Form 4: Rhinebeck Bancorp CEO Exercises Options, Sells Shares

Rhinebeck Bancorp's President & CEO, Michael J. Quinn, exercised 95,100 stock options and subsequently sold 55,646 shares to cover tax liabilities.

Summary

• Michael J. Quinn, President & CEO and Director of Rhinebeck Bancorp, Inc. (RBKB), exercised 95,100 stock options on September 9, 2025.
• The options were exercised at a price of $6.57 per share.
• Concurrently, Quinn disposed of 55,646 shares of common stock at a price of $13.00 per share.
• This disposition was for the payment of exercise price or tax liability, a common practice in option exercises.
• Following these transactions, Quinn directly owns 80,073 shares of common stock.
• He also holds indirect beneficial ownership of 7,401 shares via a 401(k), 3,357 shares via an ESOP, 10,100 shares via a spouse's IRA, and 1,000 shares via a spouse.

Sentiment

Score: 7

Explanation: The exercise of options indicates management confidence, and the sale is a routine tax-related event. The significant in-the-money value of the options is a positive sign for the company's stock performance.

Positives

• The exercise of stock options by the CEO indicates confidence in the company's long-term prospects and management's belief in the stock's value.
• The exercise price of $6.57 is significantly lower than the sale price of $13.00, indicating a substantial in-the-money value for the options.

Negatives

• The sale of 55,646 shares, even if for tax purposes, reduces the CEO's direct ownership stake in the company.

Future Outlook

NA

Industry Context

This is a routine insider transaction for a financial institution. Such transactions are common for executives with vested stock options and do not inherently indicate broader industry trends, though the stock performance implied by the option's in-the-money status reflects company-specific performance within the financial sector.

Comparison to Industry Standards

• The exercise of vested stock options and subsequent sale of shares to cover tax obligations is a standard practice for executive compensation in publicly traded companies across various industries, including financial services.
• The spread between the exercise price ($6.57) and the sale price ($13.00) suggests a healthy appreciation in the company's stock value since the options were granted, which is a positive indicator for shareholder value creation, comparable to successful option programs at peer banks like M&T Bank or KeyCorp.

Stakeholder Impact

• Shareholders: The exercise of options and subsequent sale for tax purposes is a routine event. The in-the-money value of the options suggests positive stock performance, which benefits all shareholders.
• Employees: The ESOP and 401(k) holdings indicate a broader employee ownership program, aligning employee and shareholder interests.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction where the CEO exercised stock options and sold a portion of the resulting shares to cover tax liabilities. While the exercise of options at a lower price and sale at a higher price is positive, indicating stock appreciation, the transaction itself does not provide new fundamental information about the company's operations, financial health, or future prospects that would warrant a change in investment thesis. It's a standard compensation-related event. Therefore, a "hold" recommendation is appropriate, maintaining current positions based on existing company fundamentals rather than this specific insider transaction.

Keywords

Rhinebeck Bancorp, RBKB, Michael J. Quinn, Insider Trading, Stock Options, CEO, Share Sale, SEC Form 4, Executive Compensation, Financial Services