RICHMOND, Ind., April 22, 2021 /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
$2.6 million, or $0.22 diluted earnings per share, for the first
quarter of 2021, compared to net income of $2.5 million, or $0.21 diluted earnings per share, for the fourth
quarter of 2020, and net income of $2.5
million, or $0.20 diluted
earnings per share, for the first quarter of 2020.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "Our quarterly results
continue to be encouraging, despite the low interest rate
environment and the difficulties we all face due to COVID-19. As a
result, during the first quarter of 2021, we increased the
Company's quarterly common stock dividend from $0.05 per share to $0.07 per share and continued our common stock
repurchases. Subsequent to quarter end, the Company announced the
payment of a special common stock dividend of $0.50 per share. These steps demonstrate our
commitment to continue to return excess capital responsibly to our
shareholders.
"During the first quarter of 2021, we also continued to assist
our clients and others in our communities through the second round
of the Paycheck Protection Program and worked with our customers
that required COVID-19 related loan modifications. We will continue
to proactively monitor modified loans and other loans we consider
at heightened risk," concluded Kleer.
Our Response to COVID-19 Pandemic
Loan Programs. Through the conclusion of the
U.S. Small Business Administration's ("SBA") initial Paycheck
Protection Program ("PPP") on August 8,
2020, we had funded 482 PPP loans totaling $64.9 million. As of March
31, 2021, SBA had approved 413 loan forgiveness applications
totaling $47.0 million with an
additional 16 applications totaling $13.9
million pending approval. We continue to process
applications for the PPP loan forgiveness for loans from the first
round of the PPP. On December 27,
2020, the Consolidated Appropriations Act, 2021 ("CAA") was
signed into law. This legislation includes another round of
COVID-19 stimulus funding, including approximately $285 billion in funding to reopen the PPP. During
the first quarter of 2021 we processed 329 applications for new PPP
loans, totaling $35.2 million. We
expect to continue accepting and processing applications for the
second round of PPP loans through its expiration date of
May 31, 2021.
Loan Modifications. We offer payment and
financial relief programs for borrowers impacted by COVID-19,
primarily through loan and lease payment deferments of principal
and interest up to 90 days, although requests for payment relief
during the first quarter of 2021 have significantly declined. We
continue to monitor our loan portfolio and strive to work with our
customers and communities. Deferred loans are re-evaluated at the
end of the initial deferral period and will either return to the
original loan terms or be reassessed at that time to determine if a
further modification should be granted and if a downgrade in risk
rating is appropriate. At March 31,
2021, the number of loans and leases granted payment
deferrals was 33, representing $24.6
million in loans and leases outstanding, down from 48 loans
and leases at December 31, 2020
totaling $54.7 million. Of the
loans currently deferred at March 31,
2021, six loans, representing $2.3
million in loans and leases outstanding, were new deferrals
and 27 loans, representing $22.3
million in loans and leases outstanding, were repeat
deferrals.
The following table summarizes information relating to loan
deferments at quarter ended March 31,
2021 and December 31,
2020:
|
March 31,
2021
|
|
December 31,
2020
|
($ in
thousands)
|
Number of
Loans
|
|
Balance
|
|
Number of
Loans
|
|
Balance
|
Commercial
mortgage
|
8
|
|
$
|
23,372
|
|
|
18
|
|
$
|
44,352
|
|
Commercial and
industrial
|
—
|
|
—
|
|
|
1
|
|
770
|
|
Multi-Family
|
—
|
|
—
|
|
|
4
|
|
8,868
|
|
Residential
mortgage
|
5
|
|
450
|
|
|
3
|
|
163
|
|
Direct financing
leases
|
19
|
|
756
|
|
|
20
|
|
494
|
|
Consumer
|
1
|
|
4
|
|
|
2
|
|
18
|
|
Total
Loans
|
33
|
|
$
|
24,582
|
|
|
48
|
|
$
|
54,665
|
|
The following table summarizes information relating to
hospitality loan deferments (which are included in the table above)
at quarter ended March 31, 2021 and
December 31, 2020:
|
March 31,
2021
|
|
December 31,
2020
|
($ in
thousands)
|
Number of
Loans
|
|
Balance
|
|
Percent of
total loans in
category
|
|
Number of
Loans
|
|
Balance
|
|
Percent of
total loans in
category
|
Restaurants
|
—
|
|
$
|
—
|
|
|
—
|
%
|
|
1
|
|
$
|
375
|
|
|
6.78
|
%
|
Hotels
|
5
|
|
16,350
|
|
|
23.15
|
%
|
|
12
|
|
37,056
|
|
|
56.17
|
%
|
Total
Loans
|
5
|
|
$
|
16,350
|
|
|
21.74
|
%
|
|
13
|
|
$
|
37,431
|
|
|
52.35
|
%
|
Branch Operations and Support Personnel. Many
of our employees continue to work remotely or have flexible work
schedules, and we have established protective measures within our
offices to help ensure the safety of those employees who must work
on-site. We have also taken steps to resume more normal branch
activities with specific guidelines in place to
protect the safety of our clients and our personnel. We
continuously monitor and conform our practices based on updates
from the Center for Disease Control, World Health Organization,
Financial Regulatory Agencies, and local and state health
departments.
Capital Strength. At March
31, 2021, the Company's stockholders' equity totaled
$189.5 million, a $3.2 million, or 1.7% decrease from year-end
2020. The Company's equity to asset ratio was 16.61% at
March 31, 2021. At March 31, 2021, the Bank's Tier I capital to
total assets was 14.19% and the Bank's capital was well in excess
of all regulatory requirements.
First Quarter Performance Highlights:
- Assets totaled $1.1 billion at
both March 31, 2021 and December 31, 2020.
- Loans and leases, net of allowance, totaled $763.7 million at March
31, 2021, compared to $736.4
million at December 31,
2020.
- Nonperforming loans and leases totaled $8.1 million, or 1.05% of total loans and leases,
at March 31, 2021, compared to
$4.8 million, or 0.64% of total loans
and leases, at December 31,
2020.
- The allowance for loan and lease losses totaled $11.0 million, or 1.41% of total loans and leases
outstanding, at March 31, 2021,
compared to $10.6 million, or 1.42%
of total loans and leases outstanding at December 31, 2020.
- The provision for loan and leases losses totaled $400,000 in the current quarter, compared to
$940,000 in the quarter ended
December 31, 2020.
- Deposits totaled $757.1 million
at March 31, 2021, compared to
$693.0 million at December 31, 2020. At March 31, 2021, noninterest bearing deposits
totaled $118.1 million or 15.6% of
total deposits, compared to $98.7
million or 14.2% of total deposits at December 31, 2020.
- The Company repurchased 142,764 shares at an average price of
$13.58 per share during the quarter
ended March 31, 2021.
- The Bank remains a "well-capitalized" institution for
regulatory capital purposes at March 31,
2021.
- Annualized net interest margin was 3.44% for the current
quarter, compared to 3.38% in the preceding quarter and 3.32% in
the first quarter a year ago.
Balance Sheet Summary
Total assets increased $56.7
million, or 5.2%, to $1.1
billion at March 31, 2021,
from $1.1 billion at December 31, 2020. The increase was primarily a
result of a $27.3 million, or 3.7%,
increase in loans and leases, net of allowance, to $763.7 million at March
31, 2021 from $736.4 million
at December 31, 2020, and a
$11.6 million, or 4.5%, increase in
investment securities to $268.4
million at March 31, 2021,
compared to $256.7 million at
December 31, 2020. The increase
in loans and leases was attributable to an increase in PPP loans of
$11.4 million, an increase in
commercial mortgage loans of $7.0
million, and an increase in construction and development
loans of $9.3 million. The
increase in investment securities was primarily the result of using
our excess liquidity to purchase securities during the quarter. The
balance of the increase in assets was attributable to a
$16.8 million, or 34.4%, increase in
cash and cash equivalents to $65.5
million at March 31, 2021,
from $48.8 million at December 31, 2020.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past
due, totaled $8.1 million or 1.05% of
total loans and leases at March 31,
2021, compared to $4.8 million
or 0.64% of total loans at December 31,
2020. The increase in nonperforming loans and leases was the
result of a $4.9 million non-accruing
commercial real estate loan more than 90 days past due that is
currently subject to litigation between the developer and other
parties. At the time of origination, this loan had a loan to value
ratio of 73%. Accruing loans past due more than 90 days at
March 31, 2021 totaled $2.5 million, compared to $4.0 million at December
31, 2020.
The allowance for loan and lease losses increased $373,000, or 3.5%, to $11.0 million at March 31,
2021 from $10.6 million at
December 31, 2020. At March 31, 2021, the allowance for loan and lease
losses totaled 1.41% of total loans and leases outstanding compared
to 1.43% at December 31, 2020. The
allowance for loan and lease losses to total loans at March 31, 2021 and December 31, 2020 would increase two and eight
basis points, respectively, if PPP loans, which totaled
$54.7 million and $43.3 million at March 31,
2021 and December 31, 2020,
respectively, and are 100% guaranteed by the SBA, are excluded from
the calculation. Net charge-offs during the first three months of
2021 were $27,000 or 0.01% of average
loans and leases outstanding, compared to net recoveries of
$7,000 during the first three months
of 2020.
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
March 31, 2021, which evaluation
included consideration of potential credit losses due to economic
conditions driven by the impact of the COVID-19 pandemic. The
full impact of the pandemic on the Company's deposit and loan
customers is still not fully known at this time. The Company has
increased its qualitative factors when determining the adequacy of
its allowance for loan and lease losses. Credit metrics are being
reviewed and stress testing is being performed on the loan
portfolio on an ongoing basis. Potentially higher risk segments of
the portfolio, such as hotels and restaurants, are being closely
monitored as are loan payment deferrals.
Total deposits increased $64.0
million, or 9.2%, to $757.1
million at March 31, 2021,
compared to $693.0 million at
December 31, 2020. The increase in
deposits from December 31, 2020
primarily was due to overall changes in spending and savings habits
by businesses and consumers due to the COVID-19 pandemic as well as
additional PPP funds and stimulus payments made in December 2020 and first quarter 2021. Brokered
deposits increased $3.4 million to
$26.7 million, or 3.5% of total
deposits, at March 31, 2021 compared
to $23.3 million, or 3.4% of total
deposits, at December 31, 2020.
Management increased longer-term brokered deposits as a result of
continued low rates being offered in the brokered CD market.
Demand deposit and savings accounts increased $50.1 million to $500.6
million at March 31, 2021,
compared to $450.6 million at
December 31, 2020. At March 31, 2021, noninterest bearing deposits
totaled $118.1 million or 15.6% of
total deposits, compared to $98.7
million or 14.2% of total deposits at December 31, 2020.
Stockholders' equity totaled $189.5
million at March 31, 2021, a
decrease of $3.2 million or 1.7% from
December 31, 2020. The decrease in
stockholders' equity from year-end 2020 was the result of a
reduction in accumulated comprehensive income of $3.7 million, the repurchase of $1.9 million of Company common stock and the
payment of $847,000 in dividends to
Company stockholders during the current quarter, partially offset
by net income of $2.6 million in the
first quarter, an increase of $508,000 due to the Company's equity incentive
plan, and a $183,000 increase due to
ESOP shares earned.
During the quarter ended March 31,
2021, the Company repurchased a total of 142,764 shares of
Company common stock at an average price of $13.58 per share pursuant to the Company's second
stock repurchase program authorized on October 21, 2020, leaving 416,585 shares
available for future repurchase under the stock repurchase program.
Subsequent to quarter end through April 22,
2021, the Company purchased an additional 52,462 shares,
leaving 364,123 shares available for future repurchase.
Income Statement Summary
Net interest income before the provision for loan and lease
losses was $8.8 million in both the
first quarter of 2021 and the fourth quarter of 2020, and increased
$876,000, or 11.1%, from $7.9 million in the first quarter of 2020. This
increase was due to an increase in average interest-earning assets
during the first quarter of 2021 compared to the comparable period
in 2020. The total benefit of this increase in average
interest-earning assets was diminished by the significant reduction
in the targeted Federal Funds Rate since July 2019, including the 150 basis point decrease
in March 2020 in response to the
COVID-19 pandemic.
Interest income decreased $164,000, or 1.5%, to $10.6 million during the quarter ended
March 31, 2021, compared to the
quarter ended December 31, 2020 and
increased $193,000, or 1.8%, compared
to $10.5 million during the quarter
ended March 31, 2020. Interest income
on loans and leases decreased $221,000, or 2.2%, to $9.6
million for the quarter ended March
31, 2021, compared to $9.8
million for the fourth quarter of 2020, and increased
$565,000, or 6.2%, from $9.1 million for the comparable quarter in
2020. The average outstanding loan and lease balances were
$718.0 million for the quarter ended
March 31, 2021, compared to
$753.1 million for the quarter ended
December 31, 2020 and $686.2 million for the quarter ended March 31, 2020. The average yield on loans was
5.36% for the quarter ended March 31,
2021, compared to 5.23% and 5.28% for the quarters ended
December 31, 2020 and March 31, 2020, respectively.
Interest income on investment securities, including FHLB stock,
increased $56,000, or 5.9%, to
$1.0 million during the quarter ended
March 31, 2021, compared to
$953,000 during the quarter ended
December 31, 2020, and decreased
$254,000, or 20.1%, from $1.3 million during the comparable quarter in
2020. The increase in interest income on investment securities,
including FHLB stock, from the previous quarter was primarily due
to an increase in average balances of $13.1
million, and an increase in yield of one basis point, while
the decrease from the comparable period in 2020 was due to a
decrease in the weighted average yield of 68 basis points,
partially offset by an increase in the average balances of
investment securities including FHLB stock. The average balance of
investment securities, including FHLB stock, was $269.8 million for the quarter ended March 31, 2021, compared to $256.7 million and $232.2
million for the quarters ended December 31, 2020 and March 31, 2020, respectively. The average yield
on investment securities, including FHLB stock, was 1.50% for the
first quarter of 2021, compared to 1.49% and 2.18% for the last
quarter of 2020 and the first quarter of 2020, respectively.
Interest income earned on cash and cash equivalents increased to
$7,000 in the first quarter of 2021
compared to $6,000 in the fourth
quarter of 2020 and $125,000 in the
comparable quarter of 2020. The decrease in interest income earned
on cash and cash equivalents in the first quarter of 2021 and the
fourth quarter of 2020 compared to the first quarter of 2020
primarily was due to the significantly lower yield earned on funds
at the Federal Reserve after the rate reductions experienced in
March 2020.
Interest expense decreased $165,000, or 8.0%, to $1.9
million for the quarter ended March
31, 2021, compared to $2.0
million for the fourth quarter of 2020, and decreased
$683,000, or 26.6%, from $2.6 million for the quarter ended March 31, 2020. Interest expense on deposits
decreased $121,000, or 9.3%, to
$1.2 million for the quarter ended
March 31, 2021, from $1.3 million in the previous quarter, and
decreased $637,000, or 34.9%, from
$1.8 million for the comparable
quarter in 2020. This decrease in interest expense on deposits from
both the previous quarter and the first quarter of 2020 was
attributable to the lower weighted average rate paid on
interest-bearing deposits, partially offset by higher average
deposit balances. The weighted average rate paid on
interest-bearing deposits was 0.77% for the quarter ended
March 31, 2021, compared to 0.88% and
1.34% for the quarters ended December 31,
2020 and March 31, 2020,
respectively. Interest expense on FHLB borrowings decreased
$43,000, or 5.9%, to $694,000 for the first quarter of 2021 compared
to $737,000 during the previous
quarter and decreased $45,000, or
6.1%, from $739,000 for the
comparable quarter in 2020. The average balance of FHLB borrowings
totaled $170.0 million during the
quarter ended March 31, 2021,
compared to $173.4 million and
$164.1 million for the quarters ended
December 31, 2020 and March 31, 2020, respectively. The weighted
average rate paid on FHLB borrowings was 1.63% for the quarter
ended March 31, 2021, 1.70% for
December 31, 2020, and 1.80% for the
first quarter of 2020.
Annualized net interest margin was 3.44% for the first quarter
of 2021, compared to 3.38% and 3.32% for the fourth quarter of 2020
and first quarter of 2020, respectively. The increase in the net
interest margin for the first quarter of 2021 compared to the
fourth quarter of 2020 primarily was due to a ten basis point
decline in the rate paid on interest bearing liabilities. The
increase in the net interest margin for the current quarter
compared to the comparable quarter in 2020 was primarily
attributable to the 48 basis point decline in the average rate paid
on interest bearing liabilities and a $68.7
million increase in average earning assets, partially offset
by a 22 basis point decline in the yield on average earning
assets.
The provision for loan and lease losses for the three months
ended March 31, 2021 totaled
$400,000 compared to $940,000 for the quarter ended December 31, 2020, and $210,000 for the quarter ended March 31, 2020. The continued elevated level of
provision for loan and lease losses was primarily due to the
continued uncertainty of the economic impact of the COVID-19
pandemic on the Bank's loan portfolio, as well as the increase in
non-performing loans experienced in the quarter. Net charge-offs
during the first quarter of 2021 were $27,000, compared to net charge-offs of
$163,000 during the fourth quarter of
2020 and net recoveries of $7,000 in
the first quarter of 2020. As the COVID-19 pandemic continues, we
expect to see continued pressure on asset quality. As management
continues to monitor the loan portfolio, additional provisions may
be required.
Total noninterest income decreased $367,000, or 17.2%, to $1.8 million for the quarter ended March 31, 2021 compared to $2.1 million for the quarter ended December 31, 2020, and increased $814,000, or 85.4%, from $953,000 for the comparable quarter in 2020. The
decrease in noninterest income in the first quarter of 2021 from
the fourth quarter of 2020 resulted primarily from an impairment
write down of mortgage servicing rights of $158,000 in the first quarter of 2021 compared to
a recovery of impaired mortgage servicing rights of $98,000 in the fourth quarter of 2020; while a
mortgage servicing rights impairment charge of $114,000 was recorded in the first quarter of
2020. Gain on sale of loans and leases declined $81,000, or 7.8% in the first quarter of 2021
compared to the fourth quarter of 2020, but increased $737,000, or 322.8% from the first quarter of
2020 as mortgage banking activity generally remained strong in 2021
due to continued low rates. There was no net gain on the sale
of securities recorded in the first quarter of 2021 or the fourth
quarter of 2020, while the Company recognized a net gain on the
sale of securities of $69,000 in the
first quarter of 2020. Card fee income decreased $1,000, or 0.2% to $243,000 in the first quarter of 2021 from the
fourth quarter of 2020, and increased $63,000, or 35.0% from $180,000 in the first quarter of 2020.
Other loan fees increased $53,000, or
27.2%, to $248,000 in the first
quarter of 2021 compared to the quarter ended December 31, 2020, and increased $165,000, or 199.1%, over the comparable quarter
in 2020. The increase in other loan fees during the current quarter
compared to the prior quarter and the first quarter of 2020 was
primarily due to an increase in commercial loan processing
fees. Commercial loan processing fees increased $56,000 in the first quarter of 2021 over the
fourth quarter of 2020, and increased $168,000 over the comparable quarter in
2020. Service fees on deposit accounts decreased $25,000, or 11.6%, to $194,000 for the quarter ended March 31, 2021, compared to $220,000 for the fourth quarter of 2020, and
decreased $60,000, or 23.6%, from
$255,000 for the quarter ended
March 31, 2020. The decrease in
service fees on deposit accounts during the first quarter of 2021
compared to the fourth quarter of 2020 and the comparable quarter
of 2020 was the result of higher customer balances maintained in
deposit accounts.
Total noninterest expense increased $125,000, or 1.8%, to $7.0
million for the three months ended March 31, 2021, compared to $6.9 million for the fourth quarter of 2020 and
increased $1.5 million, or 26.3%,
from $5.5 million for the same period
in 2020. Salaries and employee benefits decreased $54,000, or 1.2%, to $4.4
million for the quarter ended March
31, 2021, compared to $4.5
million in the fourth quarter of 2020, and increased
$1.1 million, or 32.2%, from
$3.4 million for the quarter ended
March 31, 2020. The decrease in
salaries and benefits in the first quarter of 2021 from the fourth
quarter of 2020 primarily was due to a reduction of $303,000 in costs associated with the
acceleration of restricted stock awards upon the death of a
director during the fourth quarter of 2020, partially offset by an
increase of $101,000 in salary
expense as a result of annual merit increases and the hiring of
additional staff, and an $85,000
increase in health insurance costs. The increase in salaries
and benefits from the first quarter of 2020 primarily was due to
$508,000 of expenses associated with
equity awards granted during the fourth quarter of 2020
following shareholder approval of the Company's equity incentive
plan, increased pension expense of $182,000, and increased compensation expense of
$380,000 primarily as a result of
annual merit increases and additional staff. Net occupancy
expense increased $50,000, or 17.7%,
to $331,000 for the three months
ended March 31, 2021 compared to
$281,000 for the fourth quarter of
2020, and increased $41,000, or 14.0%
from $290,000 in the same quarter of
2020, primarily as a result of higher building maintenance
expenses compared to both the fourth quarter of 2020 and the
first quarter of 2020. Equipment expense increased $6,000, or 1.7%, to $337,000 in the first quarter of 2021 compared to
$331,000 in the prior quarter, and
increased $81,000, or 31.5% from the
comparable period in 2020, primarily due to increased depreciation
expense. Deposit insurance expense increased $19,000, or 36.1% to $71,000, in the first quarter of 2021 compared to
the fourth quarter of 2020, and increased $15,000, or 26.8% compared to the first quarter
of 2020. Legal and professional fees increased $54,000, or 18.6%, to $347,000 for the quarter ended March 31, 2021 compared to $292,000 in the prior quarter primarily due to
professional services rendered in connection with the Company's
year-end reporting obligations, and increased $105,000, or 43.6% from the same quarter in 2020
due, in part, to professional services rendered in connection with
the adoption and implementation of the Company's equity incentive
plan approved by shareholders during the third quarter of 2020.
Advertising expense decreased $27,000
or 24.2%, in the first quarter of 2021 compared to the prior
quarter, and decreased $26,000 or
23.3% from the comparable quarter of 2020. The decrease in
advertising expense in the first quarter of 2021 compared to the
prior quarter primarily was due to a decrease in promotional items,
and the decrease compared to the first quarter of 2020 primarily
was due to less media advertising during the quarter. Other
expenses were flat at $771,000 in the
first quarter of 2021 compared to the prior quarter, and increased
$107,000, or 16.1%, compared to the
same quarter of 2020. The increase in other expenses from the first
quarter of 2020 primarily was due to loan related expenses
increasing $40,000, debit card
expenses increasing $8,000, and
franchise tax expense increasing $70,000.
The Company froze its defined benefit plan ("DB Plan") in
October 2019 with the intent to
terminate it. The freezing of the DB Plan has reduced, but not
eliminated, the ongoing expenses associated with the DB Plan until
it is terminated. Freezing the DB plan resulted in some immediate
cost savings because future benefit accruals were stopped. However,
the freeze did not impact unfunded liabilities or eliminate cost
volatility. The frozen DB Plan remains subject to the interest
rate, investment and demographic risks that apply to ongoing
defined benefit plans. In addition, the frozen DB Plan is still
subject to the same minimum funding, compliance, administrative and
fiduciary requirements as an ongoing defined benefit plan. The
Company still intends to terminate the Bank's participation in the
DB Plan, which will require it to pay an amount based on the
underfunded status of the plan. As of March
31, 2021, the Company has accrued $17.5 million for this expense. The actual
termination expense of the DB Plan may be higher or lower than the
amount currently accrued for by the Company depending on a number
of factors, including but not limited to the interest rate
environment and the valuation of plan assets. Due to the current
low interest rate environment, terminating the DB Plan at this time
would require the Company to incur a substantial additional expense
over and above the amount presently accrued. As a result, the
Company's Board of Directors will continue to monitor and evaluate
the timing of, and costs associated with, termination of the DB
Plan. Any additional expenses associated with the termination of
the DB Plan will negatively impact our results of operations in the
future.
Income tax expense increased $13,000 during the three months ended
March 31, 2021, compared to the prior
quarter due to a higher level of pre-tax income compared to the
prior quarter. Income tax expense decreased $65,000 during the three months ended
March 31, 2021, compared to the same
period in 2020, primarily due to a lower tax rate. The
effective tax rate for the first quarter of 2021 was 18.7% compared
to 18.6% for the fourth quarter of 2020 and 21.1% for the same
quarter a year ago.
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, including on the Company's credit
quality and business operations, as well as its impact on general
economic and financial market conditions and other uncertainties
such as the extent and duration of the impact of the pandemic on
public health, the U.S. and global economies, and on consumer and
corporate customers, including economic activity, employment levels
and market liquidity: 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
|
SELECTED
OPERATIONS DATA:
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
($ in thousands,
except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
10,644
|
|
|
$
|
10,809
|
|
|
$
|
10,452
|
|
Interest
expense
|
1,881
|
|
|
2,046
|
|
|
2,564
|
|
Net interest
income
|
8,763
|
|
|
8,763
|
|
|
7,888
|
|
|
|
|
|
|
|
Provision for loan
losses
|
400
|
|
|
940
|
|
|
210
|
|
Net interest income
after provision
|
8,363
|
|
|
7,823
|
|
|
7,678
|
|
Noninterest
income
|
1,767
|
|
|
2,134
|
|
|
953
|
|
Noninterest
expense
|
6,978
|
|
|
6,852
|
|
|
5,524
|
|
Income before income
tax expense
|
3,152
|
|
|
3,105
|
|
|
3,107
|
|
Income tax
provision
|
590
|
|
|
577
|
|
|
655
|
|
|
|
|
|
|
|
Net
income
|
$
|
2,562
|
|
|
$
|
2,528
|
|
|
$
|
2,452
|
|
|
|
|
|
|
|
Shares
outstanding
|
13,051
|
|
|
13,194
|
|
|
13,527
|
|
Weighted average
shares outstanding
|
11,687
|
|
|
11,832
|
|
|
12,467
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
|
$
|
0.21
|
|
|
$
|
0.20
|
|
Diluted
|
$
|
0.22
|
|
|
$
|
0.21
|
|
|
$
|
0.20
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
March 31,
2021
|
|
December 31,
2020
|
(In thousands, except
for per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
Total
assets
|
$
|
1,140,905
|
|
|
$
|
1,084,192
|
|
Cash and cash
equivalents
|
65,523
|
|
|
48,768
|
|
Investment
securities
|
268,370
|
|
|
256,730
|
|
Loans and leases, net
of allowance
|
763,731
|
|
|
736,400
|
|
Premises and
equipment, net
|
14,718
|
|
|
14,892
|
|
Federal Home Loan
Bank stock
|
9,050
|
|
|
9,050
|
|
Other
assets
|
19,513
|
|
|
18,352
|
|
Deposits
|
757,074
|
|
|
693,045
|
|
Borrowings
|
170,000
|
|
|
170,000
|
|
Total stockholder's
equity
|
189,520
|
|
|
192,713
|
|
|
|
|
|
Book value
(GAAP)
|
$
|
189,520
|
|
|
$
|
192,713
|
|
Tangible book value
(non-GAAP)
|
189,520
|
|
|
192,713
|
|
Book value per
share
|
14.52
|
|
|
14.61
|
|
Tangible book value
per share
|
14.52
|
|
|
14.61
|
|
|
The following table
summarizes information relating to our loan portfolio at the dates
indicated:
|
|
(In
thousands)
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
|
Commercial
mortgage
|
$
|
254,561
|
|
|
$
|
247,564
|
|
Commercial and
industrial
|
128,126
|
|
|
122,831
|
|
Construction and
development
|
67,728
|
|
|
58,424
|
|
Multi-family
|
60,608
|
|
|
55,998
|
|
Residential
mortgage
|
128,947
|
|
|
127,108
|
|
Home
equity
|
6,104
|
|
|
5,982
|
|
Direct financing
leases
|
117,725
|
|
|
117,171
|
|
Consumer
|
13,183
|
|
|
13,257
|
|
|
|
|
|
Total loans and
leases
|
$
|
776,982
|
|
|
$
|
748,335
|
|
|
The following table
summarizes information relating to changes in deposits at the dates
indicated:
|
|
(In
thousands)
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
|
Noninterest-bearing
demand
|
$
|
118,076
|
|
|
$
|
98,725
|
|
Interest-bearing
demand
|
151,364
|
|
|
141,990
|
|
Savings and money
market
|
231,199
|
|
|
209,861
|
|
Non-brokered time
deposits
|
229,755
|
|
|
219,194
|
|
Brokered time
deposits
|
26,680
|
|
|
23,275
|
|
|
|
|
|
Total
deposits
|
$
|
757,074
|
|
|
$
|
693,045
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
|
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
|
$
|
717,980
|
|
|
$
|
9,628
|
|
|
5.36
|
%
|
|
$
|
686,180
|
|
|
$
|
9,064
|
|
5.28
|
%
|
Securities
|
|
260,763
|
|
|
940
|
|
|
1.44
|
%
|
|
224,300
|
|
|
1,182
|
|
2.11
|
%
|
FHLB stock
|
|
9,050
|
|
|
69
|
|
|
3.05
|
%
|
|
7,922
|
|
|
81
|
|
4.09
|
%
|
Cash and cash
equivalents and other
|
|
31,595
|
|
|
7
|
|
|
0.09
|
%
|
|
32,277
|
|
|
125
|
|
1.55
|
%
|
Total interest-earning
assets
|
|
1,019,388
|
|
|
10,644
|
|
|
4.18
|
%
|
|
950,679
|
|
|
10,452
|
|
4.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
|
223,560
|
|
|
278
|
|
|
0.50
|
%
|
|
163,948
|
|
|
292
|
|
0.71
|
%
|
Interest-bearing
checking accounts
|
|
142,457
|
|
|
81
|
|
|
0.23
|
%
|
|
104,154
|
|
|
82
|
|
0.31
|
%
|
Certificate
accounts
|
|
248,360
|
|
|
828
|
|
|
1.33
|
%
|
|
278,434
|
|
|
1,451
|
|
2.08
|
%
|
Borrowings
|
|
170,000
|
|
|
694
|
|
|
1.63
|
%
|
|
164,066
|
|
|
739
|
|
1.80
|
%
|
Total interest-bearing
liabilities
|
|
784,377
|
|
|
1,881
|
|
|
0.96
|
%
|
|
710,602
|
|
|
2,564
|
|
1.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
8,763
|
|
|
|
|
|
|
$
|
7,888
|
|
|
Net earning
assets
|
$
|
235,011
|
|
|
|
|
|
|
$
|
240,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
|
3.22
|
%
|
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin(2)
|
|
|
|
|
|
3.44
|
%
|
|
|
|
|
|
3.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
|
129.96
|
%
|
|
|
|
|
|
133.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(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:
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
0.92
|
%
|
|
0.95
|
%
|
|
0.92
|
%
|
|
0.93
|
%
|
|
0.98
|
%
|
Return on average
equity (annualized)
|
5.36
|
%
|
|
5.26
|
%
|
|
5.22
|
%
|
|
5.15
|
%
|
|
5.15
|
%
|
Yield on
interest-earning assets
|
4.18
|
%
|
|
4.17
|
%
|
|
4.07
|
%
|
|
3.96
|
%
|
|
4.40
|
%
|
Rate paid on
interest-bearing liabilities
|
0.96
|
%
|
|
1.06
|
%
|
|
1.19
|
%
|
|
1.26
|
%
|
|
1.44
|
%
|
Average interest rate
spread
|
3.22
|
%
|
|
3.11
|
%
|
|
2.88
|
%
|
|
2.70
|
%
|
|
2.96
|
%
|
Net interest margin
(annualized)(1)
|
3.44
|
%
|
|
3.38
|
%
|
|
3.18
|
%
|
|
3.03
|
%
|
|
3.32
|
%
|
Operating expense to
average total assets (annualized)
|
2.51
|
%
|
|
2.57
|
%
|
|
2.18
|
%
|
|
2.10
|
%
|
|
2.22
|
%
|
Efficiency
ratio(2)
|
66.27
|
%
|
|
62.89
|
%
|
|
58.04
|
%
|
|
55.94
|
%
|
|
62.97
|
%
|
Average
interest-earning assets to average interest-bearing
liabilities
|
129.96
|
%
|
|
134.66
|
%
|
|
134.04
|
%
|
|
135.09
|
%
|
|
133.79
|
%
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(3)
|
0.71
|
%
|
|
0.45
|
%
|
|
0.32
|
%
|
|
0.38
|
%
|
|
0.43
|
%
|
Non-performing loans
and leases to total gross loans and leases(4)
|
1.05
|
%
|
|
0.65
|
%
|
|
0.44
|
%
|
|
0.57
|
%
|
|
0.61
|
%
|
Allowance for loan
and lease losses to non-performing loans and
leases(4)
|
135.07
|
%
|
|
220.57
|
%
|
|
290.88
|
%
|
|
197.47
|
%
|
|
171.23
|
%
|
Allowance for loan
and lease losses to total loans and leases
|
1.41
|
%
|
|
1.43
|
%
|
|
1.29
|
%
|
|
1.12
|
%
|
|
1.05
|
%
|
Net charge-offs
(annualized) to average outstanding loans and leases during the
period
|
0.01
|
%
|
|
0.09
|
%
|
|
0.01
|
%
|
|
0.06
|
%
|
|
0.00
|
%
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
Equity to total
assets at end of period
|
16.61
|
%
|
|
17.85
|
%
|
|
18.17
|
%
|
|
17.20
|
%
|
|
19.17
|
%
|
Average equity to
average assets
|
17.18
|
%
|
|
18.01
|
%
|
|
18.35
|
%
|
|
18.13
|
%
|
|
19.11
|
%
|
Common equity tier 1
capital (to risk weighted assets)(5)
|
19.52
|
%
|
|
20.64
|
%
|
|
18.89
|
%
|
|
18.98
|
%
|
|
18.20
|
%
|
Tier 1 leverage
(core) capital (to adjusted tangible
assets)(5)
|
14.19
|
%
|
|
14.28
|
%
|
|
13.87
|
%
|
|
13.43
|
%
|
|
14.31
|
%
|
Tier 1 risk-based
capital (to risk weighted assets)(5)
|
19.52
|
%
|
|
20.64
|
%
|
|
18.89
|
%
|
|
18.98
|
%
|
|
18.20
|
%
|
Total risk-based
capital (to risk weighted assets)(5)
|
20.77
|
%
|
|
21.90
|
%
|
|
20.13
|
%
|
|
20.07
|
%
|
|
19.14
|
%
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Number of
full-service offices
|
12
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
12
|
|
Full-time equivalent
employees
|
175
|
|
|
170
|
|
|
170
|
|
|
172
|
|
|
172
|
|
|
|
|
|
|
|
|
(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 non-accruing loans and leases, accruing loans and leases
more than 90 days past due and foreclosed assets.
|
(4)
|
Non-performing loans
and leases consist of non-accruing 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:http://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-first-quarter-2021-financial-results-301275461.html
SOURCE Richmond Mutual Bancorporation, Inc.