2nd Step
RBKB converts
Disclaimer / Disclosure long RBKB
January 30, 2024
RBKB is the best of the lot, but there are about twenty bank mutual holding companies. Few if any will still be in the same structure at the end of our five-year project.
May 9, 2024
Rhinebeck (RBKB) trades around 75% of its tangible book value and around 54% of its value in a second step conversion. They have 0.35% non-performing assets.
October 1, 2025
They will probably do a second step conversion instead. It will probably price ~75% and trade ~80% of tangible book value, which is ~$15 for today’s pre-conversion shares.
December 1, 2025
A second step at 75% of tangible book value that trades at 80% of TBV would value today’s shares at $15.25 each. But combining consistent earnings with a shareholder friendly new CEO could get a better price, maybe an 80% conversion that trades at 85% which bumps the share value from ~$15.25 to ~$17.
February 11, 2025
RBKB is pursuing a second step conversion. They will probably convert at 80-85% of tangible book value or $16-18. This process avoids their getting deleted from the Russell 2000. They could qualify for the R2K in the June 2026 rebalance. The shares currently owned by the mutual have to be indexed. Shares are still worth owning below $17.