Executive Summary

Q4 2024 was dominated by the previously disclosed balance sheet restructuring: RBKB reported a net loss of $2.65M and diluted EPS of $(0.25), driven by a $4.05M realized loss on securities; excluding this item, non-GAAP net income was $0.54M and EPS ~$0.05 .
Core banking trends improved: net interest income rose to $10.50M (+14.8% YoY) as net interest margin expanded 65 bps YoY to 3.61% and interest rate spread widened to 2.89% .
Credit costs increased: provision for credit losses rose to $1.38M (vs $0.23M in Q4’23) due to a $0.52M commercial loan charge-off and model updates; net charge-offs were $0.97M in Q4 .
Balance sheet repositioning reduced securities portfolio duration and increased reinvestment yields; management expects sustained margin improvement and greater balance sheet flexibility going forward .
Wall Street consensus estimates (EPS, revenue) for Q4 2024 were unavailable from S&P Global; beat/miss cannot be determined. This limits near-term stock-reaction alignment with expectations while the margin trajectory and credit signals remain the key catalysts.*

What Went Well and What Went Wrong

What Went Well

Net interest margin and core spread expanded meaningfully: NIM up to 3.61% (+65 bps YoY) and spread to 2.89% (+61 bps YoY) on higher earning asset yields and lower borrowing costs after paying down high-cost FHLB balances .
Deposit mix shifting toward higher-yielding products while uninsured deposit ratio declined to ~26.9% (from 28.8% at YE’23), reducing funding risk amid elevated rates .
Management reiterated strategic benefits from the restructuring: “reinvested into higher-yielding and shorter duration assets… contributing to an improvement in our net interest margin… strengthen our financial performance” (CEO Michael Quinn) .

What Went Wrong

Realized securities losses weighed on GAAP results: $4.05M in Q4 (and $16.04M for FY) produced a non-interest loss of $(2.51)M and drove the quarterly net loss .
Credit costs rose: provision for credit losses increased to $1.38M in Q4 and net charge-offs to $0.97M (including a $0.52M commercial charge-off), indicating near-term credit normalization .
Operating expenses grew: non-interest expense rose 9.0% YoY to $9.94M on higher salaries/benefits, professional fees, occupancy, marketing, and lending-related costs .

Financial Results

Income statement and EPS

Metric (USD)	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($MM)	$9.137	$9.699	$10.499
Non-Interest Income ($MM)	$1.514	$(10.028)	$(2.512)
Total Net Revenue (GAAP; NII + Non-Interest) ($MM)	$10.651	$(0.329)	$7.987
Provision for Credit Losses ($MM)	$0.447	$0.889	$1.381
Net (Loss) Income ($MM)	$0.975	$(8.062)	$(2.654)
Diluted EPS ($)	$0.09	$(0.75)	$(0.25)

Notes: Q3 and Q4 “Total Net Revenue” are directly disclosed in efficiency ratio reconciliations; Q2 is computed from components disclosed in the income statement .

Margins and returns

Metric	Q2 2024	Q3 2024	Q4 2024
Net Interest Margin %	3.08%	3.26%	3.61%
Interest Rate Spread %	2.36%	2.51%	2.89%
Efficiency Ratio (ex securities loss) %	84.00%	77.83%	82.64%
ROA % (annualized)	0.31%	(2.52)%	(0.85)%
ROE % (annualized)	3.43%	(26.87)%	(8.60)%

KPIs and balance sheet

KPI	Q2 2024	Q3 2024	Q4 2024
Total Assets ($B)	$1.276	$1.266	$1.256
Loans Receivable, net ($B)	$0.982	$0.965	$0.972
Available-for-Sale Securities ($MM)	$174.252	$169.134	$159.947
FHLB Advances ($MM)	$79.773	$59.773	$69.773
Uninsured Deposits (% of total)	~27%	~27.6%	~26.9%
NPLs / Gross Loans %	0.42%	0.50%	0.42%
NPAs ($MM)	~$4.2	~$4.8	~$4.1
Net Charge-offs ($MM)	$0.833	$0.344	$0.971
ACL / Loans %	0.77%	0.84%	0.88%
Non-Interest Expense ($MM)	$8.947	$9.081	$9.943
Investment Advisory Income ($MM)	$0.378	$0.375	$0.398
Net Realized Loss on Securities ($MM)	$0.000	$(11.996)	$(4.045)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin trajectory	FY 2025	Not provided	Management indicates continued NIM improvement from reinvestment into higher-yielding, shorter-duration assets	Directional improvement (no numeric guidance)
Balance sheet strategy	FY 2025	Not provided	“Restructuring will… strengthen financial performance… bolster balance sheet flexibility”	Strategic reaffirmation

Note: No formal quantitative guidance (revenue, expenses, tax rate, dividends) was provided in Q4 materials; only directional commentary around NIM and profitability .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in our document catalog; themes below reflect press releases for Q2–Q4 2024.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Balance sheet restructuring	Not undertaken; focus on pricing and expense management	Executed restructuring with $12.0M loss; reinvested at 4.22% yield, shorter duration	Additional $4.0M loss recognized; continued benefits to NIM and flexibility emphasized	Ongoing execution; benefits ramping
Net interest margin	NIM improved to 3.08% (+11 bps QoQ)	NIM 3.26% (+17 bps YoY)	NIM 3.61% (+65 bps YoY)	Improving sequentially
Deposit mix and uninsured deposits	Shift toward time/MM deposits; uninsured ~27%	Uninsured ~27.6%	Uninsured ~26.9%	Slightly improving risk profile
Credit quality and costs	Provision up due to indirect auto, commercial CRE charge-offs; NPLs 0.42%	Provision decreased YoY; NPLs 0.50%; NPAs ~$4.8M	Provision increased to $1.38M on $0.52M commercial charge-off; NPLs 0.42%; NPAs ~$4.1M	Mixed: stabilization in NPLs, elevated provision
Indirect auto portfolio strategy	Strategic reduction; balances down 12.9% YTD	Continued reduction; indirect auto ~25.2% of assets	Indirect auto down to 23.5% of assets	De-risking continues
Borrowing costs/FHLB	FHLB down $48.3M QoQ	FHLB down $68.3M YTD; cost up YoY	FHLB cost decreased ~100 bps QoQ; average balance down $70.2M YoY	Funding costs easing

Management Commentary

“We restructured our balance sheet by selling a substantial portion of our available-for-sale securities… reinvested into higher-yielding and shorter duration assets… contributing to an improvement in our net interest margin… strengthen our financial performance” — Michael J. Quinn, President & CEO .
“We took the opportunity to sell a significant portion of our available for sale securities… proceeds were reinvested into higher-yielding securities… will improve our future profitability” .
“We are pleased that… pricing… and expense management have resulted in improvements to net interest margin, non-interest income and the efficiency ratio quarter over quarter” .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the document catalog; no Q&A highlights or guidance clarifications could be reviewed.

Estimates Context

Wall Street consensus (S&P Global) estimates for Q4 2024 EPS and revenue were unavailable; therefore, we cannot assess beat/miss versus expectations. If obtained later, we would benchmark GAAP diluted EPS $(0.25) and total net revenue $7.99M against consensus to determine required estimate revisions .*
Given the material realized securities losses, analysts may adjust models to emphasize core pre-provision net revenue and NIM trajectory, while incorporating higher near-term credit costs .

Key Takeaways for Investors

Core profitability inflecting: NIM expanded to 3.61% with spread at 2.89%; further benefit expected from shorter-duration, higher-yield reinvestments, supporting medium-term margin expansion .
One-time restructuring impact is largely recognized: $12.0M loss in Q3 and $4.05M in Q4; exclude these to gauge core earnings power (Q4 non-GAAP net income ~$0.54M) .
Credit is the swing factor near term: provision at $1.38M and net charge-offs at $0.97M in Q4, including a $0.52M commercial charge-off; monitor auto portfolio run-off and commercial credits closely .
Funding dynamics improving: uninsured deposits edged down to ~26.9%; FHLB costs decreased 100 bps QoQ as higher-cost borrowings were repaid, aiding spread .
Expense discipline remains important: Q4 non-interest expense rose 9% YoY; focus on compensation, professional, occupancy, and lending costs to leverage revenue recovery .
Valuation narrative likely pivots to core NIM trajectory and credit normalization; lack of consensus estimates limits immediate “beat/miss” framing, but sequential NIM gains are supportive of re-rating if credit holds .
Near-term catalyst: clearer disclosure on the pace of margin improvement and credit outcomes; medium-term thesis: normalized credit costs plus sustained NIM lift should expand core earnings as securities losses roll off .

Footnotes:
*Estimates unavailable from S&P Global at time of review.

Rhinebeck Bancorp, Inc. (RBKB)·Q4 2024 Earnings Summary