POUGHKEEPSIE, N.Y., April 28,
2022 /PRNewswire/ -- Rhinebeck Bancorp, Inc.
(the "Company") (NASDAQ: RBKB), the holding company of
Rhinebeck Bank (the "Bank"),
reported net income for the three months ended March 31, 2022 of $2.1
million ($0.19 per basic and
diluted share), compared with $3.3
million ($0.31 per basic and
diluted share) for the comparable prior year period, which was a
decrease of $1.2 million, or
38.2%.
The decrease in net income was primarily due to an increase in
non-interest expenses of $1.2
million, a decrease in non-interest income of $530,000, and an increase in the provision for
loan losses of $290,000, partially
offset by an increase in net interest income of $332,000. The Company's return on average assets
and return on average equity were 0.65% and 6.67%, respectively,
for the first quarter of 2022 as compared to 1.18% and 11.40%,
respectively, for the first quarter of 2021.
President and Chief Executive Officer Michael J. Quinn said, "We see the economy of
the Hudson Valley picking up after a slowdown caused by COVID.
Commercial and residential construction is on the rise,
unemployment rates continue to decline and community revitalization
efforts in the communities we serve are in full swing. All of this
gives us an opportunity to grow our business in support of these
economic development and quality of life initiatives."
Income Statement Analysis
Net interest income increased $332,000, or 3.4%, to $10.1 million for the three months ended
March 31, 2022, from $9.8 million for the three months ended
March 31, 2021. The increase was
primarily driven by higher interest-earning asset balances and
lower costs for deposits and borrowings, which were partially
offset by lower yields on interest-earning assets and higher
interest-bearing liability balances. Our net interest margin
decreased 23 basis points to 3.42% for the three months ended
March 31, 2022 as compared to the
comparable prior year period.
The provision for loan losses increased by $290,000, from a credit to the provision of
$69,000 for the quarter ended
March 31, 2021 to an expense of
$221,000 for the current quarter. The
credit for the first quarter of 2021 was primarily attributable to
a decline in loan balances, exclusive of PPP loans, a reduction in
specific allocations to the allowance for loan losses and a general
improvement in the economic conditions as our customers
showed signs of recovering from the pandemic. The expense in
the first quarter of 2022 was primarily due to growth in our
indirect automobile and non-residential commercial real estate loan
balances.
Net charge-offs for the quarter ended March 31, 2022 totaled $80,000 compared to $303,000 for the comparable period in 2021.
The decrease was primarily due to a $143,000 recovery of a residential mortgage loan,
pricing gains on the sales of repossessed vehicles as used car
prices have risen significantly, and an improvement in the overall
economic environment.
Non-interest income totaled $1.7
million for the three months ended March 31, 2022, a decrease of $530,000, or 23.7%, from the comparable period in
the prior year, due primarily to a decrease in the net gain on
sales of mortgage loans as a result of a decline in loan volume
when compared to the first quarter in 2021 due to the higher
interest rate environment. For the quarter ended March 31, 2022, the gain on sales of mortgage
loans decreased $659,000, or 62.2%,
as the Company sold $10.9 million of
residential mortgage loans in the first quarter of 2022 as compared
to $24.7 million in the first quarter
of 2021. Gains related to the collection of life insurance proceeds
of $195,000 and on the disposal of
premises and equipment of $17,000,
both of which only occurred in the first quarter of 2021, also
contributed to the decrease in non-interest income. These
decreases were partially offset by an increase in investment
advisory income of $123,000, or
56.7%, and an increase in service charges on deposit accounts,
which increased $97,000, or 15.9%, as
transaction volume increased and the ability to charge fees
improved.
For the first quarter of 2022, non-interest expense totaled
$9.1 million, an increase of
$1.2 million, or 14.5%, over the
comparable 2021 period. The increase was primarily due to an
increase in salaries and benefits of $927,000, or 20.2%, due to the four new branches
opened in 2021 as well as annual merit increases, production
incentives and employee benefit increases, as well as the
competitive pressures of the current job market. For the three
months ended March 31, 2022,
occupancy expenses increased $144,000, or 15.1%, as a result of the additional
rent, depreciation and other expenses related to the branch
expansion. The addition of branches was also primarily responsible
for increased data processing costs of $91,000 and increased marketing fees of
$29,000. These increases were
partially offset by decreased professional fees of $14,000 and a decrease in other non-interest
expenses of $49,000, or 3.7%.
Balance Sheet Analysis
Total assets remained steady at $1.28
billion between December 31,
2021 and March 31, 2022, with
only a slight increase of $318,000.
Available for sale securities decreased $3.2
million, or 1.2%, due to paydowns, calls and maturities of
$16.6 million and an increase of
$13.8 million in unrealized market
losses, partially offset by $27.2
million in purchases. Net loans increased $5.2 million, or 0.6%, primarily due to a large
increase in our indirect automobile loan portfolio. Indirect
automobile loans increased $22.5
million, or 5.9%, and non-residential commercial real estate
increased $3.4 million while
commercial loans and multi-family loans decreased $13.7 million and $7.0
million, respectively. Cash and due from banks decreased
$4.7 million, or 6.6%, primarily due
to a decrease in deposits held at the Federal Reserve Bank of
New York. Deferred tax assets
increased $3.0 million mostly in
relation to the increase in unrealized losses on securities.
Past due loans decreased $1.1
million, or 8.1%, between December
31, 2021 and March 31, 2022,
finishing at $12.4 million, or 1.4%
of total loans, down from $13.5
million, or 1.6% of total loans at year-end 2021. Our
allowance for loan losses as a percentage of total gross loans was
0.90% at March 31, 2022 as compared
to 0.89% at December 31, 2021.
Total liabilities also remained fairly stable at $1.16 billion at March 31,
2022 and December 31, 2021,
increasing $9.0 million, or 0.8%,
primarily due to an increase in deposits of $10.6 million, or 1.0%. Interest bearing deposits
increased $20.8 million, or 2.7%,
while non-interest bearing deposits decreased $10.2 million, or 3.3%.
Stockholders' equity decreased $8.7
million, or 6.9%, to $117.3
million at March 31, 2022,
primarily due to a $10.9 million
increase in accumulated other comprehensive loss on available for
sale securities, partially offset by net income of $2.1 million. The Company's ratio of average
equity to average assets was 9.78% for the quarter ended
March 31, 2022 and 10.02% for the
year ended December 31, 2021.
About Rhinebeck Bancorp
Rhinebeck Bancorp, Inc. is a Maryland corporation organized as the mid-tier
holding company of Rhinebeck Bank
and is the majority-owned subsidiary of Rhinebeck Bancorp,
MHC. The Bank is a New York
chartered stock savings bank, which provides a full range of
banking and financial services to consumer and commercial customers
through its fifteen branches and two representative offices located
in Dutchess, Ulster, Orange, and Albany counties in New York State.
Financial services including comprehensive brokerage, investment
advisory services, financial product sales and employee benefits
are offered through Rhinebeck Asset Management, a division of the
Bank.
Forward Looking Statements
This press release contains certain forward-looking statements
about the Company and the Bank. Forward-looking statements
include statements regarding anticipated future events or results
and can be identified by the fact that they do not relate strictly
to historical or current facts. They often include words such
as "believe", "expect", "anticipate", "estimate", "intend",
"predict", "forecast", "improve", "continue", "will", "would",
"should", "could", or "may". Forward-looking statements, by
their nature, are subject to risks and uncertainties. Certain
factors that could cause actual results to differ materially from
expected results include increased competitive pressures,
inflation, changes in the interest rate environment, general
economic conditions or conditions within the securities markets,
changes in asset quality, loan sale volumes, charge-offs and loan
loss provisions, changes in demand for our products and services,
legislative, accounting, tax and regulatory changes and a failure
in or breach of our operational or security systems or
infrastructure, including cyberattacks that could adversely affect
the Company's financial condition and results of operations and the
business in which the Company and the Bank are engaged.
Further, given its ongoing and dynamic nature, it is difficult
to predict the continuing impact of the COVID-19 outbreak on our
business. The extent of such impact will depend on future
developments, which are highly uncertain, including when the
coronavirus can be controlled and abated. As the result of the
COVID-19 pandemic and the related adverse local and national
economic consequences, we could be subject to any of the following
risks, any of which could have a material, adverse effect on our
business, financial condition, liquidity, and results of
operations: the demand for our products and services may decline,
making it difficult to grow assets and income; if the economy
worsens, loan delinquencies, problem assets, and foreclosures may
increase, resulting in increased charges and reduced income;
collateral for loans, especially real estate, may decline in value,
which could cause loan losses to increase; our allowance for loan
losses may increase if borrowers experience financial difficulties,
which will adversely affect our net income; the net worth and
liquidity of loan guarantors may decline, impairing their ability
to honor commitments to us; our wealth management revenues may
decline with continuing market turmoil; our cyber security risks
are increased as the result of an increase in the number of
employees working remotely; and FDIC premiums may increase if the
agency experiences additional resolution costs.
Accordingly, you should not place undue reliance on
forward-looking statements. Rhinebeck Bancorp, Inc. undertakes no
obligation to revise these forward-looking statements or to reflect
events or circumstances after the date of this press release.
The Company's summary consolidated statements of income and
financial condition and other selected financial data follow:
|
Rhinebeck
Bancorp, Inc. and Subsidiary
|
|
Consolidated Statements
of Income (Unaudited)
|
|
|
|
|
|
|
|
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2021
|
|
|
Interest and
Dividend Income
|
|
|
|
|
|
|
|
|
Interest and
fees on loans
|
|
$
|
10,081
|
|
$
|
10,670
|
|
|
Interest and
dividends on securities
|
|
|
874
|
|
|
363
|
|
|
Other income
|
|
|
19
|
|
|
19
|
|
|
Total interest and dividend income
|
|
|
10,974
|
|
|
11,052
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
Interest expense
on deposits
|
|
|
745
|
|
|
1,020
|
|
|
Interest expense
on borrowings
|
|
|
115
|
|
|
250
|
|
|
Total interest expense
|
|
|
860
|
|
|
1,270
|
|
|
Net
interest income
|
|
|
10,114
|
|
|
9,782
|
|
|
Provision for
(credit to) loan losses
|
|
|
221
|
|
|
(69)
|
|
|
Net
interest income after provision for (credit to) loan
losses
|
|
|
9,893
|
|
|
9,851
|
|
|
Non-interest
Income
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts
|
|
|
706
|
|
|
609
|
|
|
Net gain on
sales of loans
|
|
|
400
|
|
|
1,059
|
|
|
Increase in cash
surrender value of life insurance
|
|
|
157
|
|
|
94
|
|
|
Gain on disposal
of premises and equipment
|
|
|
—
|
|
|
17
|
|
|
Gain on life
insurance
|
|
|
—
|
|
|
195
|
|
|
Investment
advisory income
|
|
|
340
|
|
|
217
|
|
|
Other
|
|
|
108
|
|
|
50
|
|
|
Total non-interest income
|
|
|
1,711
|
|
|
2,241
|
|
|
Non-interest
Expense
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
|
|
5,519
|
|
|
4,592
|
|
|
Occupancy
|
|
|
1,098
|
|
|
954
|
|
|
Data
processing
|
|
|
486
|
|
|
395
|
|
|
Professional
fees
|
|
|
394
|
|
|
408
|
|
|
Marketing
|
|
|
117
|
|
|
88
|
|
|
FDIC deposit
insurance and other insurance
|
|
|
182
|
|
|
171
|
|
|
Other real
estate owned expense
|
|
|
—
|
|
|
1
|
|
|
Amortization of
intangible assets
|
|
|
27
|
|
|
13
|
|
|
Other
|
|
|
1,282
|
|
|
1,331
|
|
|
Total non-interest expense
|
|
|
9,105
|
|
|
7,953
|
|
|
Income before income taxes
|
|
|
2,499
|
|
|
4,139
|
|
|
Provision for income
taxes
|
|
|
446
|
|
|
818
|
|
|
Net
income
|
|
$
|
2,053
|
|
$
|
3,321
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.19
|
|
$
|
0.31
|
|
|
Diluted
|
|
$
|
0.19
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic
|
|
|
10,815,348
|
|
|
10,743,234
|
|
|
Weighted average shares
outstanding, diluted
|
|
|
11,009,312
|
|
|
10,875,116
|
|
|
Rhinebeck
Bancorp, Inc. and Subsidiary
|
|
Consolidated Statements
of Financial Condition (Unaudited)
|
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2022
|
|
December
31,
2021
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
67,365
|
|
$
|
72,091
|
|
|
Available for sale
securities (at fair value)
|
|
|
277,037
|
|
|
280,283
|
|
|
Loans receivable (net
of allowance for loan losses of $7,700 and $7,559,
respectively)
|
|
|
860,190
|
|
|
854,967
|
|
|
Federal Home Loan Bank
stock
|
|
|
1,227
|
|
|
1,322
|
|
|
Accrued interest
receivable
|
|
|
3,256
|
|
|
3,366
|
|
|
Cash surrender value of
life insurance
|
|
|
29,288
|
|
|
29,131
|
|
|
Deferred tax assets
(net of valuation allowance of $466 and $454,
respectively)
|
|
|
6,302
|
|
|
3,352
|
|
|
Premises and equipment,
net
|
|
|
19,382
|
|
|
19,183
|
|
|
Goodwill
|
|
|
2,235
|
|
|
2,235
|
|
|
Intangible assets,
net
|
|
|
406
|
|
|
433
|
|
|
Other assets
|
|
|
14,796
|
|
|
14,803
|
|
|
Total assets
|
|
$
|
1,281,484
|
|
$
|
1,281,166
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
$
|
304,596
|
|
$
|
314,814
|
|
|
Interest
bearing
|
|
|
808,024
|
|
|
787,185
|
|
|
Total deposits
|
|
|
1,112,620
|
|
|
1,101,999
|
|
|
|
|
|
|
|
|
|
|
Mortgagors' escrow
accounts
|
|
|
7,757
|
|
|
9,130
|
|
|
Advances from the
Federal Home Loan Bank
|
|
|
15,928
|
|
|
18,041
|
|
|
Subordinated
debt
|
|
|
5,155
|
|
|
5,155
|
|
|
Accrued expenses and
other liabilities
|
|
|
22,731
|
|
|
20,872
|
|
|
Total liabilities
|
|
|
1,164,191
|
|
|
1,155,197
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred stock (par
value $0.01 per share; 5,000,000 authorized, no shares
issued)
|
|
|
—
|
|
|
—
|
|
|
Common stock (par value
$0.01; authorized 25,000,000; issued and outstanding 11,296,103
at March 31, 2022 and December 31, 2021)
|
|
|
113
|
|
|
113
|
|
|
Additional paid-in
capital
|
|
|
46,729
|
|
|
46,573
|
|
|
Unearned common stock
held by the employee stock ownership plan
|
|
|
(3,655)
|
|
|
(3,709)
|
|
|
Retained
earnings
|
|
|
91,680
|
|
|
89,627
|
|
|
Accumulated other
comprehensive loss:
|
|
|
|
|
|
|
|
|
Net unrealized
loss on available for sale securities, net of taxes
|
|
|
(13,673)
|
|
|
(2,734)
|
|
|
Defined benefit
pension plan, net of taxes
|
|
|
(3,901)
|
|
|
(3,901)
|
|
|
Total accumulated other comprehensive loss
|
|
|
(17,574)
|
|
|
(6,635)
|
|
|
Total stockholders' equity
|
|
|
117,293
|
|
|
125,969
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,281,484
|
|
$
|
1,281,166
|
|
|
Rhinebeck
Bancorp, Inc. and Subsidiary
|
|
Selected Ratios
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
2021
|
|
Performance
Ratios (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (2)
|
|
|
0.65
|
%
|
1.18
|
%
|
0.95
|
%
|
|
Return on average
equity (3)
|
|
|
6.67
|
%
|
11.40
|
%
|
9.49
|
%
|
|
Net interest margin
(4)
|
|
|
3.42
|
%
|
3.65
|
%
|
3.45
|
%
|
|
Efficiency ratio
(5)
|
|
|
77.00
|
%
|
66.15
|
%
|
75.82
|
%
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
|
|
145.18
|
%
|
143.91
|
%
|
144.89
|
%
|
|
Total gross loans to
total deposits
|
|
|
77.08
|
%
|
86.58
|
%
|
77.45
|
%
|
|
Average equity to
average assets (6)
|
|
|
9.78
|
%
|
10.31
|
%
|
10.02
|
%
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of total gross loans
|
|
|
0.90
|
%
|
1.29
|
%
|
0.89
|
%
|
|
Allowance for loan
losses as a percent of non-performing loans
|
|
|
114.31
|
%
|
179.12
|
%
|
113.01
|
%
|
|
Net charge-offs to
average outstanding loans during the period
|
|
|
(0.01)
|
%
|
(0.03)
|
%
|
(0.05)
|
%
|
|
Non-performing loans as
a percent of total gross loans
|
|
|
0.79
|
%
|
0.72
|
%
|
0.78
|
%
|
|
Non-performing assets
as a percent of total assets
|
|
|
0.53
|
%
|
0.53
|
%
|
0.52
|
%
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
(7):
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to
risk-weighted assets)
|
|
|
12.69
|
%
|
13.13
|
%
|
12.76
|
%
|
|
Total capital (to
risk-weighted assets)
|
|
|
13.47
|
%
|
14.38
|
%
|
13.54
|
%
|
|
Common equity Tier 1
capital (to risk-weighted assets)
|
|
|
12.69
|
%
|
13.13
|
%
|
12.76
|
%
|
|
Tier 1 leverage ratio
(to average total assets)
|
|
|
9.75
|
%
|
9.88
|
%
|
9.65
|
%
|
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
|
$ 10.38
|
|
$ 10.52
|
|
$ 11.15
|
|
|
Tangible book value per
common share(8)
|
|
|
$ 10.15
|
|
$ 10.27
|
|
$ 10.92
|
|
|
_____________________________
|
|
(1) Performance ratios for
the three months ended March 31, 2022 and 2021 are
annualized.
|
|
(2) Represents net income
divided by average total assets.
|
|
(3) Represents net income
divided by average equity.
|
|
(4) Represents net interest
income as a percent of average interest-earning assets.
|
|
(5) Represents non-interest
expense divided by the sum of net interest income and non-interest
income.
|
|
(6) Represents average equity
divided by average total assets.
|
|
(7) Capital ratios are for
Rhinebeck Bank only. Rhinebeck Bancorp, Inc. is not subject to the
minimum consolidated capital requirements
as a small bank
holding company with assets less than $3.0 billion.
|
|
(8) Represents a non-GAAP
financial measure, see table below for a reconciliation of the
non-GAAP financial measures.
|
NON-GAAP FINANCIAL INFORMATION
This release contains financial information determined by
methods other than in accordance with generally accepted accounting
principles ("GAAP"). Such non-GAAP financial information includes
the following measure: "tangible book value per common share."
Management uses this non-GAAP measure because we believe that it
may provide useful supplemental information for evaluating our
operations and performance, as well as in managing and evaluating
our business and in discussions about our operations and
performance. Management believes this non-GAAP measure may also
provide users of our financial information with a meaningful
measure for assessing our financial results, as well as a
comparison to financial results for prior periods. This non-GAAP
measure should be viewed in addition to, and not as an alternative
to or substitute for, measures determined in accordance with GAAP
and are not necessarily comparable to other similarly titled
measures used by other companies. To the extent applicable,
reconciliations of these non-GAAP measures to the most directly
comparable measures as reported in accordance with GAAP are
included below.
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
per share data)
|
|
March 31,
|
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
2021
|
|
Book value per
common share reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity (book value) (GAAP)
|
|
$
|
117,293
|
|
$
|
118,856
|
|
|
$
|
125,969
|
|
Total shares
outstanding
|
|
|
11,296
|
|
|
11,303
|
|
|
|
11,296
|
|
Book value per
common share
|
|
$
|
10.38
|
|
$
|
10.52
|
|
|
$
|
11.15
|
|
Total common
equity
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
(GAAP)
|
|
$
|
117,293
|
|
$
|
118,856
|
|
|
$
|
125,969
|
|
Goodwill
|
|
|
(2,235)
|
|
|
(2,235)
|
|
|
|
(2,235)
|
|
Intangible
assets
|
|
|
(406)
|
|
|
(515)
|
|
|
|
(433)
|
|
Tangible common
equity (non-GAAP)
|
|
$
|
114,652
|
|
$
|
116,106
|
|
|
$
|
123,301
|
|
Tangible book value
per common share
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
(non-GAAP)
|
|
$
|
114,652
|
|
$
|
116,106
|
|
|
$
|
123,301
|
|
Total shares
outstanding
|
|
|
11,296
|
|
|
11,303
|
|
|
|
11,296
|
|
Tangible book
value per common share
|
|
$
|
10.15
|
|
$
|
10.27
|
|
|
$
|
10.92
|
CONTACT: Michael J. Quinn,
President and Chief Executive Officer, Telephone: (845)
790-1501
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SOURCE Rhinebeck Bancorp, Inc.
