RICHMOND, Ind., July 25,
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 $2.1 million, or $0.20 diluted earnings per share, for the second
quarter of 2024, compared to net income of $2.4 million, or $0.23 diluted earnings per share, for the first
quarter of 2024, and net income of $2.7
million, or $0.26 diluted
earnings per share, for the second quarter of 2023.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "Our average deposit
balances increased during the quarter and with the continued
pressure on our net interest margin due to our interest-bearing
liabilities being more sensitive to rising rates than our interest
earning assets, this impacted our net income. The performance of
our loan portfolio continues to be strong and we are looking
forward to a moderation in the interest rate environment in the
future."
Second Quarter Performance Highlights:
- Assets totaled $1.5 billion at
June 30, 2024, March 31, 2024, and December 31, 2023.
- Loans and leases, net of allowance for credit losses, totaled
$1.1 billion at June 30, 2024, March 31,
2024, and December 31,
2023.
- Nonperforming loans and leases totaled $7.7 million, or 0.67% of total loans and leases,
at June 30, 2024, compared to
$6.9 million, or 0.61%, at
March 31, 2024, and $8.0 million, or 0.72%, at December 31, 2023.
- The allowance for credit losses totaled $15.9 million, or 1.37% of total loans and leases
outstanding, at June 30, 2024,
compared to $15.8 million, or 1.39%
of total loans and leases outstanding, at March 31, 2024, and $15.7
million, or 1.42% of total loans and leases outstanding, at
December 31, 2023.
- The provision for credit losses totaled $270,000 in the quarter ended June 30, 2024, compared to $183,000 in the quarter ended March 31, 2024, and $8,000 in the second quarter of 2023.
- Deposits totaled $1.1 billion at
both June 30, 2024 and March 31, 2024, compared to $1.0 billion at December
31, 2023. At June 30, 2024,
noninterest-bearing deposits totaled $102.8
million, or 9.3% of total deposits, compared to $108.8 million, or 10.2% of total deposits at
March 31, 2024, and $114.4 million, or 11.0% of total deposits at
December 31, 2023. At June 30, 2024, approximately $235.0 million, or 21.4%, of our deposit
portfolio, excluding collateralized public deposits, was
uninsured.
- Stockholders' equity totaled $131.1
million at June 30, 2024,
compared to $132.4 million at
March 31, 2024, and $134.9 million at December
31, 2023. The Company's equity to assets ratio was 8.77% at
June 30, 2024.
- Book value per share and tangible book value per share were
$11.90 at June
30, 2024, compared to $11.91
per share at March 31, 2024, and
$12.03 per share at December 31, 2023.
- Net interest income decreased $257,000, or 2.6%, to $9.6
million for the three months ended June 30, 2024, compared to $9.8 million for the prior quarter, and increased
$243,000, or 2.6%, from $9.3 million for the comparable quarter in
2023.
- Annualized net interest margin was 2.64% for the current
quarter, compared to 2.74% in the preceding quarter and 2.77% the
comparable quarter in 2023.
- The Company repurchased 97,315 shares of common stock at an
average price of $11.68 per share
during the quarter ended June 30,
2024.
- The Bank's Tier 1 capital to total assets was 10.65%, well in
excess of all regulatory requirements at June 30, 2024.
Income Statement Summary
Net interest income before the provision for credit losses
decreased $257,000, or 2.6%, to
$9.6 million in the second quarter of
2024, compared to $9.8 million in the
first quarter of 2024, and increased $243,000, or 2.6%, from $9.3 million in the second quarter of 2023. The
decrease from the first quarter of 2024 was due to a 10 basis point
decrease in the average interest rate spread and a $10.7 million decrease in average net earning
assets. The increase from the comparable quarter in 2023 was
due to a $107.0 million increase in
average interest earning assets, partially offset by a 24 basis
point decrease in the average interest rate spread. During the
first half of 2023, in response to continuing elevated inflation,
the Federal Open Market Committee ("FOMC") of the Federal Reserve
System increased the target range for the federal funds rate by 100
basis points, to a range of 5.25% to 5.50%, where it remained as of
June 30, 2024. 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 $575,000, or 2.9%, to $20.1 million during the quarter ended
June 30, 2024, compared to the
quarter ended March 31, 2024, and
increased $3.9 million, or 23.8%,
compared to the quarter ended June 30,
2023.
Interest income on loans and leases increased $560,000, or 3.2%, to $17.8 million for the quarter ended June 30, 2024, compared to $17.3 million in the first quarter of 2024, due
to a $23.9 million increase in the
average balance of loans and leases, and an increase of seven basis
points to 6.20% in the average yield earned on loans and leases.
Interest income on loans and leases increased $3.7 million, or 26.3%, in the second quarter of
2024 compared to the second quarter of 2023, due to an increase in
the average balance of loans and leases of $120.3 million, and an increase of 72 basis
points in the average yield earned on loans and leases.
Interest income on investment securities, excluding FHLB
stock, decreased $62,000, or 3.5%, to
$1.8 million during the quarter ended
June 30, 2024, compared to the
quarter ended March 31, 2024, and
decreased $76,000, or 4.2%, from the
comparable quarter in 2023. The decrease compared to the first
quarter of 2024 was due to a $10.9
million decrease in the average balance, partially offset by
a one basis point increase in the average yield earned on
investment securities. The decrease compared to the second quarter
of 2023 was due to a $20.9 million
decrease in the average balance, primarily due to maturities and
paydowns on securities being used to fund loan growth, partially
offset by an eight basis point increase in the average yield earned
on investment securities. Dividends on FHLB stock decreased
$2,000, or 0.6%, during the quarter
ended June 30, 2024 compared to the
quarter ended March 31, 2024, and
increased $142,000, or 78.9%,
compared to the quarter ended June 30,
2023. Interest income on cash and cash equivalents increased
$78,000, or 56.4%, during the quarter
ended June 30, 2024, compared to the
quarter ended March 31, 2024, and
increased $84,000, or 62.5%, compared
to the quarter ended June 30,
2023. The increase in interest income on cash and cash
equivalents in the second quarter of 2024 from the first quarter of
2024 was due to a 127 basis point increase in the average yield,
due to higher market rates of interest, along with an increase of
$2.6 million in the average
balance. The increase in interest income on cash and cash
equivalents in the second quarter of 2024 from the second quarter
of 2023 was due to a 102 basis point increase in the average yield
along with a $3.8 million increase in
the average balance of cash and cash equivalents.
Interest expense increased $832,000, or 8.6%, to $10.5 million for the quarter ended June 30, 2024 compared to the quarter ended
March 31, 2024, and increased
$3.6 million, or 52.5%, compared to
the quarter ended June 30, 2023.
Interest expense on deposits increased $935,000, or 13.2%, to $8.0 million for the quarter ended June 30, 2024, compared to the previous quarter
and increased $2.5 million, or 44.3%,
from the comparable quarter in 2023. The increase from the previous
quarter was primarily due to a 24 basis point increase in the
average rate paid on, and a $45.9
million increase in the average balances of,
interest-bearing deposits. The increase from the comparable quarter
in 2023 was due to an increase of $49.0
million in average balance of, and an 87 basis point
increase in the average rate paid on, interest-bearing deposits.
The average rate paid on interest-bearing deposits was 3.23% for
the quarter ended June 30, 2024,
compared to 2.99% and 2.35% for the quarters ended March 31, 2024 and June
30, 2023, respectively.
Interest expense on FHLB borrowings decreased $103,000, or 4.0%, to $2.5
million for the second quarter of 2024 compared to the
previous quarter and increased $1.2
million, or 86.4%, from the comparable quarter in 2023. The
decrease from the previous quarter was primarily due to a
$19.3 million decrease in the average
balance of FHLB borrowing, partially offset by a 12 basis point
increase in the average rate paid. The increase from the comparable
quarter in 2023 was primarily due to an increase of 116 basis
points in the average rate paid on FHLB borrowings and an increase
in the average balance of FHLB borrowings of $60.7 million. The average balance of FHLB
borrowings totaled $257.9 million
during the quarter ended June 30,
2024, compared to $277.2
million and $197.1 million for
the quarters ended March 31, 2024 and
June 30, 2023, respectively. The
average rate paid on FHLB borrowings was 3.89% for the quarter
ended June 30, 2024, 3.77% for the
quarter ended March 31, 2024, and
2.73% for the second quarter of 2023.
Annualized net interest margin decreased to 2.64% for the second
quarter of 2024, compared to 2.74% for the first quarter of 2024,
and from 2.77% for the second 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.
The provision for credit losses totaled $270,000 for the three months ended June 30, 2024, compared to $183,000 for the quarter ended March 31, 2024, and $8,000 for the quarter ended June 30, 2023. Net charge-offs during the second
quarter of 2024 were $450,000,
compared to net charge-offs of $324,000 during the first quarter of 2024 and
$215,000 in the second quarter of
2023. Uncertainties relating to the level of our allowance for
credit losses remain heightened as a result of continued concern
about a potential recession due to inflation, stock market
volatility, and overall geopolitical tensions.
Noninterest income increased $40,000, or 3.5%, to $1.2
million for the quarter ended June
30, 2024 compared to the quarter ended March 31, 2024, and decreased $4,000, or 0.3%, from the comparable quarter in
2023. The increase in noninterest income from the first quarter of
2024 primarily resulted from an increase in service charges on
deposit accounts and other income. Service charges on deposit
accounts increased $37,000, or 13.5%,
to $310,000 for the quarter ended
June 30, 2024, compared to
$273,000 for the first quarter of
2024. Other income increased $22,000,
or 6.8%, to $341,000 in the second
quarter of 2024 compared to $319,000
in the previous quarter. Card fee income increased $11,000, or 3.9%, to $301,000 for the quarter ended June 30, 2024, compared to $290,000 for the first quarter of 2024. These
increases were partially offset by a decrease of $29,000, or 24.3%, in net gains on loan and lease
sales in the second quarter of 2024 compared to the prior quarter.
The decrease in noninterest income from the comparable quarter in
2023 was primarily due to a decrease in net gains on loan and lease
sales, partially offset by increases in service charges on deposit
accounts and loan and lease servicing fees. Net gains on loan and
lease sales decreased $64,000, or
41.4%, compared to the same quarter in 2023, due to decreased
mortgage banking activity. Service fees on deposit accounts
increased $34,000, or 12.3%, in the
second quarter of 2024 from the comparable quarter in 2023, due to
higher transaction activity and account maintenance fees, coupled
with year-over-year deposit growth. Loan and lease servicing fees
increased $22,000, or 20.1%, for the
quarter ended June 30, 2024 compared
to the comparable quarter in 2023 due to increased loan
participation income. Other income increased $16,000, or 4.8%, to $341,000 for the quarter ended June 30, 2024, compared to $325,000 for the comparable quarter in 2023 due
to increased wealth management income.
Total noninterest expense increased $51,000, or 0.6%, to $8.1
million for the three months ended June 30, 2024, compared to the first quarter of
2024, and increased $778,000, or
10.6%, compared to the same period in 2023. Salaries and employee
benefits increased $99,000, or 2.2%,
to $4.7 million for the quarter ended
June 30, 2024, compared to the first
quarter of 2024, and increased $400,000 compared to the quarter ended
June 30, 2023. The increase in
salaries and benefits from the first quarter of 2024 was primarily
due to increased compensation and insurance expenses, while the
increase from the second quarter of 2023 was due to increased
employee benefits expense. Deposit insurance expense decreased
$23,000, or 5.7%, for the quarter
ended June 30, 2024, compared to the
first quarter of 2024, and increased $188,000, or 97.9%, from the comparable quarter
in 2023 primarily due to changes in the asset and deposit mix.
Legal and professional fees increased $48,000, or 11.2%, to $481,000 for the quarter ended June 30, 2024, compared to the first quarter of
2024 primarily due to increased legal fee expenses related to the
collection and assessment of charged-off accounts, and increased
$124,000, or 34.9%, from the
comparable quarter in 2023 primarily due to other professional
services expenses related to auditing and internal process
enhancements. Net losses on securities were $62,000 for the quarter ended June 30, 2024, compared to no losses in the prior
quarter or the comparable quarter in 2023. Other expenses decreased
$107,000, or 10.9%, in the second
quarter of 2024 compared to the prior quarter, and decreased
$43,000, or 4.7%, compared to the
same quarter of 2023. The decrease in other expenses from the first
quarter of 2024 and the comparable quarter of 2023 primarily was
due to decreased employee expenses and loan closing expenses.
Income tax expense decreased $47,000 during the three months ended
June 30, 2024 compared to the quarter
ended March 31, 2024, and decreased
$170,000 compared to the quarter
ended June 30, 2023, due to changes
in pre-tax income. The effective tax rate for both the second and
first quarters of 2024 was 12.9%, and was 15.0% in the second
quarter a year ago. The decrease in the effective tax rate as
compared to the second quarter of 2023 was a result of the use of a
captive insurance company, which allows the Company to assume more
control over insurance risks and resulted in a more tax-effective
structure.
Balance Sheet Summary
Total assets increased $34.1
million, or 2.3%, to $1.5
billion at June 30, 2024 from
December 31, 2023. The increase was
primarily the result of a $50.5
million, or 4.6%, increase in loans and leases, net of
allowance for credit losses, to $1.1
billion, partially offset by a $15.6
million, or 5.4%, decrease in investment securities to
$272.0 million at June 30, 2024.
The increase in loans and leases was attributable to an increase
in multi-family loans, commercial real estate loans, residential
mortgage loans, and commercial and industrial loans of $35.5 million, $14.6
million, $12.9 million and
$11.7 million, respectively.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past
due, totaled $7.7 million, or 0.67%
of total loans and leases, at June 30,
2024, compared to $8.0
million, or 0.72%, at December 31,
2023. Accruing loans past due more than 90 days totaled
$2.6 million at June 30, 2024, compared to $1.7 million at December
31, 2023.
The allowance for credit losses on loans and leases increased
$219,000, or 1.4%, to $15.9 million at June 30,
2024 from $15.7 million at
December 31, 2023. At June 30, 2024 the allowance for credit losses on
loans and leases totaled 1.37% of total loans and leases
outstanding, compared to 1.42% at December
31, 2023. Net charge-offs during the first half of
2024 were $774,000 compared to net
charge-offs of $137,000 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
June 30, 2024, which evaluation
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 $15.6
million, or 5.4%, to $272.0
million at June 30, 2024
compared to $287.6 million at
December 31, 2023. Investment
securities decreased primarily due to $8.4
million in maturities and principal repayments and the sale
of $3.8 million of available-for-sale
securities. The proceeds received from the maturities, repayments,
and sales of securities were used to fund loan growth.
Total deposits increased $58.9
million, or 5.7%, to $1.1
billion at June 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 $32.2 million, which were
used to fund loan demand, and savings and money-market accounts of
$26.7 million, partially offset by a
decrease in demand deposit accounts of $18.6
million. Brokered time deposits totaled $287.5 million, or 26.1% of total deposits, at
June 30, 2024, compared to
$268.8 million, or 25.8% of total
deposits at December 31, 2023.
Noninterest-bearing demand deposits decreased $11.6 million to $102.3
million at June 30, 2024
compared to $114.4 million at
December 31, 2023, and totaled 9.3%
of total deposits at June 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 June 30, 2024, approximately
$235.0 million of our deposit
portfolio, or 21.4% 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 $131.1
million at June 30, 2024, a
decrease of $3.7 million, or 2.8%,
from December 31, 2023. The decrease
in stockholders' equity primarily was the result of a $4.1 million increase in accumulated other
comprehensive loss, the payment of $2.9
million in dividends to Company stockholders, and the
repurchase of $2.2 million of Company
common stock, partially offset by net income of $4.4 million.
During the quarter ended June 30,
2024, the Company repurchased a total of 97,315 shares of
Company common stock at an average price of $11.68 per share. As of June 30, 2024, the Company had approximately
678,108 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 16,034 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: potential
adverse impacts to economic conditions in our local market areas,
other markets where the Company has lending relationships, or other
aspects of the Company's business operations or financial markets,
including, without limitation, as a result of employment levels,
labor shortages and the effects of inflation, a potential recession
or slowed economic growth; changes in the interest rate
environment, including the recent increases in the Federal Reserve
benchmark rate and duration at which such increased 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
continuing 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, 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
|
|
Six Months
Ended
|
|
SELECTED OPERATIONS
DATA:
|
June 30,
2024
|
|
March 31,
2024
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
20,085
|
|
$
19,510
|
|
$
16,223
|
|
$
39,596
|
|
$
31,415
|
|
Interest
expense
|
10,509
|
|
9,677
|
|
6,890
|
|
20,187
|
|
12,211
|
|
Net interest
income
|
9,576
|
|
9,833
|
|
9,333
|
|
19,409
|
|
19,204
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
270
|
|
183
|
|
8
|
|
454
|
|
178
|
|
Net interest income
after provision for credit losses
|
9,306
|
|
9,650
|
|
9,325
|
|
18,955
|
|
19,026
|
|
Noninterest
income
|
1,174
|
|
1,129
|
|
1,178
|
|
2,303
|
|
2,275
|
|
Noninterest
expense
|
8,114
|
|
8,058
|
|
7,336
|
|
16,172
|
|
14,698
|
|
Income before income
tax expense
|
2,366
|
|
2,721
|
|
3,167
|
|
5,086
|
|
6,603
|
|
Income tax
provision
|
305
|
|
352
|
|
475
|
|
657
|
|
1,007
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
2,061
|
|
$
2,369
|
|
$
2,692
|
|
$
4,429
|
|
$
5,596
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
11,019
|
|
11,116
|
|
11,449
|
|
11,019
|
|
11,449
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
10,067
|
|
10,160
|
|
10,403
|
|
10,113
|
|
10,501
|
|
Diluted
|
10,178
|
|
10,230
|
|
10,476
|
|
10,204
|
|
10,581
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.20
|
|
$
0.23
|
|
$
0.26
|
|
$
0.44
|
|
$
0.53
|
|
Diluted
|
$
0.20
|
|
$
0.23
|
|
$
0.26
|
|
$
0.43
|
|
$
0.53
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,495,141
|
|
$
1,487,671
|
|
$
1,461,024
|
|
$
1,422,319
|
|
$
1,408,593
|
|
Cash and cash
equivalents
|
19,019
|
|
20,290
|
|
20,240
|
|
20,652
|
|
17,464
|
|
Interest-bearing time
deposits
|
—
|
|
—
|
|
—
|
|
245
|
|
490
|
|
Investment
securities
|
271,997
|
|
281,006
|
|
287,638
|
|
269,363
|
|
287,096
|
|
Loans and leases, net
of allowance for credit losses
|
1,140,579
|
|
1,123,194
|
|
1,090,073
|
|
1,066,892
|
|
1,043,024
|
|
Loans held for
sale
|
370
|
|
85
|
|
794
|
|
568
|
|
340
|
|
Premises and equipment,
net
|
13,115
|
|
13,212
|
|
13,312
|
|
13,342
|
|
13,539
|
|
Federal Home Loan Bank
stock
|
13,907
|
|
13,907
|
|
12,647
|
|
11,297
|
|
10,802
|
|
Other assets
|
36,154
|
|
35,977
|
|
36,320
|
|
39,960
|
|
35,838
|
|
Deposits
|
1,100,085
|
|
1,069,642
|
|
1,041,140
|
|
1,053,909
|
|
1,039,573
|
|
Borrowings
|
252,000
|
|
273,000
|
|
271,000
|
|
238,000
|
|
226,000
|
|
Total stockholder's
equity
|
131,110
|
|
132,391
|
|
134,860
|
|
118,038
|
|
130,235
|
|
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
131,110
|
|
$
132,391
|
|
$
134,860
|
|
$
118,038
|
|
$
130,235
|
|
Tangible book value
(non-GAAP)
|
131,110
|
|
132,391
|
|
134,860
|
|
118,038
|
|
130,235
|
|
Book value per share
(GAAP)
|
11.90
|
|
11.91
|
|
12.03
|
|
10.45
|
|
11.38
|
|
Tangible book value per
share (non-GAAP)
|
11.90
|
|
11.91
|
|
12.03
|
|
10.45
|
|
11.38
|
The following table summarizes information
relating to our loan and lease portfolio at the dates
indicated:
|
(In
thousands)
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
356,250
|
|
$
338,434
|
|
$
341,633
|
|
$
345,714
|
|
$
341,475
|
|
Commercial and
industrial
|
127,160
|
|
123,661
|
|
115,428
|
|
111,450
|
|
114,162
|
|
Construction and
development
|
139,588
|
|
165,063
|
|
157,805
|
|
140,651
|
|
117,029
|
|
Multi-family
|
174,251
|
|
153,719
|
|
138,757
|
|
135,409
|
|
141,545
|
|
Residential
mortgage
|
175,059
|
|
171,050
|
|
162,123
|
|
160,488
|
|
159,753
|
|
Home equity
|
13,781
|
|
12,146
|
|
10,904
|
|
10,776
|
|
10,492
|
|
Direct financing
leases
|
148,173
|
|
152,468
|
|
156,598
|
|
154,520
|
|
152,181
|
|
Consumer
|
22,782
|
|
23,004
|
|
23,264
|
|
24,176
|
|
22,657
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
1,157,044
|
|
$
1,139,545
|
|
$
1,106,512
|
|
$
1,083,184
|
|
$
1,059,294
|
The following table summarizes information
relating to our deposits at the dates indicated:
|
(In
thousands)
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
102,796
|
|
$
108,805
|
|
$
114,377
|
|
$
115,632
|
|
$
104,691
|
|
Interest-bearing
demand
|
144,769
|
|
153,460
|
|
151,809
|
|
146,118
|
|
149,770
|
|
Savings and money
market
|
283,538
|
|
255,634
|
|
256,811
|
|
249,575
|
|
267,624
|
|
Non-brokered time
deposits
|
281,505
|
|
260,451
|
|
249,305
|
|
240,297
|
|
226,493
|
|
Brokered time
deposits
|
287,477
|
|
291,292
|
|
268,838
|
|
302,287
|
|
290,995
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
1,100,085
|
|
$
1,069,642
|
|
$
1,041,140
|
|
$
1,053,909
|
|
$
1,039,573
|
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 June
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
|
$ 1,149,457
|
|
$
17,811
|
|
6.20 %
|
|
$ 1,029,162
|
|
$
14,098
|
|
5.48 %
|
|
Securities
|
273,142
|
|
1,734
|
|
2.54 %
|
|
294,076
|
|
1,810
|
|
2.46 %
|
|
FHLB stock
|
13,907
|
|
322
|
|
9.26 %
|
|
10,136
|
|
180
|
|
7.10 %
|
|
Cash and cash
equivalents and other
|
16,492
|
|
218
|
|
5.29 %
|
|
12,646
|
|
135
|
|
4.24 %
|
|
Total interest-earning
assets
|
1,452,998
|
|
20,085
|
|
5.53 %
|
|
1,346,020
|
|
16,223
|
|
4.82 %
|
|
Non-earning
assets
|
44,668
|
|
|
|
|
|
43,557
|
|
|
|
|
|
Total
assets
|
1,497,666
|
|
|
|
|
|
1,389,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
290,250
|
|
1,803
|
|
2.48 %
|
|
288,124
|
|
1,356
|
|
1.88 %
|
|
Interest-bearing
checking accounts
|
144,363
|
|
437
|
|
1.21 %
|
|
146,396
|
|
236
|
|
0.64 %
|
|
Certificate
accounts
|
556,521
|
|
5,761
|
|
4.14 %
|
|
507,630
|
|
3,953
|
|
3.11 %
|
|
Borrowings
|
257,885
|
|
2,508
|
|
3.89 %
|
|
197,137
|
|
1,345
|
|
2.73 %
|
|
Total interest-bearing
liabilities
|
1,249,019
|
|
10,509
|
|
3.37 %
|
|
1,139,287
|
|
6,890
|
|
2.42 %
|
|
Noninterest-bearing
demand deposits
|
106,924
|
|
|
|
|
|
103,231
|
|
|
|
|
|
Other
liabilities
|
13,287
|
|
|
|
|
|
13,315
|
|
|
|
|
|
Stockholders'
equity
|
128,436
|
|
|
|
|
|
133,744
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,497,666
|
|
|
|
|
|
1,389,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
9,576
|
|
|
|
|
|
$
9,333
|
|
|
|
Net earning
assets
|
$
203,979
|
|
|
|
|
|
$
206,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.16 %
|
|
|
|
|
|
2.40 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.64 %
|
|
|
|
|
|
2.77 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.33 %
|
|
|
|
|
|
118.15 %
|
|
|
|
|
|
________________________________________________
|
|
(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.
|
|
Six Months Ended June
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
|
$ 1,137,522
|
|
$
35,062
|
|
6.16 %
|
|
$ 1,006,806
|
|
$
27,291
|
|
5.42 %
|
|
Securities
|
278,505
|
|
3,531
|
|
2.54 %
|
|
294,510
|
|
3,606
|
|
2.45 %
|
|
FHLB stock
|
13,818
|
|
646
|
|
9.35 %
|
|
10,087
|
|
318
|
|
6.31 %
|
|
Cash and cash
equivalents and other
|
15,232
|
|
357
|
|
4.69 %
|
|
11,114
|
|
200
|
|
3.60 %
|
|
Total interest-earning
assets
|
1,445,077
|
|
39,596
|
|
5.48 %
|
|
1,322,517
|
|
31,415
|
|
4.75 %
|
|
Non-earning
assets
|
43,365
|
|
|
|
|
|
43,909
|
|
|
|
|
|
Total
assets
|
1,488,442
|
|
|
|
|
|
1,366,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
274,724
|
|
3,182
|
|
2.32 %
|
|
283,840
|
|
2,353
|
|
1.66 %
|
|
Interest-bearing
checking accounts
|
146,244
|
|
819
|
|
1.12 %
|
|
149,787
|
|
425
|
|
0.57 %
|
|
Certificate
accounts
|
547,207
|
|
11,066
|
|
4.04 %
|
|
488,034
|
|
6,792
|
|
2.78 %
|
|
Borrowings
|
267,552
|
|
5,120
|
|
3.83 %
|
|
197,823
|
|
2,641
|
|
2.67 %
|
|
Total interest-bearing
liabilities
|
1,235,727
|
|
20,187
|
|
3.27 %
|
|
1,119,484
|
|
12,211
|
|
2.18 %
|
|
Noninterest-bearing
demand deposits
|
107,750
|
|
|
|
|
|
100,271
|
|
|
|
|
|
Other
liabilities
|
13,984
|
|
|
|
|
|
13,660
|
|
|
|
|
|
Stockholders'
equity
|
130,981
|
|
|
|
|
|
133,011
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,488,442
|
|
|
|
|
|
1,366,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
19,409
|
|
|
|
|
|
$
19,204
|
|
|
|
Net earning
assets
|
$
209,350
|
|
|
|
|
|
$
203,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.21 %
|
|
|
|
|
|
2.57 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.69 %
|
|
|
|
|
|
2.90 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.94 %
|
|
|
|
|
|
118.14 %
|
|
|
|
|
|
________________________________________________
|
|
(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:
|
June 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(1)
|
0.55 %
|
|
0.64 %
|
|
0.54 %
|
|
0.55 %
|
|
0.77 %
|
|
Return on average
equity(1)
|
6.42 %
|
|
7.10 %
|
|
6.45 %
|
|
6.04 %
|
|
8.05 %
|
|
Yield on
interest-earning assets
|
5.53 %
|
|
5.43 %
|
|
5.32 %
|
|
5.07 %
|
|
4.82 %
|
|
Rate paid on
interest-bearing liabilities
|
3.37 %
|
|
3.17 %
|
|
3.10 %
|
|
2.85 %
|
|
2.42 %
|
|
Average interest rate
spread
|
2.16 %
|
|
2.26 %
|
|
2.22 %
|
|
2.22 %
|
|
2.40 %
|
|
Net interest
margin(1)(2)
|
2.64 %
|
|
2.74 %
|
|
2.67 %
|
|
2.66 %
|
|
2.77 %
|
|
Operating expense to
average total assets(1)
|
2.17 %
|
|
2.18 %
|
|
2.22 %
|
|
2.26 %
|
|
2.11 %
|
|
Efficiency
ratio(3)
|
75.48 %
|
|
73.51 %
|
|
76.39 %
|
|
77.91 %
|
|
69.79 %
|
|
Average
interest-earning assets to average
interest-bearing liabilities
|
116.33 %
|
|
117.57 %
|
|
116.97 %
|
|
118.04 %
|
|
118.15 %
|
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(4)
|
0.52 %
|
|
0.47 %
|
|
0.56 %
|
|
0.60 %
|
|
0.62 %
|
|
Non-performing loans
and leases to total gross
loans and leases(5)
|
0.67 %
|
|
0.61 %
|
|
0.72 %
|
|
0.74 %
|
|
0.81 %
|
|
Allowance for credit
losses to non-performing
loans and leases(5)
|
206.30 %
|
|
228.36 %
|
|
195.80 %
|
|
194.70 %
|
|
180.44 %
|
|
Allowance for credit
losses to total loans and leases
|
1.37 %
|
|
1.39 %
|
|
1.42 %
|
|
1.43 %
|
|
1.45 %
|
|
Net
charge-offs/(recoveries) to average
outstanding loans and leases during the
period(1)
|
0.16 %
|
|
0.12 %
|
|
0.09 %
|
|
0.11 %
|
|
0.08 %
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
8.77 %
|
|
8.90 %
|
|
9.22 %
|
|
8.34 %
|
|
9.28 %
|
|
Average equity to
average assets
|
8.58 %
|
|
9.03 %
|
|
8.32 %
|
|
9.10 %
|
|
9.62 %
|
|
Common equity tier 1
capital (to risk weighted assets)(6)
|
12.96 %
|
|
12.89 %
|
|
12.85 %
|
|
12.48 %
|
|
12.77 %
|
|
Tier 1 leverage (core)
capital (to adjusted
tangible assets)(6)
|
10.65 %
|
|
10.67 %
|
|
10.64 %
|
|
10.71 %
|
|
10.81 %
|
|
Tier 1 risk-based
capital (to risk weighted assets)(6)
|
12.96 %
|
|
12.89 %
|
|
12.85 %
|
|
12.48 %
|
|
12.77 %
|
|
Total risk-based
capital (to risk weighted assets)(6)
|
14.21 %
|
|
14.14 %
|
|
14.10 %
|
|
13.73 %
|
|
14.02 %
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
|
Full-time equivalent
employees
|
182
|
|
178
|
|
176
|
|
176
|
|
183
|
|
|
|
(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-second-quarter-financial-results-302207092.html
SOURCE Richmond Mutual Bancorporation, Inc.