Rhinebeck Bancorp(RBKB) - 2024 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2024, increased by $323,000, or 40.5%, to $1.1 million, or $0.10 per diluted share, compared to $798,000, or $0.07 per diluted share for the same period in 2023[162] - Non-interest income totaled $1.5 million in Q1 2024, an increase of $130,000, or 9.4%, driven by a 23.3% increase in investment advisory income[168] - Non-interest expense decreased by $326,000, or 3.5%, to $8.9 million in Q1 2024, primarily due to a reduction in salaries and benefits[169] - Income taxes increased by $96,000, or 42.7%, in Q1 2024 compared to Q1 2023, with an effective tax rate of 22.26%[170] Asset and Liability Management - Total assets decreased by $14.4 million, or 1.1%, to $1.30 billion at March 31, 2024, compared to $1.31 billion at December 31, 2023[150] - Total net loans receivable decreased by $15.5 million, or 1.5%, to $993.3 million at March 31, 2024, primarily due to a $27.2 million decrease in indirect automobile loans[153] - Cash and cash equivalents increased by $8.5 million, or 38.6%, to $30.7 million at March 31, 2024, driven by an increase in customer deposits[151] - Deposits increased by $6.5 million, or 0.6%, to $1.04 billion at March 31, 2024, with interest-bearing accounts rising by $19.4 million, or 2.5%[157] - Total interest-earning assets decreased from $1,247.2 million in Q1 2023 to $1,224.2 million in Q1 2024, while total interest-bearing liabilities increased to $928.3 million[171] Credit Quality - The provision for credit losses decreased by $931,000, or 91.8%, indicating improved credit quality[162] - Provision for credit losses on loans decreased by $931,000, or 91.8%, from $1.0 million in Q1 2023 to $83,000 in Q1 2024, attributed to decreased loan production and improved economic conditions[166] - Net charge-offs decreased by $164,000 from $414,000 in Q1 2023 to $250,000 in Q1 2024, with overdue account balances to total loans decreasing to 1.84%[167] Interest Income and Expense - Net interest income decreased by $968,000, or 9.8%, to $8.9 million for the three months ended March 31, 2024[163] - Interest expense increased by $2.0 million, or 42.2%, from $4.7 million in Q1 2023 to $6.7 million in Q1 2024, with the average cost of interest-bearing liabilities rising to 2.92%[165] - The net interest margin decreased from 3.21% in Q1 2023 to 2.92% in Q1 2024, reflecting changes in interest rates and volumes[172] - The average yield on loans increased by 31 basis points, while the average yield on available-for-sale securities increased by 13 basis points[164] Cash Flow and Liquidity - Net cash used in operating activities was $3.5 million for the three months ended March 31, 2024, compared to net cash provided of $3.1 million for the same period in 2023[184] - Net cash provided by investing activities was $27.5 million for the three months ended March 31, 2024, compared to net cash used of $9.6 million for the same period in 2023[185] - A cash inflow of $15.4 million for a decrease in loans was the primary contributor to cash used in investing activities for the three months ended March 31, 2024[185] - The company reported a net cash outflow of $15.5 million in financing activities for the three months ended March 31, 2024, compared to a net cash inflow of $11.3 million in the comparable 2023 period[185] - The company maintains liquid assets at levels considered adequate to meet both short-term and long-term liquidity needs[181] Regulatory and Control Environment - There were no changes in the company's internal controls over financial reporting during the quarter ended March 31, 2024, that materially affected internal control[191] Market Conditions - Changes in market interest rates significantly influence deposit flows and loan and security sales, impacting liquidity management[182] - The company manages interest rate risk through strategies such as originating loans with adjustable rates and promoting core deposit products[177] Equity and Capital - Stockholders' equity increased by $587,000, or 0.5%, to $114.3 million at March 31, 2024, primarily due to net income[161]