Rhinebeck Bancorp(US:RBKB)2026-03-13 20:05Credit Losses and Charge-offs - The allowance for credit losses at the end of 2025 was $8.353 million, a decrease of $186,000 or 2.2% from $8.539 million at the end of 2024[112]. - Total charge-offs for 2025 were $3.686 million, down from $4.726 million in 2024, reflecting a decrease of 22%[112]. - Net charge-offs decreased by $462,000 or 19.3% to $1.936 million for the year ended December 31, 2025, compared to $2.398 million for 2024[114]. - The allowance for credit losses to non-performing loans at the end of 2025 was 225.76%, up from 206.56% in 2024[112]. - The allowance for credit losses to total loans outstanding at the end of 2025 was 0.87%, slightly down from 0.88% in 2024[112]. - The net charge-offs to average loans outstanding during 2025 was 0.20%, compared to 0.24% in 2024[112]. - The total recoveries for 2025 were $1.750 million, compared to $2.328 million in 2024[112]. Investment Portfolio - The investment portfolio had a fair value of $162.2 million as of December 31, 2025, primarily consisting of U.S. Government securities and corporate bonds[117]. - The weighted average yield of investment securities at December 31, 2025, was calculated without tax equivalent adjustments, reflecting the income divided by amortized cost[124]. - The investment committee meets at least three times annually to review the portfolio's performance and quality, ensuring alignment with the investment policy[118]. Deposits and Liquidity - Total deposits as of December 31, 2025, amounted to $1.10 billion, with uninsured deposits estimated at $310.0 million[128]. - The average balance of non-interest-bearing demand accounts was $236.4 million, representing 22.16% of total deposits[131]. - The uninsured deposits coverage ratio was 236.4% as of December 31, 2025, indicating strong liquidity[132]. - The average rate paid on certificates of deposit was 3.89% in 2025, compared to 4.58% in 2024[131]. - The company plans to retain a significant portion of $335.8 million in certificates of deposit maturing in 2026[134]. Management and Employees - Rhinebeck Asset Management had approximately $243.0 million in assets under management and generated non-interest income of $1.5 million in 2025[136]. - The company recorded a total of 158 full-time employees and seven part-time employees as of December 31, 2025[144]. - The average tenure of employees is seven years and six months, with a workforce composition of approximately 57% female and 43% male[145]. - Rhinebeck Bank appointed Matthew J. Smith as CEO in October 2025, with over a decade of experience in financial services[146]. - Kevin Nihill became CFO in July 2024, previously serving as CFO of St. Mary's Bank since 2021[148]. Capital and Regulatory Compliance - As of December 31, 2025, Rhinebeck Bank exceeded all capital requirements, classified as "well capitalized" with a total risk-based capital ratio of 10% or greater[169][174]. - The bank is subject to comprehensive regulation by the NYSDFS and FDIC, requiring periodic examinations and reports on financial condition[152][161]. - Rhinebeck Bank must maintain a common equity Tier 1 capital ratio of at least 4.5%, Tier 1 capital of 6%, and total capital of 8% to meet regulatory standards[164]. - The bank's investment activities are limited to certain types of debt and equity securities, with a maximum permissible investment of 100% of Tier 1 capital[171]. - Regulatory relief legislation allows for a community bank leverage ratio of 9%, but management has opted not to utilize this option[166][168]. - The bank's regulatory framework includes strict guidelines for safety and soundness, addressing internal controls, credit underwriting, and asset quality[170]. - Any loans to executive officers or directors must be made on terms not more favorable than those offered to non-executive customers[160]. - The FDIC has the authority to take prompt corrective action if the bank does not meet minimum capital requirements, with various capital categories defined[173][175]. Deposit Insurance and Compliance - The Bank's deposit accounts are insured by the FDIC's DIF, generally up to a maximum of $250,000 per depositor per account ownership category[178]. - The FDIC's risk-based assessment system for deposit insurance currently ranges from 2.5 to 32 basis points of each institution's total assets less tangible capital[180]. - The Bank's latest FDIC CRA rating was "Satisfactory," indicating compliance with community credit needs[189]. - Rhinebeck Bank complied with all applicable Part 363 requirements in 2024 and 2025, with new thresholds for independent audits increasing from $1 billion to $5 billion effective January 1, 2026[186]. - The Federal Reserve Board requires bank holding companies to maintain minimum consolidated capital requirements, which are not applicable to those with less than $3.0 billion in consolidated assets[193]. - The Federal Reserve Board may disapprove any purchase or redemption of equity securities if it constitutes an unsafe practice or violates regulations, particularly if it exceeds 10% of the holding company's consolidated net worth[194]. - The Bank must implement a compliance program to detect and prevent money laundering and terrorist financing as mandated by the BSA and USA PATRIOT Act[182]. - The final rule on brokered deposits took effect on April 1, 2021, with full compliance required by January 1, 2022, potentially impacting the Bank's deposit premiums and capital management[185]. - The Bank is required to disclose its privacy policy to customers and provide an opt-out option for sharing non-public personal information[187]. - The Bank's cybersecurity program must ensure the confidentiality, integrity, and availability of information systems, with heightened governance requirements established in November 2023[188]. Corporate Governance and Structure - Rhinebeck Bancorp, MHC is unlikely to waive dividends from Rhinebeck Bancorp, Inc. due to Federal Reserve Board restrictions, which may not be in the best financial interests of public stockholders[197]. - Rhinebeck Bancorp, MHC adopted a Plan of Conversion on February 10, 2026, proposing to convert to a fully public stock holding company, pending approvals from NYSDFS and the Federal Reserve Board[198]. - Any acquisition of control over Rhinebeck Bancorp, Inc. requires prior approval from the Federal Reserve Board, with control defined as owning 25% or more of voting securities[199]. - Rhinebeck Bancorp, MHC and Rhinebeck Bancorp, Inc. must obtain NYSDFS approval before acquiring 10% or more of another banking institution's voting stock[200]. - Rhinebeck Bancorp, Inc.'s common stock is registered with the SEC and is subject to various regulations under the Securities Exchange Act of 1934[201]. - The Sarbanes-Oxley Act of 2002 mandates corporate responsibility and compliance measures for Rhinebeck Bancorp, Inc. to ensure accurate corporate disclosures[202]. - As of December 31, 2025, Rhinebeck Bank had no capital loss carryovers, and no dividends had been paid by Rhinebeck Bank[207]. - New York State imposes a statutory tax rate of 6.5% for general business taxpayers, increasing to 7.25% for those with business income over $5 million[208]. - Rhinebeck Bancorp is required to file annual reports and pay franchise taxes to the State of Maryland as a Maryland business corporation[209]. - The financial statements for Rhinebeck Bancorp are included in the annual report on Form 10-K, starting on page F-1[210].