Rhinebeck Bancorp Ends Executive Long-Term Incentive Plan, Vests Accounts

What Happened
Rhinebeck Bancorp, via its wholly owned subsidiary Rhinebeck Bank, filed an 8-K reporting that the Board terminated the Rhinebeck Bank Executive Long-Term Incentive and Retention Plan effective May 19, 2026. The Plan was a non-qualified deferred compensation program governed by Section 409A of the tax code. In connection with the termination, participant account balances fully vested.

Key Details

• Termination Date: May 19, 2026.
• Plan type: non-qualified deferred compensation plan subject to Section 409A.
• Vesting: participants’ bookkeeping account balances fully vested; the Plan had previously vested 20% annually over five years.
• Participants: limited to officers designated by the Board; named executive officers Jamie Bloom and Kevin Nihill were the only participants named.
• Payout timing: to comply with Section 409A, distributions will not be made earlier than 12 months after the termination date (except for distributions that would have been made absent termination) and will be completed no later than 24 months after the termination date.

Why It Matters
For investors, this changes how certain executive compensation obligations are handled: liabilities under the Plan are now vested and scheduled for distribution within a 12–24 month window, which could affect the bank’s cash outflows and reported deferred compensation obligations in upcoming periods. The filing is procedural and compliance-focused (Section 409A timing rules), and does not report changes in employment status of the named executives.