RICHMOND, Ind., Oct. 24,
2024 /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 third quarter of 2024, compared to net income of
$2.1 million, or $0.20 diluted earnings per share, for the second
quarter of 2024, and net income of $1.9
million, or $0.19 diluted
earnings per share, for the third quarter of 2023. Diluted earnings
per share increased 20.0% and increased 26.3% for the third quarter
of 2024 as compared to the second quarter of 2024 and the third
quarter of 2023, respectively.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "Our net income increased
during the quarter primarily due to an increase in our noninterest
income, which resulted from an increase in net gains on loan and
lease sales. Additionally, the performance of our loan and lease
portfolio improved, as nonperforming assets declined during the
period. We anticipate further improvements in credit quality if
market interest rates continue to decrease."
Third Quarter Performance Highlights:
- Assets totaled $1.5 billion at
September 30, 2024, June 30, 2024 and December
31, 2023.
- Loans and leases, net of allowance for credit losses, totaled
$1.1 billion at September 30, 2024, June
30, 2024, and December 31,
2023.
- Nonperforming loans and leases totaled $6.7 million, or 0.58% of total loans and leases,
at September 30, 2024, compared to
$7.7 million, or 0.67% of total loans
and leases, at June 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 1.36% of total loans and leases
outstanding, at September 30, 2024,
compared to $15.9 million, or 1.37%
of total loans and leases outstanding, at June 30, 2024, and $15.7
million, or 1.42% of total loans and leases outstanding, at
December 31, 2023.
- A reversal for credit losses was recognized in the quarter
ended September 30, 2024 of
$99,000, compared to provisions of
$270,000 in the quarter ended
June 30, 2024, and $50,000 in the third quarter of 2023.
- Deposits totaled $1.1 billion at
September 30, 2024 and June 30, 2024, compared to $1.0 billion at December
31, 2023. At September 30,
2024, noninterest-bearing deposits totaled $98.5 million or 9.0% of total deposits, compared
to $102.8 million or 9.3% of total
deposits at June 30, 2024, and
$114.4 million or 11.0% of total
deposits at December 31, 2023. At
September 30, 2024, approximately
$224.6 million, or 20.6%, of our
deposit portfolio, excluding collateralized public deposits, was
uninsured.
- Stockholders' equity totaled $140.0
million at September 30, 2024,
compared to $131.1 million at
June 30, 2024 and $134.9 million at December
31, 2023. The Company's equity to assets ratio was 9.38% at
September 30, 2024.
- Book value per share and tangible book value per share were
$12.79 at September 30, 2024, compared to $11.90 per share at June
30, 2024 and $12.03 per share
at December 31, 2023.
- Net interest income decreased $143,000, or 1.5%, to $9.4
million for the three months ended September 30, 2024, compared to $9.6 million for the prior quarter, and increased
$305,000, or 3.3%, from $9.1 million for the comparable quarter in
2023.
- Annualized net interest margin was 2.60% for the current
quarter, compared to 2.64% in the preceding quarter and 2.66% for
the comparable quarter in 2023.
- The Company repurchased 71,306 shares of common stock at an
average price of $12.42 per share
during the quarter ended September 30,
2024.
- The Bank's Tier 1 capital to total assets was 10.73%, well in
excess of all regulatory requirements at September 30, 2024.
Income Statement Summary
Net interest income before the (recovery of)/provision for
credit losses decreased $143,000, or
1.5%, to $9.4 million in the third
quarter of 2024, compared to $9.6
million in the second quarter of 2024, and increased
$305,000, or 3.3%, from $9.1 million in the third quarter of 2023. The
decrease from the second quarter of 2024 was due to a seven basis
point decrease in the average interest rate spread, partially
offset by a $4.2 million increase in
average net earning assets. The increase from the comparable
quarter in 2023 was due to an $80.0
million increase in average interest earning assets,
partially offset by a 13 basis point decrease in the average
interest rate spread. Between March
2022 and January 2024, in
response to continuing elevated inflation, the Federal Open Market
Committee of the Federal Reserve hiked interest rates a total of 11
times, to a range of 5.25% to 5.50% until September 18, 2024 when the rates were reduced to
the range of 4.75% to 5.00%. While interest income benefited from
the repricing impact of the higher interest rate environment on
earning asset yields, the benefits were offset by the higher cost
of interest-bearing deposit accounts and borrowings, which tend to
be shorter in duration than our assets and re-price or reset faster
than assets.
Interest income increased $176,000, or 0.9%, to $20.3 million during the quarter ended
September 30, 2024, compared to the
quarter ended June 30, 2024, and
increased $2.8 million, or 16.4%,
compared to the quarter ended September 30,
2023.
Interest income on loans and leases increased $260,000, or 1.5%, to $18.1 million for the quarter ended September 30, 2024, compared to $17.8 million in the second quarter of 2024, due
to a $3.9 million increase in the
average balance of loans and leases, and an increase of seven basis
points to 6.27% in the average yield earned on loans and leases.
Interest income on loans and leases increased $2.8 million, or 18.3%, in the third quarter of
2024 compared to the third quarter of 2023, due to an increase in
the average balance of loans and leases of $84.3 million and an increase of 56 basis points
in the average yield earned on loans and leases.
Interest income on investment securities, excluding FHLB
stock, decreased $34,000, or 2.0%, to
$1.7 million during the quarter ended
September 30, 2024, compared to the
quarter ended June 30, 2024, and
decreased $102,000, or 5.7%, from the
comparable quarter in 2023. The decrease compared to the second
quarter of 2024 was due to a $2.3
million decrease in the average balance and a three basis
point decrease in the average yield earned on investment
securities. The decrease compared to the third quarter of 2023 was
due to a $12.7 million decrease in
the average balance, primarily as a result of proceeds received
from maturities and paydowns on securities being used to fund loan
growth, and a three basis point decrease in the average yield
earned on investment securities. Dividends on FHLB stock decreased
$20,000, or 6.2%, to $302,000 during the quarter ended September 30, 2024 compared to the quarter ended
June 30, 2024, and increased
$63,000, or 26.4%, compared to the
quarter ended September 30, 2023, due
to changes in the amount of FHLB stock held during the periods.
Interest income on cash and cash equivalents decreased $30,000, or 13.6%, during the quarter ended
September 30, 2024, compared to the
quarter ended June 30, 2024, and
increased $86,000, or 84.3%, compared
to the quarter ended September 30,
2023. The decrease in interest income on cash and cash
equivalents in the third quarter of 2024 from the second quarter of
2024 was due to a nine basis point decrease in the average
yield and a $618,000 decrease in the
average balance. The increase in interest income on cash and
cash equivalents in the third quarter of 2024 from the third
quarter of 2023 was due to an 81 basis point increase in the
average yield along with a $5.5
million increase in the average balance of cash and cash
equivalents.
Interest expense increased $319,000, or 3.0%, to $10.8 million for the quarter ended September 30, 2024 compared to the quarter ended
June 30, 2024, and increased
$2.5 million, or 30.7%, compared to
the quarter ended September 30, 2023.
Interest expense on deposits increased $330,000, or 4.1%, to $8.3
million for the quarter ended September 30, 2024, compared to the previous
quarter and increased $2.0 million,
or 31.9%, from the comparable quarter in 2023. The increase from
the previous quarter was primarily due to a 10 basis point increase
in the average rate paid on, and a $9.8
million increase in the average balances of,
interest-bearing deposits. The increase from the comparable quarter
in 2023 was due to an increase of $61.8
million in average balance of, and a 64 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 September 30, 2024, compared to
3.23% and 2.69% for the quarters ended June
30, 2024 and September 30,
2023, respectively.
Interest expense on FHLB borrowings decreased $11,000, or 0.5%, to $2.5
million for the third quarter of 2024 compared to the
previous quarter and increased $529,000, or 26.9%, from the comparable quarter
in 2023. The decrease from the previous quarter was primarily due
to a $13.1 million decrease in the
average balance of FHLB borrowing, partially offset by a 19 basis
point increase in the average rate paid. The increase from the
comparable quarter in 2023 was primarily due to an increase of 58
basis points in the average rate paid on FHLB borrowings and an
increase in the average balance of FHLB borrowings of $20.0 million. The average balance of FHLB
borrowings totaled $244.8 million
during the quarter ended September 30,
2024, compared to $257.9
million and $224.8 million for
the quarters ended June 30, 2024 and
September 30, 2023, respectively. The
average rate paid on FHLB borrowings was 4.08% for the quarter
ended September 30, 2024, 3.89% for
the quarter ended June 30, 2024, and
3.50% for the third quarter of 2023.
Annualized net interest margin decreased to 2.60% for the third
quarter of 2024, compared to 2.64% for the second quarter of 2024,
and from 2.66% for the third quarter of 2023. The decrease in the
net interest margin was primarily due to greater increases in the
rates paid and average balances of our interest-bearing liabilities
as compared to our interest-earning assets.
A reversal of the provision for credit losses of $99,000 was recognized in the third quarter of
2024, compared to a provision for credit losses of $270,000 for the quarter ended June 30, 2024, and $50,000 for the quarter ended September 30, 2023. Net charge-offs during the
third quarter of 2024 were $464,000,
compared to $450,000 during the
second quarter of 2024 and $299,000
during the third quarter of 2023. The reversal of provision for
credit losses during the 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 increased $213,000, or 19.2%, to $1.3 million for the quarter ended September 30, 2024 compared to the quarter ended
June 30, 2024, and increased
$168,000, or 14.5%, from the
comparable quarter in 2023. The increase in noninterest income from
the second quarter of 2024 primarily resulted from an increase in
net gains on loan and lease sales, which increased $121,000, or 133.7%, to $211,000 in the third quarter of 2024 compared to
the prior quarter. Service charges on deposit accounts increased
$15,000, or 5.1%, to $325,000 for the quarter ended September 30, 2024, compared to $310,000 for the second quarter of 2024. Other
income increased $13,000, or 3.8%, to
$354,000 in the third quarter of 2024
compared to $341,000 in the previous
quarter. 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 other income. Net gains on loan
and lease sales increased $122,000,
or 135.8%, compared to the same quarter in 2023, due to increased
mortgage banking activity. Service fees on deposit accounts
increased $51,000, or 18.5%, in the
third 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. Other income decreased $24,000, or 6.3%, to $354,000 for the quarter ended September 30, 2024, compared to $378,000 for the comparable quarter in 2023 due
to fees earned from our participation in a loan hedging program
with a correspondent bank in 2023.
Total noninterest expense decreased $36,000, or 0.5%, to $8.0
million for the three months ended September 30, 2024, compared to the second
quarter of 2024, and increased $3,000
compared to the same period in 2023. Salaries and employee benefits
decreased $91,000, or 2.0%, to
$4.6 million for the quarter ended
September 30, 2024, compared to the
second quarter of 2024, and increased $204,000 compared to the quarter ended
September 30, 2023. The decrease in
salaries and benefits from the second quarter of 2024 was primarily
a result of a reduction in the number of full-time equivalent
employees due to employee retirements, while the increase from the
third quarter of 2023 was due to increased compensation and
insurance expenses. Deposit insurance expense remained flat at
$380,000 for the quarter ended
September 30, 2024, compared to the
second quarter of 2024, and increased $100,000, or 35.7%, from the comparable quarter
in 2023 primarily due to changes in the asset and deposit mix.
Legal and professional fees decreased $18,000, or 3.7%, to $463,000 for the quarter ended September 30, 2024, compared to the second
quarter of 2024 and decreased $65,000, or 12.3%, from the comparable quarter in
2023 primarily due to decreased accounting and audit
expenses. Other expenses increased $44,000, or 5.1%, in the third quarter of 2024
compared to the prior quarter, and decreased $236,000, or 20.4%, compared to the same quarter
of 2023. The decrease in other expenses from the comparable quarter
of 2023 primarily was due to a reduction in losses due to
fraud, and a decrease in loan closing expenses.
Income tax expense increased $64,000 during the three months ended
September 30, 2024 compared to the
quarter ended June 30, 2024, and
increased $95,000 compared to the
quarter ended September 30, 2023, due
to increases in pre-tax income. The effective tax rate for the
third quarter of 2024 was 13.0%, compared to 12.9% and 12.3% in the
second quarter of 2024 and the third quarter a year ago,
respectively.
Balance Sheet Summary
Total assets increased $31.5
million, or 2.2%, to $1.5
billion at September 30, 2024
from December 31, 2023. The increase
was primarily the result of a $50.9
million, or 4.7%, increase in loans and leases, net of
allowance for credit losses, to $1.1
billion, partially offset by a $16.3
million, or 5.7%, decrease in investment securities to
$271.3 million at September 30, 2024.
The increase in loans and leases was attributable to an increase
in multi-family loans, commercial and industrial loans, residential
mortgage loans, and commercial real estate loans of $45.0 million, $11.2
million, $10.8 million and
$6.8 million, respectively.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past
due, totaled $6.7 million, or 0.58%
of total loans and leases, at September 30,
2024, compared to $8.0
million, or 0.72%, at December 31,
2023. Accruing loans past due more than 90 days totaled
$1.6 million at September 30, 2024, compared to $1.7 million at December
31, 2023.
The allowance for credit losses on loans and leases increased
$110,000, or 0.7%, to $15.8 million at September
30, 2024 from $15.7 million at
December 31, 2023. At September 30, 2024 the allowance for credit
losses on loans and leases totaled 1.36% of total loans and leases
outstanding, compared to 1.42% at December
31, 2023. Net charge-offs during the first nine months
of 2024 were $1.2 million, compared
to net charge-offs of $436,000 during
the comparable period of 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
September 30, 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 $16.3
million, or 5.7%, to $271.3
million at September 30, 2024
compared to $287.6 million at
December 31, 2023. Investment
securities decreased primarily due to $14.6
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 $48.0
million, or 4.6%, to $1.1
billion at September 30, 2024,
compared to December 31, 2023. The
increase in deposits from December 31,
2023 primarily was due to an increase in non-brokered time
deposits of $41.6 million, which were
used primarily to fund loan demand, and savings and money-market
accounts of $27.0 million, partially
offset by a decrease in demand deposit accounts of $31.4 million. Brokered time deposits totaled
$279.6 million, or 25.7% of total
deposits, at September 30, 2024,
compared to $268.8 million, or 25.8%
of total deposits at December 31,
2023. Noninterest-bearing demand deposits decreased
$15.9 million to $98.5 million at September
30, 2024 compared to $114.4
million at December 31, 2023,
and totaled 9.0% of total deposits at September 30, 2024. Management attributes the
shift in funds from transaction accounts to retail certificates of
deposit 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 September 30, 2024,
approximately $224.6 million of our
deposit portfolio, or 20.6% 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 $140.0
million at September 30, 2024,
an increase of $5.2 million, or 3.8%,
from December 31, 2023. The increase
in stockholders' equity primarily was the result of net income of
$6.9 million and a $4.1 million decrease in accumulated other
comprehensive loss, partially offset by the payment of $4.3 million in dividends to Company
stockholders, and the repurchase of $3.1
million of Company common stock.
During the quarter ended September 30,
2024, the Company repurchased a total of 71,306 shares of
Company common stock at an average price of $12.42 per share. As of September 30, 2024, the Company had approximately
606,802 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 22,084 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; 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, including
maintaining the confidence of depositors; 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, 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 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
|
|
Nine Months
Ended
|
|
SELECTED OPERATIONS
DATA:
|
September
30,
2024
|
|
June 30,
2024
|
|
September
30,
2023
|
|
September
30,
2024
|
|
September
30,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
20,261
|
|
$
20,085
|
|
$
17,413
|
|
$
59,857
|
|
$
48,829
|
|
Interest
expense
|
10,828
|
|
10,509
|
|
8,286
|
|
31,015
|
|
20,498
|
|
Net interest
income
|
9,433
|
|
9,576
|
|
9,127
|
|
28,842
|
|
28,331
|
|
|
|
|
|
|
|
|
|
|
|
(Recovery of) provision
for credit losses
|
(99)
|
|
270
|
|
50
|
|
355
|
|
228
|
|
Net interest income
after (recovery of) provision for credit losses
|
9,532
|
|
9,306
|
|
9,077
|
|
28,487
|
|
28,103
|
|
Noninterest
income
|
1,325
|
|
1,112
|
|
1,159
|
|
3,566
|
|
3,433
|
|
Noninterest
expense
|
8,016
|
|
8,052
|
|
8,013
|
|
24,125
|
|
22,710
|
|
Income before income
tax expense
|
2,841
|
|
2,366
|
|
2,223
|
|
7,928
|
|
8,826
|
|
Income tax
provision
|
369
|
|
305
|
|
274
|
|
1,027
|
|
1,281
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
2,472
|
|
$
2,061
|
|
$
1,949
|
|
$
6,901
|
|
$
7,545
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
10,949
|
|
11,019
|
|
11,300
|
|
10,949
|
|
11,300
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
10,087
|
|
10,067
|
|
10,359
|
|
10,105
|
|
10,453
|
|
Diluted
|
10,216
|
|
10,178
|
|
10,382
|
|
10,211
|
|
10,514
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.25
|
|
$
0.20
|
|
$
0.19
|
|
$
0.68
|
|
$
0.72
|
|
Diluted
|
$
0.24
|
|
$
0.20
|
|
$
0.19
|
|
$
0.68
|
|
$
0.72
|
|
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,492,550
|
|
$
1,495,141
|
|
$
1,487,671
|
|
$
1,461,024
|
|
$
1,422,319
|
|
Cash and cash
equivalents
|
19,570
|
|
19,019
|
|
20,290
|
|
20,240
|
|
20,652
|
|
Interest-bearing time
deposits
|
300
|
|
—
|
|
—
|
|
—
|
|
245
|
|
Investment
securities
|
271,304
|
|
271,997
|
|
281,006
|
|
287,638
|
|
269,363
|
|
Loans and leases, net
of allowance for credit losses
|
1,140,969
|
|
1,140,579
|
|
1,123,194
|
|
1,090,073
|
|
1,066,892
|
|
Loans held for
sale
|
220
|
|
370
|
|
85
|
|
794
|
|
568
|
|
Premises and equipment,
net
|
13,018
|
|
13,115
|
|
13,212
|
|
13,312
|
|
13,342
|
|
Federal Home Loan Bank
stock
|
13,907
|
|
13,907
|
|
13,907
|
|
12,647
|
|
11,297
|
|
Other assets
|
33,262
|
|
36,154
|
|
35,977
|
|
36,320
|
|
39,960
|
|
Deposits
|
1,089,094
|
|
1,100,085
|
|
1,069,642
|
|
1,041,140
|
|
1,053,909
|
|
Borrowings
|
252,000
|
|
252,000
|
|
273,000
|
|
271,000
|
|
238,000
|
|
Total stockholder's
equity
|
140,027
|
|
131,110
|
|
132,391
|
|
134,860
|
|
118,038
|
|
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
140,027
|
|
$
131,110
|
|
$
132,391
|
|
$
134,860
|
|
$
118,038
|
|
Tangible book value
(non-GAAP)
|
140,027
|
|
131,110
|
|
132,391
|
|
134,860
|
|
118,038
|
|
Book value per share
(GAAP)
|
12.79
|
|
11.90
|
|
11.91
|
|
12.03
|
|
10.45
|
|
Tangible book value per
share (non-GAAP)
|
12.79
|
|
11.90
|
|
11.91
|
|
12.03
|
|
10.45
|
The following table summarizes information relating to our loan
and lease portfolio at the dates indicated:
|
(In
thousands)
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
348,473
|
|
$
356,250
|
|
$
338,434
|
|
$
341,633
|
|
$
345,714
|
|
Commercial and
industrial
|
126,591
|
|
127,160
|
|
123,661
|
|
115,428
|
|
111,450
|
|
Construction and
development
|
140,761
|
|
139,588
|
|
165,063
|
|
157,805
|
|
140,651
|
|
Multi-family
|
183,778
|
|
174,251
|
|
153,719
|
|
138,757
|
|
135,409
|
|
Residential
mortgage
|
172,873
|
|
175,059
|
|
171,050
|
|
162,123
|
|
160,488
|
|
Home equity
|
15,236
|
|
13,781
|
|
12,146
|
|
10,904
|
|
10,776
|
|
Direct financing
leases
|
147,057
|
|
148,173
|
|
152,468
|
|
156,598
|
|
154,520
|
|
Consumer
|
22,608
|
|
22,782
|
|
23,004
|
|
23,264
|
|
24,176
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
1,157,377
|
|
$
1,157,044
|
|
$
1,139,545
|
|
$
1,106,512
|
|
$
1,083,184
|
The following table summarizes information relating to our
deposits at the dates indicated:
|
(In
thousands)
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
98,522
|
|
$
102,796
|
|
$
108,805
|
|
$
114,377
|
|
$
115,632
|
|
Interest-bearing
demand
|
136,263
|
|
144,769
|
|
153,460
|
|
151,809
|
|
146,118
|
|
Savings and money
market
|
283,848
|
|
283,538
|
|
255,634
|
|
256,811
|
|
249,575
|
|
Non-brokered time
deposits
|
290,874
|
|
281,505
|
|
260,451
|
|
249,305
|
|
240,297
|
|
Brokered time
deposits
|
279,587
|
|
287,477
|
|
291,292
|
|
268,838
|
|
302,287
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
1,089,094
|
|
$
1,100,085
|
|
$
1,069,642
|
|
$
1,041,140
|
|
$
1,053,909
|
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,
|
|
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
|
$ 1,153,325
|
|
$
18,071
|
|
6.27 %
|
|
$ 1,069,049
|
|
$
15,270
|
|
5.71 %
|
|
Securities
|
270,857
|
|
1,700
|
|
2.51 %
|
|
283,600
|
|
1,802
|
|
2.54 %
|
|
FHLB stock
|
13,907
|
|
302
|
|
8.69 %
|
|
10,923
|
|
239
|
|
8.75 %
|
|
Cash and cash
equivalents and other
|
15,874
|
|
188
|
|
4.74 %
|
|
10,371
|
|
102
|
|
3.93 %
|
|
Total interest-earning
assets
|
1,453,963
|
|
20,261
|
|
5.57 %
|
|
1,373,943
|
|
17,413
|
|
5.07 %
|
|
Non-earning
assets
|
40,485
|
|
|
|
|
|
45,175
|
|
|
|
|
|
Total
assets
|
1,494,448
|
|
|
|
|
|
1,419,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
290,108
|
|
1,779
|
|
2.45 %
|
|
260,386
|
|
1,184
|
|
1.82 %
|
|
Interest-bearing
checking accounts
|
140,028
|
|
431
|
|
1.23 %
|
|
146,084
|
|
283
|
|
0.77 %
|
|
Certificate
accounts
|
570,820
|
|
6,121
|
|
4.29 %
|
|
532,721
|
|
4,851
|
|
3.64 %
|
|
Borrowings
|
244,793
|
|
2,497
|
|
4.08 %
|
|
224,750
|
|
1,968
|
|
3.50 %
|
|
Total interest-bearing
liabilities
|
1,245,749
|
|
10,828
|
|
3.48 %
|
|
1,163,941
|
|
8,286
|
|
2.85 %
|
|
Noninterest-bearing
demand deposits
|
101,239
|
|
|
|
|
|
112,109
|
|
|
|
|
|
Other
liabilities
|
13,200
|
|
|
|
|
|
13,945
|
|
|
|
|
|
Stockholders'
equity
|
134,260
|
|
|
|
|
|
129,123
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,494,448
|
|
|
|
|
|
1,419,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
9,433
|
|
|
|
|
|
$
9,127
|
|
|
|
Net earning
assets
|
$
208,214
|
|
|
|
|
|
$
210,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.09 %
|
|
|
|
|
|
2.22 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.60 %
|
|
|
|
|
|
2.66 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.71 %
|
|
|
|
|
|
118.04 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
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
|
$ 1,142,828
|
|
$
53,133
|
|
6.20 %
|
|
$ 1,027,782
|
|
$
42,562
|
|
5.52 %
|
|
Securities
|
275,903
|
|
5,232
|
|
2.53 %
|
|
290,820
|
|
5,408
|
|
2.48 %
|
|
FHLB stock
|
13,848
|
|
947
|
|
9.12 %
|
|
10,369
|
|
557
|
|
7.16 %
|
|
Cash and cash
equivalents and other
|
15,480
|
|
545
|
|
4.69 %
|
|
10,877
|
|
302
|
|
3.70 %
|
|
Total interest-earning
assets
|
1,448,059
|
|
59,857
|
|
5.51 %
|
|
1,339,848
|
|
48,829
|
|
4.86 %
|
|
Non-earning
assets
|
42,399
|
|
|
|
|
|
44,335
|
|
|
|
|
|
Total
assets
|
1,490,458
|
|
|
|
|
|
1,384,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
279,890
|
|
4,961
|
|
2.36 %
|
|
275,936
|
|
3,537
|
|
1.71 %
|
|
Interest-bearing
checking accounts
|
144,157
|
|
1,250
|
|
1.16 %
|
|
148,539
|
|
708
|
|
0.64 %
|
|
Certificate
accounts
|
555,136
|
|
17,188
|
|
4.13 %
|
|
503,093
|
|
11,644
|
|
3.09 %
|
|
Borrowings
|
259,911
|
|
7,617
|
|
3.91 %
|
|
206,897
|
|
4,609
|
|
2.97 %
|
|
Total interest-bearing
liabilities
|
1,239,094
|
|
31,016
|
|
3.34 %
|
|
1,134,465
|
|
20,498
|
|
2.41 %
|
|
Noninterest-bearing
demand deposits
|
105,564
|
|
|
|
|
|
104,260
|
|
|
|
|
|
Other
liabilities
|
13,718
|
|
|
|
|
|
13,757
|
|
|
|
|
|
Stockholders'
equity
|
132,082
|
|
|
|
|
|
131,701
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,490,458
|
|
|
|
|
|
1,384,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
28,841
|
|
|
|
|
|
$
28,331
|
|
|
|
Net earning
assets
|
$
208,965
|
|
|
|
|
|
$
205,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.17 %
|
|
|
|
|
|
2.45 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.66 %
|
|
|
|
|
|
2.82 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.86 %
|
|
|
|
|
|
118.10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(1)
|
0.66 %
|
|
0.55 %
|
|
0.64 %
|
|
0.54 %
|
|
0.55 %
|
|
Return on average
equity(1)
|
7.36 %
|
|
6.42 %
|
|
7.10 %
|
|
6.45 %
|
|
6.04 %
|
|
Yield on
interest-earning assets
|
5.57 %
|
|
5.53 %
|
|
5.43 %
|
|
5.32 %
|
|
5.07 %
|
|
Rate paid on
interest-bearing liabilities
|
3.48 %
|
|
3.37 %
|
|
3.17 %
|
|
3.10 %
|
|
2.85 %
|
|
Average interest rate
spread
|
2.09 %
|
|
2.16 %
|
|
2.26 %
|
|
2.22 %
|
|
2.22 %
|
|
Net interest
margin(1)(2)
|
2.60 %
|
|
2.64 %
|
|
2.74 %
|
|
2.67 %
|
|
2.66 %
|
|
Operating expense to
average total assets(1)
|
2.15 %
|
|
2.17 %
|
|
2.18 %
|
|
2.22 %
|
|
2.26 %
|
|
Efficiency
ratio(3)
|
74.51 %
|
|
75.48 %
|
|
73.51 %
|
|
76.39 %
|
|
77.91 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.71 %
|
|
116.33 %
|
|
117.57 %
|
|
116.97 %
|
|
118.04 %
|
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(4)
|
0.45 %
|
|
0.52 %
|
|
0.47 %
|
|
0.56 %
|
|
0.60 %
|
|
Non-performing loans
and leases to total gross loans and leases(5)
|
0.58 %
|
|
0.67 %
|
|
0.61 %
|
|
0.72 %
|
|
0.74 %
|
|
Allowance for credit
losses to non-performing loans and leases(5)
|
235.89 %
|
|
206.30 %
|
|
228.36 %
|
|
195.80 %
|
|
194.70 %
|
|
Allowance for credit
losses to total loans and leases
|
1.36 %
|
|
1.37 %
|
|
1.39 %
|
|
1.42 %
|
|
1.43 %
|
|
Net charge-offs to
average outstanding loans and leases during the
period(1)
|
0.15 %
|
|
0.16 %
|
|
0.12 %
|
|
0.09 %
|
|
0.11 %
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
9.38 %
|
|
8.77 %
|
|
8.90 %
|
|
9.22 %
|
|
8.34 %
|
|
Average equity to
average assets
|
8.98 %
|
|
8.58 %
|
|
9.03 %
|
|
8.32 %
|
|
9.10 %
|
|
Common equity tier 1
capital (to risk weighted assets)(6)
|
13.10 %
|
|
12.96 %
|
|
12.89 %
|
|
12.85 %
|
|
12.48 %
|
|
Tier 1 leverage (core)
capital (to adjusted tangible assets)(6)
|
10.73 %
|
|
10.65 %
|
|
10.67 %
|
|
10.64 %
|
|
10.71 %
|
|
Tier 1 risk-based
capital (to risk weighted assets)(6)
|
13.10 %
|
|
12.96 %
|
|
12.89 %
|
|
12.85 %
|
|
12.48 %
|
|
Total risk-based
capital (to risk weighted assets)(6)
|
14.35 %
|
|
14.21 %
|
|
14.14 %
|
|
14.10 %
|
|
13.73 %
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
|
Full-time equivalent
employees
|
171
|
|
182
|
|
178
|
|
176
|
|
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-third-quarter-financial-results-302286501.html
SOURCE Richmond Mutual Bancorporation, Inc.