Rhinebeck Bancorp(US:RBKB)2025-08-12 20:05Financial Performance - Net income for Q2 2025 was $2.7 million, compared to $975,000 for Q2 2024, with diluted earnings per share rising to $0.25 from $0.09[156] - Net interest income for Q2 2025 increased by $2.4 million, or 27.1%, to $11.5 million, with a net interest margin expanding by 93 basis points to 3.97%[158] - Non-interest income totaled $1.6 million for Q2 2025, a slight decrease of $4,000, or 0.2%, primarily due to a 28.8% decline in investment advisory income[167] - Non-interest expense rose to $9.7 million for Q2 2025, reflecting an increase of $760,000, or 8.5%, driven by higher salaries and employee benefits[169] - The provision for income taxes increased by $480,000, or 170.2%, totaling $762,000 for Q2 2025, corresponding to higher pre-tax income[171] Asset and Liability Management - Total assets increased by $18.5 million, or 1.5%, to $1.27 billion as of June 30, 2025, primarily due to a $52.1 million increase in cash and cash equivalents[146] - Net loans receivable decreased by $11.0 million, or 1.1%, to $960.8 million, reflecting a $40.0 million decrease in consumer loans[149] - Deposits increased by $50.0 million, or 4.9%, to $1.07 billion, with interest-bearing deposits rising by $48.7 million, or 6.2%[151] - Stockholders' equity increased by $7.1 million, or 5.8%, to $129.0 million, with a book value per share of $11.61[155] - FHLB advances declined by $43.2 million, or 61.9%, to $26.6 million, reflecting the use of excess liquidity[154] Interest Income and Expense - Interest and dividend income increased by $1.1 million, or 6.8%, while interest expense decreased by $1.4 million, or 20.7%[156] - Interest income increased by $1.1 million, or 6.8%, to $16.8 million for Q2 2025 compared to Q2 2024, driven by higher yields on loans and securities[160] - Interest expense decreased by $1.4 million, or 20.7%, to $5.3 million for Q2 2025, with the average cost of interest-bearing liabilities declining by 50 basis points to 2.45%[162] - The average yield on interest-earning assets rose by 50 basis points to 5.78%, while the average balance of interest-earning assets decreased by $33.3 million, or 2.8%, to $1.16 billion[160] Credit Losses and Provisions - The provision for credit losses decreased by $548,000, or 122.6%, in Q2 2025 compared to Q2 2024[156] - The provision for credit losses decreased by $548,000, or 122.6%, resulting in a credit of $101,000 for Q2 2025, attributed to lower loan balances and decreased net charge-offs[164] - Year-to-date, the provision for credit losses decreased by $278,000, or 52.5%, to $252,000 for the six months ended June 30, 2025[166] Liquidity and Cash Flow - Cash and cash equivalents increased by $52.1 million during the period to $89.6 million as of June 30, 2025, compared to a beginning balance of $37.5 million[189] - Net cash provided by operating activities was $6.7 million for the six months ended June 30, 2025, down from $8.5 million in the same period of 2024[189] - The bank had total available sources of funds amounting to $687,586 thousand, including cash and cash equivalents of $89,622 thousand and unencumbered securities of $58,412 thousand[190] - The bank's liquidity management strategy includes maintaining adequate liquid assets to meet both short-term and long-term liquidity needs[186] Taxation - The effective tax rate was 21.85% for Q2 2025, compared to 22.43% for Q2 2024[171] Economic Value - The bank's net economic value (EVE) at June 30, 2025, was $180,565 thousand, with a 400 basis point increase in interest rates resulting in a decrease of $31,233 thousand (17.3%) in EVE[185] Interest Rate Spread - The average interest rate spread increased to 3.23% for the first half of 2025, compared to 2.26% for the same period in 2024[45]