Financial Performance - Net income for the three months ended March 31, 2024, increased by $323,000, or 40.5%, to $1.1 million, or $0.10 per diluted share, compared to $798,000, or $0.07 per diluted share for the same period in 2023[162] - Non-interest income totaled $1.5 million in Q1 2024, an increase of $130,000, or 9.4%, driven by a 23.3% increase in investment advisory income[168] - Non-interest expense decreased by $326,000, or 3.5%, to $8.9 million in Q1 2024, primarily due to a reduction in salaries and benefits[169] - Income taxes increased by $96,000, or 42.7%, in Q1 2024 compared to Q1 2023, with an effective tax rate of 22.26%[170] Asset and Liability Management - Total assets decreased by $14.4 million, or 1.1%, to $1.30 billion at March 31, 2024, compared to $1.31 billion at December 31, 2023[150] - Total net loans receivable decreased by $15.5 million, or 1.5%, to $993.3 million at March 31, 2024, primarily due to a $27.2 million decrease in indirect automobile loans[153] - Cash and cash equivalents increased by $8.5 million, or 38.6%, to $30.7 million at March 31, 2024, driven by an increase in customer deposits[151] - Deposits increased by $6.5 million, or 0.6%, to $1.04 billion at March 31, 2024, with interest-bearing accounts rising by $19.4 million, or 2.5%[157] - Total interest-earning assets decreased from $1,247.2 million in Q1 2023 to $1,224.2 million in Q1 2024, while total interest-bearing liabilities increased to $928.3 million[171] Credit Quality - The provision for credit losses decreased by $931,000, or 91.8%, indicating improved credit quality[162] - Provision for credit losses on loans decreased by $931,000, or 91.8%, from $1.0 million in Q1 2023 to $83,000 in Q1 2024, attributed to decreased loan production and improved economic conditions[166] - Net charge-offs decreased by $164,000 from $414,000 in Q1 2023 to $250,000 in Q1 2024, with overdue account balances to total loans decreasing to 1.84%[167] Interest Income and Expense - Net interest income decreased by $968,000, or 9.8%, to $8.9 million for the three months ended March 31, 2024[163] - Interest expense increased by $2.0 million, or 42.2%, from $4.7 million in Q1 2023 to $6.7 million in Q1 2024, with the average cost of interest-bearing liabilities rising to 2.92%[165] - The net interest margin decreased from 3.21% in Q1 2023 to 2.92% in Q1 2024, reflecting changes in interest rates and volumes[172] - The average yield on loans increased by 31 basis points, while the average yield on available-for-sale securities increased by 13 basis points[164] Cash Flow and Liquidity - Net cash used in operating activities was $3.5 million for the three months ended March 31, 2024, compared to net cash provided of $3.1 million for the same period in 2023[184] - Net cash provided by investing activities was $27.5 million for the three months ended March 31, 2024, compared to net cash used of $9.6 million for the same period in 2023[185] - A cash inflow of $15.4 million for a decrease in loans was the primary contributor to cash used in investing activities for the three months ended March 31, 2024[185] - The company reported a net cash outflow of $15.5 million in financing activities for the three months ended March 31, 2024, compared to a net cash inflow of $11.3 million in the comparable 2023 period[185] - The company maintains liquid assets at levels considered adequate to meet both short-term and long-term liquidity needs[181] Regulatory and Control Environment - There were no changes in the company's internal controls over financial reporting during the quarter ended March 31, 2024, that materially affected internal control[191] Market Conditions - Changes in market interest rates significantly influence deposit flows and loan and security sales, impacting liquidity management[182] - The company manages interest rate risk through strategies such as originating loans with adjustable rates and promoting core deposit products[177] Equity and Capital - Stockholders' equity increased by $587,000, or 0.5%, to $114.3 million at March 31, 2024, primarily due to net income[161]

Financial Performance - Net income for the quarter ended March 31, 2024, was $1.1 million, a 40.5% increase from $798,000 in the same period of 2023[1][2] - Return on average assets and return on average equity improved to 0.34% and 3.92%, respectively, compared to 0.24% and 2.95% in the first quarter of 2023[2] - Non-interest income totaled $1.5 million, an increase of $130,000, or 9.4%, driven by higher investment advisory income[8] - Non-interest expense decreased by $326,000, or 3.5%, to $8.9 million, primarily due to a reduction in salaries and benefits[9] - The efficiency ratio for the three months ended March 31, 2024, was 85.34%, compared to 81.88% for the same period in 2023[21] Asset and Equity Changes - Tangible book value per share increased by 5.3% to $10.10 from March 31, 2023[3] - Stockholders' equity increased by $587,000, or 0.5%, to $114.3 million, primarily due to net income[13] - Total shareholders' equity (book value) increased to $114,272,000 as of March 31, 2024, up from $110,717,000 in December 2023, representing a growth of 4.7%[25] - Book value per common share increased to $10.32 as of March 31, 2024, compared to $9.81 a year earlier[21] - Tangible common equity (non-GAAP) reached $111,812,000, up from $108,172,000, indicating a growth of 3.4%[25] Loan and Credit Metrics - Provision for credit losses on loans decreased by $931,000, or 91.8%, to $83,000 due to improved economic conditions[6] - The allowance for credit losses on loans as a percentage of total gross loans was 0.80% as of March 31, 2024, down from 0.91% a year earlier[21] - Non-performing loans as a percentage of total gross loans decreased to 0.46% as of March 31, 2024, from 0.57% a year earlier[21] Interest Income and Margin - Net interest income decreased by $968,000, or 9.8%, to $8.9 million due to higher costs of deposits and borrowings[4] - Net interest income for the three months ended March 31, 2024, was $8,896,000, down from $9,864,000 for the same period in 2023[19] - The net interest margin decreased to 2.92% for the three months ended March 31, 2024, compared to 3.21% for the same period in 2023[21] Asset Quality and Stability - Total assets decreased by $14.4 million, or 1.1%, to $1.30 billion, with loans receivable decreasing by $15.5 million[10] - Total assets as of March 31, 2024, were $1,298,784,000, a decrease from $1,313,202,000 as of December 31, 2023[18] - Total deposits increased to $1,037,024,000 as of March 31, 2024, compared to $1,030,503,000 at the end of 2023, reflecting a growth of 0.15%[18] - Average balance of interest-earning assets decreased by $23.0 million, or 1.8%, to $1.22 billion, while average yield improved by 39 basis points to 5.14%[5] Shareholder Value and Growth - The overall financial metrics indicate a positive trend in shareholder value and equity growth[25] - Total shares outstanding decreased to 11,073,000 from 11,284,000, a reduction of 1.9%[25] - Goodwill remained unchanged at $(2,235,000) across the reporting periods[25] - Intangible assets, net decreased to $(225,000) from $(310,000), showing an improvement in asset quality[25] - The company continues to maintain a strong tangible common equity position, reflecting solid financial health[25]

Credit Losses and Loan Portfolio - The allowance for credit losses increased by $181,000, or 2.3%, primarily due to the adoption of the CECL standard and an increase in the loan portfolio [111]. - The allowance for credit losses at the end of the period was $8,124,000, compared to $7,943,000 at the end of the previous year [109]. - Total charge-offs for the year were $4,475,000, an increase from $3,267,000 in the previous year [109]. - Net charge-offs for the year ended December 31, 2023, totaled $2,065,000, compared to $1,030,000 for the year ended December 31, 2022 [113]. - The allowance for credit losses to non-performing loans at the end of the period was 194.31%, up from 179.54% in the previous year [109]. - The allowance for credit losses may not be sufficient to cover actual loan losses, as it is based on management's estimates and assumptions [236]. - The company adopted the current expected credit loss model (CECL) effective January 1, 2023, which significantly changed how it calculates its allowance for credit losses [237]. Investment Portfolio - The investment portfolio had a fair value of $192.0 million as of December 31, 2023, primarily consisting of U.S. Government securities and corporate bonds [120]. - The weighted average yield of investment securities was calculated without tax equivalent adjustments, reflecting the company's strategy of diversified investing [128]. - The company’s investment strategy focuses on maximizing portfolio yield while managing risk consistent with liquidity needs [121]. - The aggregate fair value of FHLB common stock was $6.5 million as of December 31, 2023, based on its par value [126]. - At December 31, 2023, Rhinebeck Bancorp, Inc. held approximately $23.2 million in U.S. government agency securities and $128.6 million in residential mortgage-backed securities issued or guaranteed by government-sponsored enterprises [228]. - Other comprehensive losses, net of tax, amounted to $26.1 million as of December 31, 2023, related to unrealized holding losses in the available-for-sale investment securities portfolio [256]. Deposits and Funding - Total deposits as of December 31, 2023, amounted to $1.031 billion, with no brokered deposits reported [132]. - Average balance of non-interest-bearing demand accounts was $268.1 million, representing 24.74% of total deposits [135]. - Average balance of certificates of deposit was $282.8 million, with a rate paid of 3.74% [135]. - Approximately $295.6 million of the deposit portfolio was uninsured as of December 31, 2023 [135]. - The company had the ability to borrow $656.5 million under credit facilities with the Federal Home Loan Bank [140]. - As of December 31, 2023, total deposits decreased by $99.4 million, or 8.8%, to $1.031 billion from $1.130 billion at December 31, 2022 [240]. - The company relies heavily on deposits as its primary source of funds, and significant withdrawals could adversely affect liquidity and increase funding costs [259]. Capital Requirements and Regulatory Compliance - Rhinebeck Bank exceeded all capital requirements as of December 31, 2023, maintaining a well-capitalized status [177]. - The bank is subject to a comprehensive capital framework requiring a common equity Tier 1 capital ratio of at least 4.5% [174]. - Rhinebeck Bank's total risk-based capital ratio must be at least 10.0% to be classified as well capitalized [182]. - The bank's regulatory structure includes oversight by the NYSDFS and FDIC, ensuring compliance with safety and soundness standards [171]. - The company is subject to more stringent capital requirements, including a common equity Tier 1 capital ratio of 7.0% and a total capital ratio of 10.5% [246]. - The bank must obtain regulatory approvals before entering into mergers or acquisitions [172]. - The FDIC has the authority to assess civil money penalties and issue cease and desist orders for regulatory violations [173]. - The Bank's deposit accounts are insured by the FDIC's Deposit Insurance Fund up to a maximum of $250,000 per separately insured depositor [186]. - The Federal Reserve Board requires bank holding companies to maintain minimum consolidated capital requirements that are as stringent as those for insured depository subsidiaries [200]. Employee and Management Information - The average tenure of employees increased to 7 years and 10 months as of December 31, 2023, up from 6 years and 6 months in 2022 [148]. - The workforce composition was approximately 60% female and 40% male as of December 31, 2023 [148]. - The company had 164 full-time employees and nine part-time employees as of December 31, 2023 [147]. - Michael J. McDermott, the CFO, announced retirement effective May 31, 2024 [152]. Financial Performance and Operational Efficiency - Non-interest expenses totaled $36.4 million for the year ended December 31, 2023, down from $37.4 million in 2022, indicating a decrease in operational costs [255]. - The efficiency ratio was 83.28% for 2023, compared to 78.4% in 2022, suggesting a need for further cost management [255]. - The company faces strong competition in loan and deposit markets, which may pressure net interest income due to lower interest rates on loans and higher rates on deposits [258]. - Cybersecurity risks could lead to increased operating costs and potential liabilities, impacting financial condition and results of operations [251]. - Management's estimates and assumptions in financial reporting are subject to significant risk and uncertainty, which could materially affect financial results [264]. Corporate Structure and Future Outlook - Rhinebeck Bancorp, Inc. expects to lose its emerging growth company status on December 31, 2024 [160]. - The company is classified as an emerging growth company, which allows it to comply with reduced reporting and disclosure requirements [272]. - The common stock may be less attractive to investors if the company relies on exemptions from various reporting requirements [273]. - The company has exemptions from holding non-binding advisory votes on executive compensation [273]. - The board of directors intends to retain future earnings for business use and does not expect to pay cash dividends in the foreseeable future [266]. - Rhinebeck Bancorp, MHC may convert from mutual to capital stock form of ownership, pending approval from the NYSDFS and the Federal Reserve Board [205]. - The company must receive prior approval from the Federal Reserve Board before any person or entity can acquire control of Rhinebeck Bancorp, Inc. [207]. - The USA PATRIOT Act requires federal banking agencies to consider the effectiveness of controls against money laundering when approving mergers or acquisitions [214]. Economic Environment - The annual inflation rate in the United States decreased from a high of 9.1% in June 2022 to 3.4% as of December 31, 2023 [229]. - The Federal Reserve increased the target federal funds rate by 425 basis points in 2022 to combat inflation [229].

Financial Performance - Net income for the three months ended September 30, 2023, decreased by $871,000, or 41.3%, to $1.2 million, or $0.11 per diluted share, compared to $2.1 million, or $0.19 per diluted share, for the same period in 2022[173] - Net interest income for the three months ended September 30, 2023, decreased by $1.4 million, or 13.0%, to $9.7 million compared to $11.1 million for the same quarter in 2022[175] - Non-interest income increased by $257,000, or 18.5%, for the three months ended September 30, 2023[173] - Non-interest income for Q3 2023 totaled $1.6 million, an increase of $257,000, or 18.5%, primarily due to a gain on life insurance[186] - Net interest income for the nine months ended September 30, 2023, was $28,822 thousand, down from $32,078 thousand in 2022, a decrease of 10.5%[195] - Non-interest income for the nine months ended September 30, 2023 decreased by $223,000, or 4.8%, to $4.4 million, primarily due to a decrease in net gain on sales of mortgage loans[187] Asset and Liability Management - Total assets decreased by $20.5 million, or 1.5%, to $1.315 billion at September 30, 2023, compared to $1.336 billion at December 31, 2022[163] - Total net loans receivable increased by $9.4 million, or 0.9%, to $1.004 billion at September 30, 2023, with commercial real estate loans increasing by $47.5 million, or 12.8%[166] - Deposits decreased by $47.6 million, or 4.2%, to $1.082 billion at September 30, 2023, with interest-bearing accounts decreasing by $41.0 million, or 4.8%[169] - Stockholders' equity decreased by $1.5 million, or 1.4%, to $106.7 million at September 30, 2023, primarily due to a $3.4 million increase in accumulated other comprehensive loss[172] - Total interest-bearing liabilities increased to $931,178 thousand in 2023 from $841,157 thousand in 2022, an increase of 10.7%[195] Interest Income and Expense - Interest income increased by $3.0 million, or 23.7%, to $15.5 million for Q3 2023 compared to Q3 2022, driven by a rising interest rate environment and an increase in the average balance of loans[177] - Interest expense surged by $4.4 million, or 303.6%, to $5.9 million for Q3 2023, with the average cost of interest-bearing liabilities increasing by 182 basis points to 2.50%[180] - The average yield on loans increased to 5.44% in 2023 from 4.76% in 2022, an increase of 14.3%[195] Credit Losses - The provision for credit losses increased by $365,000 for the three months ended September 30, 2023[173] - The provision for credit losses on loans increased by $365,000 to $910,000 for Q3 2023, attributed to higher loan balances and increased charge-offs[182] Cash Flow and Investments - Net cash provided by operating activities was $6.9 million for the nine months ended September 30, 2023, down from $16.0 million in the same period of 2022[209] - Net cash provided by investing activities was $12.6 million for the nine months ended September 30, 2023, compared to a net cash outflow of $84.3 million in the prior year[209] - Cash outlays for the purchase of securities decreased from $30.2 million in the first nine months of 2022 to $0 in the same period of 2023[209] Regulatory and Operational Considerations - The effective tax rate for Q3 2023 was 21.72%, a slight decrease from 22.02% in Q3 2022, reflecting a decrease in income before income taxes[190] - There were no changes in the company's internal controls over financial reporting that materially affected the company during the quarter ended September 30, 2023[217] - As of the date of the report, the company is not involved in any pending legal proceedings that would materially affect its financial condition[219] Market Conditions - The impact of inflation has increased the cost of operations, but the company's assets and liabilities are primarily monetary, making them more sensitive to changes in market interest rates[215]

Financial Position - Total assets increased by $1.2 million, or 0.1%, to $1.337 billion at June 30, 2023, compared to $1.336 billion at December 31, 2022[164] - Total liabilities increased by $1.8 million, or 0.2%, to $1.230 billion at June 30, 2023, mainly due to a $48.7 million increase in advances from the Federal Home Loan Bank[169] - Stockholders' equity decreased by $669,000, or 0.6%, to $107.5 million at June 30, 2023, primarily due to stock repurchases and valuation changes in available-for-sale securities[173] - The ratio of stockholders' equity to total assets was 8.04% at June 30, 2023, down from 8.09% at December 31, 2022[173] - Total assets increased to $1,340,720 thousand as of June 30, 2023, compared to $1,281,058 thousand in 2022, reflecting a growth of 4.6%[195] Cash and Liquidity - Cash and cash equivalents rose by $22.6 million, or 71.9%, to $53.9 million at June 30, 2023, primarily due to increased deposits at the Federal Home Loan Bank of New York[165] - Cash flows from operating activities were $4.4 million for the six months ended June 30, 2023, down from $10.2 million in 2022, reflecting changes in cash receipts and disbursements[209] - Cash provided by investing activities was $19.5 million in the first half of 2023, a significant improvement compared to a cash outflow of $62.1 million in the same period of 2022[209] - As of June 30, 2023, the total available sources of funds amounted to $441,260,000, which includes cash and cash equivalents of $53,948,000 and unencumbered securities of $127,317,000[210] - The Bank has access to a preapproved secured line of credit with the FHLB totaling $668,477,000 as of June 30, 2023, which is not included in the readily accessible funds[210] Loans and Credit - Net loans decreased by $7.3 million, or 0.7%, to $987.0 million at June 30, 2023, with a notable reduction in the indirect automobile portfolio by $39.3 million, or 8.6%[167] - The average balance of loans increased by $121.3 million for the six months ended June 30, 2023, while the average balance of available for sale securities decreased by $58.5 million[179] - The provision for credit losses on loans decreased by $798,000, resulting in a credit of $452,000 for the quarter ended June 30, 2023[183] - Net charge-offs increased by $745,000, resulting in net charge-offs of $622,000 for the second quarter of 2023[185] Income and Expenses - Net income for the three months ended June 30, 2023, decreased by $598,000, or 29.5%, to $1.4 million, or $0.13 per diluted share[174] - Net interest income for the three months ended June 30, 2023, decreased by $1.6 million, or 14.4%, to $9.3 million compared to the same period in 2022[176] - Interest income increased by $3.2 million, or 27.3%, to $14.9 million for the three months ended June 30, 2023, driven by rising yields in the interest rate environment[178] - Non-interest income totaled $1.4 million for the three months ended June 30, 2023, a decrease of $145,000, or 9.6%, from the prior year[186] - Year-to-date non-interest income decreased by $480,000, or 14.9%, totaling $2.7 million for the six months ended June 30, 2023[187] - Non-interest expense for the second quarter of 2023 totaled $9.3 million, a decrease of $196,000, or 2.1%, compared to the same period in 2022[188] Interest Rates and Yields - Interest income increased by $6.8 million, or 30.1%, to $29.5 million for the six months ended June 30, 2023, compared to $22.7 million for the same period in 2022[179] - Interest expense rose by $4.8 million, or 546.7%, to $5.6 million for the quarter ended June 30, 2023, from $872,000 for the same quarter in 2022[181] - The overall average yield of interest-earning assets increased by 94 basis points to 4.76% for the six months ended June 30, 2023[179] - The interest rate spread decreased to 2.51% for the six months ended June 30, 2023, down from 3.40% in the prior year[195] Economic and Market Conditions - The estimated net economic value (EVE) decreased by 25.1% to $129,269 thousand with a 400 basis point increase in interest rates, indicating significant interest rate risk exposure[204] - The impact of inflation has increased operational costs, but the company's assets and liabilities are primarily monetary, making them more sensitive to changes in market interest rates[214] Regulatory and Compliance - There were no changes in the Company's internal controls over financial reporting during the quarter ended June 30, 2023, that materially affected the internal control[216] - The company is not currently involved in any legal proceedings that would materially affect its financial condition or results of operations[218] Contractual Obligations - Total contractual obligations as of June 30, 2023, were $409,427,000, with $334,164,000 due within one year[212] - Federal Home Loan Bank advances accounted for $106,450,000 of the total contractual obligations, with $60,000,000 due within one year[212] - Operating lease agreements totaled $7,673,000, with $762,000 due within one year[212]

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-38779 Rhinebeck Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 83-2117268 (State or other jur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-38779 Rhinebeck Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 83-2117268 (State or other jurisdic ...

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-38779 Rhinebeck Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 83-2117268 (State or other ...

Table of Contents Rhinebeck Bancorp, Inc. (Exact name of registrant as specified in its charter) United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-38779 Maryland 83-2117268 (State or other juri ...

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-38779 Rhinebeck Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 83-2117268 (State or other jur ...