Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended June 30, 2026 and Completes Second-Step Conversion

Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended June 30, 2026 and Completes Second-Step Conversion POUGHKEEPSIE, NY / ACCESS Newswire / July 23, 2026 / Rhinebeck Bancorp, Inc. (the "Company") (NASDAQ:RBKB), the holding company of Rhinebeck Bank (the "Bank"), reported net income for the three months ended June 30, 2026 of $2.6 million ($0.24 per basic and diluted share), which was $110,000, or 4.0%, lower than the comparable prior year period of $2.7 million ($0.25 per basic and diluted share). Net income for the six months ended June 30, 2026 of $4.8 million ($0.45 per basic and $0.44 per diluted share) was $182,000, or 3.6%, lower than the same period last year.

On July 21, 2026, Rhinebeck Bancorp, MHC, the former mutual holding company parent of the Company, completed its second-step conversion, after which Rhinebeck Bancorp, MHC ceased to exist. In connection with the second-step conversion, the Company conducted a public stock offering in which it sold 8,880,210 shares of its common stock at a price of $10.00 per share for total gross proceeds of $88.8 million. As part of the transaction, each outstanding share of Rhinebeck Bancorp, Inc., common stock owned by the public stockholders as of the closing date was converted into new shares of Rhinebeck Bancorp common stock based on an exchange ratio of 1.3978 shares of Rhinebeck Bancorp common stock. Cash in lieu of fractional shares will be paid at a rate of $10.00 per share. As a result of the offering and the exchange of shares, Rhinebeck Bancorp, Inc. will have 15,638,237 shares outstanding after giving effect to the transaction, subject to adjustment for fractional shares. Earnings per share and other share information disclosed throughout this release do not reflect the effect of the Company's conversion and related stock offering.

Financial highlights:

Second-quarter net income of $2.6 million, or $0.24 per diluted share

Net interest income increased 1.2% year-over-year

Non-interest income increased 8.8% year-over-year

Past-due loans decreased 34.6% from year-end

Deposits increased $29.6 million, or 2.7%, from December 31, 2025, excluding stock subscription funds

Second-step conversion completed July 21, generating $88.8 million in gross proceeds

The decrease in net income for the quarter ended June 30, 2026 as compared to the quarter ended June 30, 2025 was primarily due to an increase in non-interest expense, offset by an increase in net interest income and non-interest income. The Company's return on average assets and return on average equity were 0.79% and 7.56% for the second quarter of 2026, respectively, as compared to 0.88% and 8.57% for the second quarter of 2025, respectively. The decrease in net income for the six months ended June 30, 2026 when compared to the six months ended June 30, 2025 was primarily due to an increase in non-interest expense and a decrease in non-interest income, partially offset by an increase in net interest income and a decrease in the provision for credit losses. The Company's return on average assets and return on average equity were 0.75% and 7.03% for the first six months of 2026, respectively, as compared to 0.80% and 8.04% for the first six months of 2025, respectively.

President and Chief Executive Officer Matthew Smith said, "During the second quarter, we continued to make progress in repositioning the franchise for sustainable growth and profitability. Our results reflected increased net interest and non-interest income, continued discipline in managing funding costs, and meaningful improvement in past-due loans. We are also investing in talent, technology, and capabilities that will broaden our growth opportunities and strengthen the organization over time. The successful completion of our second-step conversion following quarter-end represents an important milestone for Rhinebeck Bancorp, Inc. and significantly strengthens our capital position. We remain focused on deploying that capital prudently as we expand our commercial banking capabilities, advance our retail and digital deposit initiatives, and invest in the infrastructure necessary to support responsible, sustainable growth."

Income Statement Analysis

Net interest income increased $140,000, or 1.2%, to $11.6 million for the three months ended June 30, 2026, from $11.5 million for the three months ended June 30, 2025. The increase was primarily due to higher interest-earning asset balances and lower costs on interest-bearing liabilities, partially offset by lower yields on interest-earning assets and higher interest-bearing liability balances. The net interest margin decreased by 19 basis points to 3.78% and the interest rate spread decreased 13 basis points from 3.33% for the three months ended June 30, 2025 to 3.20% for the three months ended June 30, 2026. For the three months ended June 30, 2026, when compared to the three months ended June 30, 2025, the average balance of interest-earning assets increased by $73.5 million, or 6.3%, to $1.24 billion due to a $92.5 million increase in the average balance of cash and cash equivalents and a $19.7 million increase in the average balance of available for sale securities, offset by a $37.5 million decrease in the average balance of loans, while the average yield decreased by 26 basis points to 5.52% due to the lower interest rate environment and a higher composition of lower-yielding assets. The average balance of interest-bearing liabilities increased by $68.4 million, or 8.0%, primarily due to a $73.5 million increase in the average balance of deposits, partially offset by a $28.5 million decrease in the average balance of FHLB advances. The cost of interest-bearing liabilities decreased by 13 basis points to 2.32% due to the lower interest rate environment and the maturation of higher-yielding FHLB advances.

Year-to-date net interest income increased $297,000, or 1.3%, to $22.8 million from $22.5 million for the prior year six-month period, primarily due to higher interest-earning assets and lower costs on interest bearing liabilities, offset by a decreased yield on interest-earning assets and an increase in the balance of interest-bearing liabilities. The net interest margin decreased by 11 basis points to 3.77% for the six months ended June 30, 2026 from 3.88% for the six months ended June 30, 2025. The interest rate spread decreased by five basis points, from 3.23% for the six months ended June 30, 2025, to 3.18% for the same period in 2026. For the six months ended June 30, 2026, the average balance of interest-earning assets increased by $48.2 million, or 4.1%, to $1.22 billion while the average yield decreased by 19 basis points to 5.56%, when compared to the six months ended June 30, 2025. The average balance of interest-bearing liabilities increased by $43.1 million, or 5.0%, primarily due to an increase in the average balance of deposits, partially offset by a decrease in the average balance of FHLB advances, while the cost of interest-bearing liabilities decreased by 14 basis points to 2.38% due to the lower interest rate environment.

The provision for credit losses increased by $90,000, or 89.1%, from a $101,000 credit for the quarter ended June 30, 2025 to an $11,000 credit for the current quarter. Net charge-offs increased $12,000, from $91,000 for the second quarter of 2025 to $103,000 for the second quarter of 2026. The increase was primarily due to increased net charge-offs of $47,000 in indirect automobile loans, substantially offset by decreased net charge-offs of $36,000 in consumer loans.

Year-to-date, the provision for credit losses decreased by $192,000, or 76.2%, from $252,000 for the six months ended June 30, 2025 to $60,000 for the six months ended June 30, 2026. The decrease in the provision was primarily due to lower loan balances, particularly indirect automobile loans. Net charge-offs increased $49,000, or 8.2% to $650,000 for the first six months of 2026 as compared to $601,000 for the first six months of 2025. The increase was primarily due to increased net charge-offs in indirect automobile loans of $223,000, substantially offset by a decrease of $182,000 in net charge-offs of commercial loans. The percentage of overdue account balances to total loans decreased to 1.03% as of June 30, 2026 from 1.52% as of December 31, 2025, while non-performing assets decreased $312,000, or 8.4%, to $3.4 million at June 30, 2026.

Non-interest income totaled $1.7 million for the three months ended June 30, 2026, an increase of $141,000, or 8.8%, from the comparable period in 2025, due primarily to an increase of $155,000, or 57.6%, in investment advisory fee income offset by a $69,000 decrease in net gain on sale of loans as we discontinued originating residential mortgage loans directly.

Non-interest income totaled $3.2 million for the six months ended June 30, 2026, a decrease of $144,000, or 4.3%, from the comparable period in 2025, driven primarily by a decrease of $207,000, or 27.3%, in other non-interest income and a $107,000 decrease in net gain on sales of loans. These decreases were partially offset by an increase in investment advisory income of $122,000.

For the three months ended June 30, 2026, non-interest expense totaled $10.0 million, an increase of $301,000, or 3.1%, compared to the same period in 2025. This increase was primarily driven by higher salaries and employee benefits of $296,000, higher professional fees of $144,000, and a rise in data processing costs of $71,000. These increases were partially offset by decreases in other non-interest expenses of $85,000, marketing expenses of $85,000, and FDIC deposit insurance and other insurance of $42,000.

For the six months ended June 30, 2026, non-interest expense totaled $19.7 million, an increase of $531,000, or 2.8%, compared to $19.2 million for the same period in 2025. The variance was primarily driven by a $695,000, or 6.7%, increase in salaries and employee benefits, reflecting increased compensation and medical insurance costs, and higher occupancy and data processing expenses, which rose $164,000 and $155,000, respectively. These operational increases were partially offset by a $260,000 decrease in other expenses, a $140,000 decrease in marketing expenses, and a $120,000 decrease in FDIC deposit insurance costs.

Balance Sheet Analysis

Total assets increased by $168.3 million, or 12.9%, to $1.47 billion at June 30, 2026, compared to $1.30 billion at December 31, 2025. The increase was primarily attributable to a $202.6 million, or 198.6%, increase in cash and cash equivalents reflecting $156.0 million in stock subscriptions awaiting the closing of the stock offering. Available-for-sale securities increased by $9.2 million, or 5.7%, primarily due to $22.4 million in purchases, partially offset by $12.7 million in paydowns, calls, and maturities and a $740,000 increase in unrealized losses. The increase in total assets was partially offset by a decrease in loans receivable of $34.9 million, reflecting a $25.7 million reduction in indirect automobile loans in line with a strategic decision to reduce their concentration in the portfolio and an $11.6 million reduction in commercial real estate loans and a $4.4 million reduction in commercial and industrial loans, partially offset by an increase of $6.7 million in residential real estate loans. Other assets decreased by $7.2 million, largely due to a decrease in the fair value of the Company's interest rate swaps.

Past due loans decreased $5.0 million, or 34.6%, between December 31, 2025 and June 30, 2026, to $9.5 million, or 1.03% of total loans, from $14.5 million, or 1.52% of total loans at year-end 2025. The decrease was most notable in indirect automobile loans, reflecting the positive impact of more conservative underwriting standards as well as a decrease in these loan balances. The allowance for credit losses was 0.83% of total loans and 227.06% of non-performing loans at June 30, 2026 as compared to 0.87% of total loans and 225.76% of non-performing loans at December 31, 2025. Non-performing assets totaled $3.4 million at June 30, 2026, a decrease of $312,000 from $3.7 million at December 31, 2025.

Total liabilities increased by $165.5 million, or 14.2%, to $1.33 billion at June 30, 2026, primarily driven by a $185.6 million, or 16.9%, increase in deposits which included $156.0 million in stock subscriptions, and a $3.8 million increase in mortgagors' escrow accounts. The increases were slightly offset by a reduction in borrowings of $20.0 million, or 79.5%. The growth in deposits was attributable to a $170.1 million, or 19.6%, increase in interest-bearing deposits, which included $156.0 million in stock subscription deposits, while non-interest-bearing deposits increased by $15.5 million, or 6.8%. Uninsured deposits were approximately 36.7% and 27.9% of the Bank's total deposits as of June 30, 2026 and December 31, 2025, respectively. Excluding the $156.0 million of funds collected and held on deposit in a segregated account in connection with the Company's stock offering in the second quarter of 2026, the Company's uninsured deposits to total deposits totaled 28.0% at June 30, 2026.

Stockholders' equity increased $2.8 million, or 2.0%, to $139.6 million at June 30, 2026. The increase was primarily due to $4.8 million in net income partially offset by a $1.8 million repurchase of common stock and a $733,000 increase in the net unrealized loss on available-for-sale securities. The Company's ratio of average equity to average assets was 10.59% for the six months ended June 30, 2026 and 10.09% for the year ended December 31, 2025.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. is a Maryland corporation organized as the holding company of Rhinebeck Bank. The Bank is a New York chartered stock savings bank, which provides a full range of banking and financial services to consumer and commercial customers through its twelve branches and three representative offices located in Dutchess, Ulster, Orange, and Albany counties in New York State. Financial services including comprehensive brokerage, investment advisory services, financial product sales and employee benefits are offered through Rhinebeck Asset Management, a division of the Bank.

Forward Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events or results and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe", "expect", "anticipate", "estimate", "intend", "predict", "forecast", "improve", "continue", "will", "would", "should", "could", or "may". Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, inflation, changes in the interest rate environment, fluctuations in real estate values, general economic conditions or conditions within the securities markets, potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies and trade restrictions and retaliatory measures impacting our borrowers and the broader economy, the impact of any federal government shutdown, debt ceiling impasses or fiscal uncertainty, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, our ability to access cost-effective funding, changes in asset quality, loan sale volumes, charge-offs and credit loss provisions, changes in economic assumptions that may impact our allowance for credit losses calculation, changes in demand for our products and services, legislative, accounting, tax and regulatory changes, including changes in the monetary and fiscal policies of the Board of Governors of the Federal Reserve System, the ability to attract, develop and retain qualified personnel in a competitive labor market, political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters, such as earthquakes, drought, pandemics, extreme weather events, or risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors.

Accordingly, you should not place undue reliance on forward-looking statements. Rhinebeck Bancorp, Inc. undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Contact:

Matthew Smith

President & CEO

(845) 454-8555

[email protected]

The Company's summary consolidated statements of income and financial condition and other selected financial data follow:

Rhinebeck Bancorp, Inc. and Subsidiary

Consolidated Statements of Income (Unaudited)

(In thousands, except share and per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

14,449

15,066

28,787

30,074

1,360

1,275

2,772

2,626

1,204

414

2,065

693

17,013

16,755

33,624

33,393

5,304

4,866

10,477

9,628

397

321

1,236

5,381

5,263

10,798

10,864

11,632

11,492

22,826

22,529

(11

)

(101

)

252

11,643

11,593

22,766

22,277

744

728

1,508

1,501

107

203

194

401

382

424

269

727

605

357

342

551

758

1,743

1,602

3,209

3,353

5,538

5,242

11,071

10,376

1,127

1,115

2,350

2,186

605

534

1,214

1,059

636

492

1,029

969

138

223

283

423

253

295

472

592

1,704

1,789

3,313

3,573

10,008

9,707

19,746

19,215

3,378

3,488

6,229

6,415

762

1,397

1,401

2,616

2,726

4,832

5,014

0.24

0.25

0.45

0.47

0.24

0.25

0.44

0.46

10,829,944

10,787,446

10,836,517

10,782,259

10,958,117

10,954,124

10,970,534

10,939,842

Rhinebeck Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition (Unaudited)

(In thousands, except share and per share data)

June 30,

December 31,

2026

2025

20,974

15,893

279,963

83,157

3,626

2,936

304,563

101,986

171,368

162,203

918,477

953,385

1,153

1,957

4,592

4,882

31,397

30,996

4,623

4,941

13,249

13,621

2,235

106

18,303

25,454

1,470,052

1,301,766

242,774

227,272

1,040,198

870,068

1,282,972

1,097,340

13,206

9,399

5,153

25,153

5,155

23,963

27,867

1,330,449

1,164,914

112

44,906

45,710

(2,728

)

(2,837

)

105,976

101,797

(6,840

)

(6,255

)

(1,823

)

(1,675

)

(8,663

)

(7,930

)

139,603

136,852

1,470,052

1,301,766

Rhinebeck Bancorp, Inc. and Subsidiary

Average Balance Sheet (Unaudited)

(Dollars in thousands)

For the Three Months Ended June 30,

2026

2025

Average

Interest and

Average

Interest and

Balance

Dividends

Yield/Cost (3)

Balance

Dividends

Yield/Cost (3)

130,061

1,204

3.71

37,527

414

4.42

940,474

14,449

6.16

978,022

15,066

6.18

163,432

1,338

3.28

143,756

1,208

3.37

1,303

6.77

2,496

10.77

1,235,270

17,013

5.52

1,161,801

16,755

5.78

87,498

87,246

1,322,768

1,249,047

20,824

0.15

131,146

0.24

118,195

0.20

238,920

1,523

2.56

215,295

1,353

2.52

130,554

120

0.37

134,314

130

0.39

385,544

3,543

3.69

342,425

3,295

3.86

906,988

5,274

2.33

810,229

4,836

2.39

11,060

1.09

10,847

1.11

5,154

33,686

311

3.70

5,155

5.99

5,155

6.69

21,369

107

2.01

49,688

427

3.45

928,357

5,381

2.32

859,917

5,263

2.45

231,793

231,573

23,753

29,950

1,183,903

1,121,440

138,865

127,607

1,322,768

1,249,047

11,632

11,492

3.20

3.33

3.78

3.97

133.06

135.11

_____________________________

(1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $52,000 and $86,000 for the three months ended June 30, 2026 and 2025, respectively.

(2) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets.

(3) Annualized.

For the Six Months Ended June 30,

2026

2025

Average

Interest and

Average

Interest and

Balance

Dividends

Yield/Cost

Balance

Dividends

Yield/Cost

(Dollars in thousands)

110,962

2,065

3.75

33,003

693

4.23

945,212

28,787

6.14

984,984

30,074

6.16

162,181

2,712

3.37

150,450

2,469

3.31

1,676

7.22

3,417

157

9.27

1,220,031

33,624

5.56

1,171,854

33,393

5.75

87,789

87,172

1,307,820

1,259,026

10,412

0.15

127,035

152

0.24

122,118

111

0.18

236,019

2,981

2.55

210,683

2,588

2.48

129,980

249

0.39

133,635

254

0.38

381,839

7,037

3.72

335,917

6,625

3.98

885,285

10,427

2.38

802,353

9,578

2.41

9,219

1.09

9,220

1.12

14,416

164

2.29

54,211

1,063

3.95

5,155

157

6.14

5,155

172

6.73

28,790

371

2.60

68,586

1,286

3.78

914,075

10,798

2.38

870,939

10,864

2.52

229,573

232,926

25,638

29,379

1,169,286

1,133,244

138,534

125,782

1,307,820

1,259,026

22,826

22,529

3.18

3.23

3.77

3.88

133.47

134.55

_____________________________

(1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $84,000 and $140,000 for the six months ended June 30, 2026 and 2025, respectively.

(2) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets.

(3) Annualized.

Rhinebeck Bancorp, Inc. and Subsidiary

Selected Ratios (Unaudited)

Three Months Ended

Six Months Ended

Year Ended

June 30,

December 31,

2026

2025

2026

2025

0.79

0.88

0.75

0.80

0.78

7.56

8.57

7.03

8.04

7.77

3.78

3.97

3.77

3.88

3.89

74.83

74.13

75.84

74.24

73.12

133.06

135.11

133.47

134.55

134.72

71.94

90.08

71.94

90.08

87.32

10.50

10.22

10.59

9.99

10.09

0.83

0.85

0.83

0.85

0.87

227.06

283.14

227.06

283.14

225.76

0.04

0.14

0.12

0.20

0.37

0.30

0.37

0.30

0.39

0.23

0.28

14.61

12.66

14.61

12.66

13.57

15.41

13.45

15.41

13.45

14.40

14.61

12.66

14.61

12.66

13.57

10.93

10.64

10.93

10.64

10.62

12.49

11.61

12.28

11.40

12.07

_____________________________________

(1) Ratios for the three and six month periods ended June 30, 2026 and 2025 are annualized.

(2) Represents net income divided by average total assets.

(3) Represents net income divided by average equity.

(4) Represents net interest income as a percent of average interest-earning assets.

(5) Represents average equity divided by average total assets.

(6) Capital ratios are for Rhinebeck Bank only. Rhinebeck Bancorp, Inc. is not subject to the minimum consolidated capital requirements as a small bank holding company with assets of less than $3.0 billion.

(7) Represents a non-GAAP financial measure, see table below for a reconciliation of the non-GAAP financial measures.

NON-GAAP FINANCIAL INFORMATION

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Such non-GAAP financial information includes the following measure: "tangible book value per common share". Management uses this non-GAAP measure because we believe that it may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes this non-GAAP measure may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. This non-GAAP measure should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below.

June 30,

December 31,

2026

2025

139,603

128,957

136,852

11,181

11,105

11,141

12.49

11.61

12.28

139,603

128,957

136,852

(2,235

)

(2,235

)

(2,235

)

(92

)

(129

)

(106

)

137,276

126,593

134,511

137,276

126,593

134,511

11,181

11,105

11,141

12.28

11.40

12.07

SOURCE: Rhinebeck Bancorp