**Rhinebeck Bancorp Completes Balance Sheet Repositioning, Projects Earnings Growth**

Rhinebeck Bancorp, Inc., parent company of Rhinebeck Bank, recently announced a strategic balance sheet repositioning involving the sale of a portion of its investment securities portfolio. This move aims to enhance the company’s earnings stream and improve its overall profitability.

In a press release dated December 26, 2024, Rhinebeck Bancorp, Inc. revealed that they had successfully sold $21 million of available-for-sale securities. This sale follows a previous announcement made in September 2024, where the company had sold $71 million of such securities. The proceeds from these sales were reinvested into new securities, offering higher yields by 3.06% compared to those sold.

The restructuring is expected to have a positive impact on the company’s financials. It is anticipated to increase earnings per share by $0.04 and boost the net interest margin by 0.04% over the next year. Rhinebeck Bank President and CEO, Michael J. Quinn, emphasized that this strategic move will benefit shareholders and customers, besides enhancing the long-term outlook for the company.

By selling low-yielding, longer-term securities and reinvesting in shorter-term, more liquid options, the company aims to achieve better balance sheet flexibility. This will provide liquidity for potential commercial loan growth and help reduce reliance on wholesale funding.

The restructuring also involves a decrease in the average life of the securities portfolio and is projected to commence improving the company’s earnings stream starting in the first quarter of 2025. The securities sold had a yield of 1.37% and a weighted average life of about 6.2 years. The proceeds were reinvested in securities yielding 4.44% with an approximate weighted average life of 1.8 years, resulting in a one-time pre-tax loss of $4.1 million.

Post-restructuring, Rhinebeck Bank remains well-capitalized, holding over $35 million in cash, cash equivalents, and Treasury securities. Additionally, the bank boasts an unused secured line of credit exceeding $250 million with the Federal Home Loan Bank of New York.

Rhinebeck Bancorp, Inc., a Maryland corporation and the mid-tier holding company of Rhinebeck Bank, operates in Dutchess, Ulster, Orange, and Albany counties in New York State. The bank provides a wide array of financial services to consumer and commercial clients.

While the press release contains forward-looking statements, emphasizing the anticipated positive impacts of the balance sheet repositioning, caution is advised as actual results can differ due to various economic and market factors. The company stated its commitment to revising and adapting to changing circumstances, without undue reliance on these forward-looking statements.

As of December 26, 2024, Rhinebeck Bancorp, Inc. looks forward to the potential growth and financial benefits that this strategic balance sheet restructuring is expected to bring.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Rhinebeck Bancorp’s 8K filing here.

About Rhinebeck Bancorp

Rhinebeck Bancorp, Inc operates as the bank holding company for Rhinebeck Bank that provides banking and financial products and services to consumer and commercial customers in the Hudson Valley region of New York. The company offers deposits, including non-interest-bearing demand, interest bearing demand, money market, commercial and personal checking, individual retirement, and saving accounts, as well as certificates of deposit.