Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended September 30, 2025

POUGHKEEPSIE, NY / ACCESS Newswire / October 28, 2025 / Rhinebeck Bancorp, Inc. (the "Company") (NASDAQ:RBKB), the holding company of Rhinebeck Bank (the "Bank"), reported net income for the third quarter of 2025 of $2.7 million, compared to a net loss of $8.1 million for the third quarter of 2024. Earnings per share were $0.25 for the third quarter of 2025, compared to diluted loss per share of $0.75 for the same quarter of 2024. Net income for the first nine months of 2025 totaled $7.7 million, compared to a net loss of $6.0 million for the same period last year. Earnings per share were $0.70 and diluted loss per share was $0.55 for the first nine months of 2025 and 2024, respectively. The results for the three and nine months ended September 30, 2024, reflected the sale of securities from a balance sheet restructuring. The restructuring, announced in the third quarter of 2024, resulted in a pre-tax loss of $12.0 million. The restructuring decreased the average life of the securities portfolio, and improved the Company's earnings stream going forward, beginning in the fourth quarter of 2024.

President and Chief Executive Officer Matthew Smith said, "I am honored to step into the role of CEO at such a pivotal time for our organization. The recent progress we've made-returning to profitability, strengthening our capital position, and enhancing asset quality-speaks to the resilience and dedication of our team. As we look ahead, my focus will be on building sustainable growth, deepening our client relationships, and driving innovation while maintaining strong risk discipline. Together, we will continue to create long-term value for our shareholders, customers, and communities."

Income Statement Analysis

Net interest income increased $2.4 million, or 24.5%, to $12.0 million for the three months ended September 30, 2025, from $9.7 million for the three months ended September 30, 2024. The increase was primarily due to higher yields on interest-earning assets and lower costs on interest-bearing liabilities. A $394,000 recovery on impaired accounts also contributed to the increase. The interest rate spread improved 77 basis points from 2.50% for the three months ended September 30, 2024 to 3.27% for the three months ended September 30, 2025, as asset yields increased while liability costs decreased. For the three months ended September 30, 2025, when compared to the same period in 2024, the average yield of interest-earning assets improved by 42 basis points to 5.80% and the average balance of interest-earning assets increased by $30.8 million, or 2.6%, to $1.21 billion. The balance sheet restructuring in the third quarter of 2024 significantly increased the yield on our available-for-sale securities. The average balance of interest-bearing liabilities increased by $22.0 million, or 2.5%, primarily due to a $58.7 million increase in the average balance of interest-bearing deposits (primarily money market accounts and time deposits), partially offset by a $36.9 million decrease in the average balance of FHLB advances, while the cost of interest-bearing liabilities decreased by 35 basis points to 2.53% due to the lower market interest rate environment and less reliance on higher-costing FHLB advances. The net interest margin increased by 68 basis points to 3.93%.

Year-to-date net interest income increased $7.0 million, or 25.6%, to $34.6 million compared to $27.5 million for the prior year nine-month period primarily due to higher yields on interest-earning assets and lower costs on interest- bearing liabilities. The interest rate spread increased by 91 basis points, from 2.34% for the nine months ended September 30, 2024, to 3.25% for the same period in 2025, primarily due to favorable asset and liability pricing. For the nine months ended September 30, 2025, the average balance of interest-earning assets decreased by $14.7 million, or 1.2%, to $1.19 billion while the average yield improved by 52 basis points to 5.77%, when compared to the nine months ended September 30, 2024. The balance sheet restructuring in the second half of 2024 significantly increased the yield on our available-for-sale securities. The average balance of interest-bearing liabilities decreased by $23.2 million, or 2.6%, primarily due to a decrease in the average balance of FHLB advances of $48.9 million, partially offset by a $26.5 million increase in the average balance of deposits (primarily money market accounts and time deposits), while the cost of interest-bearing liabilities decreased by 40 basis points to 2.52% due to the lower interest rate environment and less reliance on higher-costing FHLB advances. The net interest margin increased by 84 basis points to 3.90% for the nine months ended September 30, 2025 from 3.06% for the nine months ended September 30, 2024.

The provision for credit losses increased by $15,000, or 1.7%, from $889,000 for the quarter ended September 30, 2024 to $904,000 for the current quarter. The increase in the provision was primarily due to higher loan balances and an increase in net charge-offs. Net charge-offs increased by $619,000 from $344,000 for the third quarter of 2024 to $963,000 for the third quarter of 2025. The increase was primarily due to a charge-off on commercial real estate property of $629,000 in the third quarter of 2025.

Year-to-date, the provision for credit losses decreased by $263,000, or 18.5%, from $1.4 million for the nine months ended September 30, 2024 to $1.2 million for the nine months ended September 30, 2025. The decrease in the provision was primarily due to a change in the composition of the loan portfolio as net charge-offs and loan balances decreased on indirect automobile loans and increased on commercial and commercial real-estate loans. Net charge-offs increased $137,000, or 9.6% to $1.6 million for the first nine months of 2025 as compared to $1.4 million for the first nine months of 2024. The increase was primarily due to increased net charge-offs on commercial and commercial real-estate loans, partially offset by decreased net charge-offs on indirect automobile loans and other consumer loans. The percentage of overdue account balances to total loans decreased to 1.31% at September 30, 2025 from 1.71% at December 31, 2024, while non-performing assets decreased $389,000, or 9.4%, to $3.7 million at September 30, 2025.

Non-interest income totaled $1.9 million for the three months ended September 30, 2025, compared to a net loss of $10.0 million for the same period in 2024, representing an increase of $11.9 million. The prior-year period included a $12.0 million loss on the sale of investment securities related to the Company's balance sheet restructuring. Excluding this loss, non-interest income would have decreased $65,000 from $2.0 million for the three months ended September 30, 2024 to $1.9 million for the current period. This decrease was primarily due to a $412,000 decrease in income related to life insurance proceeds recognized during the third quarter of 2024. This decrease was substantially offset by a $245,000 increase in other non-interest income, primarily due to higher swap income; a $92,000, or 24.5%, increase in investment advisory income, and a $39,000 increase in gain on sale of loans.

Non-interest income totaled $5.3 million for the nine months ended September 30, 2025, compared to a net loss of $6.8 million for the same period in 2024, representing an increase of $12.1 million. The net loss in the prior-year period was primarily attributable to a $12.0 million loss on the sale of investment securities in connection with the Company's 2024 balance sheet restructuring. Excluding this loss, non-interest income would have increased by $92,000, from $5.2 million for the nine months ended September 30, 2024, to $5.3 million for the nine months ended September 30, 2025. The increase in non-interest income reflects a $484,000, or 67.1%, increase in other non-interest income, primarily due to higher swap income, and a $65,000 increase in gain on sales of loans. These increases were largely offset by a $412,000 decrease in income related to life insurance proceeds recognized during the third quarter of 2024 and a $62,000 decrease in investment advisory income.

For the third quarter of 2025, non-interest expense rose to $9.7 million, reflecting a $646,000, or 7.1%, increase compared to the same period in 2024. The increase was primarily due to an increase in salaries and employee benefits which rose $427,000, or 8.5%, primarily due to increased incentive compensation and production commissions. Other non-interest expense grew by $158,000, or 10.2%, driven primarily by higher retail banking costs. Occupancy expense increased by $47,000, or 4.5%.

For the nine months ended September 30, 2025, non-interest expense totaled $28.9 million, an increase of $2.0 million, or 7.6%, compared to $26.9 million for the same period in 2024. The increase was primarily attributable to higher compensation and operating costs across multiple categories. Salaries and employee benefits increased by $899,000, or 6.0%, primarily due to higher incentive-based compensation, production commissions and annual merit increases aimed at retaining and attracting talent. Other non-interest expense rose by $605,000, or 12.9%, largely due to increased retail banking and administrative costs. Marketing expense increased by $209,000, or 57.3%. Occupancy expense increased by $118,000, or 3.7%, due to higher facilities-related costs. Professional fees increased by $88,000, or 6.4%. FDIC deposit insurance and other insurance increased by $63,000, or 7.8%, and data processing expense rose by $62,000, or 4.1%.

Balance Sheet Analysis

Total assets increased by $60.2 million, or 4.8%, to $1.32 billion as of September 30, 2025. Cash and cash equivalents rose by $66.0 million, or 176.0%, driven by higher interest-bearing deposits and proceeds from the decrease in available-for-sale securities. Available-for-sale securities decreased by $11.0 million, or 6.9%, primarily due to $38.7 million in paydowns, calls, and maturities, partially offset by $23.3 million in purchases and a $4.5 million reduction in unrealized losses. Loans receivable increased by $5.9 million, or 0.6%, to $977.6 million, primarily reflecting a $57.8 million increase in commercial real estate loans and a $12.5 million increase in residential real estate loans, largely offset by a strategic decrease of $61.6 million in indirect automobile loans, in line with our decision to reduce their share of the portfolio.

Past due loans decreased $3.8 million, or 22.9%, to $12.9 million, or 1.31% of total loans at September 30, 2025, down from $16.7 million, or 1.71% of total loans at December 31, 2024. The decrease was most notable in indirect automobile loans, reflecting the positive impact of more conservative underwriting standards. The allowance for credit losses was 0.83% of total loans and 218.85% of non-performing loans at September 30, 2025 as compared to 0.88% of total loans and 206.56% of non-performing loans at December 31, 2024. Non-performing assets totaled $3.7 million at September 30, 2025, a decrease of $389,000, or 9.4%, from $4.1 million at December 31, 2024.

Total liabilities increased by $49.1 million, or 4.3%, to $1.18 billion at September 30, 2025. The increase was primarily driven by a $95.0 million, or 9.3%, increase in deposits. The growth in deposits was mostly attributable to an $80.5 million, or 10.3%, increase in interest-bearing deposits, while non-interest-bearing deposits increased by $14.6 million, or 6.1%. Uninsured deposits were approximately 28.5% and 26.9% of the Bank's total deposits as of September 30, 2025 and December 31, 2024, respectively. The increase in deposits was partially offset by a $43.2 million, or 61.9%, reduction in borrowings as deposit growth outpaced loan growth, allowing excess cash to be used to pay down debt.

Stockholders' equity increased $11.2 million, or 9.2%, to $133.0 million at September 30, 2025. The increase was primarily due to net income of $7.7 million and a $3.4 million decrease in accumulated other comprehensive loss due to the balance sheet restructuring and the decreased interest rate environment. The Company's ratio of average equity to average assets was 10.0% for the nine months ended September 30, 2025 and 9.23% for the year ended December 31, 2024.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. is a Maryland corporation organized as the mid-tier holding company of Rhinebeck Bank and is the majority-owned subsidiary of Rhinebeck Bancorp, MHC. 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 thirteen branches and two 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 potential retaliatory responses, the impact of the current federal government shutdown, 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 effect of our rating under the Community Reinvestment Act, political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters, such as earthquakes, drought, pandemics, extreme weather events, or a breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's or the Bank's financial condition and results of operations and the business in which the Company and the Bank are engaged.

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.

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 September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

15,712

14,643

45,786

43,372

1,124

995

3,750

2,989

923

366

1,616

878

17,759

16,004

51,152

47,239

5,443

5,567

15,071

16,071

281

774

1,517

3,648

5,724

6,341

16,588

19,719

12,035

9,663

34,564

27,520

904

889

1,156

1,419

11,131

8,774

33,408

26,101

739

773

2,240

2,252

(11,996

)

(11,996

)

196

131

198

192

580

564

)

(18

)

412

467

375

1,072

1,134

447

202

1,205

721

1,939

(9,992

)

5,292

(6,796

)

5,470

5,043

15,846

14,947

1,081

1,034

3,267

3,149

524

505

1,583

1,521

501

510

1,470

1,382

151

129

574

365

274

289

866

803

1,710

1,552

5,283

4,678

9,727

9,081

28,942

26,905

3,343

(10,299

)

9,758

(7,600

)

648

(2,237

)

2,049

(1,634

)

2,695

(8,062

)

7,709

(5,966

)

0.25

(0.75

)

0.71

(0.55

)

0.25

(0.75

)

0.70

(0.55

)

10,811,808

10,758,914

10,792,185

10,753,460

10,982,343

10,758,914

10,957,275

10,753,460

Rhinebeck Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition (Unaudited)

(In thousands, except share and per share data)

September 30,

December 31,

2025

2024

14,362

18,561

87,185

18,309

1,918

614

103,465

37,484

148,920

159,947

977,634

971,779

2,023

3,960

4,857

4,435

30,796

30,193

5,769

8,114

13,750

14,105

2,235

113

166

26,447

23,347

1,316,009

1,255,765

252,684

238,126

863,144

782,657

1,115,828

1,020,783

4,084

9,425

26,603

69,773

5,155

31,335

28,796

1,183,005

1,133,932

112

111

45,799

45,946

(2,891

)

(3,055

)

99,475

91,766

(6,892

)

(10,480

)

(2,599

)

(2,455

)

(9,491

)

(12,935

)

133,004

121,833

1,316,009

1,255,765

Rhinebeck Bancorp, Inc. and Subsidiary

Average Balance Sheet (Unaudited)

(Dollars in thousands)

For the Three Months Ended September 30,

2025

2024

Average

Interest and

Average

Interest and

Balance

Dividends

Yield/Cost (3)

Balance

Dividends

Yield/Cost (3)

89,954

923

4.07

26,810

366

5.43

977,721

15,712

6.38

978,806

14,643

5.95

144,612

1,084

2.97

174,265

895

2.04

2,178

7.29

3,832

100

10.38

1,214,465

17,759

5.80

1,183,713

16,004

5.38

88,962

86,673

1,303,427

1,270,386

118,280

0.21

124,099

0.14

232,621

1,626

2.77

188,449

1,294

2.73

133,825

134

0.40

139,067

126

0.36

369,158

3,581

3.85

343,597

4,066

4.71

853,884

5,405

2.51

795,212

5,530

2.77

13,227

1.14

12,481

1.18

26,603

195

2.91

63,469

668

4.19

5,155

6.62

5,155

7.64

534

5.21

44,985

319

2.81

81,639

811

3.95

898,869

5,724

2.53

876,851

6,341

2.88

243,227

247,180

30,586

26,992

1,172,682

1,151,023

130,745

119,363

1,303,427

1,270,386

12,035

9,663

3.27

2.50

3.93

3.25

135.11

135.00

(1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $43,000 and $10,000 for the three months ended September 30, 2025 and 2024, respectively.

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

(3) Annualized.

For the Nine Months Ended September 30,

2025

2024

Average

Interest and

Average

Interest and

Balance

Dividends

Yield/Cost (3)

Balance

Dividends

Yield/Cost (3)

(Dollars in thousands)

52,195

1,615

4.14

21,659

878

5.41

982,536

45,787

6.23

993,297

43,372

5.83

148,483

3,553

3.20

180,808

2,588

1.91

3,000

197

8.78

5,172

401

10.36

1,186,214

51,152

5.77

1,200,936

47,239

5.25

87,775

88,215

1,273,989

1,289,151

120,825

174

0.19

124,305

128

0.14

218,076

4,214

2.58

187,182

3,777

2.70

133,699

388

0.39

142,896

386

0.36

347,119

10,206

3.93

338,864

11,692

4.61

819,719

14,982

2.44

793,247

15,983

2.69

10,570

1.13

9,906

1.19

44,907

1,259

3.75

93,806

3,295

4.69

5,155

258

6.69

5,155

296

7.67

1,393

5.47

60,632

1,606

3.54

110,260

3,736

4.53

880,351

16,588

2.52

903,507

19,719

2.92

236,398

242,255

29,786

27,072

1,146,535

1,172,834

127,454

116,317

1,273,989

1,289,151

34,564

27,520

3.25

2.34

3.90

3.06

134.74

132.92

(1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $183,000 and $44,000 for the nine months ended September 30, 2025 and 2024, 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

Nine Months Ended

Year Ended

September 30,

December 31,

2025

2024

2025

2024

0.82

(2.52

0.81

(0.62

(0.67

8.18

(26.87

8.09

(6.85

(7.31

3.93

3.25

3.90

3.06

3.21

69.61

77.83

72.62

82.23

82.34

135.11

135.00

134.74

132.92

133.68

87.99

92.44

87.99

92.44

95.51

10.03

9.40

10.00

9.02

9.23

0.83

0.84

0.83

0.84

0.88

218.85

173.76

218.85

173.76

206.56

0.39

0.14

0.21

0.19

0.24

0.38

0.49

0.38

0.49

0.42

0.28

0.37

0.28

0.37

0.33

13.08

12.04

13.08

12.04

11.81

13.88

12.81

13.88

12.81

12.63

13.08

12.04

13.08

12.04

11.81

10.46

10.04

10.46

10.04

10.07

11.93

11.06

10.98

11.72

10.85

10.76

(1) Ratios for the three and nine month periods ended September 30, 2025 and 2024 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 measures: tangible book value per common share, efficiency ratio and earnings per share excluding securities loss. Management uses these non-GAAP measures because we believe that they 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 these non-GAAP measures 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. These non-GAAP measures 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. Loss on available-for-sale securities is excluded from the following calculations as management believes that this presentation provides further comparability of net income (loss), earnings (loss) per share and the efficiency ratio and is consistent with industry practice.

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

2,695

(8,062

)

7,709

(5,966

)

(9,477

)

(9,477

)

2,695

1,415

7,709

3,511

0.25

(0.75

)

0.71

(0.55

)

(0.88

)

(0.88

)

0.25

0.13

0.71

0.33

0.25

(0.75

)

0.70

(0.55

)

(0.88

)

(0.88

)

0.25

0.13

0.70

0.33

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

9,727

9,081

28,942

26,905

12,035

9,663

34,564

27,520

1,939

(9,992

)

5,292

(6,796

)

13,974

(329

)

39,856

20,724

(11,996

)

(11,996

)

13,974

11,667

39,856

32,720

69.61

77.83

72.62

82.23

September 30,

December 31,

2025

2024

133,004

122,667

121,833

11,146

11,088

11,095

11.93

11.06

10.98

133,004

122,667

121,833

(2,235

)

(2,235

)

(2,235

)

(113

)

(186

)

(166

)

130,656

120,246

119,432

130,656

120,246

119,432

11,146

11,088

11,095

11.72

10.85

10.76

Matthew J. Smith

President & CEO

(845) 790-1501

msmith@rhinebeckbank.com