreased net interest income.

Key financial metrics show deterioration:

• Return on Average Assets: Dropped to 0.31% from 0.43%
• Return on Average Equity: Fell to 3.43% from 5.17%
• Net Interest Margin: Slightly increased to 3.08%, but year-to-date figures show a decline

The bank's strategic shift away from indirect automobile loans is noteworthy, decreasing this portfolio by 12.9%. While this may reduce risk, it has also contributed to the overall loan decrease. The increase in commercial real estate loans (4.6%) partially offsets this, but also potentially increases exposure to a volatile sector.

Positively, non-interest income increased by 11.5%, primarily due to improved investment advisory income. The bank's cost-cutting measures, including a workforce reduction and branch closure, have helped decrease non-interest expenses by 3.7%.

The 0.1% increase in deposits, despite the challenging environment, is commendable. However, the 27% of uninsured deposits presents a potential risk in case of market instability.

Overall, while Rhinebeck is making strategic moves to improve profitability, the declining net income and returns are concerning. Investors should closely monitor the bank's ability to navigate the high-interest rate environment and its success in rebalancing its loan portfolio.

Banking Industry Specialist

Rhinebeck Bancorp's Q2 2024 results highlight the challenges facing regional banks in the current economic climate. The bank's strategic decisions reflect broader industry trends and pressures:

• Deposit competition: The shift from transaction accounts to higher-yielding time deposits and money market accounts underscores the intense competition for deposits in a high-rate environment.
• Loan portfolio rebalancing: The reduction in indirect automobile loans (12.9% decrease) in favor of commercial real estate (4.6% increase) and residential real estate (6.9% increase) loans indicates a shift towards potentially higher-yielding but also higher-risk assets.
• Net interest margin pressure: Despite a slight quarterly improvement, the year-to-date net interest margin decrease to 3.00% from 3.09% reflects the ongoing challenge of managing funding costs in a rising rate environment.

The bank's focus on non-interest income, particularly the 61.5% increase in investment advisory income, is a prudent strategy to diversify revenue streams. However, the 198.9% increase in credit loss provisions warrants attention, especially given the growth in commercial real estate exposure.

The reduction in the efficiency ratio and cost-cutting measures, including workforce reductions and a branch closure, align with industry-wide efforts to streamline operations. However, these actions must be balanced against the need to maintain service quality and competitive positioning.

The 27% of uninsured deposits is a concern, especially in light of recent regional bank failures. Rhinebeck should prioritize strategies to increase insured deposits or secure alternative stable funding sources to mitigate this risk.

In conclusion, while Rhinebeck is taking steps to adapt to the challenging environment, its performance reflects the broader pressures facing regional banks. The coming quarters will be important in determining whether these strategic shifts can improve profitability and maintain asset quality.

POUGHKEEPSIE, NY / ACCESSWIRE / July 25, 2024 / Rhinebeck Bancorp, Inc. (the "Company") (NASDAQ:RBKB), the holding company of Rhinebeck Bank (the "Bank"), reported net income for the three months ended June 30, 2024 of $975,000 ($0.09 per basic and diluted share), which was $456,000, or 31.9% less than the comparable prior year period of $1.4 million ($0.13 per basic and diluted share). Net income for the six months ended June 30, 2024 of $2.1 million ($0.19 per basic and diluted share) was $133,000, or 6.0%, less than the same period last year.

The decrease in net income for the quarter ended June 30, 2024 was primarily due to an increase in the provision for credit losses and a decrease in net interest income, partially offset by an increase in non-interest income and a decrease in non-interest expense, when compared to the quarter ended June 30, 2023. The Company's return on average assets and return on average equity were 0.31% and 3.43% for the second quarter of 2024, respectively, as compared to 0.43% and 5.17% for the second quarter of 2023, respectively. The decrease in net income for the six months ended June 30, 2024 was primarily due to a decrease in net interest income, partially offset by an increase in non-interest income, and a decrease in non-interest expense, when compared to the six months ended June 30, 2023. The Company's return on average assets and return on average equity were 0.32% and 3.67% for the first six months of 2024, respectively, as compared to 0.34% and 4.08% for the first six months of 2023, respectively.

President and Chief Executive Officer Michael J. Quinn said, "While second quarter net income decreased to $1.0 million from $1.1 million in the first quarter, we are pleased that our efforts to focus on pricing and sources of revenue and to prudently manage expenses have resulted in improvements to net interest margin, non-interest income and the efficiency ratio quarter over quarter. Tangible book value per share increased to $10.27, an increase of 8.5% from June 30, 2023. We continue to focus on improving results through the beneficial pricing of assets and liabilities, as well as focusing on expense management." (Tangible book value per share is a non-GAAP financial measure; see page 10 for a reconciliation to GAAP measures.)

Income Statement Analysis

Net interest income decreased $163,000, or 1.8%, to $9.1 million for the three months ended June 30, 2024, from $9.3 million for the three months ended June 30, 2023. Year-to-date net interest income decreased $1.1 million, or 5.9%, to $18.0 million compared to $19.2 million for the prior year six-month period. The decreases on both a quarterly and year-to-date basis were primarily due to higher costs for deposits and borrowings, partially offset by higher yields on interest earning assets.

For the three months ended June 30, 2024, the average balance of interest-earning assets decreased by $61.4 million, or 4.9%, to $1.20 billion and the average yields improved by 54 basis points to 5.31%, when compared to the three months ended June 30, 2023. The average balance of interest-bearing liabilities decreased by $37.3 million, or 4.0%, and the cost of interest-bearing liabilities increased by 55 basis points to 2.95%, reflecting the higher interest rate environment and a greater proportion of deposits in higher yielding certificates of deposit. The net interest margin increased by 11 basis points to 3.08% while the interest rate spread decreased by one basis point to 2.36% for the three months ended June 30, 2024.

For the six months ended June 30, 2024, the average balance of interest-earning assets decreased by $42.2 million, or 3.4%, to $1.21 billion while the average yield improved by 46 basis points to 5.22%, when compared to the six months ended June 30, 2023. The average balance of interest-bearing liabilities decreased by $12.7 million, or 1.4%, primarily due to a decrease in deposits, partially offset by the increase in the average balance of FHLB advances, while the cost of interest-bearing liabilities increased by 68 basis points to 2.93%. The net interest margin decreased by 9 basis points to 3.00% and the interest rate spread decreased by 22 basis points to 2.29% for the six months ended June 30, 2024.

The provision for credit losses on loans increased by $899,000, or 198.9%, from a credit of $452,000 for the quarter ended June 30, 2023 to an expense of $447,000 for the quarter ended June 30, 2024. The credit to the provision for the three months ended June 30, 2023 was primarily attributable to a decrease in loan balances, primarily indirect automobile loans, and a $710,000 charge-off on a leveraged loan, which reduced the credit that would have been taken.

Net charge-offs increased $211,000 from $622,000 for the second quarter of 2023 to $833,000 for the second quarter of 2024. The increase was primarily due to increased net charge-offs in indirect automobile loans of $465,000 and a $275,000 charge-off on a commercial real estate property. Net charge-offs increased $48,000, or 4.6% to $1.1 million for the first six months of 2024. The percentage of overdue account balances to total loans decreased to 1.58% as of June 30, 2024, from 1.90% as of December 31, 2023, while non-performing assets decreased $29,000, or 0.7%, to $4.2 million at June 30, 2024.

Non-interest income totaled $1.5 million for the three months ended June 30, 2024, an increase of $156,000, or 11.5%, from the comparable period in 2023, due primarily to an increase of $144,000, or 61.5%, in investment advisory income resulting from the improved market and economic conditions, an increase of $24,000 in the cash surrender value of life insurance and an increase of $18,000 in service charges on deposit accounts, partially offset by decreases in the gain on sales of loans of $17,000 and a $19,000 gain on disposal of premises and equipment in 2023.

Non-interest income totaled $3.0 million for the six months ended June 30, 2024, an increase of $286,000, or 10.5%, from the comparable period in 2023, due primarily to an increase of $216,000, or 39.8%, in investment advisory income resulting from the improved market and economic conditions, an increase of $48,000 in the cash surrender value of life insurance, an increase of $53,000 in service charges on deposit accounts, and an increase in the gain on sales of loans of $19,000, partially offset by a decrease of $54,000 on the disposal of premises and equipment.

Non-interest expense totaled $8.9 million for the second quarter of 2024, a decrease of $342,000, or 3.7%, over the comparable period in 2023. The decrease was primarily due to a $158,000, or 25.6%, decrease in professional fees as consulting fees on our indirect business were higher in 2023. FDIC deposit insurance and other insurance decreased $93,000, or 26.3%, primarily due a decreased assessment rate while salaries and occupancy expenses decreased $40,000 and $25,000, respectively, due to a reduction in force in our indirect lending business and a branch closure in the first quarter of 2024. Marketing expense and other non-interest expense decreased $28,000 and $12,000, respectively, while data processing fees increased $15,000 during the second quarter of 2024 as compared to 2023.

Non-interest expense totaled $17.8 million for the first six months of 2024, a decrease of $668,000, or 3.6%, over the comparable period in 2023. The decrease was primarily due to a $288,000, or 2.8%, decrease in salaries and benefits due to a Company-wide reduction in force of approximately 5% in the first quarter of 2023 and a further reduction in force in the first quarter of 2024 with the Company's strategic decision to reduce its indirect automobile business. FDIC deposit insurance and other insurance decreased $122,000, or 19.2%, primarily due a decreased assessment rate while professional fees decreased $110,000, or 11.2%. Occupancy expense decreased $51,000, or 2.4%, due to a branch closure in the first quarter of 2024 and other non-interest expense decreased $120,000, or 3.7%, primarily due to decreased retail banking expenses.

Balance Sheet Analysis

Total assets decreased $37.2 million, or 2.8%, to $1.28 billion at June 30, 2024 from $1.31 billion at December 31, 2023. Loans receivable decreased $26.5 million to $982.4 million, as compared to December 31, 2023, primarily due to a decrease in indirect automobile loans of $50.7 million, or 12.9%, reflecting a strategic decision to decrease that loan portfolio as a percentage of the balance sheet. At June 30, 2024, indirect automobile loans was 26.9% of assets, compared to 30.0% at December 31, 2023. Partially offsetting the decrease in automobile loans were increases in commercial real estate loans of $19.5 million, or 4.6%, residential real estate loans of $5.3 million, or 6.9%, and commercial and industrial loans of $1.8 million, or 2.0%, as production increased on these lines of business. Available for sale securities decreased $17.7 million, or 9.2%, primarily due to paydowns, calls and maturities of $18.0 million, partially offset by a decrease in unrealized loss on available for sale securities of $299,000, net of taxes. Cash and cash equivalents increased $12.3 million, or 55.6%, primarily due to an increase in deposits held at the Federal Reserve Bank of New York with proceeds from maturing loans and securities. Property and equipment decreased $3.2 million, or 18.3%, as the Beacon branch office was closed and the property sold during the first quarter of 2024 for $2.9 million and Federal Home Loan Bank stock decreased $2.1 million as borrowings decreased.

Past due loans decreased $3.6 million, or 18.8%, between December 31, 2023 and June 30, 2024, finishing at $15.6 million, or 1.58%, of total loans, down from $19.2 million, or 1.90%, of total loans at year-end 2023. The allowance for credit losses was 0.77% of total loans and 181.33% of non-performing loans at June 30, 2024 as compared to 0.81% of total loans and 194.31% of non-performing loans at December 31, 2023. Non-performing assets totaled $4.2 million, a decrease of $29,000, and included no other real estate owned at June 30, 2024. At December 31, 2023, non-performing assets totaled $4.2 million and included $25,000 in other real estate owned.

Total liabilities decreased $39.7 million, or 3.3%, to $1.16 billion at June 30, 2024 from $1.20 billion at December 31, 2023 due to a decrease in borrowings partially offset by increases in mortgagors' escrow accounts and accrued expenses and other liabilities. Advances from the Federal Home Loan Bank decreased $48.3 million, or 37.7%. Deposits increased $1.4 million, or 0.1%. Interest bearing deposits increased $10.5 million, or 1.3%, reflecting a shift in deposits from transaction accounts to higher-yielding time deposits and money market accounts as customers sought increasing yields on their deposits while non-interest bearing deposits decreased $9.0 million, or 3.6%, due to increased competition for deposits. At June 30, 2024, uninsured deposits were approximately 27% of the Bank's total deposits.

Stockholders' equity increased $2.5 million, or 2.2%, to $116.2 million at June 30, 2024. The increase was primarily due to net income of $2.1 million and a $326,000 decrease in accumulated other comprehensive loss primarily reflecting valuation changes in our available-for-sale securities portfolio due to current financial market conditions. The Company's ratio of average equity to average assets was 8.84% for the six months ended June 30, 2024 and 8.19% for the year ended December 31, 2023.

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, 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 June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Interest and Dividend Income
Interest and fees on loans		$	14,524			$	13,313			$	28,905			$	26,708
Interest and dividends on securities			957				1,228				1,994				2,246
Other income			295				398				512				587
Total interest and dividend income			15,776				14,939				31,411				29,541
Interest Expense
Interest expense on deposits			5,370				4,264				10,504				8,234
Interest expense on borrowings			1,269				1,375				2,874				2,143
Total interest expense			6,639				5,639				13,378				10,377
Net interest income			9,137				9,300				18,033				19,164
Provision expense (credit) for credit losses			447				(452	)			530				562
Net interest income after provision for credit losses			8,690				9,752				17,503				18,602
Non-interest Income
Service charges on deposit accounts			736				718				1,479				1,426
Net gain on sales of loans			35				52				81				62
Increase in cash surrender value of life insurance			188				164				372				324
Net gain from sale of other real estate owned			-				-				4				-
Gain (loss) on disposal of premises and equipment			-				19				(18	)			36
Investment advisory income			378				234				759				543
Other			177				171				343				343
Total non-interest income			1,514				1,358				3,020				2,734
Non-interest Expense
Salaries and employee benefits			4,912				4,952				9,904				10,192
Occupancy			1,062				1,087				2,115				2,166
Data processing			521				506				1,016				978
Professional fees			458				616				872				982
Marketing			115				143				236				247
FDIC deposit insurance and other insurance			261				354				514				636
Amortization of intangible assets			20				21				41				45
Other			1,598				1,610				3,126				3,246
Total non-interest expense			8,947				9,289				17,824				18,492
Income before income taxes			1,257				1,821				2,699				2,844
Provision for income taxes			282				390				603				615
Net income		$	975			$	1,431			$	2,096			$	2,229
Earnings per common share:
Basic		$	0.09			$	0.13			$	0.19			$	0.21
Diluted		$	0.09			$	0.13			$	0.19			$	0.20
Weighted average shares outstanding, basic			10,753,460				10,823,598				10,750,733				10,852,563
Weighted average shares outstanding, diluted			10,819,751				10,882,837				10,832,303				10,956,468

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

		June 30,				December 31,
		2024				2023
Assets
Cash and due from banks		$	14,251			$	14,178
Federal funds sold			19,319				7,524
Interest bearing depository accounts			868				427
Total cash and cash equivalents			34,438				22,129
Available for sale securities (at fair value)			174,252				191,985
Loans receivable (net of allowance for credit losses of $7,574 and $8,124, respectively)			982,392				1,008,851
Federal Home Loan Bank stock			4,410				6,514
Accrued interest receivable			4,501				4,616
Cash surrender value of life insurance			30,402				30,031
Deferred tax assets (net of valuation allowance of $615 and $598, respectively)			9,908				9,936
Premises and equipment, net			14,346				17,567
Other real estate owned			-				25
Goodwill			2,235				2,235
Intangible assets, net			205				246
Other assets			18,876				19,067
Total assets		$	1,275,965			$	1,313,202
Liabilities and Stockholders' Equity
Liabilities
Deposits
Non-interest bearing		$	240,764			$	249,793
Interest bearing			791,185				780,710
Total deposits			1,031,949				1,030,503
Mortgagors' escrow accounts			12,028				9,274
Advances from the Federal Home Loan Bank			79,773				128,064
Subordinated debt			5,155				5,155
Accrued expenses and other liabilities			30,864				26,521
Total liabilities			1,159,769				1,199,517
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 11,072,607)			111				111
Additional paid-in capital			45,939				45,959
Unearned common stock held by the employee stock ownership plan			(3,164	)			(3,273	)
Retained earnings			102,482				100,386
Accumulated other comprehensive loss:
Net unrealized loss on available for sale securities, net of taxes			(25,778	)			(26,077	)
Defined benefit pension plan, net of taxes			(3,394	)			(3,421	)
Total accumulated other comprehensive loss			(29,172	)			(29,498	)
Total stockholders' equity			116,196				113,685
Total liabilities and stockholders' equity		$	1,275,965			$	1,313,202

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

		For the Three Months Ended June 30,
		2024												2023
		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		$	20,837			$	295				5.69	%		$	30,715			$	398				5.20	%
Loans(1)			991,632				14,524				5.89	%			1,005,464				13,313				5.31	%
Available for sale securities			177,330				823				1.87	%			214,695				1,133				2.12	%
Other interest-earning assets			5,258				134				10.25	%			5,612				95				6.79	%
Total interest-earning assets			1,195,057				15,776				5.31	%			1,256,486				14,939				4.77	%
Non-interest-earning assets			89,125												90,152
Total assets		$	1,284,182											$	1,346,638
Liabilities and equity:
NOW accounts		$	125,039			$	43				0.14	%		$	142,774			$	49				0.14	%
Money market accounts			184,187				1,224				2.67	%			226,267				1,440				2.55	%
Savings accounts			142,546				128				0.36	%			164,774				149				0.36	%
Certificates of deposit			339,600				3,945				4.67	%			288,299				2,595				3.61	%
Total interest-bearing deposits			791,372				5,340				2.71	%			822,114				4,233				2.07	%
Escrow accounts			10,192				30				1.18	%			11,019				31				1.13	%
Federal Home Loan Bank advances			95,290				1,121				4.73	%			104,692				1,282				4.91	%
Subordinated debt			5,155				99				7.72	%			5,155				93				7.24	%
Other interest-bearing liabilities			3,655				49				5.39	%			-				-				-	%
Total other interest-bearing liabilities			114,292				1,299				4.57	%			120,866				1,406				4.67	%
Total interest-bearing liabilities			905,664				6,639				2.95	%			942,980				5,639				2.40	%
Non-interest-bearing deposits			236,515												266,296
Other non-interest-bearing liabilities			27,604												26,396
Total liabilities			1,169,783												1,235,672
Total stockholders' equity			114,399												110,966
Total liabilities and stockholders' equity		$	1,284,182											$	1,346,638
Net interest income						$	9,137											$	9,300
Interest rate spread											2.36	%											2.37	%
Net interest margin(2)											3.08	%											2.97	%
Average interest-earning assets to average interest-bearing liabilities											131.95	%											133.25	%

^{(1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $16,000 and $21,000 for the three months ended June 30, 2024 and 2023, respectively.
(2) Represents the difference between interest earned and interest paid, divided by average total interest earning assets.
(3) Annualized.}

		For the Six Months Ended June 30,
		2024												2023
		Average				Interest and								Average				Interest and
		Balance				Dividends				Yield/Cost				Balance				Dividends				Yield/Cost
		(Dollars in thousands)
Assets:
Interest bearing depository accounts		$	19,056			$	512				5.40	%		$	24,239			$	587				4.88	%
Loans(1)			1,000,622				28,905				5.81	%			1,004,193				26,708				5.36	%
Available for sale securities			184,115				1,693				1.85	%			218,858				2,069				1.91	%
Other interest-earning assets			5,850				301				10.35	%			4,573				177				7.81	%
Total interest-earning assets			1,209,643				31,411				5.22	%			1,251,863				29,541				4.76	%
Non-interest-earning assets			88,994												88,857
Total assets		$	1,298,637											$	1,340,720
Liabilities and equity:
NOW accounts		$	124,409			$	85				0.14	%		$	143,447			$	99				0.14	%
Money market accounts			186,542				2,483				2.68	%			253,581				3,274				2.60	%
Savings accounts			144,831				260				0.36	%			169,546				306				0.36	%
Certificates of deposit			336,471				7,626				4.56	%			266,110				4,504				3.41	%
Total interest-bearing deposits			792,253				10,454				2.65	%			832,684				8,183				1.98	%
Escrow accounts			8,604				50				1.17	%			9,399				51				1.09	%
Federal Home Loan Bank advances			109,141				2,628				4.84	%			82,473				1,963				4.80	%
Subordinated debt			5,155				197				7.69	%			5,155				180				7.04	%
Other interest-bearing liabilities			1,828				49				5.39	%			-				-				-	%
Total other interest-bearing liabilities			124,728				2,924				4.71	%			97,027				2,194				4.56	%
Total interest-bearing liabilities			916,981				13,378				2.93	%			929,711				10,377				2.25	%
Non-interest-bearing deposits			239,766												275,043
Other non-interest-bearing liabilities			27,112												25,691
Total liabilities			1,183,859												1,230,445
Total stockholders' equity			114,778												110,275
Total liabilities and stockholders' equity		$	1,298,637											$	1,340,720
Net interest income						$	18,033											$	19,164
Interest rate spread											2.29	%											2.51	%
Net interest margin(2)											3.00	%											3.09	%
Average interest-earning assets to average interest-bearing liabilities											131.92	%											134.65	%

^{(1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $33,000 and $36,000 for the six months ended June 30, 2024 and 2023, 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								Six Months Ended								Year Ended
		June 30,								June 30,								December 31,
		2024				2023				2024				2023				2023
Performance Ratios(1):
Return on average assets (2)			0.31	%			0.43	%			0.32	%			0.34	%			0.33	%
Return on average equity (3)			3.43	%			5.17	%			3.67	%			4.08	%			4.03	%
Net interest margin (4)			3.08	%			2.97	%			3.00	%			3.09	%			3.06	%
Efficiency ratio (5)			84.00	%			87.16	%			84.66	%			84.45	%			83.28	%
Average interest-earning assets to average interest-bearing liabilities			131.95	%			133.25	%			131.92	%			134.65	%			133.80	%
Total gross loans to total deposits			95.28	%			91.38	%			95.28	%			91.38	%			97.87	%
Average equity to average assets (6)			8.91	%			8.24	%			8.84	%			8.23	%			8.19	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percent of total gross loans			0.77	%			0.81	%			0.77	%			0.81	%			0.81	%
Allowance for credit losses on loans as a percent of non-performing loans			181.33	%			177.96	%			181.33	%			177.96	%			194.31	%
Net charge-offs to average outstanding loans during the period			(0.08	)%			(0.06	)%			(0.11	)%			(0.10	)%			(0.21	)%
Non-performing loans as a percent of total gross loans			0.42	%			0.46	%			0.42	%			0.46	%			0.41	%
Non-performing assets as a percent of total assets			0.33	%			0.34	%			0.33	%			0.34	%			0.32	%
Capital Ratios (7):
Tier 1 capital (to risk-weighted assets)			12.59	%			11.63	%			12.59	%			11.63	%			11.96	%
Total capital (to risk-weighted assets)			13.29	%			12.35	%			13.29	%			12.35	%			12.70	%
Common equity Tier 1 capital (to risk-weighted assets)			12.59	%			11.63	%			12.59	%			11.63	%			11.96	%
Tier 1 leverage ratio (to average total assets)			10.60	%			9.74	%			10.60	%			9.74	%			10.10	%
Other Data:
Book value per common share										$	10.49			$	9.70			$	10.27
Tangible book value per common share(8)										$	10.27			$	9.47			$	10.04

(1) Performance ratios for the three and six month periods ended June 30, 2024 and 2023 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 non-interest expense divided by the sum of net interest income and non-interest income.
(6) Represents average equity divided by average total assets.
(7) 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.
(8) 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 measure: "tangible book value per common share." Management uses this non-GAAP measure because we believe that it 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 this non-GAAP measure 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. This non-GAAP measure 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.

(In thousands, except per share data)		June 30,								December 31,
		2024				2023				2023
Book value per common share reconciliation
Total shareholders' equity (book value) (GAAP)		$	116,196			$	107,463			$	113,685
Total shares outstanding			11,073				11,084				11,073
Book value per common share		$	10.49			$	9.70			$	10.27
Total common equity
Total shareholders' equity (book value) (GAAP)		$	116,196			$	107,463			$	113,685
Goodwill			(2,235	)			(2,235	)			(2,235	)
Intangible assets, net			(205	)			(289	)			(246	)
Tangible common equity (non-GAAP)		$	113,756			$	104,939			$	111,204
Tangible book value per common share
Tangible common equity (non-GAAP)		$	113,756			$	104,939			$	111,204
Total shares outstanding			11,073				11,084				11,073
Tangible book value per common share (non-GAAP)		$	10.27			$	9.47			$	10.04

Related Links

http://www.Rhinebeckbank.com

Contact:

Michael Quinn
President & CEO
(845) 454-8555

SOURCE: Rhinebeck Bancorp, Inc.

View the original press release on accesswire.com

FAQ

What was Rhinebeck Bancorp's (RBKB) net income for Q2 2024?

Rhinebeck Bancorp (RBKB) reported net income of $975,000 ($0.09 per share) for Q2 2024, a decrease of 31.9% from $1.4 million ($0.13 per share) in Q2 2023.

How did Rhinebeck Bancorp's (RBKB) net interest margin change in Q2 2024?

Rhinebeck Bancorp's (RBKB) net interest margin increased by 11 basis points to 3.08% in Q2 2024 compared to the same period in 2023.

What was the change in Rhinebeck Bancorp's (RBKB) total assets as of June 30, 2024?

Rhinebeck Bancorp's (RBKB) total assets decreased by $37.2 million, or 2.8%, to $1.28 billion as of June 30, 2024, compared to $1.31 billion at December 31, 2023.

How did Rhinebeck Bancorp's (RBKB) loan portfolio change in Q2 2024?

Rhinebeck Bancorp's (RBKB) loans receivable decreased by $26.5 million to $982.4 million as of June 30, 2024, primarily due to a strategic decrease in indirect automobile loans.

What was Rhinebeck Bancorp's (RBKB) tangible book value per share as of June 30, 2024?

Rhinebeck Bancorp's (RBKB) tangible book value per share increased to $10.27 as of June 30, 2024, representing an 8.5% increase from June 30, 2023.