Executive Summary

Q1 2025 delivered a clean rebound: net income rose to $2.29M ($0.21) vs $1.12M ($0.10) in Q1 2024 and a GAAP loss of $2.65M ($0.25) in Q4 2024, driven by materially higher net interest income and a wider margin following last year’s securities restructuring .
Net interest margin expanded to 3.79% (from 2.90% YoY and 3.61% in Q4), and interest rate spread increased to 3.13% (from 2.19% YoY and 2.89% in Q4), validating the strategic shift to higher-yielding, shorter-duration securities and lower-cost funding .
Operating efficiency improved: non-GAAP efficiency ratio improved to 74.35% (from 85.34% YoY; Q4: 82.64%) while ROAA/ROAE rose to 0.73%/7.49% (vs 0.34%/3.92% YoY; Q4: -0.85%/-8.60%) .
Credit quality trends were mixed: delinquency and NPAs improved; provision rose on higher charge-offs (auto and commercial), though allowance coverage strengthened (ACL/NPLs 239%) .
Potential stock reaction catalysts: visible NIM/efficiency lift from 2024 restructuring, deposit growth (interest-bearing), and further balance sheet optimization; offsets include higher expense run-rate and provision normalization .

What Went Well and What Went Wrong

What Went Well
- Margin expansion and spread widened materially due to 2H24 balance sheet restructuring; NIM 3.79% and spread 3.13% vs 2.90% and 2.19% a year ago. CEO: “This performance reflects the positive impact of the balance sheet restructuring… we delivered significant expansion in both our interest rate spread… and our net interest margin…” .
- Earnings inflected QoQ with cleaner results post-restructuring: net income $2.29M vs Q4 GAAP loss of $2.65M; non-interest income rebounded to $1.75M after Q4 securities loss dragged results .
- Asset quality and capital indicators improved: NPLs/loans fell to 0.36% (from 0.42% in Q4) and NPAs/assets to 0.28% (from 0.33%); book value/share rose to $11.35 (from $10.97 in Q4) helped by AOCI improvement and earnings .
What Went Wrong
- Provision increased to $353K vs $83K YoY as net charge-offs rose to $510K, driven by indirect auto and commercial charge-offs; provision volatility follows a Q4 spike tied to a $524K commercial charge-off .
- Non-interest expense rose 7.1% YoY to $9.51M on higher retail banking, commissions, marketing, professional fees, FDIC and data processing costs—pressuring operating leverage despite NIM gains .
- Deposit mix continues to favor higher-cost products: interest-bearing balances rose $13.6M QoQ; uninsured deposits remain ~28% (Mar 31: 27.8%; Dec 31: 26.9%)—manageable but a monitoring point in a rate-sensitive backdrop .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Total interest & dividend income ($)	$15.551M	$16.307M	$16.638M
Net interest income ($)	$8.812M	$10.499M	$11.037M
Provision for credit losses ($)	$0.083M	$1.381M	$0.353M
Non-interest income ($)	$1.590M	$(2.512)M	$1.751M
Non-interest expense ($)	$8.877M	$9.943M	$9.508M
Net income ($)	$1.121M	$(2.654)M	$2.288M
Diluted EPS ($)	$0.10	$(0.25)	$0.21
Net interest margin (%)	2.90%	3.61%	3.79%
Interest rate spread (%)	2.19%	2.89%	3.13%
ROAA (%)	0.34%	(0.85)%	0.73%
ROAE (%)	3.92%	(8.60)%	7.49%

Revenue composition

Component	Q1 2024	Q4 2024	Q1 2025
Net interest income ($)	$8.812M	$10.499M	$11.037M
Non-interest income ($)	$1.590M	$(2.512)M	$1.751M

KPI snapshots

KPI	Q1 2024	Q4 2024	Q1 2025
Efficiency ratio (non-GAAP) (%)	85.34%	82.64%	74.35%
NPLs / Loans (%)	0.46%	0.42%	0.36%
NPAs / Assets (%)	0.35%	0.33%	0.28%
ACL / Loans (%)	0.80%	0.88%	0.86%
Loans receivable (period-end, $)	—	$971.779M	$976.502M
Deposits (period-end, $)	—	$1.0208B	$1.0342B
FHLB advances (period-end, $)	—	$69.773M	$53.873M
Uninsured deposits (%)	—	26.9%	27.8%
Book value per share ($)	$10.32	$10.97	$11.35

Note: “—” indicates not disclosed for that specific as-of point in the materials reviewed.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	FY/Q2 2025 and beyond	None provided	None provided	Maintained (no formal guidance)

No formal quantitative guidance was issued in Q1 2025 materials; management commentary focused on margin benefits from 2H24 restructuring and ongoing balance sheet optimization .

Earnings Call Themes & Trends

(No Q1 2025 earnings call transcript was located in the document set; themes derived from company press releases.)

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Balance sheet restructuring	Executed securities sales with $12.0M pre-tax loss; reinvested at 4.22% vs 1.11% yield; expected to improve profitability beginning Q4 2024 . Additional $4.0M securities loss in Q4; NIM up 65 bps YoY; spread +61 bps; lower-cost FHLB mix .	Management highlights restructuring as key driver of spread/NIM expansion and profitability improvement .	Improving execution flowing through margins .
Net interest margin	Q3 NIM 3.26% (+17 bps YoY) . Q4 NIM 3.61% (+65 bps YoY) .	NIM 3.79% (+89 bps YoY; +18 bps QoQ) .	Positive momentum .
Deposit mix and uninsured deposits	Shift toward higher-yielding time/MM; uninsured deposits 27.6% at 9/30/24 .	Uninsured deposits 26.9% at 12/31/24; 27.8% at 3/31/25; interest-bearing deposits rose $13.6M QoQ .	Stable uninsured; higher-rate funding mix persists .
Credit quality	Q3 provision modest; delinquencies improved; NPA up modestly . Q4 provision up on a $524K commercial charge-off; delinquencies improved .	Provision up YoY; higher net charge-offs (auto and commercial); delinquencies and NPAs improved; ACL/NPLs coverage stronger .	Mixed: improved delinquency/NPAs with higher charge-offs .
Indirect auto exposure	Reduced 19.1% YTD by Q3 .	Down 25.0% for 2024; continued decline in Q1 2025 (−$17.7M QoQ) .	Intentional portfolio shrinkage continues .
Capital/AOCI and book value	Book value/share $11.06 at 9/30/24; AOCI improved on restructuring and rate moves .	BVPS $10.97 at 12/31/24; $11.35 at 3/31/25; AOCI improvement continues alongside earnings .	Improving book and tangible book trend .

Management Commentary

“We’re very pleased with our first quarter results… This performance reflects the positive impact of the balance sheet restructuring… we delivered significant expansion in both our interest rate spread… and our net interest margin… We also drove meaningful improvement in operating efficiency and maintained strong credit quality.” — Michael J. Quinn, President & CEO .
“We restructured our balance sheet by selling a substantial portion of our available-for-sale securities… reinvested into higher-yielding and shorter duration assets… already begun contributing to an improvement in our net interest margin.” — Michael J. Quinn (Q4 2024 release) .
“We took the opportunity to sell a significant portion of our available for sale securities as part of a strategic balance sheet restructuring… improve our future profitability… greater flexibility in managing balance sheet growth.” — Michael J. Quinn (Q3 2024 release) .

Q&A Highlights

No earnings call transcript was available in the document set reviewed; therefore, there are no Q&A highlights or guidance clarifications to report for Q1 2025.

Estimates Context

S&P Global (Wall Street) consensus for Q1 2025 EPS and revenue was not available in the dataset retrieved; accordingly, comparisons vs consensus cannot be provided. Values retrieved from S&P Global.

Key Takeaways for Investors

The 2H24 securities restructuring is translating into visible earnings power via higher NIM (3.79%) and spread (3.13%); continued benefit as reinvestment and lower FHLB costs flow through is a positive setup into 2025 .
Credit normalization bears watching: provision rose on higher net charge-offs (auto and commercial), but delinquency and NPAs improved and coverage ratios strengthened—mixed but manageable .
Expense discipline is the next lever: non-interest expense growth (retail, commissions, marketing, FDIC, data processing) offset some of the margin gains; sustaining efficiency ratio improvement (74%) is key to operating leverage .
Funding remains constructive but rate-sensitive: interest-bearing deposit growth supports liquidity; uninsured deposits ~28% are stable—monitor for competitive pricing and retention dynamics in high-rate windows .
Book value accretion resumed with AOCI improvement and earnings recovery; tangible common equity metrics trend supportive of capital resiliency .
Near-term trading lens: momentum in NIM/ROA and cleaner earnings cadence post-restructuring can be a positive catalyst; any uptick in charge-offs or expense drift could temper multiple expansion .
Medium-term thesis: balance sheet optimization (shorter duration assets, disciplined funding), de-risking of indirect auto, and expense management underpin earnings durability; ongoing execution should drive improved returns vs 2024 trough .

Sources: Q1 2025 8-K/press release and financial tables ; Q4 2024 8-K/press release and financial tables ; Q3 2024 8-K/press release and financial tables .

Rhinebeck Bancorp, Inc. (RBKB)·Q1 2025 Earnings Summary