Rhinebeck Bancorp(RBKB) - 2025 Q1 - Quarterly Results

Rhinebeck Bancorp, Inc. Q1 2025 Earnings Report Financial Performance Summary Rhinebeck Bancorp's Q1 2025 net income more than doubled to $2.3 million, reflecting improved margins from a late 2024 balance sheet restructuring Q1 2025 vs. Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $2.3 million | $1.1 million | +104.1% | | Diluted EPS | $0.21 | $0.10 | +110.0% | | Return on Average Assets (ROA) | 0.73% | 0.34% | +114.7% | | Return on Average Equity (ROE) | 7.49% | 3.92% | +91.1% | | Net Interest Margin | 3.79% | 2.90% | +89 bps | | Interest Rate Spread | 3.13% | 2.19% | +94 bps | - The CEO attributed the strong performance to a balance sheet restructuring executed in the second half of 2024, which capitalized on the interest rate environment to improve margins and profitability[3] Income Statement Analysis Net interest income grew 25.2% to $11.0 million in Q1 2025, offset by a 325.3% increase in credit loss provision and higher non-interest expenses - Net interest income increased by $2.2 million (25.2%) YoY, primarily due to a 94 basis point improvement in the interest rate spread to 3.13% and an 89 basis point increase in net interest margin to 3.79%[4][5] - The provision for credit losses on loans rose by $270,000 to $353,000, mainly due to increased loan production and a $260,000 increase in net charge-offs, particularly in indirect automobile and commercial loans[6] - Non-interest income increased by $161,000 (10.1%), driven by a $166,000 rise in swap income, partially offset by a decline in investment advisory income[8] - Non-interest expense grew by $631,000 (7.1%) to $9.5 million, with increases across salaries, marketing (up 65.3% for new deposit product promotions), and other operational categories[9] Balance Sheet Analysis Total assets remained stable at $1.26 billion, with loan growth in real estate, a $4.0 million decrease in liabilities, and a $4.1 million rise in stockholders' equity Balance Sheet Changes (Mar 31, 2025 vs. Dec 31, 2024) | Account | Mar 31, 2025 | Change from Dec 31, 2024 | Key Driver | | :--- | :--- | :--- | :--- | | Total Assets | $1.26 billion | +$159,000 | Stable | | Net Loans Receivable | $976.5 million | +$4.7 million | Growth in commercial/residential real estate, offset by decline in auto loans | | Total Liabilities | $1.13 billion | -$4.0 million | $15.9M reduction in borrowings | | Total Deposits | $1.03 billion | +$13.5 million | Growth in interest-bearing accounts | | Stockholders' Equity | $126.0 million | +$4.1 million | Net income and reduced AOCI loss | - The company is strategically reducing its exposure to indirect automobile loans, which declined by $17.7 million during the quarter[10] - Uninsured deposits constituted 27.8% of total deposits, a slight increase from 26.9% at the end of 2024[12] Asset Quality Asset quality improved with non-performing assets decreasing 15.0% to $3.5 million and overdue loans declining to 1.38% Asset Quality Indicators | Metric | Mar 31, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-performing assets | $3.5 million | $4.1 million | -15.0% | | Past due loans to total loans | 1.38% | 1.71% | -33 bps | | Allowance for credit losses to non-performing loans | 239.35% | 206.56% | +32.79 p.p. | | Allowance for credit losses to total loans | 0.86% | 0.88% | -2 bps | - The decrease in past due loans was most notable in the indirect automobile loan portfolio, reflecting the positive impact of more conservative underwriting standards[11] Consolidated Financial Statements (Unaudited) Unaudited financial statements confirm growth in net interest income and net income, stable assets, and improved net interest margin Consolidated Income Statement Highlights (Unaudited, in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $11,037 | $8,812 | | Provision for Credit Losses | $353 | $83 | | Total Non-interest Income | $1,751 | $1,590 | | Total Non-interest Expense | $9,508 | $8,877 | | Net Income | $2,288 | $1,121 | Consolidated Balance Sheet Highlights (Unaudited, in thousands) | Line Item | Mar 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Assets | $1,255,924 | $1,255,765 | | Loans Receivable, Net | $976,502 | $971,779 | | Total Deposits | $1,034,241 | $1,020,783 | | Total Liabilities | $1,129,949 | $1,133,932 | | Total Stockholders' Equity | $125,975 | $121,833 | Selected Ratios (Annualized) | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets | 0.73% | 0.34% | | Return on average equity | 7.49% | 3.92% | | Tier 1 leverage ratio (Bank only) | 10.17% | 10.28% | | Book value per common share | $11.35 | $10.32 | Other Information This section includes corporate information, forward-looking statements disclaimer, and reconciliation of non-GAAP measures - Rhinebeck Bancorp, Inc. is the holding company for Rhinebeck Bank, which provides banking and financial services through thirteen branches and two representative offices in Dutchess, Ulster, Orange, and Albany counties in New York[14] - The report includes a forward-looking statements disclaimer, highlighting risks such as competitive pressures, interest rate changes, and economic conditions that could affect future results[15] Non-GAAP Reconciliation: Tangible Book Value Per Share | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Book value per common share (GAAP) | $11.35 | $10.98 | | Less: Goodwill and Intangibles per share | ($0.21) | ($0.22) | | Tangible book value per common share (Non-GAAP) | $11.14 | $10.76 |