Rhinebeck Bancorp Reports $2.7 Million Net Income in Q3 2025, Significant Turnaround from Previous Year

Rhinebeck Bancorp, Inc. reported a significant turnaround in its financial performance for the third quarter of 2025, achieving a net income of $2.7 million, compared to a net loss of $8.1 million in the same period of 2024. This improvement translated to earnings per share of $0.25, a notable recovery from a loss of $0.75 per share a year earlier. The company's total interest and dividend income increased by 11% to $17.8 million, driven by higher yields on loans and securities, while interest expense decreased by 9.7% to $5.7 million, reflecting a favorable shift in funding costs.

Total assets for Rhinebeck Bancorp rose to $1.32 billion as of September 30, 2025, marking a 4.8% increase from $1.26 billion at the end of 2024. This growth was primarily fueled by a substantial increase in cash and cash equivalents, which surged by 176% to $103.5 million, and a slight increase in net loans receivable, which rose by 0.6% to $977.6 million. However, available-for-sale securities decreased by 6.9% to $148.9 million, attributed to paydowns and maturities.

The company also experienced a 9.3% increase in total deposits, which reached $1.12 billion, driven by a rise in both interest-bearing and non-interest-bearing accounts. Notably, interest-bearing deposits grew by 10.3%, reflecting the bank's strategy to promote higher-yielding products in response to customer demand. Conversely, advances from the Federal Home Loan Bank decreased significantly by 61.9% to $26.6 million, as the bank utilized excess liquidity from maturing securities and increased deposits to reduce borrowings.

Strategically, Rhinebeck Bancorp has decided to discontinue direct residential mortgage originations, opting instead to partner with Homestead Funding Corporation for mortgage services. This shift aims to adapt to changing industry dynamics and enhance operational efficiency. Additionally, the bank plans to close its Middletown branch in January 2026, with customer accounts being transferred to a nearby branch, further streamlining operations.

Looking ahead, Rhinebeck Bancorp remains focused on maintaining its growth trajectory while managing market risks associated with interest rates and economic conditions. The bank's management is committed to adapting its strategies to ensure continued customer service and community support, positioning itself for long-term success in a competitive financial landscape.