Business
Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended September 30, 2024
POUGHKEEPSIE, NY / ACCESSWIRE / October 24, 2024 / Rhinebeck Bancorp, Inc. (the "Company") (NASDAQ:RBKB), the holding company of Rhinebeck Bank (the "Bank"),
About this update from Rhinebeck Bancorp, Inc.
[{"type":"text","content":"POUGHKEEPSIE, NY / ACCESSWIRE / October 24, 2024 / Rhinebeck Bancorp, Inc. (the \"Company\") (NASDAQ:RBKB), the holding company of Rhinebeck Bank (the \"Bank\"), reported a net loss for the third quarter of 2024 of $8.1 million, compared to net income of $1.2 million for the third quarter of 2023. Loss per share was $0.75 for the third quarter of 2024, compared to diluted earnings per share of $0.11 for the same quarter of 2023. Net loss for the first nine months of 2024 totaled $6.0 million, compared to net income of $3.5 million for the same period last year. Diluted (loss) earnings per share was $(0.55) and $0.32 for the first nine months of 2024 and 2023, respectively. Both the results for the three and nine months ended September 30, 2024, reflected the sale of securities from the previously announced balance sheet restructuring. The restructuring, which was announced late last month, resulted in a pre-tax loss of $12.0 million as lower-yielding securities were sold and proceeds were reinvested in higher-yielding securities. 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. The securities sold had a yield of 1.11% and a weighted average life of approximately 5.8 years. The proceeds were reinvested into securities yielding 4.22% with an approximate weighted average life of 2.7 years.President and Chief Executive Officer Michael J. Quinn said, \"In this challenging interest rate environment, we took the opportunity to sell a significant portion of our available for sale securities as part of a strategic balance sheet restructuring as we look toward the future. The proceeds from the sales were reinvested into higher-yielding securities. We believe these transactions will improve our future profitability, provide long-term benefits to the Company, our shareholders and the Bank's customers and allow us greater flexibility in managing balance sheet growth going forward.\"Income Statement AnalysisFor the three months ended September 30, 2024, net interest income was relatively stable, increasing $41,000, or 0.4%, to $9.7 million when compared to the three months ended September 30, 2023. Year-to-date net interest income decreased $1.1 million, or 3.8%, to $27.7 million, compared to $28.8 million for the prior ...