Rhinebeck Bancorp Inc 2025年度报告

Letter from the CEO I am pleased to present Rhinebeck Bancorp, Inc.’s 2025 Annual Report. 2025 was a transformative year for Rhinebeck Bank operationally, financially, and strategically. In October, I had theprivilege of stepping into the role of President and Chief Executive Officer. I am deeply grateful to my predecessorMichael Quinn for more than 40 years of dedicated service to Rhinebeck Bank. His leadership, along with that ofour Board of Directors and management team, built the strong foundation upon which we continue to grow. I amhonored to lead this organization forward and appreciate the trust and support extended to me during this transition. During the year, our Board of Directors also evolved as we welcomed Sharon McGinnis and Nancy Patzwahl, whoseleadership experience and community insight have already strengthened our governance and strategic oversight. Wealso recognized the retirement of Frederick Battenfeld and Dr. Louis Tumolo, whose decades of service helped shapeRhinebeck Bank into the premier community bank it is today. A Year of Financial Turnaround and Strategic Momentum: Our 2025 results reflect disciplined execution and a clear focus on strengthening the core fundamentals of ourfranchise. We delivered net income of$10.0 million, compared to a net loss of $8.6 million in 2024, a meaningful return toprofitability driven by improved net interest margin, disciplined expense management, and prudent balance sheetrepositioning. Key financial performance highlights include: • Improvement in net interest margin (3.89% compared to 3.17% in 2024), reflecting proactive balancesheetmanagement and disciplined deposit pricing.•Enhanced operating efficiency, with our efficiency ratio meaningfully improving to73.12% in 2025compared to 82.34% in 2024, demonstrating operating leverage and expense discipline.• Growth in book value per share to $12.28 compared to $10.98 in 2024, reinforcing ourcommitment to long-term shareholder value creation.• Core deposit growth of $76 million, indicating a strong and stable core deposit franchise via our retailbranch network. These results were not incidental, rather they were the product of deliberate strategic focus and disciplinedexecution across the organization. Our Strategic Priorities: As we look ahead, our strategy is centered on a focused approach designed to strengthen our foundation andposition us for sustainable growth. 1. Execution of Second-Step ConversionIn 2026, we intend to execute our second-step conversion, a transformative milestone that will enhance our financial flexibility and long-term growth capacity. Importantly, the additional capital generated will be reinvesteddirectly into the business to support organic growth, technological enhancements, and franchise expansion. Thisstrategic step positions Rhinebeck Bank to better serve customers, invest in innovation, and deliver enhancedlong-term shareholder value. 2. Strengthening and Expanding Our Deposit FranchiseWe are focused on building a durable, relationship-based deposit franchise by expanding both acquisition channels and client engagement. This includes enhancing online account opening capabilities, exploring selective third-party partnerships, and leveraging digital tools to reach new households and businesses. At the same time, we aredeepening our share of wallet with existing customers through relationship-driven engagement. A stronger coredeposit base improves funding stability, supports margin resilience, and reinforces long-term franchise value. 3. Commercial Loan Growth Through Relationship-Based LendingOur commercial lending strategy centers on relationship-based lending, prioritizing long-term client partnerships over transactional volume. By aligning experienced bankers with defined coverage areas, we ensure disciplinedgrowth supported by strong local market knowledge. We are also expanding thoughtfully within our broadercoverage area to capture additional high-quality commercial opportunities. This approach drives sustainable loangrowth while maintaining strong credit standards and balanced portfolio composition. 4. Enhancing Our Value Proposition Through Client ExperienceWe are strengthening our value proposition by delivering a more seamless and responsive client experience. Investments in technology and product delivery support an omnichannel approach to banking, allowing customers tointeract with us through integrated in-branch and digital channels. Our focus is on simplifying processes, improvingresponsiveness, and ensuring consistent service across all touchpoints. By enhancing how we serve clients, wedeepen relationships, increase retention, and differentiate our franchise in a competitive marketplace. 5. Maintaining Disciplined Risk and Capital ManagementPrudent risk management remains foundational to our strategy. We continue to maintain strong capital ratios, conservative credit underwriting standards, and proactive interest rate and liquidity ove