Rhinebeck Bancorp (RBKB) Q4 2024 earnings summary

Executive summary

• Reported a net loss of $2.7 million for Q4 2024 versus net income of $930,000 in Q4 2023; annual net loss was $8.6 million compared to net income of $4.4 million in 2023, driven by $16.0 million in losses from securities sales due to balance sheet restructuring.

• Diluted loss per share was $0.25 for Q4 2024 and $0.80 for the year, compared to diluted EPS of $0.09 and $0.40, respectively, in 2023.

• Strategic restructuring involved selling a substantial portion of available-for-sale securities and reinvesting in higher-yielding, shorter-duration assets, improving net interest margin.

Financial highlights

• Net interest income rose 14.8% year-over-year to $10.5 million in Q4 2024; full-year net interest income increased 0.7% to $38.2 million.

• Provision for credit losses increased to $1.4 million in Q4 2024 and $2.8 million for the year, up 64.5% year-over-year.

• Non-interest loss was $2.5 million in Q4 2024 and $9.5 million for the year, primarily due to securities losses; excluding these, non-interest income would have increased year-over-year.

• Non-interest expense increased 9.0% in Q4 2024 and 1.2% for the year, mainly from higher salaries, benefits, and marketing costs.

Outlook and guidance

• Management expects the restructuring to continue strengthening financial performance, enhancing profitability, and supporting sustainable growth.