Rhinebeck Bancorp, Inc. reported a net loss of $8.6 million for the fiscal year ending December 31, 2024, a significant decline from the net income of $4.4 million recorded in the previous year. This loss translates to a diluted loss per share of $0.80, compared to earnings of $0.40 per share in 2023. The downturn in profitability was primarily attributed to a $16 million loss on the sale of investment securities as part of a balance sheet restructuring, alongside increased provisions for credit losses and higher non-interest expenses. Total assets decreased by 4.4% to $1.26 billion, driven by a reduction in net loans and available-for-sale securities.
The company's total deposits fell by $9.7 million, or 0.9%, to $1.02 billion, with a notable shift in the composition of deposits. Interest-bearing accounts increased slightly, while non-interest-bearing deposits decreased by 4.7%. The strategic decision to reduce the indirect automobile loan portfolio, which decreased by 25% to $295.7 million, was a key factor in the overall decline in loans, which totaled $971.8 million at year-end. In contrast, commercial real estate loans increased by 12.7%, reflecting a focus on higher-yielding lending opportunities.
Operationally, Rhinebeck Bancorp has been actively managing its credit risk, with the allowance for credit losses rising to $8.5 million, representing 0.88% of total loans. The company reported a decrease in non-performing loans to $4.1 million, or 0.42% of total loans, indicating a slight improvement in asset quality. The bank's efficiency ratio improved marginally to 82.34%, reflecting ongoing efforts to control non-interest expenses, which totaled $36.8 million for the year.
Looking ahead, Rhinebeck Bancorp aims to stabilize its balance sheet and return to moderate growth in assets and deposits. The company plans to enhance its core deposit base and continue focusing on commercial real estate and business lending. Management has indicated that while the current economic environment presents challenges, including rising interest rates and inflation, they are committed to prudent risk management and strategic growth initiatives to improve financial performance in the coming years.
About Rhinebeck Bancorp, Inc.
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