Rhinebeck Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2021

Other financial highlights:

• Record net income of $8.6 million in the first nine months of 2021, a 139.9% increase over the first nine months of 2020.

• Our return on average equity increased to 9.48% for the first nine months of 2021 from 4.19% for the same nine months of 2020.

• Total assets grew $133.9 million, or 11.9%, to $1.26 billion at September 30, 2021 from $1.13 billion at December 31, 2020.

• Total deposits were $1.09 billion at September 30, 2021, increasing $158.0 million, or 17.0%, from $929.4 million at December 31, 2020.

• Capital positions remain strong with a 9.58% Tier 1 Leverage Ratio; a 13.13% Common Equity Tier 1 Ratio; a 13.13% Tier 1 Risk-Based Capital Ratio; and a 14.12% Total Risk-Based Capital Ratio.

President and Chief Executive Officer Michael J. Quinn said, "Rhinebeck Bancorp delivered strong results for the third quarter and year to date periods. Results were positively impacted by the recapture of loan loss provisions and our net interest margin remained strong at 3.44% for the nine months ended September 30, 2021. We expect a slight improvement in loan growth, excluding PPP loans, over the fourth quarter of 2021. We forecast a return to more normalized loan growth throughout 2022, which will be a significant factor in our earnings expectations for the upcoming year.  

Income Statement Analysis

Net interest income increased $1.0 million, or 11.4%, to $10.1 million for the three months ended September 30, 2021, from $9.0 million for the three months ended September 30, 2020. Year to date net interest income increased $2.6 million, or 10.0%, to $29.0 million when compared to $26.3 million for the prior year nine-month period. 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. Our net interest margin increased 2 basis points to 3.42% for the three months ended September 30, 2021 and decreased 3 basis points to 3.44% for the nine months ended September 30, 2021, in each case as compared to the comparable prior year period.

The provision for loan losses decreased by $3.2 million, or 142.4%, from $2.3 million for the quarter ended September 30, 2020, to a credit of $954,000 for the current quarter. The provision decreased by $7.9 million, or 138.1%, from a provision of $5.7 million for the nine months ended September 30, 2020 to a credit of $2.2 million for the nine months ended September 30, 2021. The provision in 2020 reflected the onset of the COVID-19 pandemic and related economic conditions.  The credits for both the three and nine months ended September 30, 2021 were primarily attributable to a decline in loan balances, an improvement in credit quality and an improvement in the general economy as our customers showed signs of recovering from the pandemic.

Net charge-offs for the quarter ended September 30, 2021 totaled $138,000 compared to $259,000 for the respective period in 2020.  For the nine-month period ended September 30, 2021, net charge-offs were $429,000, a decrease of $667,000, or 60.9%, when compared to $1.1 million in the comparable 2020 period. The decrease was primarily due to an improvement in the overall economic environment and pricing gains on the sales of repossessed vehicles as used car prices have risen significantly.

Non-interest income totaled $1.6 million for the three months ended September 30, 2021; a decrease of $457,000, or 21.8%, from the comparable period in the prior year, due primarily to a decrease in the net gain on sales of mortgage loans on a decline in loan volume.  Non-interest income increased $330,000, or 6.1%, to $5.7 million for the nine months ended September 30, 2021.  For the nine months ended September 30, 2021, service charges on deposit accounts increased $186,000, or 10.9%, as transaction volume increased, while the cash surrender value of life insurance increased $122,000. A gain related to the collection of life insurance proceeds of $195,000 and an increase in various other non-interest income items of $167,000 also contributed to the increase.  These increases were partially offset by a decrease in the gain on sales of mortgage loans of $203,000 and a decrease in investment advisory income of $130,000.

For the third quarter of 2021, non-interest expense totaled $9.1 million, an increase of $1.7 million, or 23.0%, over the comparable 2020 period. The increase was primarily due to an increase in salaries and benefits of $1.0 million, or 24.1%, as the Company hired additional employees for its new branches. For the three months ended September 30, 2021, occupancy expenses also increased $175,000, or 19.8%, 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 $125,000, increased professional fees of $59,000 and a portion of the increased other non-interest expenses. Other non-interest expenses increased $400,000, or 31.3%. For the nine months ended September 30, 2021, non-interest expense increased $4.5 million, or 20.8%, to $26.0 million from $21.5 million for the comparative period in 2020. The increase was primarily due to an increase in salaries and benefits of $2.4 million, or 19.9%, due to new branch employees as well as annual merit increases, production incentives and employee benefit increases. Occupancy increased $439,000, or 16.8%, professional fees increased $320,000, or 30.3%, and data processing increased $229,000, or 22.0%. Other non-interest expenses increased $1.1 million, or 32.4%, and included an additional estimated reserve of $450,000 for potential consumer compliance issues in the Bank's indirect automobile portfolio. Additional reserves in the future may be required but cannot be estimated at this time.

Balance Sheet Analysis

Total assets were $1.26 billion at September 30, 2021, representing an increase of $133.9 million, or 11.9%, from $1.13 billion at December 31, 2020. Available for sale securities increased $137.5 million, or 133.5%, primarily due to $181.9 million of new purchases as we deployed excess cash received mostly from PPP borrower-related accounts and government stimulus actions and the additional deposits acquired in the branch acquisitions.  The increase in available for sale securities was partially offset by paydowns, calls and maturities of $42.2 million. Net loans decreased $40.0 million, or 4.6%, primarily due to production shortfalls of commercial loans and non-residential real estate which were partially offset by production increases in new multi-family real estate. Cash and due from banks increased $21.1 million, or 22.6%, primarily due to an increase in deposits held at the Federal Reserve Bank of New York. The cash surrender value of life insurance increased $10.1 million, as the Bank purchased $10.0 million in split-dollar life insurance policies for key employees in the second quarter of 2021.

Past due loans decreased $5.7 million, or 31.6%, between December 31, 2020 and September 30, 2021, finishing at $12.3 million, or 1.5% of total loans, down from $18.0 million, or 2.1% of total loans at year-end 2020. Past due loan balances have been positively impacted by the economic stimulus received by customers along with a recovering economy. Our allowance for loan losses as a percentage of total gross loans was 1.08% at September 30, 2021 as compared to 1.33% at December 31, 2020.

As of September 30, 2021, total liabilities increased $126.2 million, or 12.5%, to $1.14 billion, primarily due to an increase in deposits of $158.0 million. This increase was due to the acquisition of $33.9 million in deposits from ConnectOne Bank,  an accumulation of liquidity by customers in response to government stimulus actions, increases in PPP borrower-related accounts and normal fluctuations in some of our large business accounts. A decrease of $30.5 million in Federal Home Loan Bank advances partially offset the increase in liabilities.

Stockholders' equity increased $7.7 million, or 6.6%, to $124.2 million at September 30, 2021, primarily due to net income of $8.6 million, partially offset by a $1.6 million increase in accumulated other comprehensive loss on available for sale securities, as net unrealized gain turned to a net unrealized loss. The Company's ratio of average equity to average assets was 10.09% for the nine-month period ended September 30, 2021 and 10.56% for the year ended December 31, 2020.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc. is a Maryland corporation organized as the mid-tier holding company of Rhinebeck Bank and is itself 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 fourteen active 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, changes in the interest rate environment, general economic conditions or conditions within the securities markets, changes in demand for our products and services, legislative, accounting 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 full 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 and whether the gradual reopening of businesses will result in a meaningful increase in economic activity. 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 is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, 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 September 30,						Nine Months Ended September 30,
		2021			2020			2021			2020
Interest and Dividend Income
Interest and fees on loans		$	10,402		$	10,386		$	30,722		$	31,001
Interest and dividends on securities			623			476			1,560			1,790
Other income			34			12			66			36
Total interest and dividend income			11,059			10,874			32,348			32,827
Interest Expense
Interest expense on deposits			866			1,553			2,816			5,429
Interest expense on borrowings			134			293			562			1,072
Total interest expense			1,000			1,846			3,378			6,501
Net interest income			10,059			9,028			28,970			26,326
(Credit to) provision for loan losses			(954)			2,250			(2,171)			5,705
Net interest income after (credit to) provision for loan losses			11,013			6,778			31,141			20,621
Non-interest Income
Service charges on deposit accounts			664			558			1,891			1,705 Werbung Mehr Nachrichten zur Rhinebeck Bancorp Inc Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:29 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd 08:28 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 02:00 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Total Voting Rights Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59