RICHMOND, Ind., Oct. 20,
2022 /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 $3.2 million, or $0.29 diluted earnings per share, for the third
quarter of 2022, compared to net income of $3.5 million, or $0.31 diluted earnings per share, for the second
quarter of 2022, and net income of $3.1
million, or $0.27 diluted
earnings per share, for the third quarter of 2021. Diluted earnings
per share decreased 6.5% and increased 7.4% for the third quarter
of 2022 as compared to the second quarter of 2022 and the third
quarter of 2021, respectively.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "In the third quarter of
2022, despite unprecedented increases in short-term interest rates
by the Federal Reserve, we continued to grow our loan and lease
portfolios while maintaining profitability and returning excess
capital to shareholders through dividends and share
repurchases. As we enter the final quarter of the year, we
believe we are well-positioned to deliver for our shareholders
while continuing to invest in our people, businesses and
communities."
Third Quarter Performance Highlights:
- Assets totaled $1.3 billion at
September 30, 2022, June 30, 2022 and December
31, 2021.
- Loans and leases, net of allowance, totaled $915.5 million at September 30, 2022, compared to $891.9 million at June 30,
2022, and $832.8 million at
December 31, 2021.
- Nonperforming loans and leases totaled $8.5 million, or 0.92% of total loans and leases,
at September 30, 2022, compared to
$8.1 million, or 0.89% at
June 30, 2022, and $8.0 million, or 0.95% at December 31, 2021.
- The allowance for loan and lease losses totaled $12.6 million, or 1.35% of total loans and leases
outstanding, at September 30, 2022,
compared to $12.4 million, or 1.37%
of total loans and leases outstanding, at June 30, 2022 and $12.1
million, or 1.43% of total loans and leases outstanding, at
December 31, 2021.
- The provision for loan and lease losses totaled $200,000 in the quarters ended September 30 and June 30,
2022, and totaled $500,000 in
the third quarter of 2021.
- Deposits totaled $958.6 million
at September 30, 2022, compared to
$945.3 million at June 30, 2022 and $900.2
million at December 31, 2021.
At September 30, 2022, noninterest
bearing deposits totaled $114.8
million or 12.0% of total deposits, compared to $116.8 million or 12.4% of total deposits at
June 30, 2022, and $114.3 million or 12.7% of total deposits at
December 31, 2021.
- Stockholders' equity totaled $125.0
million at September 30, 2022,
compared to $138.9 million at
June 30, 2022, and $180.5 million at December
31, 2021. The Company's equity to assets ratio was 9.8% at
September 30, 2022.
- Net interest income decreased $36,000 or 0.3% to $10.5
million for the three months ended September 30, 2022, compared to net interest
income of $10.5 million for the prior
quarter, and increased $555,000 or
5.6% from $10.0 million for the
comparable quarter in 2021.
- Annualized net interest margin was 3.39% for the current
quarter, compared to 3.45% in the preceding quarter and 3.42% the
third quarter a year ago.
- The Company repurchased 45,689 shares of common stock at an
average price of $14.17 per share
during the quarter ended September 30,
2022.
- The Bank's Tier 1 capital to total assets was 11.29%, well in
excess of all regulatory requirements at September 30, 2022.
Income Statement Summary
Net interest income before the provision for loan and lease
losses decreased $36,000, or 0.3%, to
$10.5 million in the third quarter of
2022, compared to $10.5 million in
the second quarter of 2022, and increased $555,000, or 5.6%, from $10.0 million in the third quarter of
2021. The decrease from the second quarter of 2022 was due to
a 10 basis point decrease in the average interest rate spread,
offset by a $15.5 million increase in
average interest earning assets during the third quarter of 2022.
The increase from the comparable quarter in 2021 was due to an
increase in average interest earning assets of $74.1 million during the third quarter of 2022
versus the comparable quarter of 2021.
Interest income increased $722,000, or 5.8%, to $13.2 million during the quarter ended
September 30, 2022, compared to the
quarter ended June 30, 2022 and
increased $1.3 million, or 10.7%,
compared to the quarter ended September 30,
2021. Interest income on loans and leases increased
$620,000, or 5.8%, to $11.3 million for the quarter ended September 30, 2022 compared to $10.7 million in the second quarter of 2022, due
to a $32.8 million increase in the
average balance of loans and leases, and an increase of ten basis
points to 4.98% in the average yield earned on loans and leases.
Interest income on loans and leases increased $864,000, or 8.3%, in the third quarter of 2022
compared to the third quarter of 2021, due to an increase in the
average balance of loans and leases of $124.1 million, partially offset by a 34 basis
point decrease in the average loan and lease yield.
Interest income on investment securities, excluding FHLB stock,
increased $55,000, or 3.3%, to
$1.7 million during the quarter ended
September 30, 2022, compared to the
quarter ended June 30, 2022, and
increased $324,000, or 23.4%, from
the comparable quarter in 2021. The increase in interest income on
investment securities, excluding FHLB stock, in the third quarter
of 2022 from the second quarter of 2022 was due to a 15 basis point
increase in the average yield earned on investment securities to
2.20%, partially offset by a $11.8
million decrease in average balance of investment
securities. The increase in interest on investment
securities, excluding FHLB stock, in the third quarter of 2022 from
the third quarter of 2021 was due to a 63 basis point increase in
the average yield earned on investment securities, partially offset
by a $42.9 million decrease in
average balance of investment securities.
Interest expense increased $758,000, or 39.9%, to $2.7 million for the quarter ended September 30, 2022 compared to the quarter ended
June 30, 2022 and increased
$715,000, or 36.8%, compared to the
quarter ended September 30, 2021.
Interest expense on deposits increased $524,000, or 41.1%, to $1.8 million for the quarter ended September 30, 2022, compared to the previous
quarter and increased $545,000, or
43.5%, from the comparable quarter in 2021. The increase from the
previous quarter was primarily due to a 24 basis points increase in
the average rate paid on interest-bearing deposits and, to a lesser
extent, a $9.7 million increase in
average balance of interest-bearing deposits. The increase from the
comparable quarter in 2021 was due to an increase of $122.2 million in average balance of, and a 16
basis point increase in the average rate paid on, interest-bearing
deposits. The average rate paid on interest-bearing deposits was
0.86% for the quarter ended September 30,
2022, compared to 0.62% and 0.70% for the quarters ended
June 30, 2022 and September 30, 2021, respectively. Interest
expense on FHLB borrowings increased $234,000, or 37.5%, to $859,000 for the third quarter of 2022 compared
to the previous quarter and increased $170,000, or 24.7%, from the comparable quarter
in 2021 due to increases in both the average rate paid on and the
outstanding balance of FHLB borrowings. The average balance of FHLB
borrowings totaled $182.5 million
during the quarter ended September 30,
2022, compared to $170.3
million and $179.4 million for
the quarters ended June 30, 2022 and
September 30, 2021, respectively. The
average rate paid on FHLB borrowings was 1.88% for the quarter
ended September 30, 2022, 1.47% for
the quarter ended June 30, 2022, and
1.54% for the third quarter of 2021.
Annualized net interest margin decreased to 3.39% for the third
quarter of 2022, compared to 3.45% for the second quarter of 2022
and 3.42% for the third quarter of 2021. The decrease in the net
interest margin for the third quarter of 2022 compared to the
second quarter of 2022 and the comparable quarter in 2021 was
primarily due to the rate paid on interest-bearing liabilities
increasing faster than the yield on interest-earning
assets.
The provision for loan and lease losses totaled $200,000 for the quarters ended September 30, 2022 and June 30, 2022, and $500,000 for the quarter ended September 30, 2021. Net charge-offs during
the third quarter of 2022 were $25,000, compared to net charge-offs of
$136,000 during the second quarter of
2022 and $82,000 in the third quarter
of 2021. Uncertainties relating to the level of our allowance for
loan losses remains heightened as a result of continued concern
about a potential recession due to inflation, rising interest
rates, stock market volatility and the Russia-Ukraine conflict.
Total noninterest income increased $7,000, or 0.6%, to $1.2
million for the quarter ended September 30, 2022 compared to the quarter ended
June 30, 2022, and increased
$39,000, or 3.4%, from the comparable
quarter in 2021. The increase in noninterest income in the third
quarter of 2022 from the second quarter of 2022 occurred despite a
decrease in net gains on loan and lease sales. Net gains on
loan and lease sales decreased $106,000, or 47.6%, to $116,000 in the third quarter of 2022 compared to
the second quarter of 2022, which were offset by increases in loan
and lease servicing fees, and fees earned from our participation in
a loan hedging program with a correspondent bank. Loan and
lease servicing fees increased $58,000 in the third quarter of 2022 compared to
the second quarter of 2022 as a recovery of $114,000 to mortgage servicing rights was
recorded in the third quarter of 2022 compared to a recovery of
$76,000 in the second quarter of
2022, due to rising interest rates increasing the expected duration
of our loans. In addition, service fees on deposit accounts
increased $12,000, or 4.6%, to
$260,000 for the quarter ended
September 30, 2022, compared to
$248,000 for the second quarter of
2022. Other income increased $47,000 in the third quarter of 2022 compared to
the second quarter of 2022 primarily due to fees earned from our
participation in a loan hedging program with a correspondent bank,
partially offset by a reduction in letter of credit fees.
Total noninterest income increased $39,000, or 3.4% from the comparable quarter in
2021, due primarily to a $417,000, or
230.0%, increase in loan and lease servicing fees. Loan and
lease servicing fees in the third quarter of 2022 reflected a
recovery of $114,000 to mortgage
servicing rights compared to an impairment charge of $251,000 recorded in the third quarter of
2021. Net gains on loan and lease sales decreased
$441,000, or 79.1%, to $116,000 as mortgage banking activity declined
primarily due to lower refinancing activity, a lower supply of
houses for sale in the Bank's market area, and increases in
residential mortgage rates. Partially offsetting these
decreases were increases in card fee income and service fees on
deposit accounts. Card fee income increased $32,000, or 12.0%, in the third quarter of 2022
due to higher card usage. Service fees on deposit accounts
increased $24,000, or 10.1%, in the
third quarter of 2022 from the comparable quarter in 2021. Other
income increased $78,000, or 8.7% in
the third quarter of 2022 compared to the comparable quarter of
2021 primarily due to the fees earned from our participation in a
loan hedging program with a correspondent bank.
Total noninterest expense increased $565,000, or 7.9%, to $7.7
million for the three months ended September 30, 2022, compared to the second
quarter of 2022, and increased $878,000, or 12.8% compared to the same period in
2021. Salaries and employee benefits increased $195,000, or 4.3%, to $4.7
million for the quarter ended September 30, 2022, compared to the second
quarter of 2022, and increased $493,000 compared to the quarter ended
September 30, 2021. The increase in
salaries and benefits in the third quarter of 2022 from the second
quarter of 2022 and the quarter ended September 30, 2021 was primarily due to annual
merit increases and the hiring of additional staff. Data processing
fees increased $176,000, or 30.9%, to
$744,000 for the quarter ended
September 30, 2022, compared to the
second quarter of 2022, and increased $231,000, or 45.0% compared to the third quarter
of 2021. The increase in data processing fees during the
current quarter compared to the second quarter of 2022 and the
comparable quarter in 2021, was primarily due to continued
implementation and roll out of new digital banking modules during
the third quarter. The Company's change to a new digital
banking provider in the fourth quarter of 2021 also contributed to
the increase in data processing fees during the current quarter
compared to the comparable quarter in 2021. Other expenses
increased $175,000, or 22.1% in the
third quarter of 2022 compared to the prior quarter, and increased
$76,000, or 8.7%, compared to the
same quarter of 2021. The increase in other expenses in the third
quarter of 2022 from the second quarter of 2022 primarily was due
to increased telephone expense and expenses related to employee
professional development. The increase in other expenses in
the third quarter of 2022 from the same period in 2021 primarily
was due to expenses related to employee professional
development.
Income tax expense decreased $266,000 during the three months ended
September 30, 2022 compared to the
quarter ended June 30, 2022, and
decreased $61,000 compared to the
quarter ended September 30, 2021, due
to a lower level of pre-tax income compared to the second quarter
of 2022 and a lower effective tax rate. The effective tax
rate for the third quarter of 2022 was 16.3% compared to 20.2% in
the second quarter of 2022, and 18.0% in the third quarter a year
ago. The decrease in the effective tax rate was due to municipal
tax-free income representing a greater percentage of our pre-tax
income.
Balance Sheet Summary
Total assets increased $11.0
million, or 0.9%, to $1.3
billion at September 30, 2022
from December 31, 2021. The increase
was primarily the result of an $82.6
million, or 9.9%, increase in loans and leases, net of
allowance, to $915.5 million and a
$12.8 million, or 117.9% increase in
other assets to $23.6 million at
September 30, 2022. These increases
were partially offset by decreases of $79.5
million or 21.7% in investment securities to $287.1 million and $3.7
million or 16.0% in cash and cash equivalents to
$19.4 million at September 30, 2022.
The increase in loans and leases was attributable to an increase
in commercial real estate loans, construction and development
loans, and residential mortgage loans of $21.6 million, $46.4
million and $7.0 million,
respectively. Commercial and industrial loans decreased
$3.0 million primarily due to a
decrease of $8.2 million in Paycheck
Protection Program ("PPP") loans resulting from loan forgiveness by
the U.S. Small Business Administration ("SBA"). PPP loans totaled
$1.2 million at September 30, 2022. Other assets increased
primarily due to a $14.4 million
increase in deferred tax assets due to the mark-to-market
adjustment on the investment portfolio. The decrease in investment
securities primarily was the result of reinvesting only a portion
of normal recurring maturities and payments on securities and using
the remainder to fund growth in the loan and lease portfolio.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past
due, totaled $8.5 million or 0.92% of total loans and leases
at September 30, 2022, compared to
$8.0 million or 0.95% at December 31, 2021. Accruing loans past due more
than 90 days totaled $2.5 million at
September 30, 2022, compared to
$1.8 million at December 31, 2021.
The allowance for loan and lease losses increased $448,000, or 3.7%, to $12.6 million at September
30, 2022 from $12.1 million at
December 31, 2021. At September 30, 2022 the allowance for loan and
lease losses totaled 1.35% of total loans and leases outstanding,
compared to 1.43% at December 31,
2021. Net charge-offs during the first nine months of 2022
were $152,000 compared to net
charge-offs of $167,000 during the
comparable period of 2021.
Management regularly analyzes conditions within its geographic
markets and evaluates its loan and lease portfolio. The Company
evaluated its exposure to potential loan and lease losses as of
September 30, 2022, which evaluation
included consideration of a potential recession due to inflation,
rising interest rates, stock market volatility, and the
Russia-Ukraine conflict. Credit metrics are
being reviewed and stress testing is being performed on the loan
portfolio on an ongoing basis.
Total deposits increased $58.5
million or 6.5% to $958.6
million at September 30, 2022,
compared to December 31, 2021. The
increase in deposits from December 31,
2021 primarily was due to an increase in brokered time
deposits of $72.2 million and savings
and money market accounts of $20.7
million, partially offset by a decrease in other time
deposits of $32.6 million. Management
attributes the shift in funds to customers anticipating potentially
higher rates being paid on time deposits in 2022 in connection with
the additional expected interest rate hikes by the Federal Reserve
this year. Brokered time deposits totaled $194.0 million or 20.2% of total deposits at
September 30, 2022.
Noninterest-bearing demand deposits remained relatively unchanged
at $114.8 million at
September 30, 2022 compared to
$114.3 million at December 31, 2021, and totaled 12.0% of total
deposits at September 30, 2022.
Stockholders' equity totaled $125.0
million at September 30, 2022,
a decrease of $55.5 million or 30.8%
from December 31, 2021. The decrease
in stockholders' equity from December 31,
2021 primarily was the result of a reduction in accumulated
comprehensive income of $54.0 million
due to a greater mark-to-market adjustment to the investment
portfolio as a result of higher interest rates, the payment of
$3.3 million in dividends to Company
stockholders, and the repurchase of $9.6
million of Company common stock, partially offset by net
income of $9.7 million.
During the quarter ended September 30,
2022, the Company repurchased a total of 45,689 shares of
Company common stock at an average price of $14.17 per share. As of September 30, 2022, the Company had approximately
1,140,574 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 3,863 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.
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: the
effect of the COVID-19 pandemic;; significant short-term interest
rate increases by the Federal Reserve; recessionary pressures
caused by inflation, Federal Reserve actions to combat inflation
and ongoing supply chain disruptions caused by the Covid-19
pandemic and the Russia-Ukraine conflict; legislative changes; changes
in policies by regulatory agencies; fluctuations in interest rates;
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;
fluctuations in real estate values and both residential and
commercial real estate market conditions; demand for loans and
deposits in the Company's market area; changes in management's
business strategies; changes in the regulatory and tax environments
in which the Company operates; and other factors set forth in the
Company's filings with the SEC.
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. 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.
Refer to the Company's periodic and current reports filed with the
SEC for specific risks that could cause actual results to be
significantly different from those expressed or implied by any
forward-looking statements.
Financial Highlights
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
SELECTED OPERATIONS
DATA:
|
September
30,
2022
|
|
June 30,
2022
|
|
September
30,
2021
|
|
September
30,
2022
|
|
September
30,
2021
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
13,170
|
|
$
12,448
|
|
$
11,900
|
|
$
37,560
|
|
$
33,896
|
Interest
expense
|
2,657
|
|
1,899
|
|
1,942
|
|
6,445
|
|
5,746
|
Net interest
income
|
10,513
|
|
10,549
|
|
9,958
|
|
31,115
|
|
28,150
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
200
|
|
200
|
|
500
|
|
600
|
|
1,430
|
Net interest income
after provision
|
10,313
|
|
10,349
|
|
9,458
|
|
30,515
|
|
26,720
|
Noninterest
income
|
1,184
|
|
1,176
|
|
1,145
|
|
3,475
|
|
4,313
|
Noninterest
expense
|
7,723
|
|
7,158
|
|
6,844
|
|
22,214
|
|
20,701
|
Income before income
tax expense
|
3,774
|
|
4,367
|
|
3,759
|
|
11,776
|
|
10,332
|
Income tax
provision
|
616
|
|
882
|
|
677
|
|
2,115
|
|
1,906
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
3,158
|
|
$
3,485
|
|
$
3,082
|
|
$
9,661
|
|
$
8,426
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
11,802
|
|
11,848
|
|
12,432
|
|
11,802
|
|
12,432
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
10,638
|
|
10,763
|
|
11,173
|
|
11,805
|
|
11,442
|
Diluted
|
10,836
|
|
11,125
|
|
11,473
|
|
11,147
|
|
11,685
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.30
|
|
$
0.32
|
|
$
0.28
|
|
$
0.89
|
|
$
0.74
|
Diluted
|
$
0.29
|
|
$
0.31
|
|
$
0.27
|
|
$
0.87
|
|
$
0.72
|
SELECTED FINANCIAL
CONDITION DATA:
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,278,606
|
|
$
1,271,640
|
|
$
1,256,113
|
|
$
1,267,640
|
Cash and cash
equivalents
|
19,352
|
|
14,419
|
|
19,576
|
|
23,038
|
Investment
securities
|
287,104
|
|
310,776
|
|
334,981
|
|
366,579
|
Loans and leases, net
of allowance
|
915,464
|
|
891,877
|
|
849,987
|
|
832,846
|
Loans held for
sale
|
78
|
|
1,120
|
|
583
|
|
558
|
Premises and equipment,
net
|
13,776
|
|
14,010
|
|
14,146
|
|
14,347
|
Federal Home Loan Bank
stock
|
9,902
|
|
9,781
|
|
9,781
|
|
9,992
|
Other assets
|
32,930
|
|
29,657
|
|
27,059
|
|
20,280
|
Deposits
|
958,640
|
|
948,333
|
|
909,495
|
|
900,175
|
Borrowings
|
187,000
|
|
177,000
|
|
182,000
|
|
180,000
|
Total stockholder's
equity
|
124,972
|
|
138,945
|
|
157,343
|
|
180,481
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
124,972
|
|
$
138,945
|
|
$
157,343
|
|
$
180,481
|
Tangible book value
(non-GAAP)
|
124,972
|
|
138,945
|
|
157,343
|
|
180,481
|
Book value per share
(GAAP)
|
10.59
|
|
11.73
|
|
12.78
|
|
14.55
|
Tangible book value per
share (non-GAAP)
|
10.59
|
|
11.73
|
|
12.78
|
|
14.55
|
The following table summarizes information relating
to our loan and lease portfolio at the dates indicated:
|
|
|
|
|
|
|
|
|
(In
thousands)
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
282,758
|
|
$
278,490
|
|
$
257,755
|
|
$
261,202
|
Commercial and
industrial
|
96,720
|
|
106,427
|
|
96,609
|
|
99,682
|
Construction and
development
|
140,035
|
|
104,832
|
|
102,123
|
|
93,678
|
Multi-family
|
107,640
|
|
121,424
|
|
116,439
|
|
107,421
|
Residential
mortgage
|
141,162
|
|
135,486
|
|
135,155
|
|
134,155
|
Home equity
|
9,750
|
|
9,347
|
|
8,393
|
|
7,146
|
Direct financing
leases
|
129,884
|
|
130,859
|
|
130,451
|
|
126,762
|
Consumer
|
20,806
|
|
18,229
|
|
16,130
|
|
15,905
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
928,755
|
|
$
905,094
|
|
$
863,055
|
|
$
845,951
|
The following table summarizes
information relating to our deposits at the dates
indicated:
|
|
|
|
|
|
|
|
|
(In
thousands)
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
114,780
|
|
$
119,774
|
|
$
113,662
|
|
$
114,303
|
Interest-bearing
demand
|
162,053
|
|
166,775
|
|
166,902
|
|
164,356
|
Savings and money
market
|
274,690
|
|
284,740
|
|
275,173
|
|
253,957
|
Non-brokered time
deposits
|
213,164
|
|
224,069
|
|
233,703
|
|
245,808
|
Brokered time
deposits
|
193,953
|
|
152,975
|
|
120,055
|
|
121,751
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
958,640
|
|
$
948,333
|
|
$
909,495
|
|
$
900,175
|
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
September 30,
|
|
2022
|
|
2021
|
|
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
|
$
908,621
|
|
$
11,302
|
|
4.98 %
|
|
$
784,531
|
|
$ 10,437
|
|
5.32 %
|
Securities
|
311,273
|
|
1,711
|
|
2.20 %
|
|
354,211
|
|
1,387
|
|
1.57 %
|
FHLB stock
|
9,795
|
|
121
|
|
4.94 %
|
|
9,081
|
|
69
|
|
3.04 %
|
Cash and cash
equivalents and other
|
9,722
|
|
36
|
|
1.48 %
|
|
17,515
|
|
7
|
|
0.16 %
|
Total interest-earning
assets
|
1,239,411
|
|
13,170
|
|
4.25 %
|
|
1,165,338
|
|
11,900
|
|
4.08 %
|
Non-earning
assets
|
40,970
|
|
|
|
|
|
38,232
|
|
|
|
|
Total
assets
|
1,280,381
|
|
|
|
|
|
1,203,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
280,799
|
|
569
|
|
0.81 %
|
|
250,799
|
|
325
|
|
0.52 %
|
Interest-bearing
checking accounts
|
169,306
|
|
163
|
|
0.39 %
|
|
166,138
|
|
98
|
|
0.24 %
|
Certificate
accounts
|
385,943
|
|
1,067
|
|
1.11 %
|
|
296,954
|
|
830
|
|
1.12 %
|
Borrowings
|
182,533
|
|
859
|
|
1.88 %
|
|
179,413
|
|
689
|
|
1.54 %
|
Total interest-bearing
liabilities
|
1,018,581
|
|
2,658
|
|
1.04 %
|
|
893,304
|
|
1,942
|
|
0.87 %
|
Noninterest-bearing
demand deposits
|
112,558
|
|
|
|
|
|
105,976
|
|
|
|
|
Other
liabilities
|
7,863
|
|
|
|
|
|
22,740
|
|
|
|
|
Stockholders'
equity
|
141,379
|
|
|
|
|
|
181,550
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,280,381
|
|
|
|
|
|
1,203,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
10,512
|
|
|
|
|
|
$
9,958
|
|
|
Net earning
assets
|
$
220,830
|
|
|
|
|
|
$
272,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.21 %
|
|
|
|
|
|
3.21 %
|
Net interest
margin(2)
|
|
|
|
|
3.39 %
|
|
|
|
|
|
3.42 %
|
Average
interest-earning assets to average interest-bearing
liabilities
|
121.68 %
|
|
|
|
|
|
130.45 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________________________________
|
(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.
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
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
|
$
878,334
|
|
$
32,250
|
|
4.90 %
|
|
$
775,647
|
|
$ 30,162
|
|
5.18 %
|
Securities
|
329,185
|
|
4,953
|
|
2.01 %
|
|
309,776
|
|
3,512
|
|
1.51 %
|
FHLB stock
|
9,827
|
|
282
|
|
3.83 %
|
|
9,060
|
|
202
|
|
2.97 %
|
Cash and cash
equivalents and other
|
14,527
|
|
75
|
|
0.69 %
|
|
23,932
|
|
20
|
|
0.11 %
|
Total interest-earning
assets
|
1,231,873
|
|
37,560
|
|
4.07 %
|
|
1,118,415
|
|
33,896
|
|
4.04 %
|
Non-earning
assets
|
39,571
|
|
|
|
|
|
40,605
|
|
|
|
|
Total
assets
|
1,271,444
|
|
|
|
|
|
1,159,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
280,304
|
|
1,294
|
|
0.62 %
|
|
242,257
|
|
921
|
|
0.51 %
|
Interest-bearing
checking accounts
|
168,195
|
|
371
|
|
0.29 %
|
|
153,817
|
|
267
|
|
0.23 %
|
Certificate
accounts
|
370,249
|
|
2,657
|
|
0.96 %
|
|
272,440
|
|
2,475
|
|
1.21 %
|
Borrowings
|
178,762
|
|
2,123
|
|
1.58 %
|
|
174,198
|
|
2,083
|
|
1.59 %
|
Total interest-bearing
liabilities
|
997,510
|
|
6,445
|
|
0.86 %
|
|
842,712
|
|
5,746
|
|
0.91 %
|
Noninterest-bearing
demand deposits
|
112,448
|
|
|
|
|
|
107,596
|
|
|
|
|
Other
liabilities
|
7,050
|
|
|
|
|
|
22,882
|
|
|
|
|
Stockholders'
equity
|
154,436
|
|
|
|
|
|
185,830
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,271,444
|
|
|
|
|
|
1,159,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
31,115
|
|
|
|
|
|
$ 28,150
|
|
|
Net earning
assets
|
$
234,363
|
|
|
|
|
|
$
275,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.21 %
|
|
|
|
|
|
3.13 %
|
Net interest
margin(2)
|
|
|
|
|
3.37 %
|
|
|
|
|
|
3.36 %
|
Average
interest-earning assets to average interest-bearing
liabilities
|
123.49 %
|
|
|
|
|
|
132.72 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________________________________
|
(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:
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
0.99 %
|
|
1.10 %
|
|
0.96 %
|
|
0.87 %
|
|
1.02 %
|
Return on average
equity (annualized)
|
8.94 %
|
|
9.41 %
|
|
7.15 %
|
|
6.06 %
|
|
6.83 %
|
Yield on
interest-earning assets
|
4.25 %
|
|
4.07 %
|
|
3.88 %
|
|
3.94 %
|
|
4.08 %
|
Rate paid on
interest-bearing liabilities
|
1.04 %
|
|
0.76 %
|
|
0.77 %
|
|
0.82 %
|
|
0.87 %
|
Average interest rate
spread
|
3.21 %
|
|
3.31 %
|
|
3.11 %
|
|
3.12 %
|
|
3.21 %
|
Net interest margin
(annualized)(1)
|
3.39 %
|
|
3.45 %
|
|
3.26 %
|
|
3.31 %
|
|
3.42 %
|
Operating expense to
average total assets (annualized)
|
2.41 %
|
|
2.27 %
|
|
2.32 %
|
|
2.55 %
|
|
2.26 %
|
Efficiency
ratio(2)
|
66.03 %
|
|
61.05 %
|
|
65.66 %
|
|
70.99 %
|
|
61.74 %
|
Average
interest-earning assets to average interest-bearing
liabilities
|
121.68 %
|
|
122.81 %
|
|
126.10 %
|
|
129.42 %
|
|
130.45 %
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(3)
|
0.67 %
|
|
0.64 %
|
|
0.64 %
|
|
0.64 %
|
|
0.69 %
|
Non-performing loans
and leases to total gross loans and leases(4)
|
0.92 %
|
|
0.89 %
|
|
0.92 %
|
|
0.95 %
|
|
1.05 %
|
Allowance for loan and
lease losses to non-performing loans and
leases(4)
|
147.12 %
|
|
153.32 %
|
|
154.91 %
|
|
150.76 %
|
|
139.23 %
|
Allowance for loan and
lease losses to total loans and leases
|
1.35 %
|
|
1.37 %
|
|
1.43 %
|
|
1.43 %
|
|
1.47 %
|
Net (recoveries)
charge-offs (annualized) to average outstanding loans and leases
during the period
|
0.01 %
|
|
0.06 %
|
|
— %
|
|
(0.13) %
|
|
0.04 %
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
9.77 %
|
|
10.93 %
|
|
12.53 %
|
|
14.27 %
|
|
14.51 %
|
Average equity to
average assets
|
11.04 %
|
|
11.72 %
|
|
13.39 %
|
|
14.39 %
|
|
14.93 %
|
Common equity tier 1
capital (to risk weighted assets)(5)
|
13.59 %
|
|
15.55 %
|
|
15.62 %
|
|
16.02 %
|
|
16.38 %
|
Tier 1 leverage (core)
capital (to adjusted tangible assets)(5)
|
11.29 %
|
|
12.74 %
|
|
12.64 %
|
|
12.53 %
|
|
12.76 %
|
Tier 1 risk-based
capital (to risk weighted assets)(5)
|
13.59 %
|
|
15.55 %
|
|
15.62 %
|
|
16.02 %
|
|
16.38 %
|
Total risk-based
capital (to risk weighted assets)(5)
|
14.74 %
|
|
16.72 %
|
|
16.81 %
|
|
17.25 %
|
|
17.63 %
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
Full-time equivalent
employees
|
184
|
|
177
|
|
177
|
|
173
|
|
175
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net interest
income divided by average interest-earning assets.
|
(2)
|
Total
noninterest expenses as a percentage of net interest income and
total noninterest income, excluding net securities
transactions.
|
(3)
|
Non-performing
assets consist of nonaccrual loans and leases, accruing loans and
leases more than 90 days past due and foreclosed assets.
|
(4)
|
Non-performing
loans and leases consist of nonaccrual loans and leases and
accruing loans and leases more than 90 days past due.
|
(5)
|
Capital ratios
are for First Bank Richmond.
|
View original
content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2022-third-quarter-financial-results-301655608.html
SOURCE Richmond Mutual Bancorporation, Inc.