UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 27, 2024
Rhinebeck Bancorp, Inc.
(Exact Name of Registrant as Specified in Charter)
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Maryland
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001-38779
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83-2117268
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(State or Other Jurisdiction
of Incorporation)
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(Commission File No.)
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(I.R.S. Employer
Identification No.)
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2 Jefferson Plaza, Poughkeepsie, New York
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12601
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (845) 454-8555
Not Applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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RBKB
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The NASDAQ Stock Market, LLC
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operation and Financial Condition
On September 27, 2024, Rhinebeck Bancorp, Inc., issued a press release regarding a recent balance sheet restructuring related to its investment securities portfolio. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
Item 9.01
Financial Statements and Exhibits
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(d)
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Exhibits
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Exhibit No.
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Description
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Press Release dated September 27, 2024.
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104.1
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The cover page for this Current Report on Form 8-K, formatted in Inline XBRL.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, hereunto duly authorized.
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RHINEBECK BANCORP, INC.
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DATE: September 27, 2024
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/s/ Kevin Nihill
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Kevin Nihill
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Chief Financial Officer
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FOR IMMEDIATE RELEASE
Contact:
Kevin Nihill
Chief Financial Officer
Rhinebeck Bancorp, Inc.
(845) 790-1508
RHINEBECK BANCORP, INC. COMPLETES BALANCE SHEET RESTRUCTURING
Poughkeepsie, NY, September 27, 2024 – Rhinebeck Bancorp, Inc. (NASDAQ: RBKB) (the "Company"), the parent company of Rhinebeck Bank (the "Bank"), announced
the sale of a significant portion of its available-for-sale investment securities portfolio as part of a strategic balance sheet repositioning.
In September 2024, the Bank sold $71 million of available-for-sale securities. The proceeds from these sales were reinvested into new securities offering
yields that were 3.11% higher than those of the securities sold. This restructuring had no impact on tangible equity and allows the Bank to improve its earnings stream going forward. The transaction is projected to increase earnings per share by
$0.12 and net interest margin by 0.17% over the next 12 months.
“This strategic restructuring is a positive move that will provide a long-term benefit to the Company, our shareholders and the Bank’s customers,” said
Rhinebeck Bank President and CEO Michael J. Quinn. “It makes sense to take advantage of market conditions to obtain higher yields on securities, and allows us greater flexibility in managing balance sheet growth moving forward.”
The restructuring decreased the average life of the securities portfolio, and improved the Company’s earnings stream going forward, beginning in the fourth
quarter of 2024. The securities sold had a yield of 1.11% and a weighted average life of approximately 5.8 years. The proceeds were reinvested into securities yielding 4.22% with an approximate weighted average life of 2.7 years. The Company
recognized a one-time pre-tax loss of $12.0 million as a result of the transaction.
Following this restructuring, the Bank remained “well capitalized.”
Additionally, the Bank maintains robust liquidity metrics, including holding over $40 million in cash, cash equivalents, and Treasury securities. Additionally, the Bank
has an unused secured line of credit of over $200 million with the Federal Home Loan Bank of New York.
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 thirteen 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, fluctuations in real estate values, general economic conditions or conditions within the securities markets, potential recessionary
conditions, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, our ability to access cost-effective funding, changes in asset quality, loan sale volumes,
charge-offs and credit loss provisions, changes in economic assumptions that may impact our allowance for credit losses calculation, changes in demand for our products and services, legislative, accounting, tax and regulatory changes, including
changes in the monetary and fiscal policies of the Board of Governors of the Federal Reserve System, the effect of our rating under the Community Reinvestment Act, political
developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters, such as earthquakes, drought, pandemic diseases, extreme weather events, or breach of our operational or security systems or
infrastructure, including cyberattacks that could adversely affect the Company’s or the Bank’s financial condition and results of operations and the business in which the Company and the Bank are engaged.
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.