Companies

Rhinebeck Completes Second-Step Conversion After a $0.24 Quarter

The Tip Desk · July 23, 2026 · 3 min read

The Dutchess County bank sold 8.88 million shares at $10.00 for $88.8 million of gross proceeds after second-quarter net income of $2.6 million.

Rhinebeck Bancorp, Inc. (RBKB), the holding company of Rhinebeck Bank, completed a second-step conversion on July 21, 2026, selling 8,880,210 shares of common stock at $10.00 a share for $88.8 million of gross proceeds.

The former mutual holding company parent, Rhinebeck Bancorp, MHC, ceased to exist after the close. Existing public shares were exchanged at 1.3978 new shares, with cash in lieu of fractions at $10.00. The company said it will have 15,638,237 shares outstanding after the transaction, subject to fractional-share adjustment. Earnings per share in the release do not yet reflect the offering.

For the three months ended June 30, 2026, net income was $2.6 million, or $0.24 a share, 4.0% below $2.7 million, or $0.25 a share, a year earlier. Return on average assets was 0.79% and return on average equity 7.56%, versus 0.88% and 8.57% in the year-ago quarter. The company said the decline was primarily due to higher non-interest expense, offset by increases in net interest income and non-interest income.

Net interest income rose 1.2% year over year to $11.6 million. The net interest margin compressed 19 basis points to 3.78% as the average yield on interest-earning assets fell 26 basis points to 5.52% and the cost of interest-bearing liabilities fell 13 basis points to 2.32%. Average interest-earning assets increased $73.5 million to $1.24 billion on higher cash and securities, while average loans declined $37.5 million to $940.5 million. Average interest-bearing deposits rose $73.5 million to $907.0 million.

The provision for credit losses was an $11,000 credit, versus a $101,000 credit a year earlier. Net charge-offs rose $12,000 to $103,000, led by $47,000 higher indirect auto charge-offs, substantially offset by lower consumer-loan charge-offs.

Non-interest income increased 8.8% year over year to $1.7 million, driven by a $155,000, or 57.6%, rise in investment advisory fees, offset by a $69,000 drop in net gain on sale of loans after the bank discontinued originating residential mortgages directly. Non-interest expense increased $301,000, or 3.1%, to $10.0 million, led by $296,000 higher salaries and benefits, $144,000 higher professional fees, and $71,000 higher data processing.

Loans receivable declined $34.9 million from Dec. 31, 2025, including a $25.7 million cut in indirect auto loans, an $11.6 million cut in commercial real estate, and a $4.4 million cut in commercial and industrial loans, partly offset by $6.7 million of residential growth. The company said the auto reduction was in line with a strategic decision to reduce that concentration. Past-due loans fell 34.6% from year-end to $9.5 million, or 1.03% of loans, from $14.5 million, or 1.52%, at Dec. 31, 2025. Non-performing assets declined $312,000 to $3.4 million. The allowance for credit losses was 0.83% of loans at June 30.

Excluding $156.0 million of stock-subscription funds held in a segregated account, deposits increased $29.6 million, or 2.7%, from Dec. 31, 2025. Non-interest-bearing deposits rose $15.5 million, or 6.8%. Uninsured deposits were 28.0% of total deposits excluding subscription funds. FHLB advances fell $20.0 million, or 79.5%, from year-end to $5.2 million.

President and Chief Executive Officer Matthew Smith said the quarter reflected increased net interest and non-interest income, discipline in managing funding costs, and improvement in past-due loans, and that the conversion “significantly strengthens our capital position.” The company said it remains focused on deploying that capital as it expands commercial banking capabilities, advances retail and digital deposit initiatives, and invests in infrastructure.

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