Rhinebeck Bancorp, Inc., (NASDAQ: RBKB), the holding company of Rhinebeck Bank (the “Bank”), newly stated net income for the three months finished September 30, 2k19 of $2.10M ($0.200 for each basic and diluted share), $127,000.00, or 6.50 percent, more than $2.00M for the comparable previous year duration, and $4.20M ($0.390 for each basic and diluted share) for the nine months finished September 30, 2k19, which is $1.10M, or 33.70 percent, greater than $3.20M for the similar duration previous year.
On January 16, 2k19, the Company became the holding company for the Bank when it closed its stock offering in connection with the completion of the reorganization of the Bank and Rhinebeck Bancorp, MHC into a two-tier mutual holding company form of organization. The Company sold 4,787,315 shares of common stock at a price of $10.00 for each share, for net proceeds of $46.00M, and issued 6,345,975 shares to Rhinebeck Bancorp, MHC. The merged fiscal results contained herein reflect the merged accounts of the Company and the Bank at and for the three and nine month durations finished September 30, 2k19 and Rhinebeck Bancorp, MHC and the Bank for the similar durations finished September 30, 2k18 and at December 31, 2k18.
Other financial highlights:
- Total assets grew $63.60M, or 7.20 percent, to $946.00M from December 31, 2k18.
- Net loans increased a total of $80.60M, or 11.90 percent, to $759.00M from year end 2k18.
- Total deposit balances were $770.00M at September 30, 2k19, increasing $85.60M, or 12.50 percent, during the nine months then ended.
- Return on average assets was 0.90 percent for the three month duration finished September 30, 2k19 contrast to 0.970 percent for the corresponding duration of 2k18. Return on average assets was 0.630 percent for the nine month duration finished September 30, 2k19 contrast to 0.550 percent for the comparable previous year duration.
- Return on average equity was 7.780 percent for the 3rd-quarter 2k19 contrast to 13.80 percent for the similar duration of 2k18. Return on average equity was 5.560 percent for the nine month duration finished September 30, 2k19 contrast to 7.640 percent for the similar duration of 2k18.
Income Statement Analysis
Net interest income increased $734,000.00, or 9.50 percent, to $8.50M for the three months finished September 30, 2k19, from $7.70M for the three months finished September 30, 2k18. Year to date net interest income increased $3.10M, or 14.70 percent, over the similar timeframe in 2k18, to $24.00M.
Our net interest margin declined 25.0 basis points to 3.850 percent when comparing between quarters and declined 9 basis points to 3.80 percent when looking at the respective nine month durations.
We recorded $450,000.00 in provision for loan losses for the 3rd-quarter 2k19 and $2.00M for the 1st-nine months of 2k19 as contrast to $525,000.00 and $1.60M, respectively, for the comparable prior year durations. Net charge-offs for the quarter finished September 30, 2k19 totalled $405,000.00, and year to date totalled $753,000.00, contrast to $154,000.00 and $722,000.00, for the respective durations in 2k18.
Non-interest income totalled $1.50M for the three months finished September 30, 2k19; a decline of $39,000.00, or 2.60 percent, from the comparable duration in the previous year. Year to date 2k19, non-interest income totalled $4.20M, a boost of $526,000.00, or 14.50 percent. A new deposit fee plan, retail operating improvements and noteworthygrowth in investment advisory income at our Rhinebeck Asset Administration (“RAM”) division were primary drivers of this outcome. An other real estate owned (“OREO”) write-down that occurred in the 1st-quarter of 2k18, of $387,000.00, also improved the nine month duration’s 2k19 comparative performance.
For the 3rd-quarter of 2k19, non-interest costs increased $359,000.00 to $6.80M, over the comparable 2k18 duration. Salaries and employee benefits increased $343,000.00, or 9.50 percent, attributable to annual salary merit inclines, production incentives, employee benefit inclines and additions to staff. The growth of other general operating costs was mainly because of inclines in overall processing volumes, the additions of new technologies and equipment, and additional costs related to our new status as a public company. For the nine months finished September 30, 2k19, non-interest costs increased $1.60M, or 8.10 percent to $20.80M, as contrast to the 1st-nine months of last year. Year to date salaries and employee benefits increased $1.40M, or 13.30 percent. In 2k19, both comparative durations were positively influenced by a large reduction in our FDIC assessment and the recovery of foreclosure costs of $115,000.00. Non-recurring costs in 2k18 for additional funds to prepare a foreclosure property for sale and an impairment loss of $95,000.00 related to RAM assisted improve comparative results.
Balance Sheet Analysis
Total assets were $946.00M at September 30, 2k19, representing a boost of $63.60M, or 7.20 percent, from $882.40M at December 31, 2k18. Cash and due from banks reduced $32.20M during the duration mainly as a result of a return of $41.10M in unfulfilled offering subscriptions in January 2k19. The available for sale securities balance increased $14.40M mostly because of $28.40M in mortgage-backed securities purchases partially offset by sales and calls of $5.60M and principal payments and maturities of $12.00M. Net loans increased $80.60M, or 11.90 percent, counting a boost of $55.70M in indirect automobile loan balances because of production of $160.70M of those loans since year end. During the 1st-nine months of this year, commercial real estate balances increased by $22.60M or 10.20 percent.
Past due loans increased $3.80M, or 30.40 percent, between year end and September 30, 2k19 finishing at 2.10 percent of total loans, or $16.20M. During the similar timeframe non-performing assets rose $2.90M or 39.70 percent, to $10.30M. Our reserve as a percentage of total gross loans was 1.040 percent at September 30, 2k19.
Premises and equipment inclines reflect the recent purchase of the building in Goshen which houses our branch operation for $1.80M.
Total liabilities increased $14.70M, or 1.80 percent, to $837.80M mainly because of an $85.60M, or 12.50 percent, incline in deposits, a boost of $16.30M in Federal Home Loan Bank advances, offset by a $5.00M line of credit pay-down and the release of $89.00M in gross subscription offering proceeds in January 2k19.
Stockholders’ equity increased $49.00M to $108.30M, mainly because of proceeds from the common stock offering of $46.00M. At September 30, 2k19, the Company’s ratio of stockholders’ equity-to-total assets was 11.40 percent, contrast to 6.70 percent at December 31, 2k18.