Rhinebeck Bancorp, Inc. 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Rhinebeck Bancorp, Inc. (RBKB) is a Maryland corporation and the parent holding company of Rhinebeck Bank, a New York chartered stock savings bank. The Company operates 12 branches and 3 representative offices in Dutchess, Ulster, Orange, and Albany counties. A significant corporate event occurred shortly after the reporting period: on July 21, 2026, the Company completed its second-step conversion to a fully public stock holding company, selling 8,880,210 shares at $10.00 per share for gross proceeds of $88.8 million. This transaction is not reflected in the June 30, 2026 financial statements.
Key Financial Metrics
| Metric | Q2 2026 (Three Months) | Q2 2025 (Three Months) | YTD 2026 (Six Months) | YTD 2025 (Six Months) |
|---|---|---|---|---|
| Net Interest Income | $11.63 million | $11.49 million | $22.83 million | $22.53 million |
| Net Income | $2.62 million | $2.73 million | $4.83 million | $5.01 million |
| Diluted EPS | $0.24 | $0.25 | $0.44 | $0.46 |
| Net Interest Margin | 3.78% | 3.97% | 3.77% | 3.88% |
| Total Assets | $1.47 billion (as of June 30, 2026) | |||
| Total Deposits | $1.28 billion (as of June 30, 2026) | |||
| Net Loans | $918.5 million (as of June 30, 2026) | |||
| Cash & Equivalents | $304.6 million (as of June 30, 2026) | |||
| Allowance for Credit Losses | $7.70 million (as of June 30, 2026) |
Material Changes vs. Prior Period
- Asset Growth: Total assets increased 12.9% to $1.47 billion, driven primarily by a $202.6 million increase in cash and cash equivalents (198.6% growth) and a $9.2 million increase in available-for-sale securities.
- Loan Portfolio: Net loans decreased 3.7% to $918.5 million. This was a strategic reduction of $25.7 million in indirect automobile loans to lower portfolio concentration. Commercial real estate loans decreased $11.6 million, while residential real estate loans increased $6.7 million.
- Deposits: Total deposits grew 16.9% to $1.28 billion. This included $156.0 million in stock subscription deposits (related to the upcoming conversion) and increases in certificates of deposit and NOW accounts.
- Profitability: Net income for the six months ended June 30, 2026, decreased 3.6% to $4.83 million compared to $5.01 million in the prior year. The provision for credit losses decreased significantly by 76.2% to $60,000 (from $252,000), but this was offset by higher non-interest expenses.
- Interest Rates: The Net Interest Margin (NIM) compressed slightly to 3.77% for the six-month period, down 11 basis points from the prior year, due to lower yields on interest-earning assets.
Guidance, Outlook, and Risks
Outlook and Capital: Management anticipates that the net proceeds from the July 2026 stock offering will provide substantial capital to support future loan growth, branch expansion, and general corporate purposes. The Company currently maintains a "well capitalized" status under regulatory guidelines.
Risks and Contingencies:
- Interest Rate Risk: The Company is exposed to changes in market interest rates. Net Economic Value (EVE) modeling indicates that a 400 basis point decrease in rates would reduce EVE by 35.7%, while a 400 basis point increase would raise EVE by 14.3%.
- Credit Quality: Non-accrual loans decreased to $3.4 million. Net charge-offs for the six months were $650,000, driven primarily by indirect automobile loans.
- Regulatory Restrictions: Following the conversion, the Company faces regulatory restrictions on stock repurchases and dividends for a one-year post-conversion period.
- Operational Risks: Risks include cybersecurity threats, reliance on third-party vendors, and the impact of inflation and economic conditions on the local market.
Investor Verification Checklist
- Stock Conversion Impact: Verify the final net proceeds from the July 21, 2026, offering and the exact share count post-conversion (15,635,966 shares outstanding as of August 1, 2026).
- Deposit Composition: Confirm the retention rate of the $156.0 million in subscription deposits after the offering closed, as approximately $71.5 million was returned to subscribers due to oversubscription.
- Auto Loan Concentration: Monitor the continued reduction of indirect automobile loans, which were reduced to 12.8% of total assets from 16.4% in the prior period.
- Capital Ratios: Review the updated regulatory capital ratios in the next filing to ensure they remain "well capitalized" post-conversion.
- Stock Repurchase Plan: Note that the Company is prohibited from repurchasing shares for one year following the July 21, 2026, conversion, despite having 463,457 shares available under its July 2025 plan.