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Rhinebeck Bancorp, Inc. (RBKB)·Q3 2025 Earnings Summary

Executive Summary

  • Returned to profitability with net income of $2.695M and diluted EPS of $0.25 in Q3 2025, versus a net loss of $8.062M and diluted loss per share of $0.75 in Q3 2024, aided by higher asset yields and lower funding costs as 2024’s restructuring effects flowed through .
  • Net interest margin was 3.93% (up 68 bps YoY); interest rate spread improved to 3.27% (up 77 bps YoY), reflecting favorable asset-liability pricing and reduced reliance on higher-cost FHLB advances .
  • Balance sheet and liquidity strengthened: deposits rose by $95.0M vs. year-end, uninsured deposits were ~28.5%, and borrowings fell by $43.2M; stockholders’ equity increased to $133.0M .
  • Strategic catalysts: Board approved a new share repurchase authorization for up to 540,000 shares, and Matthew J. Smith assumed CEO role effective October 20, 2025, signaling operational focus and potential innovation/digital initiatives .
  • No Wall Street EPS or revenue consensus available for Q3 2025; investor focus likely to shift to sustained NIM trajectory, asset quality trends (NCOs and CRE exposure), operating efficiency, and capital deployment (buyback) .

What Went Well and What Went Wrong

What Went Well

  • NIM expansion and spread improvement continued: Q3 2025 NIM 3.93% (+68 bps YoY) and spread 3.27% (+77 bps YoY), driven by higher yields on earning assets and lower costs on interest-bearing liabilities .
  • Asset quality metrics improved vs year-end: non-performing assets decreased to $3.7M (0.28% of assets), allowance coverage of NPLs rose to ~219%, and past-due loans declined to 1.31% of total loans .
  • CEO emphasized resilience and disciplined growth: “returning to profitability, strengthening our capital position, and enhancing asset quality…building sustainable growth” — Matthew Smith, CEO .

What Went Wrong

  • Non-interest expense increased 7.1% YoY to $9.727M, led by higher salaries/benefits (+8.5%) and retail banking costs; efficiency remains a focus despite non-GAAP improvement .
  • Net charge-offs rose to $0.963M in Q3 2025, including a $0.629M CRE charge-off; provision for credit losses increased slightly to $0.904M .
  • Investment advisory income remains sensitive to markets; broader fee momentum mixed across periods, though swap income offset some weakness .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Total interest and dividend income ($USD Millions)$16.638 $16.755 $17.759
Net interest income ($USD Millions)$11.037 $11.492 $12.035
Non-interest income ($USD Millions)$1.751 $1.602 $1.939
Non-interest expense ($USD Millions)$9.508 $9.707 $9.727
Net income ($USD Millions)$2.288 $2.726 $2.695
Diluted EPS ($USD)$0.21 $0.25 $0.25
Net interest margin (%)3.79% 3.97% 3.93%

YoY and sequential comparison (focus on Q3):

MetricQ3 2024Q2 2025Q3 2025
Total interest and dividend income ($USD Millions)$16.004 $16.755 $17.759
Net interest income ($USD Millions)$9.663 $11.492 $12.035
Non-interest income (loss) ($USD Millions)$(9.992) $1.602 $1.939
Non-interest expense ($USD Millions)$9.081 $9.707 $9.727
Net income (loss) ($USD Millions)$(8.062) $2.726 $2.695
Diluted EPS ($USD)$(0.75) $0.25 $0.25
Net interest margin (%)3.25% 3.97% 3.93%

Segment/portfolio mix changes

CategoryQ2 2025 changeQ3 2025 change
Commercial real estate loans+$22.9M +$57.8M
Residential real estate loans+$7.4M +$12.5M
Indirect automobile loans−$39.6M −$61.6M

KPIs and balance sheet indicators

KPIQ1 2025Q2 2025Q3 2025
ROAA (%)0.73% 0.88% 0.82%
ROAE (%)7.49% 8.57% 8.18%
NIM (%)3.79% 3.97% 3.93%
Efficiency ratio (non-GAAP) (%)74.35% 74.13% 69.61%
Non-performing assets ($USD Millions)$3.5 $2.9 $3.7
NPA / Total assets (%)0.28% 0.23% 0.28%
Uninsured deposits (% of total)27.8% 27.8% 28.5%
Tier 1 capital ratio (%)12.10% 12.66% 13.08%
Tier 1 leverage ratio (%)10.17% 10.64% 10.46%
Total deposits ($USD Millions)$1,034.241 $1,070.808 $1,115.828
FHLB advances ($USD Millions)$53.873 $26.603 $26.603

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidance (revenue/EPS/margins/OpEx/OI&E/tax)Q4 2025+None disclosedNone disclosedMaintained (no formal guidance provided)
Share repurchase authorizationAnnounced Aug 7, 2025No prior authorization of this sizeUp to 540,000 shares (≈5% of outstanding)New authorization
DividendOngoingNot discussedNot discussedMaintained (no update)

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was found in the document set; themes below reflect press releases and disclosures (press release reference) .

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Balance sheet restructuring benefits2024 restructuring drove higher securities yields, NIM expansion; reiterated in Q1 and Q2 Continued favorable asset yields and lower funding costs; spread +77 bps YoY, NIM 3.93% Positive, sustained
Deposit growth and mixDeposit growth with promotions of higher-yielding products; uninsured deposits ~27.8% Deposits +$95M vs YE; uninsured deposits ~28.5% Improving, with modest uninsured uptick
Credit qualityDeclining NPA vs YE; lower net charge-offs in Q2 NPA remains low, but NCOs rose to $0.963M with a $0.629M CRE charge-off Mixed: strong NPA, higher NCOs
Indirect auto exposureStrategic reduction in Q1/Q2 Further reduction (−$61.6M) De-risking continues
Capital and buybacksRatios improved; no buyback update New buyback plan up to 540k shares; Tier 1 capital 13.08% Accretive capital deployment
Leadership/strategyMichael J. Quinn highlighted improved profitability and efficiency Matthew J. Smith appointed CEO; focus on sustainable growth and innovation Transition to new leadership

Management Commentary

  • “I am honored to step into the role of CEO at such a pivotal time… returning to profitability, strengthening our capital position, and enhancing asset quality… focus will be on building sustainable growth… driving innovation while maintaining strong risk discipline.” — Matthew Smith, CEO .
  • “We’re very pleased with our performance through the first half of 2025… net income more than doubled to $5.0 million… net interest margin expanded to 3.88%… return on average equity improved to 8.04%… strong asset-liability management and disciplined operating execution.” — Michael J. Quinn, then-CEO (Q2 2025) .
  • “We’re very pleased with our first quarter results… balance sheet restructuring… spread up from 2.19% to 3.13%… NIM increased from 2.90% to 3.79%… strong credit quality.” — Michael J. Quinn (Q1 2025) .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available; therefore, no Q&A themes or guidance clarifications could be extracted from a call [Search result showed no earnings-call-transcript for RBKB].

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was unavailable; no estimate surprise could be calculated. Values retrieved from S&P Global.
  • Actual results: Diluted EPS $0.25 and net income $2.695M; total interest and dividend income $17.759M; non-interest income $1.939M .

Key Takeaways for Investors

  • Profitability normalized post-2024 restructuring; Q3 2025 delivered $2.695M in net income and $0.25 diluted EPS with NIM at 3.93% — watch for sustainability as rates evolve .
  • Funding mix improved: deposits expanded and borrowings declined, supporting lower liability costs and improved spread; monitor uninsured deposit share (28.5%) for liquidity resilience in stress scenarios .
  • Credit remains a focal point: NPA levels are low, but higher Q3 net charge-offs (including a $0.629M CRE charge-off) warrant ongoing monitoring of CRE and consumer portfolios .
  • Expense discipline vs growth initiatives: elevated non-interest expenses (notably compensation and retail banking costs) should be weighed against improved efficiency ratio (69.61% non-GAAP) .
  • Capital deployment: the buyback authorization (up to 540k shares) and stronger Tier 1 metrics suggest confidence in earnings durability and potential accretion to TBV/ROE .
  • Strategic leadership change: new CEO Matthew Smith brings a digital/operations background that could accelerate deposit franchise development, fee initiatives, and efficiency gains; track execution through 2026 .
  • With no consensus estimates available, near-term trading likely keys off NIM trajectory, credit prints, and capital actions (buyback pace), while medium-term thesis centers on asset mix reshaping (de-risking auto, growing CRE/residential) and sustained ROA/ROE improvement .