Rhinebeck Bancorp(RBKB) - 2024 Q3 - Quarterly Report

Financial Performance - Net loss for the third quarter of 2024 was $8.1 million, compared to net income of $1.2 million for the third quarter of 2023, resulting in a diluted loss per share of $0.75[176]. - Non-interest income decreased by $11.7 million, or 709.2%, in the third quarter of 2024 compared to the same quarter in 2023[176]. - The company reported a $12.0 million pre-tax loss from the previously announced balance sheet restructuring for both the third quarter and nine months of 2024[178]. - Non-interest loss totaled $10.0 million for Q3 2024, a decrease of $11.7 million from the previous year, primarily due to a $12.0 million loss on the sale of investment securities[187]. - The income tax benefit for Q3 2024 was $2.2 million at a negative effective tax rate of 21.72%, reflecting a lower pre-tax income compared to the prior year[191]. Asset and Liability Management - Total assets decreased by $47.1 million, or 3.6%, to $1.27 billion at September 30, 2024, compared to $1.31 billion at December 31, 2023[164]. - Total liabilities decreased by $56.0 million, or 4.7%, to $1.14 billion at September 30, 2024, mainly due to a decrease in Federal Home Loan Bank advances of $68.3 million[170]. - Total available sources of funds amounted to $646.8 million as of September 30, 2024, including cash and cash equivalents of $46.4 million and unencumbered securities of $90.6 million[210]. - The estimated economic value of equity (EVE) would decrease by $34.375 million (22.2%) if interest rates increased by 400 basis points[204]. - The company maintains liquid assets to meet both short-term and long-term liquidity needs, adjusting levels as necessary to fund deposit outflows and loan commitments[205]. Loans and Deposits - Net loans receivable decreased by $44.0 million, or 4.4%, to $964.9 million at September 30, 2024, primarily due to a decrease in indirect automobile loans of $75.3 million, or 19.1%[167]. - Deposits increased by $15.7 million, or 1.5%, to $1.05 billion at September 30, 2024, with interest-bearing accounts increasing by $8.6 million, or 1.1%[171]. - Cash and cash equivalents increased by $24.3 million, or 109.6%, to $46.4 million at September 30, 2024, primarily due to an increase in deposits held at various banks[165]. - Net charge-offs decreased by $41,000 to $344,000 for Q3 2024, with overdue account balances to total loans decreasing to 1.62%[186]. Interest Income and Expense - Net interest income increased by $41,000, or 0.4%, to $9.7 million for Q3 2024 compared to Q3 2023, with a net interest margin of 3.26%[179]. - Interest income rose by $506,000, or 3.3%, to $16.0 million for Q3 2024, driven by a higher average yield of interest-earning assets at 5.39%[181]. - Interest expense increased by $465,000, or 7.9%, to $6.3 million for Q3 2024, with the average cost of interest-bearing liabilities rising to 2.88%[183]. - Interest income for the nine months ended September 30, 2024, increased by $2.4 million, or 5.3%, to $47.5 million compared to the same period in 2023[182]. Equity and Stockholder Information - Stockholders' equity increased by $9.0 million, or 7.9%, to $122.7 million at September 30, 2024, with a book value per share of $11.06[175]. - Total stockholders' equity increased from $108,327 million in September 2023 to $119,363 million in September 2024[195]. - The company has a stock repurchase plan authorized for up to 247,506 shares, with 47,506 shares remaining available for repurchase as of September 30, 2024[219]. Operational Efficiency - Non-interest expense for Q3 2024 was $9.1 million, an increase of $266,000, or 3.0%, mainly due to higher salaries and benefits[189]. - Non-interest expense for the first nine months of 2024 decreased by $402,000, or 1.5%, to $26.9 million, primarily due to reduced retail banking and lending expenses[190]. - The Asset/Liability Management Committee (ALCO) regularly reviews the company's asset/liability management process to mitigate interest rate risk[200]. - The company has not experienced any material changes in risk factors since the last annual report, maintaining a stable operational environment[218].