Rhinebeck Bancorp, Inc. (RBKB) - Q1 2026 Filing Summary
Business Context and Reporting Period
This summary covers the unaudited financial results for Rhinebeck Bancorp, Inc. and its wholly-owned subsidiary, Rhinebeck Bank, for the quarterly period ended March 31, 2026. The Company operates as a community-focused financial institution with twelve branches and two representative offices in Dutchess, Ulster, Orange, and Albany counties, New York. It is classified as a non-accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net Income | $2.216 million | $2.288 million | (3.1%) |
| Earnings Per Share (Diluted) | $0.20 | $0.21 | (4.8%) |
| Total Assets | $1.285 billion | $1.269 billion (Avg) | (1.3% vs Dec 2025) |
| Net Loans Receivable | $936.8 million | $953.4 million (Dec 2025) | (1.7%) |
| Total Deposits | $1.103 billion | $1.097 billion (Dec 2025) | +0.6% |
| Net Interest Income | $11.194 million | $11.037 million | +1.4% |
| Net Interest Margin | 3.77% | 3.79% | (2 bps) |
| Provision for Credit Losses | $0.071 million | $0.353 million | (79.9%) |
| Non-Interest Expense | $9.738 million | $9.508 million | +2.4% |
| Cash and Cash Equivalents | $112.9 million | $102.0 million (Dec 2025) | +10.7% |
| Stockholders' Equity | $138.6 million | $136.9 million (Dec 2025) | +1.3% |
Material Changes vs. Prior Period
- Loan Portfolio Strategy: Net loans decreased by $16.6 million, driven primarily by a strategic $17.7 million reduction in indirect automobile loans to reduce portfolio concentration. Indirect auto loans now represent 15.3% of total assets, down from 16.4%.
- Liquidity and Borrowings: Cash and cash equivalents increased by $10.9 million. The Company significantly reduced reliance on wholesale funding, paying down Federal Home Loan Bank (FHLB) advances by $20.0 million (a 79.5% decrease) using excess liquidity from deposit growth and security maturities.
- Expense Management: Non-interest expense rose $230,000, primarily due to increased salaries and benefits ($399,000 increase) and occupancy costs ($152,000 increase), partially offset by lower professional fees and FDIC insurance expenses.
- Asset Quality: Non-accrual loans decreased to $3.5 million from $3.7 million. Net charge-offs increased slightly to $548,000, driven by higher charge-offs in indirect auto and consumer loans, offset by improvements in commercial loans.
Outlook, Risks, and Management Commentary
- Capital Position: The Bank remains "well capitalized" under regulatory frameworks. The Tier 1 leverage ratio increased to 10.94%, and the Common Equity Tier 1 ratio stands at 14.15%.
- Interest Rate Risk: Management utilizes an Asset/Liability Management Committee (ALCO) to monitor interest rate risk. Net Economic Value (EVE) modeling indicates sensitivity to rate decreases; a 400 basis point decrease in rates would reduce EVE by 25.0%.
- Investment Portfolio: Available-for-sale securities declined $6.0 million due to paydowns and maturities. Gross unrealized losses on these securities totaled $8.6 million, primarily attributed to interest rate fluctuations rather than credit deterioration. No allowance for credit losses was recorded for these securities.
- Risk Factors: Key risks include general economic conditions, changes in loan delinquencies, liquidity management, and the impact of inflation and interest rate fluctuations on margins. The Company notes no material changes to risk factors since the previous annual report.
Investor Verification Checklist
- Auto Loan Concentration: Verify the trajectory of the indirect automobile loan portfolio reduction and its impact on future yield and credit quality.
- Deposit Stability: Review the composition of deposits, noting the shift in money market accounts versus certificates of deposit, and the reliance on reciprocal deposit programs ($36.4 million).
- Unrealized Losses: Assess the duration and magnitude of unrealized losses in the available-for-sale securities portfolio ($8.6 million) and the Company's intent to hold these to maturity.
- Expense Trends: Monitor the sustainability of rising salary and occupancy expenses relative to revenue growth.
- Regulatory Capital: Confirm continued compliance with "well capitalized" status as loan balances and risk-weighted assets fluctuate.