Rhinebeck Bancorp, Inc.
For the period ended Mar 31, 2025. Filed May 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 13, 2025
RBKB$13.24+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001751783-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001751783-25-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 52 current paragraphs.
25 unchanged; 12 reworded; 15 added; 25 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 44 previous and 39 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Total Assets. Total assets remained relatively stable at $1.26 billion at both March 31, 2025 and December 31, 2024, reflecting a minimal increase of $159,000. While several asset categories fluctuated during the period, the most notable changes included a $13.0 million increase in cash and cash equivalents and a $15.1 million decrease in available-for-sale securities. Net loans receivable increased by $4.7 million, or 0.5%, to $976.5 million and other assets decreased $1.1 million, or 4.5%.
Current report
Investment Securities Available for Sale. Available-for-sale securities declined $15.1 million, or 9.4%, to $144.9 million at March 31, 2025 from $159.9 million at December 31, 2024, primarily due to paydowns, calls and maturities of $18.1 million, partially offset by a decrease in the unrealized loss of $2.3 million and purchases of $631,000.
Current report
Net Loans. Net loans receivable increased $4.7 million, or 0.5%, to $976.5 million at March 31, 2025, compared to $971.8 million at December 31, 2024. This increase reflects growth in our commercial and residential real estate loan portfolios of $17.9 million and $4.3 million, respectively, partially offset by a $17.7 million decrease in consumer loans. The increase in commercial real estate loans was primarily due to a $16.6 million increase in non-residential real estate loans and a $3.4 million increase in multi-family commercial real estate loans, partially offset by a $2.0 million decrease in commercial construction loans. The decrease in consumer loans is the result of a strategic reduction in indirect automobile loans of $17.7 million. At March 31, 2025, indirect automobile loans were 22.1% of assets, compared to 23.5% at December 31, 2024. Non-accrual loans decreased by $622,000, or 15.0%, between December 31, 2024 and March 31, 2025.
Current report
Total Liabilities. Total liabilities decreased $4.0 million, or 0.4%, to $1.13 billion at March 31, 2025. The reduction was primarily driven by a $15.9 million decrease in FHLB advances and a $1.8 million decline in mortgagors' escrow accounts, partially offset by a $13.5 million increase in total deposits.
Current report
Deposits. Deposits increased $13.5 million, or 1.3%, to $1.03 billion at March 31, 2025 from $1.02 billion at December 31, 2024. Interest-bearing deposits increased $13.6 million, or 1.7%, while non-interest-bearing deposits decreased by $174,000. The increase in savings of $2.7 million and in money market accounts of $25.1 million reflected the Bank’s promotion of higher-yielding products in response to customer demand for better interest rates. These increases were partially offset by decreases in NOW accounts and certificates of deposit of $5.9 million and $8.3 million, respectively.
Current report
Advances from the Federal Home Loan Bank. FHLB advances declined $15.9 million, or 22.8%, to $53.9 million at March 31, 2025 from $69.8 million at December 31, 2024. The reduction reflects the Company’s use of excess liquidity from the maturity of securities, lower loan origination activity and increased deposits to pay down borrowings.
Current report
Net Income. Net income for the first quarter of 2025 was $2.3 million, compared to $1.1 million for the first quarter of 2024. Diluted earnings per share were $0.21 for the first quarter of 2025, up from $0.10 for the same quarter a year ago. Interest and dividend income increased $1.1 million, or 7.0%, while interest expense decreased $1.1 million, or 16.9%. The provision for credit losses increased $270,000, or 325.3%. Non-interest income rose $161,000, or 10.1%, and non-interest expense increased $631,000, or 7.1%. Provision for income taxes increased $318,000, or 99.1%, between the comparable quarters.
Current report
Net Interest Income. Net interest income increased $2.2 million, or 25.2%, to $11.0 million for the three months ended March 31, 2025. The ratio of average interest-earning assets to average interest-bearing liabilities rose 2 percentage points to 134.00%, while the net interest margin expanded by 89 basis points to 3.79% compared to the same quarter in 2024. The increase in the net interest margin was primarily due to a higher yield on loans and securities, coupled with a decline in the cost of interest-bearing liabilities. Interest rate spread improved 94 basis points from 2.19% for the three months ended March 31, 2024 to 3.13% for the three months ended March 31, 2025, reflecting better pricing on assets versus liabilities. A balance sheet restructuring in the second half of 2024 significantly increased the yield on our available for sale securities.
Current report
Interest Expense. Interest expense decreased $1.1 million, or 16.9%, to $5.6 million for the three months ended March 31, 2025, compared to $6.7 million for the same period in 2024. The average cost of interest-bearing liabilities declined by 34 basis points, to 2.58%, reflecting lower funding costs and a favorable shift in funding mix, despite the ongoing elevated interest rate environment. The average balance of total interest-bearing liabilities decreased $46.2 million, or 5.0%, to $882.1 million, primarily due to a $48.0 million decline in the average balance of Federal Home Loan Bank advances, which fell from $123.0 million to $75.0 million. The average cost of these advances also declined by 86 basis points, from 4.93% to 4.07%.
Current report
Provision for Credit Losses. The provision for credit losses on loans increased $270,000, or 325.3%, to $353,000 for the three months ended March 31, 2025, compared to $83,000 for the same period in 2024. The increase was primarily attributable to increased loan production and increased charge-offs during the quarter.
Current report
Non-Interest Income. Non-interest income totaled $1.8 million for the three months ended March 31, 2025, an increase of $161,000, or 10.1%, from the comparable period in 2024, due primarily to an increase of $166,000, or 66.4%, in other non-interest income as swap income increased. Service charges on deposit accounts also increased by $30,000, or 4.0%, as deposits increased. These increases were partially offset by a decrease in investment advisory income of $45,000, or 11.8%, resulting from a decline in assets under management due to unpredictable economic and market conditions. Gains on sales of loans also decreased $8,000 as we sold $385,000 of residential mortgage loans in the first quarter of 2025 as compared to sales of $2.0 million in the first quarter of 2024.
Current report
Non-Interest Expense. For the first quarter of 2025, non-interest expense rose to $9.5 million, reflecting a $631,000, or 7.1%, increase compared to the same period in 2024. The increase was broad-based, with almost all major expense categories rising. Other non-interest expense grew by $256,000, or 16.8%, driven by higher retail banking costs. Salaries and benefits rose $142,000, primarily due to increased production commissions. Marketing expense rose by $79,000, or 65.3%, largely due to promotional initiatives associated with the launch of higher-yielding deposit products. Additionally, professional fees, FDIC insurance expense, and data processing fees increased by $63,000, $44,000, and $30,000, respectively.
Current report
Income Taxes. The provision for income taxes increased $318,000, or 99.1%, totaling $639,000 for the three months ended March 31, 2025, compared to $321,000 for the same period in 2024. The increased income tax provision corresponds to higher pre-tax income during the quarter. The effective tax rate was 21.83% for the three months ended March 31, 2025 as compared to 22.26% for the three months ended March 31, 2024.
Current report
As reflected in the Consolidated Statements of Cash Flows, net cash provided by operating activities was $4.3 million for the three months ended March 31, 2025, compared to net cash used of $3.5 million for the same period in 2024. The increase was primarily attributable to a prior year $5.0 million U.S. Treasury bond that matured on March 31, 2024 and was awaiting settlement. Net cash provided by investing activities totaled $13.0 million in the first quarter of 2025, a decrease from $27.5 million in the prior-year period, driven primarily by net loan growth of $5.1 million in the first three months of 2025 versus a net reduction in loans of $15.4 million in the comparable 2024 period as well as $18.1 million of securities proceeds in the first quarter of 2025 compared to $8.4 million in the first quarter of 2024. Cash flows from financing activities reflected a net use of $4.2 million in the current quarter, compared to $15.5 million used in the prior-year period, with the reduced outflows mainly resulting from changes in deposit balances and short-term debt repayments. As a result of these activities, cash and cash equivalents increased by $13.0 million during the quarter to $50.5 million as of March 31, 2025, from a beginning balance of $37.5 million.
Current report
The Bank has access to a preapproved secured line of credit with the FHLB. At March 31, 2025, the Bank had pledged $482.0 million of assets to the FHLB, which resulted in a secured line of credit of $331.9 million. At March 31, 2025, the Bank had borrowed $53.9 million under this line, with remaining secured borrowing capacity of $278.1 million.
Removed paragraphs (25)
Previous report
Total Assets. Total assets were $1.27 billion at September 30, 2024 as compared to $1.31 billion at December 31, 2023, a decrease of $47.1 million, or 3.6%. Loans receivable decreased by $44.0 million, or 4.4%, available for sale securities decreased $22.9 million, or 11.9%, premises and equipment decreased $3.5 million, or 20.0%, Federal Home Loan Bank stock decreased $3.0 million, or 46.1%, and deferred tax assets decreased $2.1 million, or 21.1%. The decreases were partially offset by an increase in cash of $24.3 million, or 109.6%.
Previous report
Investment Securities Available for Sale. Available for sale securities decreased $22.9 million, or 11.9%, due to the balance sheet restructuring, which resulted in sales of $70.6 million of lower-yielding securities, and paydowns, calls and maturities of $27.3 million, partially offset by purchases in higher-yielding securities of $56.7 million and a decrease in unrealized loss on available for sale securities of $18.4 million. 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 assets yielding 4.22% with an approximate weighted average life of 2.7 years.
Previous report
Net Loans. Total net loans receivable were $964.9 million at September 30, 2024, a decrease of $44.0 million, or 4.4%, as compared to $1.01 billion at December 31, 2023. The decrease was primarily due to a decrease in indirect automobile loans of $75.3 million, or 19.1%, reflecting a strategic decision to decrease that loan portfolio as a percentage of our balance sheet. At September 30, 2024, indirect automobile loans were 25.2% of assets, compared to 30.0% at December 31, 2023. Partially offsetting the decreases in automobile loans were increases in commercial real estate loans of $27.0 million, or 6.3%, and residential real estate loans of $8.3 million, or 10.8%. Non-accrual loans increased by $511,000, or 12.2%, between December 31, 2023 and September 30, 2024.
Previous report
Federal Home Loan Bank Stock**.** FHLB stock decreased $3.0 million, or 46.1%, to $3.5 million at September 30, 2024 from $6.5 million at December 31, 2023, primarily due to a reduction in mandatory ownership of FHLB stock in connection with the pay-off of $68.3 million in advances during the nine months ended September 30, 2024.
Previous report
Premises and Equipment. Premises and equipment decreased $3.5 million, or 20.0%, to $14.1 million at September 30, 2024 from $17.6 million at December 31, 2023 as the Bank’s Beacon branch office was sold in February of 2024 for $2.9 million. The sale included the land and building as well as all branch furniture and equipment. All of the branch accounts were redomiciled to the customer’s next nearest Bank branch and all employees were placed in open positions.
Previous report
Total Liabilities. Total liabilities decreased $56.0 million, or 4.7%, to $1.14 billion at September 30, 2024 from $1.20 billion at December 31, 2023, primarily due to a decreases in Federal Home Loan Bank advances of $68.3 million and mortgagors’ escrow accounts of $5.7 million. These decreases were partly offset by an increase in deposits of $15.7 million and an increase of $2.3 million in accrued expenses and other liabilities.
Previous report
Deposits. Deposits increased $15.7 million, or 1.5%, to $1.05 billion at September 30, 2024 from $1.03 billion at December 31, 2023. For the nine months ended September 30, 2024, interest-bearing accounts increased $8.6 million, or 1.1%, to $789.3 million, while non-interest bearing balances increased $7.1 million, or 2.8%, to $256.9 million. Of the interest bearing accounts, time deposits increased $25.4 million, or 8.0%, at September 30, 2024, while transaction accounts (including NOW, savings and money market accounts) decreased $16.8 million, or 3.6%. The continued growth in interest-bearing time deposits was primarily due a shift in deposits from lower-yielding transaction accounts to higher-yielding time deposits and money market accounts as customers sought higher interest rates.
Previous report
Advances from the Federal Home Loan Bank. Advances from the Federal Home Loan Bank decreased $68.3 million, or 53.3%, from $128.1 million at December 31, 2023 to $59.8 million at September 30, 2024, primarily due the use of proceeds from the sales of securities and a reduction in the origination of indirect automobile loans to pay down the debt.
Previous report
Net Income. Net loss for the third quarter of 2024 was $8.1 million, compared to net income of $1.2 million for the third quarter of 2023. Diluted loss per share was $0.75 for the third quarter of 2024, compared to earnings per share of $0.11 for the same quarter a year ago. Interest and dividend income increased $506,000, or 3.3%, interest expense increased $465,000, or 7.9%, the provision for credit losses decreased $21,000, or 2.3%, non-interest income decreased $11.7 million, or 709.2%, non-interest expense increased $266,000, or 3.0%, and taxes decreased $2.6 million, or 752.2%, between comparable quarters.
Previous report
Net loss for the nine months ended September 30, 2024 totaled $6.0 million, compared to net income of $3.5 million for the same period in 2023. Diluted loss per share was $0.55 for the first nine months of 2024 compared to earnings per share of $0.32 for the first nine months of 2023. Interest and dividend income increased $2.4 million, or 5.3%, interest expense increased $3.5 million, or 21.3%, the provision for credit losses decreased $53,000, non-interest income decreased $11.4 million, or 260.0%, non-interest expense decreased $402,000, or 1.5%, and taxes decreased $2.6 million, or 270.6%, between comparable periods.
Previous report
Both the third quarter and nine months of 2024 results reflected a $12.0 million pre-tax loss from the previously announced balance sheet restructuring.
Previous report
Net Interest Income. Net interest income increased $41,000, or 0.4%, to $9.7 million for the three months ended September 30, 2024. The ratio of average interest-earning assets to average interest-bearing liabilities increased 1.5% to 135.00% while the net interest margin increased by 17 basis points to 3.26% when comparing the third quarter of 2024 to the same quarter in 2023.
Previous report
Net interest income decreased $1.1 million, or 3.8%, to $27.7 million for the nine months ended September 30, 2024, compared to $28.8 million for the nine months ended September 30, 2023. The ratio of average interest-earning assets to average interest-bearing liabilities decreased 0.9% to 132.92% while our net interest margin decreased by 1 basis point to 3.08% when comparing the first nine months of 2024 to the same period in 2023.
Previous report
Interest income increased $2.4 million, or 5.3%, to $47.5 million for the nine months ended September 30, 2024 from $45.1 million for the comparable 2023 period. Interest and fees on loans increased due to the rising interest rate environment while interest and dividends on securities decreased as the average balance decreased. For the nine months ended September 30, 2024, the average balance of loans decreased $11.0 million, while the average balance of available for sale securities decreased $33.0 million when compared to the nine months ended September 30, 2023. The average yield on loans increased 42 basis points, while the average yield on available for sale securities increased 6 basis points. The average yield of interest-earning assets increased by 45 basis points to 5.28% and the average balance of interest-earning assets decreased $47.6 million, or 3.8%.
Previous report
Interest Expense. Interest expense increased $465,000, or 7.9%, from $5.9 million for the quarter ended September 30, 2023, to $6.3 million for the quarter ended September 30, 2024. The average cost of interest-bearing liabilities increased 38 basis points to 2.88% for the quarter ended September 30, 2024, due to the current interest rate environment and a greater proportion of deposits consisting of higher-yielding certificates of deposit. The average balance of total interest-bearing liabilities decreased $57.2 million, or 6.1%, to $876.9 million primarily due to a decrease of $73.2 million, or 13.9%, in the average balance of our core interest-bearing deposits (consisting of savings, NOW and money market accounts) as depositors sought higher yields in the increasing interest rate environment, partially offset by an increase of $53.0 million, or 18.2%, in the average balance of certificates of deposit. Between the three months ended September 30, 2023 and 2024, the average cost of Federal Home Loan Bank advances decreased by 55 basis points and the average balance also decreased by $36.1 million.
Previous report
Interest expense increased $3.5 million, or 21.3%, from $16.3 million for the nine months ended September 30, 2023, to $19.7 million for the nine months ended September 30, 2024. The average cost of interest-bearing liabilities increased 59 basis points to 2.92% for the nine-month period ended September 30, 2024, due to the current interest rate environment and a greater proportion of deposits consisting of higher-rate certificates of deposit, while the average balance of total interest-bearing liabilities decreased $27.7 million, or 3.0%, to $903.5 million. Between the nine months ended September 30, 2023 and 2024, the average cost of Federal Home Loan Bank advances decreased by 9 basis points, while the average balance increased by $5.6 million. A decrease of $98.1 million, or 17.8%, in the average balance of core interest-bearing deposits (consisting of savings, NOW and money market accounts) was partially offset by an increase of $64.5 million, or 23.5%, in the average balance of certificates of deposit as depositors sought higher yields in the increasing interest rate environment.
Previous report
Provision for Credit Losses. The provision for credit losses decreased by $21,000, or 2.3%, from $910,000 for the quarter ended September 30, 2023 to $889,000 for the quarter ended September 30, 2024. The provision for credit losses decreased by $53,000, or 3.6%, from $1.47 million for the nine months ended September 30, 2023 to $1.42 million for the nine months ended September 30, 2024. These decreases to the provision for the three months and the nine months ended September 30, 2024 were primarily attributable to a decrease in loan balances, primarily indirect automobile loans.
Previous report
Non-Interest (Loss) Income. Non-interest loss totaled $10.0 million for the three months ended September 30, 2024, a decrease of $11.7 million, from non-interest income of $1.6 million for the comparable period in 2023, due primarily to the $12.0 million loss on sale of investment securities resulting from the previously mentioned balance sheet restructuring. Excluding the securities loss, non-interest income for the third fiscal quarter of 2024 would have been $2.0 million compared to $1.6 million for the three months ended September 30, 2023. The Company recorded an increase of $54,000, or 16.8%, in investment advisory income resulting from the improved market and economic conditions, an increase of $194,000 related to gains on life insurance, an increase of $35,000 in service charges on deposit accounts, an increase of $22,000 in the cash surrender value of life insurance, and an increase in the gain on sales of loans of $20,000.
Previous report
Non-interest loss totaled $7.0 million for the nine months ended September 30, 2024, a decrease of $11.4 million, from non-interest income of $4.4 million for the comparable period in 2023, due primarily to the $12.0 million loss on sale of investment securities resulting from the previously mentioned balance sheet restructuring. Excluding the securities loss, non-interest income for the nine months ended September 30, 2024 would have been $5.0 million compared to $4.4 million for the nine months ended September 30, 2023. The Company recorded an increase of $270,000, or 31.3%, in investment advisory income resulting from the improved market and economic conditions, an increase of $194,000 related to gains on life insurance, an increase of $88,000 in service charges on deposit accounts, an increase of $70,000, or 14.2%, in the cash surrender value of life insurance, and an increase in the gain on sales of loans of $39,000, partially offset by a decrease of $54,000 on the disposal of premises and equipment.
Previous report
Non-Interest Expense. Non-interest expense totaled $9.1 million for the third quarter of 2024, an increase of $266,000, or 3.0%, over the comparable period in 2023. The increase was primarily due to a $370,000 increase in salaries and benefits related primarily due to higher production commissions and higher medical insurance costs. This increase was partially offset by a $109,000 decrease in other non-interest expense primarily due to a decrease in lending operations expense.
Previous report
Non-interest expense totaled $26.9 million for the first nine months of 2024, a decrease of $402,000, or 1.5%, over the comparable period in 2023. The decrease was primarily due to a $229,000, or 4.7%, decrease in other non-interest expense, primarily due to decreased retail banking and lending expenses. FDIC deposit insurance and other insurance decreased $121,000, or 13.1%, primarily due to a decreased assessment rate while professional fees decreased $90,000, or 6.1%. Occupancy expense decreased $66,000, or 2.1%, due to a branch closure in the first quarter of 2024. These decreases were partially offset by an $82,000 increase in salaries and benefits and a $42,000 increase in data processing costs.
Previous report
Income Taxes. The income tax benefit for the third quarter of 2024 totaled $2.2 million at a negative effective tax rate of 21.72%, compared to a provision of $343,000 at an effective tax rate of 21.72% in the prior year’s comparable quarter. The decrease in the provision for income taxes in the third quarter of 2024 reflected a lower pre-tax income when compared to the prior year’s comparable quarter and a taxbenefit resulting from a $12.0 million pre-tax loss on the sale of available-for-sale investment securities.
Previous report
The income tax benefit for the first nine months of 2024 totaled $1.6 million at a negative effective tax rate of 21.50%, compared to a provision of $958,000 at an effective tax rate of 21.66% for the first nine months of 2023. The decrease in the effective tax rate in the first half of 2024, as compared to the same period a year ago, was primarily due to the pre-tax loss on the sale of investment securities as previously mentioned.
Previous report
As reported in the Consolidated Statements of Cash Flows, cash flows are classified for financial reporting purposes as operating, investing, or financing cash flows. Net cash provided by operating activities was $4.9 million for the nine months ended September 30, 2024 as compared to $6.9 million for the nine months ended September 30, 2023. These amounts differ from our net income because of a variety of cash receipts and disbursements that did not affect net income for the respective periods. Net cash provided by investing activities was $77.7 million for the nine months ended September 30, 2024, and $12.6 million for the nine months ended September 30, 2023, principally reflecting our investment security and loan activities in the respective periods. A cash inflow of $42.1 million for a decrease in loans was the primary contributor to the cash provided by investing activities for the nine months ended September 30, 2024 as opposed to a cash outflow of $11.6 million for an increase in loans for the nine months ended September 30, 2023. Deposit and borrowing cash flows have traditionally comprised most of our financing activities, which resulted in a net cash outflow of $58.3 million in the nine months ended September 30, 2024, due primarily to a paydown of debt, compared to a net cash outflow of $24.1 million in the comparable 2023 period caused by an increase in debt offset by a decrease in deposits.
Previous report
The Bank has access to a preapproved secured line of credit with the FHLB which totaled $633,017 at September 30, 2024. Additional funds available under this line are not included in the table above as we do not consider it to be as readily accessible as the funds above.
Reworded paragraphs (12)
Previous wording
Management’s discussion and analysis of financial condition and results of operations at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 2024 and 2023, is intended to assist in understanding the financial condition and results of operations of the Company and the Bank. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
Management’s discussion and analysis of financial condition and results of operations at March 31, 2025 and December 31, 2024, and for the three months ended March 31, 2025 and 2024, is intended to assist in understanding the financial condition and results of operations of the Company and the Bank. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
This report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,”“intend,” “predict,” “forecast,” “improve,” “continue,” “will,” “would,” “should,” “could,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:
Current wording
This report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “approximate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “intend,” “predict,” “forecast,” “improve,” “continue,” “will,” “would,” “should,” “could,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:
Previous wording
The Company's allowance for credit losses is its estimate of credit losses currently expected in the loan portfolio, on unfunded lending commitments, and in its available-for-sale securities portfolio over the expected life of those assets. While these estimates are based on substantive methods for determining the required allowance, actual outcomes may differ significantly from estimated results, especially when determining required allowances for larger, complex commercial credits or unfunded lending commitments to commercial borrowers. Consumer loans, including indirect automobile loans and single family residential real estate, are smaller and generally behave in a similar manner, and loss estimates for these credits are considered more predictable. Additionally, the Company estimates the allowance for credit losses as a calculation of expected lifetime credit losses utilizing a forward-looking forecast of macroeconomic conditions, which may differ significantly from actual results. Further discussion of the methodology used in establishing the allowance is provided in Note 3 to the Notes to the Consolidated Financial Statements included in this Form 10-Q and in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 26, 2024.
Current wording
The Company's allowance for credit losses is its estimate of credit losses currently expected in the loan portfolio, on unfunded lending commitments, and on its available-for-sale securities portfolio over the expected life of those assets. While these estimates are based on substantive methods for determining the required allowance, actual outcomes may differ significantly from estimated results, especially when determining required allowances for larger, complex commercial credits or unfunded lending commitments to commercial borrowers. Consumer loans, including indirect automobile loans and single family residential real estate, are smaller and generally behave in a similar manner, and loss estimates for these credits are considered more predictable. Additionally, the Company estimates the allowance for credit losses as a calculation of expected lifetime credit losses utilizing a forward-looking forecast of macroeconomic conditions, which may differ significantly from actual results. Further discussion of the methodology used in establishing the allowance is provided in Note 3 to the Notes to the Consolidated Financial Statements included in this Form 10-Q and in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 25, 2025.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents increased $24.3 million, or 109.6%, to $46.4 million at September 30, 2024 from $22.1 million at December 31, 2023, primarily due to an increase in deposits held at the FHLB, Federal Reserve Bank of New York and other interest-bearing depository accounts with proceeds resulting from principal payments from loans and security sales.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents increased $13.0 million, or 34.8%, to $50.5 million at March 31, 2025 from $37.5 million at December 31, 2024 primarily due to an $8.5 million, or 46.2%, increase in federal funds sold, as well as increases in deposits held at the FHLB, Federal Reserve Bank of New York and other interest-bearing depository accounts with proceeds resulting from principal payments and maturities of investment securities.
Previous wording
We participate in reciprocal deposit programs, obtained through the Certificate Deposit Account Registry Service (CDARS) and IntraFi Cash Service (ICS) networks, that provide access to FDIC-insured deposit products in aggregate amounts exceeding the current limits for depositors. This allows us to maintain deposits that might otherwise be uninsured. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $42.9 million and $40.0 million at September 30, 2024 and December 31, 2023, respectively. We had no brokered deposits at either September 30, 2024 or December 31, 2023.
Current wording
We participate in reciprocal deposit programs, obtained through the Certificate Deposit Account Registry Service (CDARS) and IntraFi Cash Service (ICS) networks, that provide access to FDIC-insured deposit products in aggregate amounts exceeding the current limits for depositors. This allows us to maintain deposits that might otherwise be uninsured. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $33.6 million and $38.9 million at March 31, 2025 and December 31, 2024, respectively. We had no brokered deposits at either March 31, 2025 or December 31, 2024.
Previous wording
Mortgagors’ escrow accounts.** **Mortgagors’ escrow accounts decreased $5.7 million, or 61.7%, from $9.3 million at December 31, 2023 to $3.6 million at September 30, 2024, primarily due to the timing of tax disbursements.
Current wording
Mortgagors’ escrow accounts.** **Mortgagors’ escrow accounts decreased $1.8 million, or 19.1%, to $7.6 million at March 31, 2025 from $9.4 million at December 31, 2024, primarily due to the timing of property tax and insurance disbursements.
Previous wording
Stockholders’ Equity. Stockholders' equity increased $9.0 million, or 7.9%, to $122.7 million at September 30, 2024. The increase was primarily due to a $14.8 million decrease in accumulated other comprehensive loss primarily reflecting efforts of the balance sheet restructuring as well as the 50 basis point decrease in market interest rates, which was partially offset by a net loss of $5.6 million. At September 30, 2024, the Company’s book value per share was $11.06 and the Company’s ratio of stockholders’ equity-to-total assets was 9.69%. At December 31, 2023, the Company’s book value per share was $10.27 and the Company’s ratio of stockholders’ equity-to-total assets was 8.66%. Unearned common stock held by the Bank’s employee stock ownership plan was $3.1 million and $3.3 million at September 30, 2024 and December 31, 2023, respectively.
Current wording
Stockholders’ Equity. Stockholders’ equity increased $4.1 million, or 3.4%, to $126.0 million at March 31, 2025 from $121.8 million at December 31, 2024. The increase was primarily due to $2.3 million in net income and a $1.8 million decrease in accumulated other comprehensive loss reflecting the results of the balance sheet restructuring. The Company’s book value per share was $11.35 at March 31, 2025, compared to $10.98 at December 31, 2024. The ratio of stockholders’ equity to total assets increased to 10.0% from 9.7% over the same period. Unearned common stock held by the Bank’s employee stock ownership plan was $3.0 million and $3.1 million at March 31, 2025 and December 31, 2024, respectively.
Previous wording
Comparison of Operating Results for the Three and Nine Months Ended September 30, 2024 and 2023
Current wording
Comparison of Operating Results for the Three Months Ended March 31, 2025 and 2024
Previous wording
Interest Income. Interest income increased $506,000, or 3.3%, to $16.0 million for the three months ended September 30, 2024, from $15.5 million for the comparable 2023 period primarily due to the rising interest rate environment, offset by a decrease in the average balance of loans and available for sale securities. The average yield of interest-earning assets increased by 43 basis points to 5.39% and the average balance of interest-earning assets decreased $58.1 million, or 4.7%. The average yield on loans increased 39 basis points, while the average yield on available for sale securities increased 31 basis points. For the three months ended September 30, 2024, the average balance of loans decreased $25.6 million, while the average balance of available for sale securities decreased $29.5 million when compared to the three months ended September 30, 2023.
Current wording
Interest Income. Interest income increased $1.1 million, or 7.0%, to $16.6 million for the three months ended March 31, 2025, compared to $15.6 million for the same period in 2024. The increase was primarily due to higher yields on loans and securities, partially offset by a decrease in the average balance of interest-earning assets. The average yield on interest-earning assets increased by 60 basis points to 5.71%, while the average balance of interest-earning assets declined by $42.2 million, or 3.4%, to $1.18 billion. The average yield on loans increased 44 basis points, to 6.14%, and the average yield on available-for-sale securities increased 142 basis points, to 3.25%. The average balance of loans decreased $17.6 million, and the average balance of available-for-sale securities declined $33.7 million, compared to the three months ended March 31, 2024.
Previous wording
Net charge-offs decreased $41,000 from $385,000 for the third quarter of 2023 to $344,000 for the third quarter of 2024. The decrease was primarily due to decreased net charge-offs in indirect automobile loans of $216,000 and recoveries in residential real estate and commercial loans in the third quarter of 2023. Net charge-offs increased $8,000, or 0.6%, to $1.4 million for the first nine months of 2024. The percentage of overdue account balances to total loans decreased to 1.62% as of September 30, 2024, from 1.90% as of December 31, 2023, while non-performing assets increased $486,000, or 11.6%, to $4.7 million at September 30, 2024.
Current wording
Net charge-offs increased $260,000, or 104.0%, from $250,000 for the first quarter of 2024 to $510,000 for the first quarter of 2025. The increase was primarily due to increased net charge-offs of $162,000 and $139,000 in indirect automobile loans and commercial loans, respectively. The percentage of overdue account balances to total loans decreased to 1.38% as of March 31, 2025 from 1.71% as of December 31, 2024, while non-performing assets decreased $622,000, or 15.0%, to $3.5 million at March 31, 2025.
Previous wording
Average Balance Sheets for the Three and Nine Months Ended September 30, 2024 and 2023
Current wording
Average Balance Sheets for the Three Months Ended March 31, 2025 and 2024
Previous wording
We also have commitments and obligations under our off-balance sheet financial instruments, post-retirement plan and other benefit plans as described in Note 7 and Note 9 to the consolidated financial statements.
Current wording
We also have commitments and obligations under our post-retirement plan and other benefit plans and our off-balance sheet financial instruments, as described in Note 7 and Note 9 to the consolidated financial statements.