Rhinebeck Bancorp Reports $2.3 Million Net Income in Q1 2025, Up from $1.1 Million Last Year

Rhinebeck Bancorp, Inc. reported a net income of $2.3 million for the first quarter of 2025, a significant increase from $1.1 million in the same period last year. This translates to earnings per share of $0.21, up from $0.10 in the prior year. The company's total interest and dividend income rose to $16.6 million, reflecting a 7.0% increase compared to $15.6 million in the first quarter of 2024. The increase in income was primarily driven by higher yields on loans and securities, despite a decrease in the average balance of interest-earning assets.

In terms of financial position, total assets remained stable at approximately $1.26 billion, with a slight increase of $159,000 from the end of 2024. Cash and cash equivalents increased by 34.8% to $50.5 million, largely due to a rise in federal funds sold. However, available-for-sale securities decreased by 9.4% to $144.9 million, primarily due to paydowns and maturities. Net loans receivable also saw a modest increase of 0.5%, reaching $976.5 million, driven by growth in commercial and residential real estate loans.

On the liabilities side, total liabilities decreased by 0.4% to $1.13 billion, primarily due to a reduction in advances from the Federal Home Loan Bank, which fell by 22.8% to $53.9 million. Total deposits increased by 1.3% to $1.03 billion, with interest-bearing deposits rising by 1.7%. The company also reported a decrease in non-interest-bearing deposits, which fell slightly by $174,000. Stockholders' equity increased by 3.4% to $126.0 million, supported by net income and a reduction in accumulated other comprehensive loss.

Operationally, Rhinebeck Bancorp has focused on managing its loan portfolio, with a strategic reduction in indirect automobile loans, which decreased by $17.7 million. The company reported a decrease in non-accrual loans by 15.0%, indicating improved credit quality. The provision for credit losses increased significantly to $353,000, reflecting heightened loan production and charge-offs. Looking ahead, the company remains focused on maintaining its capital adequacy and managing interest rate risk, with a well-capitalized status as confirmed by regulatory assessments.