Rhinebeck Bancorp(US:RBKB)2025-05-13 20:09Financial Performance - Net income for Q1 2025 was $2.3 million, up from $1.1 million in Q1 2024, with diluted earnings per share increasing to $0.21[158] - Net interest income increased by $2.2 million, or 25.2%, to $11.0 million, with the net interest margin expanding by 89 basis points to 3.79%[159] - Interest income rose by $1.1 million, or 7.0%, to $16.6 million, driven by higher yields on loans and securities[160] - Non-interest income rose to $1.8 million in Q1 2025, an increase of $161,000, or 10.1%, driven by a $166,000 increase in other non-interest income[164] - Non-interest expense increased to $9.5 million in Q1 2025, reflecting a $631,000, or 7.1%, rise compared to Q1 2024, with significant increases in retail banking costs and marketing expenses[165] - The provision for income taxes increased by $318,000, or 99.1%, totaling $639,000 for Q1 2025, corresponding to higher pre-tax income[166] - The effective tax rate for Q1 2025 was 21.83%, slightly down from 22.26% in Q1 2024[166] Asset and Liability Management - Total assets remained stable at $1.26 billion as of March 31, 2025, with a minimal increase of $159,000 compared to December 31, 2024[148] - Total liabilities decreased by $4.0 million, or 0.4%, to $1.13 billion, primarily due to a reduction in FHLB advances[152] - Stockholders' equity increased by $4.1 million, or 3.4%, to $126.0 million, with the book value per share rising to $11.35[157] - Total stockholders' equity increased to $123,936,000 as of March 31, 2025, compared to $115,158,000 in the previous year[168] Loan and Deposit Activity - Net loans receivable increased by $4.7 million, or 0.5%, to $976.5 million, driven by growth in commercial and residential real estate loans[151] - Deposits increased by $13.5 million, or 1.3%, to $1.03 billion, with interest-bearing deposits rising by $13.6 million, or 1.7%[153] - Net charge-offs increased by $260,000, or 104.0%, from $250,000 in Q1 2024 to $510,000 in Q1 2025, primarily due to higher charge-offs in indirect automobile loans and commercial loans[163] Cash Flow and Liquidity - Net cash provided by operating activities was $4.3 million for Q1 2025, compared to a net cash used of $3.5 million in Q1 2024, reflecting a significant improvement[181] - Net cash provided by investing activities decreased to $13.0 million in Q1 2025 from $27.5 million in Q1 2024, primarily due to net loan growth of $5.1 million compared to a net reduction of $15.4 million in the prior year[181] - Cash and cash equivalents rose by $13.0 million, or 34.8%, to $50.5 million, primarily due to an increase in federal funds sold[149] - Cash and cash equivalents increased by $13.0 million during the quarter, reaching $50.5 million as of March 31, 2025, up from $37.5 million[181] - Total available sources of funds amounted to $649.16 million as of March 31, 2025, including cash, unencumbered securities, and various lines of credit[182] Interest Rate and Economic Sensitivity - The interest rate spread improved to 3.13% in Q1 2025 from 2.19% in Q1 2024, indicating better management of interest rate risk[168] - The net economic value (EVE) of the bank decreased by $36,568,000, or 20.5%, under a 400 basis point increase in interest rates, reflecting sensitivity to market changes[177] - The average interest-earning assets to average interest-bearing liabilities ratio improved to 134.00% in Q1 2025 from 131.88% in Q1 2024[168] Regulatory and Operational Matters - There were no changes in the Company's internal controls over financial reporting that materially affected the reporting during Q1 2025[186] - The Company is not currently involved in any legal proceedings that would materially affect its financial condition or operations[188] - The impact of inflation on operations is noted, with changes in market interest rates having a greater effect on performance than inflation itself[184]