RICHMOND, Ind., Jan. 23,
2025 /PRNewswire/ -- Richmond
Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ:
RMBI), parent company of First Bank Richmond (the "Bank"), today
announced net income of $2.5 million,
or $0.24 diluted earnings per share,
for the fourth quarter of 2024, compared to net income of
$2.5 million, or $0.24 diluted earnings per share, for the third
quarter of 2024, and net income of $1.9
million, or $0.19 diluted
earnings per share, for the fourth quarter of 2023.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "Our earnings for the
fourth quarter of 2024 benefited from our year-over-year loan
growth as well as margin expansion during the fourth quarter,
driven by lower funding costs. Additionally, the performance of our
loan and lease portfolio continues to improve, as nonperforming
assets declined during the quarter. We anticipate further
improvements in credit quality if market interest rates continue to
decrease."
Fourth Quarter Performance Highlights:
- Assets totaled $1.5 billion at
December 31, 2024, September 30, 2024, and December 31, 2023.
- Loans and leases, net of allowance for credit losses, totaled
$1.2 billion at December 31, 2024, compared to $1.1 billion at both September 30, 2024 and December 31, 2023.
- Nonperforming loans and leases totaled $6.8 million, or 0.58% of total loans and leases,
at December 31, 2024, compared to
$6.7 million, or 0.58% of total loans
and leases, at September 30, 2024,
and $8.0 million, or 0.72% of total
loans and leases, at December 31,
2023.
- The allowance for credit losses totaled $15.8 million, or 1.34% of total loans and leases
outstanding, at December 31, 2024,
compared to $15.8 million, or 1.36%
of total loans and leases outstanding, at September 30, 2024, and $15.7 million, or 1.42% of total loans and leases
outstanding, at December 31,
2023.
- A provision for credit losses of $196,000 was recognized in the quarter ended
December 31, 2024, compared to a
reversal of $99,000 in the quarter
ended September 30, 2024, and a
provision of $304,000 in the fourth
quarter of 2023.
- Deposits totaled $1.1 billion at
December 31, 2024 and September 30, 2024, compared to $1.0 billion at December
31, 2023. At December 31,
2024, noninterest-bearing deposits totaled $110.1 million or 10.1% of total deposits,
compared to $98.5 million or 9.0% of
total deposits at September 30, 2024,
and $114.4 million or 11.0% of total
deposits at December 31, 2023. At
December 31, 2024, approximately
$248.1 million, or 22.7%, of our
deposit portfolio, excluding collateralized public deposits, was
uninsured.
- Stockholders' equity totaled $132.9
million at December 31, 2024,
compared to $140.0 million at
September 30, 2024 and $134.9 million at December
31, 2023. The Company's equity to assets ratio was 8.83% at
December 31, 2024.
- Book value per share and tangible book value per share were
$12.29 at December 31, 2024, compared to $12.79 per share at September 30, 2024 and $12.03 per share at December 31, 2023.
- Net interest income increased $433,000, or 4.6%, to $9.9
million for the three months ended December 31, 2024, compared to $9.4 million for the prior quarter, and increased
$535,000, or 5.7%, from $9.3 million for the comparable quarter in
2023.
- Annualized net interest margin was 2.70% for the current
quarter, compared to 2.60% in the preceding quarter and 2.67% for
the comparable quarter in 2023.
- The Company repurchased 133,858 shares of common stock at an
average price of $13.95 per share
during the quarter ended December 31,
2024.
- The Bank's Tier 1 capital to total assets was 10.75%, well in
excess of all regulatory requirements at December 31, 2024.
Income Statement Summary
Net interest income before the provision for/(recovery of)
credit losses increased $433,000, or
4.6%, to $9.9 million in the fourth
quarter of 2024, compared to $9.4
million in the third quarter of 2024, and increased
$535,000, or 5.7%, from $9.3 million in the fourth quarter of 2023. The
increase from the third quarter of 2024 was due to a 10 basis point
increase in the average interest rate spread and a $6.9 million increase in average net earning
assets. The increase from the comparable quarter in 2023 was
due to a $12.2 million increase in
average net earning assets, partially offset by a three basis point
decrease in the average interest rate spread. From September 18, 2024 through the end of the year,
the Federal Open Market Committee of the Federal Reserve System
reduced the target range for the federal funds rate by a total of
100 basis points to a range of 4.25% to 4.50%. This series of
decreases contributed to a slightly lower cost of interest-bearing
deposits and borrowings, which typically have shorter durations and
re-price or reset faster than assets.
Interest income increased $409,000, or 2.0%, to $20.7 million during the quarter ended
December 31, 2024, compared to the
quarter ended September 30, 2024, and
increased $2.1 million, or 11.2%,
compared to the quarter ended December 31,
2023.
Interest income on loans and leases increased $393,000, or 2.2%, to $18.5 million for the quarter ended December 31, 2024, compared to $18.1 million in the third quarter of 2024, due
to a $2.0 million increase in the
average balance of loans and leases, and an increase of 12 basis
points to 6.39% in the average yield earned on loans and leases.
Interest income on loans and leases increased $2.2 million, or 13.8%, in the fourth quarter of
2024 compared to the fourth quarter of 2023, due to an increase in
the average balance of loans and leases of $61.3 million and an increase of 46 basis points
in the average yield earned on loans and leases.
Interest income on investment securities, excluding FHLB
stock, decreased $59,000, or 3.5%, to
$1.6 million during the quarter ended
December 31, 2024, compared to the
quarter ended September 30, 2024, and
decreased $153,000, or 8.5%, from the
comparable quarter in 2023. The decrease compared to the third
quarter of 2024 was due to a $3.7
million decrease in the average balance and a five basis
point decrease in the average yield earned on investment
securities. The decrease compared to the fourth quarter of 2023 was
due to a $2.9 million decrease in the
average balance and a 20 basis point decrease in the average yield
earned on investment securities. Dividends on FHLB stock decreased
$18,000, or 6.0%, to $284,000 during the quarter ended December 31, 2024 compared to the quarter ended
September 30, 2024, due to a 52 basis
point decrease in average yield on FHLB stock, and decreased
$11,000, or 3.7%, compared to the
quarter ended December 31, 2023, due
to a 176 basis point decrease in the average yield on FHLB stock,
partially offset by a $2.0 million
increase in the average balance. Interest income on cash and cash
equivalents increased $93,000, or
49.6%, during the quarter ended December 31,
2024, compared to the quarter ended September 30, 2024, and increased $21,000, or 8.0%, compared to the quarter ended
December 31, 2023. The increase
in interest income on cash and cash equivalents in the fourth
quarter of 2024 from the third quarter of 2024 was due to a 32
basis point decrease in the average yield, partially offset by a
$9.6 million increase in the average
balance. The increase in interest income on cash and cash
equivalents in the fourth quarter of 2024 from the fourth quarter
of 2023 was due to a $3.3 million
increase in the average balance, partially offset by a 29 basis
point decrease in the average yield.
Interest expense decreased $24,000, or 0.2%, to $10.8
million for the quarter ended December 31, 2024 compared to the quarter ended
September 30, 2024, and increased
$1.6 million, or 16.8%, compared to
the quarter ended December 31, 2023.
Interest expense on deposits increased $21,000, or 0.3%, to $8.4
million for the quarter ended December 31, 2024, compared to the previous
quarter and increased $1.4 million,
or 20.7%, from the comparable quarter in 2023. The increase from
the previous quarter was primarily due to a $1.6 million increase in the average balance of
interest-bearing deposits. The increase from the comparable quarter
in 2023 was due to an increase of $58.3
million in average balance of, and a 40 basis point increase
in the average rate paid on, interest-bearing deposits. The average
rate paid on interest-bearing deposits was 3.33% for the quarter
ended December 31, 2024, compared to
3.33% and 2.93% for the quarters ended September 30, 2024 and December 31, 2023, respectively.
Interest expense on FHLB borrowings decreased $45,000, or 1.8%, to $2.5
million for the fourth quarter of 2024 compared to the
previous quarter and increased $123,000, or 5.3%, from the comparable quarter in
2023. The decrease from the previous quarter was primarily due to a
$565,000 decrease in the average
balance of FHLB borrowings, and a seven basis point decrease in the
average rate paid. The increase from the comparable quarter in 2023
was primarily due to an increase of 30 basis points in the average
rate paid on FHLB borrowings, partially offset by a decrease in the
average balance of FHLB borrowings of $6.8
million. The average balance of FHLB borrowings totaled
$244.2 million during the quarter
ended December 31, 2024, compared to
$244.8 million and $251.0 million for the quarters ended
September 30, 2024 and December 31, 2023, respectively. The average rate
paid on FHLB borrowings was 4.01% for the quarter ended
December 31, 2024, 4.08% for the
quarter ended September 30, 2024, and
3.71% for the fourth quarter of 2023.
Annualized net interest margin increased to 2.70% for the fourth
quarter of 2024, compared to 2.60% for the third quarter of 2024,
and 2.67% for the fourth quarter of 2023. The increase in the net
interest margin was primarily due to greater increases in the
average balances of our interest-earning assets as compared to our
interest-bearing liabilities.
A provision for credit losses of $196,000 was recognized in the fourth quarter of
2024, compared to a reversal of the provision for credit losses of
$99,000 for the quarter ended
September 30, 2024, and a provision
for credit losses of $304,000 for the
quarter ended December 31, 2023. Net
charge-offs during the fourth quarter of 2024 were $286,000, compared to $464,000 during the third quarter of 2024 and
$241,000 during the fourth quarter of
2023. The reversal of provision for credit losses during the
previous quarter was due to the availability of increased details
within certain loan categories, which allowed for more precise risk
profiling. Additionally, macroeconomic inputs, credit metrics, and
refreshed loss driver data were updated to further refine our
allowance calculation.
Noninterest income decreased $133,000, or 10.1%, to $1.2 million for the quarter ended December 31, 2024 compared to the quarter ended
September 30, 2024, and increased
$13,000, or 1.1%, from the comparable
quarter in 2023. The decrease in noninterest income from the third
quarter of 2024 primarily resulted from a decrease in net gains on
loan and lease sales, which decreased $77,000, or 36.6%, to $134,000 in the fourth quarter of 2024 compared
to the prior quarter. Other income decreased $52,000, or 14.7%, to $302,000 in the fourth quarter of 2024 compared
to $354,000 in the previous quarter
due to expenses associated with our captive insurance company. Loan
and lease servicing fees decreased $40,000, or 32.6%, to $82,000 in the fourth quarter of 2024 compared to
the prior quarter due to a decrease in loan participation income.
These decreases were partially offset by an increase in card fee
income of $42,000, or 14.0%, to
$344,000 for the quarter ended
December 31, 2024, as compared to the
prior quarter, due to contract income from our credit card
provider, and increased account activity during the holiday season.
The increase in noninterest income from the comparable quarter in
2023 was primarily due to an increase in net gains on loan and
lease sales and service charges on deposit accounts, partially
offset by a decrease in loan and lease servicing fees and other
income. Net gains on loan and lease sales increased $15,000, or 12.7%, compared to the same quarter
in 2023, due to increased mortgage banking activity. Service fees
on deposit accounts increased $47,000, or 16.5%, in the fourth quarter of 2024
from the comparable quarter in 2023, due to higher transaction
activity and early withdraw fees, coupled with year-over-year
deposit growth. Loan and lease servicing fees decreased
$25,000, or 23.0%, compared to the
same quarter in 2023. Other income decreased $14,000, or 4.4%, for the quarter ended
December 31, 2024, compared to the
comparable quarter in 2023.
Total noninterest expense decreased $89,000, or 1.1%, to $7.9
million for the three months ended December 31, 2024, compared to the third quarter
of 2024, and decreased $102,000
compared to the same period in 2023. Salaries and employee benefits
decreased $60,000, or 1.3%, to
$4.5 million for the quarter ended
December 31, 2024, compared to the
third quarter of 2024, and decreased $26,000 compared to the quarter ended
December 31, 2023. The decrease in
salaries and benefits from the third quarter of 2024 was primarily
a result of employee retirements in the third and fourth quarters
of 2024. Deposit insurance expense decreased $12,500, or 3.3% for the quarter ended
December 31, 2024, compared to the
third quarter of 2024, and decreased $156,000, or 29.7%, from the comparable quarter
in 2023 primarily due to changes in the asset and deposit mix.
Legal and professional fees decreased $18,000, or 3.8%, to $446,000 for the quarter ended December 31, 2024, compared to the third quarter
of 2024 and increased $43,000, or
10.6%, from the comparable quarter in 2023 primarily due to
increased professional services expense related to support
agreements and product enhancements with our core provider.
Other expenses decreased $33,000, or
3.6%, in the fourth quarter of 2024 compared to the prior quarter,
and decreased $12,000, or 1.4%,
compared to the same quarter of 2023. The decrease in other
expenses from the prior quarter primarily was due to a reduction in
losses due to fraud, and decreases in franchise tax
expense as a result of adjustments made with end-of-year tax
filings.
Income tax expense increased $90,000 during the three months ended
December 31, 2024 compared to the
quarter ended September 30, 2024, and
increased $225,000 compared to the
quarter ended December 31, 2023, due
to an increased effective tax rate. The effective tax rate for the
fourth quarter of 2024 was 15.7%, compared to 13.0% and 10.8% in
the third quarter of 2024 and the fourth quarter a year ago,
respectively. The increase in effective tax rate in the fourth
quarter of 2024 compared to the same period in 2023 was primarily
due to the expiration and write-off of certain charitable
contribution carryforwards.
Balance Sheet Summary
Total assets increased $44.3
million, or 3.0%, to $1.5
billion at December 31, 2024
as compared to December 31, 2023. The
increase was primarily the result of a $68.8
million, or 6.3%, increase in loans and leases, net of
allowance for credit losses, to $1.2
billion, partially offset by a $25.9
million, or 9.0%, decrease in investment securities to
$261.7 million at December 31, 2024.
The increase in loans and leases was attributable to an increase
in multi-family loans, commercial real estate loans, commercial and
industrial loans, and residential mortgage loans of $47.1 million, $30.1
million, $10.9 million and
$10.5 million, respectively.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past
due, totaled $6.8 million, or 0.58%
of total loans and leases, at December 31,
2024, compared to $8.0
million, or 0.72%, at December 31,
2023. Accruing loans past due more than 90 days totaled
$1.7 million at December 31, 2024 and December 31, 2023.
The allowance for credit losses on loans and leases increased
$128,000, or 0.8%, to $15.8 million at December
31, 2024 from $15.7 million at
December 31, 2023. At December 31, 2024 the allowance for credit losses
on loans and leases totaled 1.34% of total loans and leases
outstanding, compared to 1.42% at December
31, 2023. Net charge-offs during 2024 were
$1.5 million, compared to net
charge-offs of $678,000 during
2023.
Management regularly analyzes conditions within its geographic
markets and evaluates its loan and lease portfolio. The Company
evaluated its exposure to potential credit losses as of
December 31, 2024, which included
consideration of a potential recession due to inflation, stock
market volatility, and overall geopolitical tensions. Credit
metrics are being reviewed and stress testing is being performed on
the loan portfolio on an ongoing basis.
Investment securities decreased $25.9
million, or 9.0%, to $261.7
million at December 31, 2024
compared to $287.6 million at
December 31, 2023. Investment
securities decreased primarily due to $22.1
million in maturities and principal repayments and the sale
of $6.9 million of available-for-sale
securities. The proceeds received from maturities, repayments, and
sales of securities were used to fund loan growth.
Total deposits increased $52.8
million, or 5.1%, to $1.1
billion at December 31, 2024,
compared to December 31, 2023. The
increase in deposits from December 31,
2023 primarily was due to an increase in savings and
money-market accounts of $44.5
million, and non-brokered time deposits of $40.3 million, which were used primarily to fund
loan demand, partially offset by a decrease in demand deposit
accounts of $20.8 million and
brokered time deposits of $11.3
million. Brokered time deposits totaled $257.6 million, or 23.5% of total deposits, at
December 31, 2024, compared to
$268.8 million, or 25.8% of total
deposits at December 31, 2023.
Noninterest-bearing demand deposits decreased $4.3 million to $110.1
million at December 31, 2024
compared to $114.4 million at
December 31, 2023, and totaled 10.1%
of total deposits at December 31,
2024. Management attributes the shift in funds from
transaction accounts to retail certificates of deposit, which
primarily occurred during the first nine months of 2024, to
customers taking advantage of higher rates being paid on time
deposits as a result of interest rate hikes enacted by the Federal
Reserve.
As of December 31, 2024,
approximately $248.1 million of our
deposit portfolio, or 22.7% of total deposits, excluding
collateralized public deposits, was uninsured. The uninsured
amounts are estimated based on the methodologies and assumptions
used for First Bank Richmond's regulatory reporting
requirements.
Stockholders' equity totaled $132.9
million at December 31, 2024,
a decrease of $2.0 million, or 1.5%,
from December 31, 2023. The decrease
in stockholders' equity primarily was the result of the payment of
$5.7 million in dividends to Company
stockholders and the repurchase of $5.0
million of Company common stock, partially offset by net
income of $9.4 million.
During the quarter ended December 31,
2024, the Company repurchased a total of 133,858 shares of
Company common stock at an average price of $13.95 per share. As of December 31, 2024, the Company had approximately
472,944 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 30,601 shares.
About Richmond Mutual Bancorporation, Inc.
Richmond Mutual Bancorporation, Inc., headquartered in
Richmond, Indiana, is the holding
company for First Bank Richmond, a community-oriented financial
institution offering traditional financial and trust services
within its local communities through its eight locations in
Richmond, Centerville, Cambridge City and Shelbyville, Indiana, its five locations in
Sidney, Piqua and Troy,
Ohio, and its loan production office in Columbus, Ohio.
FORWARD-LOOKING STATEMENTS:
This document and other filings by the Company with the
Securities and Exchange Commission (the "SEC"), as well as press
releases or other public or stockholder communications released by
the Company, may contain forward-looking statements, including, but
not limited to, (i) statements regarding the financial condition,
results of operations and business of the Company, (ii) statements
about the Company's plans, objectives, expectations and intentions
and other statements that are not historical facts and (iii) other
statements identified by the words or phrases "will likely result,"
"are expected to," "will continue," "is anticipated," "estimate,"
"project," "intends" or similar expressions that are intended to
identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current beliefs and
expectations of the Company's management and are inherently subject
to significant business, economic and competitive uncertainties and
contingencies, many of which are beyond the Company's control. In
addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and
decisions that are subject to change. When considering
forward-looking statements, keep in mind these risks and
uncertainties. Undue reliance should not be placed on any
forward-looking statement, which speaks only as of the date
made.
The following factors, among others, could cause actual
results to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: adverse
economic conditions in our local market areas or other markets
where we have lending relationships; employment levels, labor
shortages and the effects of inflation, a recession or slowed
economic growth; changes in the interest rate environment,
including the increases and decrease in the Federal Reserve
benchmark rate and duration at which such interest rate levels are
maintained, which could adversely affect our revenues and expenses,
the value of assets and obligations, and the availability and cost
of capital and liquidity; the impact of inflation and the current
and future monetary policies of the Federal Reserve in response
thereto; the effects of any federal government shutdown; the impact
of bank failures or adverse developments at other banks and related
negative press about the banking industry in general on investor
and depositor sentiment; legislative changes; changes in policies
by regulatory agencies; the risks of lending and investing
activities, including changes in the level and direction of loan
delinquencies and write-offs and changes in estimates of the
adequacy of the allowance for loan losses; the Company's ability to
access cost-effective funding, including maintaining the confidence
of depositors; fluctuations in real estate values and both
residential and commercial real estate market conditions;
competitive pressures among depository institutions, including
repricing and competitors' pricing initiatives, and their impact on
our market position, loan, and deposit products; changes in
management's business strategies, including expectations regarding
key growth initiatives and strategic priorities; changes in the
regulatory and tax environments in which the Company operates;
disruptions, security breaches, or other adverse events, failures
or interruptions in, or attacks on, our information technology
systems or on the third-party vendors who perform several of our
critical processing functions; the potential imposition of new
tariffs or changes to existing trade policies that could affect
economic activity or specific industry sectors; the effects of
climate change, severe weather events, natural disasters,
pandemics, epidemics and other public health crises, acts of war or
terrorism, civil unrest, and other external events on our business;
and other factors described in the Company's latest Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q and other reports
filed with or furnished to the Securities and Exchange Commission -
that are available on our website at www.firstbankrichmond.com and
on the SEC's website at www.sec.gov.
The factors listed above could materially affect the
Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any
opinions or statements expressed with respect to future periods in
any current statements. The Company does not undertake - and
specifically declines any obligation - to publicly release the
result of any revisions which may be made to any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events.
Financial Highlights (unaudited)
|
Three Months
Ended
|
|
Year
Ended
|
|
SELECTED OPERATIONS
DATA:
|
December 31,
2024
|
|
September
30,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
20,670
|
|
$
20,261
|
|
$
18,581
|
|
$
80,526
|
|
$
67,410
|
|
Interest
expense
|
10,804
|
|
10,828
|
|
9,250
|
|
41,819
|
|
29,748
|
|
Net interest
income
|
9,866
|
|
9,433
|
|
9,331
|
|
38,707
|
|
37,662
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
196
|
|
(99)
|
|
304
|
|
550
|
|
532
|
|
Net interest income
after provision for (recovery of) credit losses
|
9,670
|
|
9,532
|
|
9,027
|
|
38,157
|
|
37,130
|
|
Noninterest
income
|
1,192
|
|
1,325
|
|
1,179
|
|
4,758
|
|
4,611
|
|
Noninterest
expense
|
7,926
|
|
8,016
|
|
8,029
|
|
32,052
|
|
30,738
|
|
Income before income
tax expense
|
2,936
|
|
2,841
|
|
2,177
|
|
10,863
|
|
11,003
|
|
Income tax
provision
|
460
|
|
369
|
|
235
|
|
1,486
|
|
1,516
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
2,476
|
|
$
2,472
|
|
$
1,942
|
|
$
9,377
|
|
$
9,487
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
10,815
|
|
10,949
|
|
11,209
|
|
10,815
|
|
11,209
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
10,009
|
|
10,087
|
|
10,225
|
|
10,081
|
|
10,396
|
|
Diluted
|
10,255
|
|
10,216
|
|
10,260
|
|
10,229
|
|
10,451
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.25
|
|
$
0.25
|
|
$
0.19
|
|
$
0.93
|
|
$
0.91
|
|
Diluted
|
$
0.24
|
|
$
0.24
|
|
$
0.19
|
|
$
0.92
|
|
$
0.91
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
December 31,
2024
|
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,505,309
|
|
$
1,492,550
|
|
$
1,495,141
|
|
$
1,487,671
|
|
$
1,461,024
|
|
Cash and cash
equivalents
|
21,757
|
|
19,570
|
|
19,019
|
|
20,290
|
|
20,240
|
|
Interest-bearing time
deposits
|
300
|
|
300
|
|
—
|
|
—
|
|
—
|
|
Investment
securities
|
261,690
|
|
271,304
|
|
271,997
|
|
281,006
|
|
287,638
|
|
Loans and leases, net
of allowance for credit losses
|
1,158,879
|
|
1,140,969
|
|
1,140,579
|
|
1,123,194
|
|
1,090,073
|
|
Loans held for
sale
|
1,093
|
|
220
|
|
370
|
|
85
|
|
794
|
|
Premises and equipment,
net
|
12,922
|
|
13,018
|
|
13,115
|
|
13,212
|
|
13,312
|
|
Federal Home Loan Bank
stock
|
13,907
|
|
13,907
|
|
13,907
|
|
13,907
|
|
12,647
|
|
Other assets
|
34,761
|
|
33,262
|
|
36,154
|
|
35,977
|
|
36,320
|
|
Deposits
|
1,093,940
|
|
1,089,094
|
|
1,100,085
|
|
1,069,642
|
|
1,041,140
|
|
Borrowings
|
265,000
|
|
252,000
|
|
252,000
|
|
273,000
|
|
271,000
|
|
Total stockholder's
equity
|
132,872
|
|
140,027
|
|
131,110
|
|
132,391
|
|
134,860
|
|
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
132,872
|
|
$
140,027
|
|
$
131,110
|
|
$
132,391
|
|
$
134,860
|
|
Tangible book value
(non-GAAP)
|
132,872
|
|
140,027
|
|
131,110
|
|
132,391
|
|
134,860
|
|
Book value per share
(GAAP)
|
12.29
|
|
12.79
|
|
11.90
|
|
11.91
|
|
12.03
|
|
Tangible book value per
share (non-GAAP)
|
12.29
|
|
12.79
|
|
11.90
|
|
11.91
|
|
12.03
|
The following table summarizes information relating to our loan
and lease portfolio at the dates indicated:
|
(In
thousands)
|
December 31,
2024
|
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
371,705
|
|
$
348,473
|
|
$
356,250
|
|
$
338,434
|
|
$
341,633
|
|
Commercial and
industrial
|
126,367
|
|
126,591
|
|
127,160
|
|
123,661
|
|
115,428
|
|
Construction and
development
|
132,570
|
|
140,761
|
|
139,588
|
|
165,063
|
|
157,805
|
|
Multi-family
|
185,864
|
|
183,778
|
|
174,251
|
|
153,719
|
|
138,757
|
|
Residential
mortgage
|
172,644
|
|
172,873
|
|
175,059
|
|
171,050
|
|
162,123
|
|
Home equity
|
16,826
|
|
15,236
|
|
13,781
|
|
12,146
|
|
10,904
|
|
Direct financing
leases
|
148,102
|
|
147,057
|
|
148,173
|
|
152,468
|
|
156,598
|
|
Consumer
|
21,218
|
|
22,608
|
|
22,782
|
|
23,004
|
|
23,264
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
1,175,296
|
|
$
1,157,377
|
|
$
1,157,044
|
|
$
1,139,545
|
|
$
1,106,512
|
The following table summarizes information relating to our
deposits at the dates indicated:
|
(In
thousands)
|
December 31,
2024
|
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
110,106
|
|
$
98,522
|
|
$
102,796
|
|
$
108,805
|
|
$
114,377
|
|
Interest-bearing
demand
|
135,310
|
|
136,263
|
|
144,769
|
|
153,460
|
|
151,809
|
|
Savings and money
market
|
301,311
|
|
283,848
|
|
283,538
|
|
255,634
|
|
256,811
|
|
Non-brokered time
deposits
|
289,626
|
|
290,874
|
|
281,505
|
|
260,451
|
|
249,305
|
|
Brokered time
deposits
|
257,587
|
|
279,587
|
|
287,477
|
|
291,292
|
|
268,838
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
1,093,940
|
|
$
1,089,094
|
|
$
1,100,085
|
|
$
1,069,642
|
|
$
1,041,140
|
Average Balances, Interest and Average Yields/Cost.
The following tables set forth for the periods indicated,
information regarding average balances of assets and liabilities as
well as the total dollar amounts of interest income from average
interest-earning assets and interest expense on average
interest-bearing liabilities, resultant yields, interest rate
spread, net interest margin (otherwise known as net yield on
interest-earning assets), and the ratio of average interest-earning
assets to average interest-bearing liabilities. Average balances
have been calculated using daily balances. Non-accruing loans have
been included in the table as loans carrying a zero yield. Loan
fees are included in interest income on loans and are not
material.
|
Three Months Ended
December 31,
|
|
2024
|
|
2023
|
|
Average
Balance
Outstanding
|
|
Interest
Earned/
Paid
|
|
Yield/
Rate
|
|
Average
Balance
Outstanding
|
|
Interest
Earned/
Paid
|
|
Yield/
Rate
|
|
(Dollars in
thousands)
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
receivable
|
$ 1,155,340
|
|
$
18,464
|
|
6.39 %
|
|
$ 1,093,993
|
|
$
16,231
|
|
5.93 %
|
|
Securities
|
267,191
|
|
1,641
|
|
2.46 %
|
|
270,093
|
|
1,794
|
|
2.66 %
|
|
FHLB stock
|
13,907
|
|
284
|
|
8.17 %
|
|
11,882
|
|
295
|
|
9.93 %
|
|
Cash and cash
equivalents and other
|
25,438
|
|
281
|
|
4.42 %
|
|
22,166
|
|
261
|
|
4.71 %
|
|
Total interest-earning
assets
|
1,461,876
|
|
20,670
|
|
5.66 %
|
|
1,398,134
|
|
18,581
|
|
5.32 %
|
|
Non-earning
assets
|
40,268
|
|
|
|
|
|
47,818
|
|
|
|
|
|
Total
assets
|
1,502,144
|
|
|
|
|
|
1,445,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
303,985
|
|
1,873
|
|
2.46 %
|
|
270,226
|
|
1,452
|
|
2.15 %
|
|
Interest-bearing
checking accounts
|
135,186
|
|
359
|
|
1.06 %
|
|
146,259
|
|
346
|
|
0.95 %
|
|
Certificate
accounts
|
563,411
|
|
6,121
|
|
4.35 %
|
|
527,781
|
|
5,123
|
|
3.88 %
|
|
Borrowings
|
244,228
|
|
2,451
|
|
4.01 %
|
|
251,043
|
|
2,329
|
|
3.71 %
|
|
Total interest-bearing
liabilities
|
1,246,810
|
|
10,804
|
|
3.47 %
|
|
1,195,309
|
|
9,250
|
|
3.10 %
|
|
Noninterest-bearing
demand deposits
|
104,738
|
|
|
|
|
|
115,890
|
|
|
|
|
|
Other
liabilities
|
13,595
|
|
|
|
|
|
14,392
|
|
|
|
|
|
Stockholders'
equity
|
137,001
|
|
|
|
|
|
120,361
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,502,144
|
|
|
|
|
|
1,445,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
9,866
|
|
|
|
|
|
$
9,331
|
|
|
|
Net earning
assets
|
$
215,066
|
|
|
|
|
|
$
202,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.19 %
|
|
|
|
|
|
2.22 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.70 %
|
|
|
|
|
|
2.67 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
117.25 %
|
|
|
|
|
|
116.97 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net interest rate
spread represents the difference between the weighted average yield
earned on interest-earning assets and the weighted average rate
paid on interest bearing liabilities.
|
|
(2)
|
Net interest margin
represents net interest income divided by average total
interest-earning assets.
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
Average
Balance
Outstanding
|
|
Interest
Earned/
Paid
|
|
Yield/
Rate
|
|
Average
Balance
Outstanding
|
|
Interest
Earned/
Paid
|
|
Yield/
Rate
|
|
(Dollars in
thousands)
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
receivable
|
$ 1,145,973
|
|
$
71,596
|
|
6.25 %
|
|
$ 1,044,471
|
|
$
58,794
|
|
5.63 %
|
|
Securities
|
273,706
|
|
6,871
|
|
2.51 %
|
|
285,600
|
|
7,203
|
|
2.52 %
|
|
FHLB stock
|
13,863
|
|
1,232
|
|
8.89 %
|
|
10,750
|
|
851
|
|
7.92 %
|
|
Cash and cash
equivalents and other
|
18,002
|
|
827
|
|
4.59 %
|
|
13,728
|
|
562
|
|
4.09 %
|
|
Total interest-earning
assets
|
1,451,544
|
|
80,526
|
|
5.55 %
|
|
1,354,549
|
|
67,410
|
|
4.98 %
|
|
Non-earning
assets
|
41,860
|
|
|
|
|
|
45,212
|
|
|
|
|
|
Total
assets
|
1,493,404
|
|
|
|
|
|
1,399,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
285,946
|
|
6,833
|
|
2.39 %
|
|
274,497
|
|
4,989
|
|
1.82 %
|
|
Interest-bearing
checking accounts
|
141,902
|
|
1,609
|
|
1.13 %
|
|
147,964
|
|
1,054
|
|
0.71 %
|
|
Certificate
accounts
|
557,216
|
|
23,309
|
|
4.18 %
|
|
509,316
|
|
16,767
|
|
3.29 %
|
|
Borrowings
|
255,969
|
|
10,068
|
|
3.93 %
|
|
218,025
|
|
6,938
|
|
3.18 %
|
|
Total interest-bearing
liabilities
|
1,241,033
|
|
41,819
|
|
3.37 %
|
|
1,149,802
|
|
29,748
|
|
2.59 %
|
|
Noninterest-bearing
demand deposits
|
105,356
|
|
|
|
|
|
107,192
|
|
|
|
|
|
Other
liabilities
|
13,696
|
|
|
|
|
|
13,924
|
|
|
|
|
|
Stockholders'
equity
|
133,319
|
|
|
|
|
|
128,843
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,493,404
|
|
|
|
|
|
1,399,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
38,707
|
|
|
|
|
|
$
37,662
|
|
|
|
Net earning
assets
|
$
210,511
|
|
|
|
|
|
$
204,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.18 %
|
|
|
|
|
|
2.39 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.67 %
|
|
|
|
|
|
2.78 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.96 %
|
|
|
|
|
|
117.81 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net interest rate
spread represents the difference between the weighted average yield
earned on interest-earning assets and the weighted average rate
paid on interest bearing liabilities.
|
|
(2)
|
Net interest margin
represents net interest income divided by average total
interest-earning assets.
|
|
At and for the Three
Months Ended
|
|
Selected Financial
Ratios and Other Data:
|
December 31,
2024
|
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(1)
|
0.66 %
|
|
0.66 %
|
|
0.55 %
|
|
0.64 %
|
|
0.54 %
|
|
Return on average
equity(1)
|
7.23 %
|
|
7.36 %
|
|
6.42 %
|
|
7.10 %
|
|
6.45 %
|
|
Yield on
interest-earning assets
|
5.66 %
|
|
5.57 %
|
|
5.53 %
|
|
5.43 %
|
|
5.32 %
|
|
Rate paid on
interest-bearing liabilities
|
3.47 %
|
|
3.48 %
|
|
3.37 %
|
|
3.17 %
|
|
3.10 %
|
|
Average interest rate
spread
|
2.19 %
|
|
2.09 %
|
|
2.16 %
|
|
2.26 %
|
|
2.22 %
|
|
Net interest
margin(1)(2)
|
2.70 %
|
|
2.60 %
|
|
2.64 %
|
|
2.74 %
|
|
2.67 %
|
|
Operating expense to
average total assets(1)
|
2.11 %
|
|
2.15 %
|
|
2.17 %
|
|
2.18 %
|
|
2.22 %
|
|
Efficiency
ratio(3)
|
71.68 %
|
|
74.51 %
|
|
75.48 %
|
|
73.51 %
|
|
76.39 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
117.25 %
|
|
116.71 %
|
|
116.33 %
|
|
117.57 %
|
|
116.97 %
|
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(4)
|
0.45 %
|
|
0.45 %
|
|
0.52 %
|
|
0.47 %
|
|
0.56 %
|
|
Non-performing loans
and leases to total gross loans and leases(5)
|
0.58 %
|
|
0.58 %
|
|
0.67 %
|
|
0.61 %
|
|
0.72 %
|
|
Allowance for credit
losses to non-performing loans and leases(5)
|
232.99 %
|
|
235.89 %
|
|
206.30 %
|
|
228.36 %
|
|
195.80 %
|
|
Allowance for credit
losses to total loans and leases
|
1.34 %
|
|
1.36 %
|
|
1.37 %
|
|
1.39 %
|
|
1.42 %
|
|
Net charge-offs to
average outstanding loans and leases during the
period(1)
|
0.10 %
|
|
0.15 %
|
|
0.16 %
|
|
0.12 %
|
|
0.09 %
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
8.83 %
|
|
9.38 %
|
|
8.77 %
|
|
8.90 %
|
|
9.22 %
|
|
Average equity to
average assets
|
9.12 %
|
|
8.98 %
|
|
8.58 %
|
|
9.03 %
|
|
8.32 %
|
|
Common equity tier 1
capital (to risk weighted assets)(6)
|
12.98 %
|
|
13.10 %
|
|
12.96 %
|
|
12.89 %
|
|
12.85 %
|
|
Tier 1 leverage (core)
capital (to adjusted tangible assets)(6)
|
10.75 %
|
|
10.73 %
|
|
10.65 %
|
|
10.67 %
|
|
10.64 %
|
|
Tier 1 risk-based
capital (to risk weighted assets)(6)
|
12.98 %
|
|
13.10 %
|
|
12.96 %
|
|
12.89 %
|
|
12.85 %
|
|
Total risk-based
capital (to risk weighted assets)(6)
|
14.23 %
|
|
14.35 %
|
|
14.21 %
|
|
14.14 %
|
|
14.10 %
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
|
Full-time equivalent
employees
|
173
|
|
171
|
|
182
|
|
178
|
|
176
|
|
|
|
(1)
|
Annualized
|
|
(2)
|
Net interest income
divided by average interest-earning assets.
|
|
(3)
|
Total noninterest
expenses as a percentage of net interest income and total
noninterest income.
|
|
(4)
|
Non-performing assets
consist of nonaccrual loans and leases, accruing loans and leases
more than 90 days past due and foreclosed assets.
|
|
(5)
|
Non-performing loans
and leases consist of nonaccrual loans and leases and accruing
loans and leases more than 90 days past due.
|
|
(6)
|
Capital ratios are for
First Bank Richmond.
|
View original
content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2024-fourth-quarter-financial-results-302359111.html
SOURCE Richmond Mutual Bancorporation, Inc.
