Rhinebeck Bancorp CEO Michael Quinn to retire

POUGHKEEPSIE, NY – Rhinebeck Bancorp, Inc. (NASDAQ:RBKB), the parent company of Rhinebeck Bank, has announced the upcoming retirement of its President and Chief Executive Officer, Michael J. Quinn, capping a 40-year career with the Bank. Quinn, who has served as CEO for two decades, will continue in his role until a successor is appointed or until the end of the year, whichever comes first. The announcement comes as the company’s stock trades near its 52-week high of $10.49, showing a remarkable 31.77% return over the past year, according to InvestingPro data.

Under Quinn’s leadership, Rhinebeck Bank experienced substantial growth, with a 246% increase in assets and an expansion of its service footprint. Quinn also oversaw the Bank’s transition to a publicly traded entity and enhanced its community involvement. The bank, currently valued at $112.62 million in market capitalization, faces challenges with revenue declining 37.82% over the last twelve months. InvestingPro analysis reveals additional insights about the company’s financial health and growth prospects, with over 30 key metrics available to subscribers.

The Board of Directors has commenced a comprehensive search for a new CEO, considering both internal and external candidates. The search is being conducted with the assistance of an executive search firm as part of the Bank’s succession planning.

Bill Irwin, Chair of Rhinebeck Bank’s Board of Directors, praised Quinn’s significant contributions to the Bank’s development and enduring legacy. Quinn expressed his gratitude for the opportunity to lead the organization and his pride in the Bank’s accomplishments, attributing its success to the dedication of its employees and the confidence of its customers and shareholders.

As the search for a new leader begins, Rhinebeck Bank remains dedicated to its principles of integrity, accountability, and community service. The Bank aims to find a CEO who will continue to build upon its strong foundation and guide it through future innovation and growth. Trading at 0.93 times book value, InvestingPro analysis suggests the stock may be undervalued, though investors should note the company’s current profitability challenges and weak financial health metrics.

Rhinebeck Bank, with a history spanning over 160 years, has been a key player in the economic development of the Hudson River area, maintaining a strong commitment to local businesses and community initiatives.

This leadership transition announcement is based on a press release statement from Rhinebeck Bancorp, Inc.

In other recent news, Rhinebeck Bancorp, Inc. has completed a strategic repositioning of its investment securities portfolio to enhance earnings. The company sold $71 million in securities in September 2024 and an additional $21 million in December 2024. These proceeds were reinvested into new securities with yields 3.06% higher than the previously held assets. This restructuring is expected to boost the bank’s earnings per share by $0.04 and increase its net interest margin by 0.04% starting in the first quarter of 2025. Rhinebeck Bank’s President and CEO, Michael J. Quinn, noted that this move is anticipated to improve the company’s profitability and provide long-term benefits. The bank sold longer-term, low-yielding securities with a yield of 1.37% and a weighted average life of 6.2 years. The newly acquired investments carry a yield of 4.44% and a weighted average life of 1.8 years. Despite a one-time pre-tax loss of $4.1 million from the transaction, Rhinebeck Bank remains "well capitalized" with strong liquidity metrics, including over $35 million in cash and an unused secured line of credit exceeding $250 million with the Federal Home Loan Bank of New York.

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