Rhinebeck Bancorp, Inc. Reports Results for the Quarter Ended September 30, 2024

About this update from Rhinebeck Bancorp, Inc.

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 Analysis For 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 year nine-month period. The decrease on a year-to-date basis was primarily due to higher costs for deposits partially offset by higher yields on interest earning assets. For the three months ended September 30, 2024 , the average balance of interest-earning assets decreased by $58.1 million , or 4.7%, to $1.18 billion while the average yields improved by 43 basis points to 5.39%, when compared to the three months ended September 30, 2023 . The average balance of interest-bearing liabilities decreased by $57.2 million , or 6.1%, and the cost of interest-bearing liabilities increased by 38 basis points to 2.88%, reflecting the higher interest rate environment and a greater proportion of deposits in higher yielding certificates of deposit. The net interest margin increased by 17 basis points to 3.26% while the interest rate spread increased by 6 basis points to 2.51% for the three months ended September 30, 2024 as compared to the same period in 2023. For the nine months ended September 30, 2024 , the average balance of interest-earning assets decreased by $47.6 million , or 3.8%, to $1.20 billion while the average yield improved by 45 basis points to 5.28%, when compared to the nine months ended September 30, 2023 . The average balance of interest-bearing liabilities decreased by $27.7 million , or 3.0%, primarily due to a decrease in deposits, partially offset by the increase in the average balance of FHLB advances, while the cost of interest-bearing liabilities increased by 59 basis points to 2.92%. The net interest margin decreased by 1 basis point to 3.08% and the interest rate spread decreased by 13 basis points to 2.36% for the nine months ended September 30, 2024 from the same period in 2023. The provision for credit losses decreased by $21,000 , or 2.3%, from $910,000 for the quarter ended September 30, 2023 to $889,000 for the quarter ended September 30, 2024 . The provision for credit losses decreased by $53,000 , or 3.6%, from $1.47 million for the nine months ended September 30, 2023 to $1.42 million for the nine months ended September 30, 2024 . These decreases to the provision for the three months and the nine months ended September 30, 2024 were primarily attributable to a decrease in loan balances, primarily indirect automobile loans. Net charge-offs decreased $41,000 from $385,000 for the third quarter of 2023 to $344,000 for the third quarter of 2024. The decrease was primarily due to decreased net charge-offs in indirect automobile loans of $216,000 and recoveries in residential real estate and commercial loans in the third quarter of 2023. Net charge-offs increased $8,000 , or 0.6%, to $1.4 million for the first nine months of 2024. The percentage of overdue account balances to total loans decreased to 1.62% as of September 30, 2024 , from 1.90% as of December 31, 2023 , while non-performing assets increased $584,000 , or 13.9%, to $4.8 million at September 30, 2024 . Non-interest (loss) income totaled $(10.0) million for the three months ended September 30, 2024 , a decrease of $11.7 million , from $1.6 million for the comparable period in 2023, due primarily to the $12.0 million loss on sale of investment securities resulting from the previously mentioned balance sheet restructuring. Excluding the securities loss, non-interest income for the third fiscal quarter of 2024 would have been $2.0 million compared to $1.6 million for the three months ended September 30, 2023 . The Company also recorded an increase of $54,000 , or 16.8%, in investment advisory income resulting from the improved market and economic conditions, an increase of $35,000 in service charges on deposit accounts, an increase of $22,000 in the cash surrender value of life insurance, and an increase in the gain on sales of loans of $20,000 . Non-interest (loss) income totaled $(7.0) million for the nine months ended September 30, 2024 , a decrease of $11.4 million , from $4.4 million for the comparable period in 2023, due primarily to the $12.0 million loss on sale of investment securities resulting from the previously mentioned balance sheet restructuring. Excluding the securities loss, non-interest income for the nine months ended September 30, 2024 would have been $5.0 million compared to $4.4 million for the nine months ended September 30, 2023 . The Company recorded an increase of $270,000 , or 31.3%, in investment advisory income resulting from the improved market and economic conditions, an increase of $194,000 related to gains on life insurance, an increase of $88,000 in service charges on deposit accounts, an increase of $70,000 , or 14.2%, in the cash surrender value of life insurance, and an increase in the gain on sales of loans of $39,000 , partially offset by a decrease of $54,000 on the disposal of premises and equipment. Non-interest expense totaled $9.1 million for the third quarter of 2024, an increase of $266,000 , or 3.0%, over the comparable period in 2023. The increase was primarily due to a $370,000 increase in salaries and benefits related primarily due to higher production commissions and higher medical insurance costs. This increase was partially offset by a $109,000 decrease in other non-interest expense primarily due to a decrease in lending operations expense. Non-interest expense totaled $26.9 million for the first nine months of 2024, a decrease of $402,000 , or 1.5%, over the comparable period in 2023. The decrease was primarily due to a $229,000 , or 4.7%, decrease in other non-interest expense, primarily due to decreased retail banking and lending expenses. FDIC deposit insurance and other insurance decreased $121,000 , or 13.1%, primarily due to a decreased assessment rate while professional fees decreased $90,000 , or 6.1%. Occupancy expense decreased $66,000 , or 2.1%, due to a branch closure in the first quarter of 2024. These decreases were partially offset by an $82,000 increase in salaries and benefits and a $42,000 increase in data processing costs. Balance Sheet Analysis Total assets decreased $47.1 million , or 3.6%, to $1.27 billion at September 30, 2024 from $1.31 billion at December 31, 2023 . Loans receivable decreased $44.0 million , or 4.4%, to $964.9 million , as compared to $1.01 billion at December 31, 2023 , primarily due to a decrease in indirect automobile loans of $75.3 million , or 19.1%, reflecting a strategic decision to decrease that loan portfolio as a percentage of the balance sheet. At September 30, 2024 , indirect automobile loans were 25.2% of assets, compared to 30.0% at December 31, 2023 . Partially offsetting the decrease in automobile loans were increases in commercial real estate loans of $27.0 million , or 6.3%, and residential real estate loans of $8.3 million , or 10.8%. Available for sale securities decreased $22.9 million , or 11.9%, due to the aforementioned balance sheet restructuring which resulted in sales of $70.6 million , and paydowns, calls and maturities of $27.3 million , partially offset by purchases of $56.7 million and a decrease in unrealized loss on available for sale securities of $18.4 million . Cash and cash equivalents increased $24.3 million , or 109.6%, primarily due to an increase in deposits held at the FHLB, Federal Reserve Bank of New York and other interest bearing depository accounts with proceeds resulting from maturing loans and securities sales. Property and equipment decreased $3.5 million , or 20.0%, as our former Beacon, New York branch office was closed and the property sold during the first quarter of 2024 for $2.9 million and Federal Home Loan Bank stock decreased $3.0 million as borrowings decreased. Deferred tax assets decreased $2.1 million , or 21.1%, primarily due to a decrease in the net unrealized loss resulting from the balance sheet restructuring. Past due loans decreased $3.5 million or 18.3%, between December 31, 2023 and September 30, 2024 , finishing at $15.7 million , or 1.62%, of total loans, down from $19.2 million , or 1.90%, of total loans at year-end 2023. The decrease was most notable in non-residential commercial real-estate, as a few large loans were brought current and one loan was paid off. The allowance for credit losses was 0.84% of total loans and 170.21% of non-performing loans at September 30, 2024 as compared to 0.81% of total loans and 194.31% of non-performing loans at December 31, 2023 . Non-performing assets totaled $4.8 million , an increase of $584,000 , and included no other real estate owned at September 30, 2024 . At December 31, 2023 , non-performing assets totaled $4.2 million and included $25,000 in other real estate owned. Total liabilities decreased $56.0 million , or 4.7%, to $1.14 billion at September 30, 2024 from $1.20 billion at December 31, 2023 due to a decrease in borrowings and mortgagors' escrow accounts, partially offset by increases in deposits and accrued expenses and other liabilities. Advances from the Federal Home Loan Bank decreased $68.3 million , or 53.3%. Deposits increased $15.7 million , or 1.5%. Interest bearing deposits increased $8.6 million , or 1.1%, while non-interest-bearing deposits increased $7.1 million , or 2.8%. The continued growth in interest-bearing time deposits was primarily due a shift in deposits from lower-yielding transaction accounts to higher-yielding time deposits and money market accounts as customers sought higher interest rates. At September 30, 2024 , uninsured deposits were approximately 27.6% of the Bank's total deposits. Stockholders' equity increased $9.0 million , or 7.9%, to $122.7 million at September 30, 2024 . The increase was primarily due to a $14.8 million decrease in accumulated other comprehensive loss reflecting the results of the balance sheet restructuring and the decrease in market rates, which was partially offset by a net loss of $6.0 million . The Company's ratio of average equity to average assets was 9.02% for the nine months ended September 30, 2024 and 8.19% for the year ended December 31, 2023 . 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, 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, our ability to achieve the expected results of the balance sheet restructuring, political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters, such as earthquakes, drought, pandemic diseases, extreme weather events, or 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 , 2024 2023 2024 2023 Interest and Dividend Income Interest and fees on loans $ 14,679 $ 14,139 $ 43,584 $ 40,847 Interest and dividends on securities 995 1,011 2,989 3,257 Other income 366 384 878 971 Total interest and dividend income 16,040 15,534 47,451 45,075 Interest Expense Interest expense on deposits 5,567 4,588 16,071 12,822 Interest expense on borrowings 774 1,288 3,648 3,431 Total interest expense 6,341 5,876 19,719 16,253 Net interest income 9,699 9,658 27,732 28,822 Provision for credit losses 889 910 1,419 1,472 Net interest income after provision for credit losses 8,810 8,748 26,313 27,350 Non-interest (Loss) Income Service charges on deposit accounts 773 738 2,252 2,164 Net realized loss on sales and calls of securities (11,996 ) - (11,996 ) - Net gain on sales of loans 50 30 131 92 Increase in cash surrender value of life insurance 192 170 564 494 Net gain from sale of other real estate owned - - 4 - Net (loss) gain on disposal of premises and equipment - - (18 ) 36 Gain on life insurance 412 218 412 218 Investment advisory income 375 321 1,134 864 Other 166 169 509 512 Total non-interest (loss) income (10,028 ) 1,646 (7,008 ) 4,380 Non-interest Expense Salaries and employee benefits 5,043 4,673 14,947 14,865 Occupancy 1,034 1,049 3,149 3,215 Data processing 505 501 1,521 1,479 Professional fees 510 490 1,382 1,472 Marketing 129 131 365 378 FDIC deposit insurance and other insurance 289 288 803 924 Amortization of intangible assets 19 22 60 67 Other 1,552 1,661 4,678 4,907 Total non-interest expense 9,081 8,815 26,905 27,307 Net (loss) income before income taxes (10,299 ) 1,579 (7,600 ) 4,423 Net (Benefit) Provision for income taxes (2,237 ) 343 (1,634 ) 958 Net (loss) income $ (8,062 ) $ 1,236 $ (5,966 ) $ 3,465 Earnings (loss) per common share: Basic $ (0.75 ) $ 0.12 $ (0.55 ) $ 0.32 Diluted $ (0.75 ) $ 0.11 $ (0.55 ) $ 0.32 Weighted average shares outstanding, basic 10,758,914 10,710,607 10,753,460 10,804,699 Weighted average shares outstanding, diluted 10,758,914 10,760,118 10,753,460 10,891,730 Rhinebeck Bancorp, Inc. and Subsidiary Consolidated Statements of Financial Condition (Unaudited)(In thousands, except share and per share data) September 30 , December 31 , 2024 2023 Assets Cash and due from banks $ 21,670 $ 14,178 Federal funds sold 10,429 7,524 Interest bearing depository accounts 14,281 427 Total cash and cash equivalents 46,380 22,129 Available for sale securities (at fair value) 169,134 191,985 Loans receivable (net of allowance for credit losses of $8,153 and $8,124 , respectively) 964,875 1,008,851 Federal Home Loan Bank stock 3,510 6,514 Accrued interest receivable 4,375 4,616 Cash surrender value of life insurance 30,005 30,031 Deferred tax assets (net of valuation allowance of $1,124 and $598 , respectively) 7,839 9,936 Premises and equipment, net 14,062 17,567 Other real estate owned - 25 Goodwill 2,235 2,235 Intangible assets, net 186 246 Other assets 23,544 19,067 Total assets $ 1,266,145 $ 1,313,202 Liabilities and Stockholders' Equity Liabilities Deposits Non-interest bearing $ 256,864 $ 249,793 Interest bearing 789,309 780,710 Total deposits 1,046,173 1,030,503 Mortgagors' escrow accounts 3,552 9,274 Advances from the Federal Home Loan Bank 59,773 128,064 Subordinated debt 5,155 5,155 Accrued expenses and other liabilities 28,825 26,521 Total liabilities 1,143,478 1,199,517 Stockholders' Equity Preferred stock (par value $0.01 per share; 5,000,000 authorized, no shares issued) - - Common stock (par value $0.01 ; authorized 25,000,000; issued and outstanding 11,087,607) 111 111 Additional paid-in capital 45,939 45,959 Unearned common stock held by the employee stock ownership plan (3,109 ) (3,273 ) Retained earnings 94,420 100,386 Accumulated other comprehensive loss: Net unrealized loss on available for sale securities, net of taxes (11,540 ) (26,077 ) Defined benefit pension plan, net of taxes (3,154 ) (3,421 ) Total accumulated other comprehensive loss (14,694 ) (29,498 ) Total stockholders' equity 122,667 113,685 Total liabilities and stockholders' equity $ 1,266,145 $ 1,313,202 Rhinebeck Bancorp, Inc. and Subsidiary Average Balance Sheet (Unaudited)(Dollars in thousands) For the Three Months Ended September 30 , 2024 2023 Average Interest and Average Interest and Balance Dividends Yield/Cost(3) Balance Dividends Yield/Cost(3) Assets: Interest bearing depository accounts and federal funds sold $ 26,810 $ 366 5.43 % $ 28,282 $ 384 5.39 % Loans(1) 978,806 14,679 5.97 % 1,004,420 14,139 5.58 % Available for sale securities 174,265 895 2.04 % 203,769 889 1.73 % Other interest-earning assets 3,832 100 10.38 % 5,386 122 8.99 % Total interest-earning assets 1,183,713 16,040 5.39 % 1,241,857 15,534 4.96 % Non-interest-earning assets 86,673 91,118 Total assets $ 1,270,386 $ 1,332,975 Liabilities and equity: NOW accounts $ 124,099 $ 44 0.14 % $ 139,318 $ 49 0.14 % Money market accounts 188,449 1,294 2.73 % 227,116 1,552 2.71 % Savings accounts 139,067 126 0.36 % 158,352 144 0.36 % Certificates of deposit 343,597 4,066 4.71 % 290,634 2,804 3.83 % Total interest-bearing deposits 795,212 5,530 2.77 % 815,420 4,549 2.21 % Escrow accounts 12,481 37 1.18 % 13,946 39 1.11 % Federal Home Loan Bank advances 63,469 668 4.19 % 99,541 1,189 4.74 % Subordinated debt 5,155 99 7.64 % 5,155 99 7.62 % Other interest-bearing liabilities 534 7 5.21 % - - - % Total other interest-bearing liabilities 81,639 811 3.95 % 118,642 1,327 4.44 % Total interest-bearing liabilities 876,851 6,341 2.88 % 934,062 5,876 2.50 % Non-interest-bearing deposits 247,180 263,021 Other non-interest-bearing liabilities 26,992 27,565 Total liabilities 1,151,023 1,224,648 Total stockholders' equity 119,363 108,327 Total liabilities and stockholders' equity $ 1,270,386 $ 1,332,975 Net interest income $ 9,699 $ 9,658 Interest rate spread 2.51 % 2.46 % Net interest margin(2) 3.26 % 3.09 % Average interest-earning assets to average interest-bearing liabilities 135.00 % 132.95 % (1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $10,000 and $17,000 for the three months ended September 30, 2024 and 2023, 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 , 2024 2023 Average Interest and Average Interest and Balance Dividends Yield/Cost Balance Dividends Yield/Cost (Dollars in thousands) Assets: Interest bearing depository accounts $ 21,659 $ 878 5.41 % $ 25,601 $ 971 5.07 % Loans(1) 993,297 43,584 5.86 % 1,004,270 40,847 5.44 % Available for sale securities 180,808 2,588 1.91 % 213,773 2,958 1.85 % Other interest-earning assets 5,172 401 10.36 % 4,847 299 8.25 % Total interest-earning assets 1,200,936 47,451 5.28 % 1,248,491 45,075 4.83 % Non-interest-earning assets 88,215 89,619 Total assets $ 1,289,151 $ 1,338,110 Liabilities and equity: NOW accounts $ 124,305 $ 128 0.14 % $ 142,056 $ 148 0.14 % Money market accounts 187,182 3,777 2.70 % 244,662 4,826 2.64 % Savings accounts 142,896 386 0.36 % 165,774 450 0.36 % Certificates of deposit 338,864 11,692 4.61 % 274,375 7,308 3.56 % Total interest-bearing deposits 793,247 15,983 2.69 % 826,867 12,732 2.06 % Escrow accounts 9,906 88 1.19 % 10,931 90 1.10 % Federal Home Loan Bank advances 93,806 3,295 4.69 % 88,225 3,152 4.78 % Subordinated debt 5,155 296 7.67 % 5,155 279 7.24 % Other interest-bearing liabilities 1,393 57 5.47 % - - % Total other interest-bearing liabilities 110,260 3,736 4.53 % 104,311 3,521 4.51 % Total interest-bearing liabilities 903,507 19,719 2.92 % 931,178 16,253 2.33 % Non-interest-bearing deposits 242,255 270,992 Other non-interest-bearing liabilities 27,072 26,322 Total liabilities 1,172,834 1,228,492 Total stockholders' equity 116,317 109,618 Total liabilities and stockholders' equity $ 1,289,151 $ 1,338,110 Net interest income $ 27,732 $ 28,822 Interest rate spread 2.36 % 2.49 % Net interest margin(2) 3.08 % 3.09 % Average interest-earning assets to average interest-bearing liabilities 132.92 % 134.08 % (1) Non-accruing loans are included in the outstanding loan balance. Deferred loan fees included in interest income totaled $44,000 and $53,000 for the nine months ended September 30, 2024 and 2023, 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 , September 30 , December 31 , 2024 2023 2024 2023 2023 Performance Ratios (1): Return on average assets (2) (2.52 )% 0.37 % (0.62 )% 0.35 % 0.33 % Return on average equity (3) (26.87 )% 4.53 % (6.85 )% 4.23 % 4.03 % Net interest margin (4) 3.26 % 3.09 % 3.08 % 3.09 % 3.06 % Efficiency ratio, excluding impact of securities loss restructure (7) 77.83 % 77.98 % 82.23 % 82.25 % 83.28 % Average interest-earning assets to average interest-bearing liabilities 135.00 % 132.95 % 132.92 % 134.08 % 133.80 % Total gross loans to total deposits 92.44 % 92.63 % 92.44 % 92.63 % 97.87 % Average equity to average assets (5) 9.40 % 8.13 % 9.02 % 8.19 % 8.19 % Asset Quality Ratios: Allowance for credit losses on loans as a percent of total gross loans 0.84 % 0.85 % 0.84 % 0.85 % 0.81 % Allowance for credit losses on loans as a percent of non-performing loans 170.21 % 175.99 % 170.21 % 175.99 % 194.31 % Net charge-offs to average outstanding loans during the period (0.04 )% (0.04 )% (0.14 )% (0.14 )% (0.21 )% Non-performing loans as a percent of total gross loans 0.50 % 0.48 % 0.50 % 0.48 % 0.41 % Non-performing assets as a percent of total assets 0.38 % 0.37 % 0.38 % 0.37 % 0.32 % Capital Ratios (6): Tier 1 capital (to risk-weighted assets) 12.04 % 11.71 % 12.04 % 11.71 % 11.96 % Total capital (to risk-weighted assets) 12.81 % 12.47 % 12.81 % 12.47 % 12.70 % Common equity Tier 1 capital (to risk-weighted assets) 12.04 % 11.71 % 12.04 % 11.71 % 11.96 % Tier 1 leverage ratio (to average total assets) 10.04 % 9.93 % 10.04 % 9.93 % 10.10 % Other Data: Book value per common share $ 11.06 $ 9.63 $ 10.27 Tangible book value per common share(7) $ 10.85 $ 9.41 $ 10.04 (1) Performance ratios for the three and nine month periods ended September 30, 2024 and 2023 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. (In thousands, except per share data) Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Net income (loss) and earnings (loss) per share, reconciliation Net Income (loss) (GAAP) $ (8,062 ) $ 1,236 $ (5,966 ) $ 3,465 Exclude impact of securities loss restructure, net of tax (9,477 ) - (9,477 ) - Net income excluding securities loss restructure (non-GAAP) $ 1,415 $ 1,236 $ 3,511 $ 3,465 Basic earnings (loss) per share (GAAP) $ (0.75 ) $ 0.12 $ (0.55 ) $ 0.32 Exclude impact of securities loss restructure, net of tax (0.88 ) - (0.88 ) - Basic earnings per share excluding securities restructure, net of tax (non-GAAP) $ 0.13 $ 0.12 $ 0.33 $ 0.32 Diluted earnings (loss) per share (GAAP) $ (0.75 ) $ 0.11 $ (0.55 ) $ 0.32 Exclude impact of securities loss restructure, net of tax (0.88 ) - (0.88 ) - Diluted earnings per share excluding securities loss restructure, net of tax (non-GAAP) $ 0.13 $ 0.11 $ 0.33 $ 0.32 (In thousands, except per share data) Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Efficiency ratio reconciliation Non-interest expense (GAAP) $ 9,081 $ 8,815 $ 26,905 $ 27,307 Net interest income (GAAP) 9,699 9,658 27,732 28,822 Non-interest (loss) income (GAAP) (10,028 ) 1,646 (7,008 ) 4,380 Net interest income plus non-interest income (GAAP) $ (329 ) $ 11,304 $ 20,724 $ 33,202 Less non-GAAP adjustments: Net realized loss on sales and calls of securities (11,996 ) - (11,996 ) - Net interest income plus non-interest income - as adjusted (non-GAAP) $ 11,667 $ 11,304 $ 32,720 $ 33,202 Efficiency ratio (non- GAAP) 77.83 % 77.98 % 82.23 % 82.25 % (In thousands, except per share data) September 30 , December 31 , 2024 2023 2023 Book value per common share Total shareholders' equity (book value) (GAAP) $ 122,667 $ 106,672 $ 113,685 Total shares outstanding 11,088 11,073 11,073 Book value per common share $ 11.06 $ 9.63 $ 10.27 Tangible common equity Total shareholders' equity (book value) (GAAP) $ 122,667 $ 106,672 $ 113,685 Goodwill (2,235 ) (2,235 ) (2,235 ) Intangible assets, net (186 ) (267 ) (246 ) Tangible common equity (non-GAAP) $ 120,246 $ 104,170 $ 111,204 Tangible book value per common share Tangible common equity (non-GAAP) $ 120,246 $ 104,170 $ 111,204 Total shares outstanding 11,088 11,073 11,073 Tangible book value per common share (non-GAAP) $ 10.85 $ 9.41 $ 10.04 Related Links http://www.Rhinebeckbank.com Contact: Michael Quinn President & CEO SOURCE: Rhinebeck Bancorp, Inc. 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