Rhinebeck Bancorp(US:RBKB)2024-08-08 20:08Financial Performance - Net income for the three months ended June 30, 2024, decreased by $456,000, or 31.9%, to $975,000, or $0.09 per diluted share, compared to $1.4 million, or $0.13 per diluted share, for the same period in 2023[146] - Net interest income decreased by $163,000, or 1.8%, to $9.1 million for the three months ended June 30, 2024[148] - Non-interest income totaled $1.5 million for Q2 2024, an increase of $156,000, or 11.5%, primarily due to a 61.5% increase in investment advisory income[156] - Non-interest expense decreased by $342,000, or 3.7%, to $8.9 million for Q2 2024, mainly due to a 25.6% decrease in professional fees[158] - Income taxes decreased by $108,000, or 27.7%, for Q2 2024 compared to Q2 2023, with an effective tax rate of 22.43%[160] Asset and Liability Management - Total assets decreased by $37.2 million, or 2.8%, to $1.28 billion at June 30, 2024, compared to $1.31 billion at December 31, 2023[136] - Total net loans receivable decreased by $26.5 million, or 2.6%, to $982.4 million at June 30, 2024, primarily due to a decrease in indirect automobile loans of $50.7 million, or 12.9%[138] - Deposits increased by $1.4 million, or 0.1%, to $1.032 billion at June 30, 2024, with interest-bearing accounts increasing by $10.5 million, or 1.3%[142] - Stockholders' equity increased by $2.5 million, or 2.2%, to $116.2 million at June 30, 2024, primarily due to net income of $2.1 million[145] - Advances from the Federal Home Loan Bank decreased by $48.3 million, or 37.7%, to $79.8 million at June 30, 2024[144] Interest Income and Expense - Interest income increased by $837,000, or 5.6%, to $15.8 million for Q2 2024 compared to Q2 2023, primarily due to the rising interest rate environment[149] - Interest expense rose by $1.0 million, or 17.7%, to $6.6 million for Q2 2024, with the average cost of interest-bearing liabilities increasing by 55 basis points to 2.95%[151] - The average yield of interest-earning assets increased by 54 basis points to 5.31% for Q2 2024, while the average balance of interest-earning assets decreased by $61.4 million, or 4.9%[149] - The net interest margin decreased by 9 basis points to 3.00% for the six months ended June 30, 2024[148] - The interest rate spread for the three months ended June 30, 2024, was 2.36% compared to 2.37% in 2023[163] Credit Losses - The provision for credit losses increased by $899,000, or 198.9%, for the three months ended June 30, 2024[146] - The provision for credit losses on loans increased by $899,000, or 198.9%, from a credit of $452,000 in Q2 2023 to an expense of $447,000 in Q2 2024[154] Cash Flow and Liquidity - Net cash provided by operating activities increased to $8.5 million for the six months ended June 30, 2024, compared to $4.4 million for the same period in 2023[175] - Cash inflow from a decrease in loans contributed $25.3 million to investing activities for the six months ended June 30, 2024, compared to $6.3 million in the prior year[175] - The net cash outflow from financing activities was $44.1 million for the six months ended June 30, 2024, primarily due to debt paydown[175] - The company maintains liquid assets to meet both short-term and long-term liquidity needs, adjusting levels as necessary[174] - The company has access to a preapproved secured line of credit with the FHLB totaling $637,912,000 as of June 30, 2024[176] Economic Value and Internal Controls - The estimated economic value of equity (EVE) decreased by 29.9% to $111,094,000 with a 400 basis point increase in interest rates[173] - There were no changes in the company's internal controls over financial reporting that materially affected the financial reporting during the quarter ended June 30, 2024[180]