RICHMOND, Ind., Oct. 21, 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
$3.1 million, or $0.27 diluted earnings per share, for the third
quarter of 2021, compared to net income of $2.8 million, or $0.24 diluted earnings per share, for the second
quarter of 2021, and net income of $2.5
million, or $0.21 diluted
earnings per share, for the third quarter of 2020.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "We are pleased to report
continued progress in both our earnings and return of capital
strategies. Our third quarter earnings continued to improve
over both our second quarter results and the comparable quarter of
last year, despite the continued low interest rate environment and
the ongoing uncertainties and supply chain disruptions of the
pandemic. We continue to work closely with our borrowers to
understand their needs and help them through these unique
challenges. In addition, we are working to reduce our excess
capital by returning capital to our shareholders through stock
repurchases and dividends. Supporting our employees, our
local communities and our stockholders is our core mission."
Our Response to COVID-19 Pandemic
Loan Programs. On December 27, 2020, the Consolidated
Appropriations Act, 2021 ("CAA") was signed into law. This
legislation included another round of COVID-19 stimulus funding,
including approximately $285 billion
in funding to reopen the U.S. Small Business Administration's
("SBA") Paycheck Protection Program ("PPP") which initially expired
on August 8, 2020. The new round of
COVID-19 stimulus funding under the PPP concluded May 31, 2021. As of September 30, 2021, we had funded a total of 892
PPP loans totaling $103.1 million and
the SBA had approved 732 loan forgiveness applications totaling
$84.8 million. PPP loans totaled
$16.3 million at September 30, 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 third quarter of 2021 have significantly declined. We
continue to monitor our loan portfolio and strive to work with our
customers and communities. Deferred loans and leases are
re-evaluated at the end of the initial deferral period and will
either return to the original loan or lease 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
September 30, 2021, we had no loans
and leases that were subject to payment deferrals, down from six
loans and leases at June 30, 2021
totaling $2.5 million.
Branch Operations and Support
Personnel. Certain employees continue to work remotely
or have flexible work schedules while protective measures are in
place within our offices to help ensure the safety of those
employees on-site. 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.
Third Quarter Performance Highlights:
- Assets totaled $1.2 billion at
both September 30, 2021 and
June 30, 2021, compared to
$1.1 billion at December 31, 2020.
- Loans and leases, net of allowance, totaled $795.4 million at September 30, 2021, compared to $785.3 at June 30,
2021 and $734.4 million at
December 31, 2020.
- Nonperforming loans and leases totaled $8.5 million, or 1.05% of total loans and leases,
at September 30, 2021, compared to
$7.7 million, or 0.97% at
June 30, 2021 and $4.8 million, or 0.65% of total loans and leases,
at December 31, 2020.
- The allowance for loan and lease losses totaled $11.8 million, or 1.47% of total loans and leases
outstanding, at September 30, 2021,
compared to $11.4 million, or 1.43%
at June 30, 2021 and $10.6 million, or 1.42% of total loans and leases
outstanding at December 31,
2020.
- The provision for loan and lease losses totaled $500,000 in the current quarter, compared to
$530,000 in the preceding quarter,
and $1.3 million in the third quarter
of 2020.
- Deposits totaled $824.3 million
at September 30, 2021, compared to
$793.1 million at June 30, 2021 and $693.0
million at December 31, 2020.
At September 30, 2021, noninterest
bearing deposits totaled $106.2
million or 12.9% of total deposits, compared to $110.5 million or 13.9% of total deposits at
June 30, 2021 and $98.7 million or 14.2% of total deposits at
December 31, 2020.
- Stockholders' equity totaled $178.6
million at September 30, 2021,
compared to $182.6 million at
June 30, 2021 and $192.7 million at December
31, 2020. The Company's equity to asset ratio was 14.51% at
September 30, 2021.
- Net interest income increased $768,000 or 8.4% to $10.0
million for the three months ended September 30, 2021, compared to net interest
income of $9.2 million for the prior
quarter, and increased $1.5 million
or 18.0% from $8.4 million for the
comparable quarter in 2020.
- Annualized net interest margin was 3.42% for the current
quarter, compared to 3.27% in the preceding quarter and 3.24% the
third quarter a year ago.
- The Company repurchased 264,909 shares of common stock at an
average price of $15.12 per share
during the quarter ended September 30,
2021.
- The Bank's Tier 1 capital to total assets was 12.76% and the
Bank's capital was well in excess of all regulatory requirements at
September 30, 2021.
Balance Sheet Summary
Total assets increased $146.5
million, or 13.5%, to $1.2
billion at September 30, 2021,
from $1.1 billion at December 31, 2020. The increase was primarily a
result of a $61.0 million, or 8.3%,
increase in loans and leases, net of allowance, to $795.4 million and a $110.9 million, or 43.2%, increase in investment
securities to $367.7 million at
September 30, 2021. The
increase in loans and leases was attributable to an increase in
multi-family loans of $36.7 million,
an increase in construction and development loans of $24.1 million, an increase in commercial real
estate loans of $7.6 million, and an
increase in residential loans and leases of $6.0 and $5.9
million, respectively. Commercial and industrial loans
declined $21.0 million due to a
decrease in PPP loans of $27.1
million resulting from PPP loan forgiveness by the SBA.
Loans held for sale totaled $903,000,
$603,000 and $2.0 million at September
30, 2021, June 30, 2021, and
December 31, 2020, respectively. The
increase in investment securities was primarily the result of using
our excess liquidity to purchase securities during the first nine
months of 2021. The balance of the change in assets was
attributable to a $28.9 million, or
59.3%, decrease in cash and cash equivalents to $19.8 million at September
30, 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 $8.5 million or 1.05% of
total loans and leases at September 30,
2021, compared to $7.7 million
or 0.97% at June 30, 2021 and
$4.8 million or 0.65% at December 31, 2020. The increase in nonperforming
loans and leases from December 31,
2020 was primarily the result of a $4.9 million nonaccrual 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 September 30, 2021 totaled $2.3 million, compared to $2.0 million at June 30,
2021 and $4.0 million at
December 31, 2020.
The allowance for loan and lease losses increased $418,000, or 3.7%, to $11.8 million at September
30, 2021 from $11.4 million at
June 30, 2021, and increased
$1.3 million, or 11.9%, from
$10.6 million at December 31, 2020. At September 30, 2021, the allowance for loan and
lease losses totaled 1.47% of total loans and leases outstanding
compared to 1.43% at June 30, 2021
and 1.42% at December 31, 2020. The
allowance for loan and lease losses to total loans at September 30, 2021, June
30, 2021, and December 31,
2020 would increase three, seven, and eight basis points,
respectively, if PPP loans, which totaled $16.3 million, $34.6
million, and $43.3 million at
September 30, 2021, June 30, 2021 and December
31, 2020, respectively, and are 100% guaranteed by the SBA,
are excluded from the calculation. Net charge-offs during the first
nine months of 2021 were $167,000 or
0.02% of average loans and leases outstanding, compared to net
charge-offs of $110,000 during the
first nine 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
September 30, 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. 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.
Total deposits increased $31.2
million or 3.9% to $824.3
million at September 30, 2021,
compared to June 30, 2021 and
increased $131.2 million or 18.9%
compared to December 31, 2020. The
increase in deposits from June 30,
2021 primarily was due to an increase in brokered time
deposits of $22.1 million, and the
increase 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
time deposits totaled $63.8 million,
or 7.7% of total deposits, at September 30,
2021 compared to $41.7
million, or 5.3% of total deposits, at June 30, 2021 and $23.3
million, or 3.4% of total deposits, at December 31, 2020. Management increased
longer-term brokered time deposits as a result of continued low
rates being offered in the market for brokered time deposits.
Interest-bearing demand deposit and savings accounts increased
$5.2 million, or 1.3%, to
$407.3 million at September 30, 2021 from June 30, 2021, and increased $55.4 million, or 15.8%, from December 31, 2020. Noninterest-bearing demand
deposits decreased $4.3 million, or
3.9%, to $106.2 million at
September 30, 2021 from June 30, 2021, and increased $7.4 million, or 7.5%, from December 31, 2020. At September 30, 2021, noninterest bearing deposits
totaled 12.9% of total deposits, compared to 13.9% of total
deposits at June 30, 2021 and 14.2%
of total deposits at December 31,
2020.
Stockholders' equity totaled $178.6
million at September 30, 2021,
a decrease of $3.9 million or 2.2%
from June 30, 2021 and a decrease of
$14.1 million or 7.3% from
December 31, 2020. The decrease in
stockholders' equity from June 30,
2021 primarily was the result of a reduction in accumulated
comprehensive income of $2.9 million
caused by changes to the unrealized gains and loss on
available-for-sale securities, the repurchase of $4.0 million of Company common stock and the
payment of $802,000 in dividends to
Company stockholders, partially offset by net income of
$3.1 million. The decrease in
stockholders' equity from the year ended December 31, 2020 primarily was the result of a
reduction in accumulated comprehensive income of $5.0 million, the repurchase of $11.2 million of Company common stock and the
payment of $8.5 million in dividends
to Company stockholders, partially offset by net income of
$8.4 million.
During the quarter ended September 30,
2021, the Company repurchased a total of 264,909 shares of
Company common stock at an average price of $15.12 per share. As of September 30, 2021, the Company had approximately
1,045,498 shares available for repurchase under its existing stock
repurchase programs. Subsequent to quarter end through October 21, 2021, the Company purchased an
additional 11,116 shares, leaving 1,034,382 shares available for
future repurchase.
Income Statement Summary
Net interest income before the provision for loan and lease
losses increased $768,000, or 8.4%,
to $10.0 million in the third quarter
of 2021, compared to $9.2 million in
the second quarter of 2021 and increased $1.5 million, or 18.0%, from $8.4 million in the third quarter of 2020. The
increase from the second quarter of 2021 was due to a $41.7 million increase in average
interest-earning assets during the third quarter of 2021, as well
as a 16 basis point increase in the average interest rate spread.
The increase from the comparable quarter in 2020 was due to an
increase in average interest-earning assets of $124.7 million during the third quarter of 2021
compared to the comparable quarter of 2020 and a 27 basis point
increase in the average interest rate spread during the third
quarter of 2021 compared to the comparable quarter in 2020.
Interest income increased $789,000, or 7.1%, to $11.9 million during the quarter ended
September 30, 2021, compared to the
quarter ended June 30, 2021 and
increased $1.2 million, or 10.7%,
compared to quarter ended September 30,
2020. Interest income on loans and leases increased
$581,000, or 5.9%, to $10.4 million for the quarter ended September 30, 2021, from $9.9 million for the quarter ended June 30, 2021, and increased $718,000, or 7.4%, from $9.7 million for the comparable quarter in 2020.
The increase in interest income on loans and leases from the
previous quarter was primarily due to an increase in the average
loan and lease yield of 25 basis points to 5.32% for the three
months ended September 30, 2021,
while the increase from the comparable period in 2020 was due to an
increase in the average balance of loans and leases of $28.2 million and an increase in the average loan
and lease yield of 18 basis points.
Interest income on investment securities, excluding FHLB
stock, increased $202,000, or 17.0%,
to $1.4 million during the quarter
ended September 30, 2021, compared to
the quarter ended June 30, 2021, and
increased $496,000, or 55.7%, from
the comparable quarter in 2020. The increase in interest income on
investment securities, excluding FHLB stock, from the previous
quarter was primarily due to an increase in the average balance of
investment securities of $40.9
million to $354.2 million and
an increase in yield of six basis points to 1.57% for the three
months ended September 30, 2021,
while the increase from the comparable period in 2020 was due to an
increase in the average balance of $107.1
million and an increase in the average yield of 13 basis
points. Interest income on FHLB stock totaled $69,000, $64,000
and $126,000 for the three months
ended September 30, 2021,
June 30, 2021 and September 30, 2020, respectively. The decrease in
interest income earned on FHLB stock during the current quarter
compared to the comparable quarter in 2020 was due to a 251 basis
point decline in the average yield earned on FHLB stock during the
current quarter.
Interest expense increased $20,000, or 1.1%, to $1.9
million for the quarter ended September 30, 2021, compared to the second
quarter of 2021, and decreased $366,000, or 15.8%, compared to the quarter ended
September 30, 2020. Interest expense
on deposits increased $33,000, or
2.7%, to $1.3 million for the quarter
ended September 30, 2021, compared to
the previous quarter and decreased $291,000, or 18.9%, from the comparable quarter
in 2020. The increase in the current quarter compared to the second
quarter of 2021 was attributable to an increase in average
interest-bearing deposit balances of $37.7
million, partially offset by a two basis point decrease in
the average rate paid on interest-bearing deposits. The
decrease from the comparable quarter in 2020 was due to a decrease
of 34 basis points in the average rate paid on interest-bearing
deposits, partially offset by an increase of $118.5 million in average interest-bearing
deposit balances. The average rate paid on interest-bearing
deposits was 0.70% for the quarter ended September 30, 2021, compared to 0.72% and 1.04%
for the quarters ended June 30, 2021
and September 30, 2020, respectively.
Interest expense on FHLB borrowings decreased $12,000, or 1.7%, to $689,000 for the third quarter of 2021 compared
to the previous quarter and decreased $75,000, or 9.8%, from the comparable quarter in
2020. The average balance of FHLB borrowings totaled $179.4 million during the quarter ended
September 30, 2021, compared to
$173.1 million and $180.9 million for the quarters ended
June 30, 2021 and September 30, 2020, respectively. The average
rate paid on FHLB borrowings was 1.54% for the quarter ended
September 30, 2021, 1.62% for
June 30, 2021, and 1.69% for the
third quarter of 2020.
Annualized net interest margin increased to 3.42% for the third
quarter of 2021, compared to 3.27% for the second quarter of 2021
and 3.24% for the third quarter of 2020. The increase in the net
interest margin for the third quarter of 2021 compared to the
second quarter of 2021 and the comparable quarter in 2020 was due
to increases in the average interest rate spread and average
earning assets during the current quarter compared to the prior
quarter and the comparable quarter in 2020.
The provision for loan and lease losses totaled $500,000 for the three months ended September 30, 2021, compared to $530,000 for the quarter ended June 30, 2021 and $1.3
million for the quarter ended September 30, 2020. The provision for loan and
lease losses recorded in the quarter ended September 30, 2021 primarily reflected the
continued uncertainty of the economic impact of the COVID-19
pandemic and the effects of the government's response to the
pandemic on the Bank's loan portfolio, as well as the increase in
non-performing loans experienced in the first nine months of 2021.
Net charge-offs during the third quarter of 2021 were $82,000, compared to $58,000 during the second quarter of 2021 and
$12,000 in the third quarter of 2020.
While we believe the steps we have taken and continue to take are
necessary to effectively manage our portfolio and assist our
clients through the ongoing uncertainty surrounding the duration,
impact and government response to the COVID-19 pandemic,
uncertainties relating to our allowance for loan losses are
heightened as a result of the risks surrounding the COVID-19
pandemic, including whether government relief will provide adequate
relief to borrowers. The ultimate impact will depend on future
developments, including the scope and duration of the pandemic and
further actions taken by government authorities in response to the
pandemic.
Total noninterest income decreased $496,000, or 30.2%, to $1.1 million for the quarter ended September 30, 2021 compared to the quarter
ended June 30, 2021, and decreased
$848,000, or 42.5%, from the
comparable quarter in 2020. The decrease in noninterest income in
the third quarter of 2021 from the second quarter of 2021 resulted
primarily from a decrease in loan and lease servicing fees of
$430,000, while the decrease from the
comparable quarter in 2020 was primarily due to a $771,000 decrease in gains on loan and lease
sales. Gain on sale of loans and leases declined $13,000, or 2.2% in the third quarter of 2021
compared to the second quarter of 2021, and decreased $771,000, or 58.1% from the third quarter of 2020
as mortgage banking activity declined primarily due to lower
refinancing activity and a lower supply of houses for sale in the
Bank's market area. Loan and lease servicing fees decreased
$430,000 in the third quarter of 2021
compared to the second quarter of 2021 as an impairment charge of
$251,000 to mortgage servicing rights
was recorded compared to a recovery of $178,000 recorded in the second quarter of
2021. Loan and lease servicing fees declined $140,000 in the third quarter of 2021 compared to
the same quarter in 2020 as a recovery of impaired mortgage
servicing rights of $6,000 was
recorded in the third quarter of 2020. Net gains on the sale
of securities totaled $18,000 in the
quarter ended September 30, 2021,
compared to net gains of $38,000
recorded in the second quarter of 2021, and net gains of
$117,000 recorded in the third
quarter of 2020. Card fee income decreased $8,000, or 3.0% to $266,000 in the third quarter of 2021 from the
second quarter of 2021, and increased $48,000, or 22.0% from $218,000 in the third quarter of 2020. Service
fees on deposit accounts increased $37,000, or 18.8%, to $236,000 for the quarter ended September 30, 2021, compared to $199,000 for the second quarter of 2021, and
increased $86,000, or 56.8%, from
$151,000 for the quarter ended
September 30, 2020. The increase in
service fees on deposit accounts during the third quarter of 2021
compared to the second quarter of 2021 was primarily due to
increased overdraft fees, and the increase from the third quarter
of 2020 was primarily due to the resumption of charging overdraft
fees after the suspension of such fees in 2020 during the height of
the COVID-19 pandemic.
Total noninterest expense decreased $35,000, or 0.5%, to $6.8
million for the three months ended September 30, 2021, compared to the second
quarter of 2021 and increased $859,000, or 14.4%, from the same period in 2020.
Salaries and employee benefits decreased $96,000, or 2.2%, to $4.2
million for the quarter ended September 30, 2021, compared to the second
quarter of 2021, and increased $570,000, or 15.6%, from the quarter ended
September 30, 2020. The decrease in
salaries and benefits in the third quarter of 2021 from the second
quarter of 2021 was primarily due to several positions being open
and a delay in filling those positions as well as a slight decline
in unemployment compensation insurance. The increase in
salaries and benefits from the third quarter of 2020 primarily was
due to $388,000 of expenses
associated with equity awards granted during the fourth quarter of
2020, increased compensation expense of $154,000 primarily as a result of annual merit
increases and additional staff, and increased ESOP expense of
$56,000. Other expenses
increased $12,000, or 1.4% in the
third quarter of 2021 compared to the prior quarter, and increased
$108,000, or 13.9%, compared to the
same quarter of 2020. The increase in other expenses in the third
quarter of 2021 from the third quarter of 2020 primarily was due to
increased loan tax and insurance expenses of $66,000 and expenses of $28,000 associated with converting our digital
banking services to a new provider.
Income tax expense increased $37,000 during the three months ended
September 30, 2021 compared to the
prior quarter due to a higher level of pre-tax income. Income tax
expense increased $63,000 during the
three months ended September 30,
2021, compared to the same period in 2020 due to a higher
level of pre-tax income, partially offset by a lower effective tax
rate. The effective tax rate for the third quarter of 2021
was 18.0% compared to 18.7% in the second quarter, and 19.5% in the
third 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
|
|
Nine Months
Ended
|
SELECTED
OPERATIONS DATA:
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
11,900
|
|
|
$
|
11,112
|
|
|
$
|
10,746
|
|
|
$
|
33,896
|
|
|
$
|
31,869
|
|
Interest
expense
|
1,942
|
|
|
1,922
|
|
|
2,308
|
|
|
5,746
|
|
|
7,347
|
|
Net interest
income
|
9,958
|
|
|
9,190
|
|
|
8,438
|
|
|
28,150
|
|
|
24,522
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
500
|
|
|
530
|
|
|
1,300
|
|
|
1,430
|
|
|
2,830
|
|
Net interest income
after provision
|
9,458
|
|
|
8,660
|
|
|
7,138
|
|
|
26,720
|
|
|
21,692
|
|
Noninterest
income
|
1,145
|
|
|
1,640
|
|
|
1,993
|
|
|
4,313
|
|
|
4,855
|
|
Noninterest
expense
|
6,844
|
|
|
6,879
|
|
|
5,985
|
|
|
20,701
|
|
|
17,156
|
|
Income before income
tax expense
|
3,759
|
|
|
3,421
|
|
|
3,146
|
|
|
10,332
|
|
|
9,391
|
|
Income tax
provision
|
677
|
|
|
640
|
|
|
614
|
|
|
1,906
|
|
|
1,901
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
3,082
|
|
|
$
|
2,781
|
|
|
$
|
2,532
|
|
|
$
|
8,426
|
|
|
$
|
7,490
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
12,432
|
|
|
12,685
|
|
|
12,945
|
|
|
12,432
|
|
|
12,945
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
11,173
|
|
|
11,470
|
|
|
12,281
|
|
|
11,442
|
|
|
12,409
|
|
Diluted
|
11,473
|
|
|
11,730
|
|
|
12,281
|
|
|
11,685
|
|
|
12,409
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.28
|
|
|
$
|
0.24
|
|
|
$
|
0.21
|
|
|
$
|
0.74
|
|
|
$
|
0.60
|
|
Diluted
|
$
|
0.27
|
|
|
$
|
0.24
|
|
|
$
|
0.21
|
|
|
$
|
0.72
|
|
|
$
|
0.60
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
September
30,
2021
|
|
June
30,
2021
|
|
March
31
2021
|
|
December
31,
2020
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,230,712
|
|
|
$
|
1,188,480
|
|
|
$
|
1,140,905
|
|
|
$
|
1,084,192
|
|
Cash and cash
equivalents
|
19,837
|
|
|
17,087
|
|
|
65,523
|
|
|
48,768
|
|
Investment
securities
|
367,658
|
|
|
339,630
|
|
|
268,370
|
|
|
256,730
|
|
Loans and leases, net
of allowance
|
795,407
|
|
|
785,339
|
|
|
762,842
|
|
|
734,413
|
|
Loans held for
sale
|
903
|
|
|
603
|
|
|
889
|
|
|
1,987
|
|
Premises and
equipment, net
|
14,227
|
|
|
14,441
|
|
|
14,718
|
|
|
14,892
|
|
Federal Home Loan
Bank stock
|
9,542
|
|
|
9,050
|
|
|
9,050
|
|
|
9,050
|
|
Other
assets
|
23,138
|
|
|
22,330
|
|
|
19,513
|
|
|
18,352
|
|
Deposits
|
824,257
|
|
|
793,070
|
|
|
757,074
|
|
|
693,045
|
|
Borrowings
|
202,000
|
|
|
189,000
|
|
|
170,000
|
|
|
170,000
|
|
Total stockholder's
equity
|
178,638
|
|
|
182,569
|
|
|
189,520
|
|
|
192,713
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
|
178,638
|
|
|
$
|
182,569
|
|
|
$
|
189,520
|
|
|
$
|
192,713
|
|
Tangible book value
(non-GAAP)
|
178,638
|
|
|
182,569
|
|
|
189,520
|
|
|
192,713
|
|
Book value per share
(GAAP)
|
14.37
|
|
|
14.39
|
|
|
14.52
|
|
|
14.61
|
|
Tangible book value
per share (non-GAAP)
|
14.37
|
|
|
14.39
|
|
|
14.52
|
|
|
14.61
|
|
The following table summarizes information relating to our loan
and lease portfolio at the dates indicated:
(In
thousands)
|
September
30,
2021
|
|
June
30,
2021
|
|
March
31,
2021
|
|
December
31,
2020
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
|
255,211
|
|
|
$
|
249,376
|
|
|
$
|
254,561
|
|
|
$
|
247,564
|
|
Commercial and
industrial
|
101,818
|
|
|
117,079
|
|
|
128,126
|
|
|
122,831
|
|
Construction and
development
|
82,511
|
|
|
80,685
|
|
|
67,728
|
|
|
58,424
|
|
Multi-family
|
92,652
|
|
|
80,534
|
|
|
60,608
|
|
|
55,998
|
|
Residential
mortgage
|
131,094
|
|
|
129,049
|
|
|
128,058
|
|
|
125,121
|
|
Home
equity
|
6,784
|
|
|
6,325
|
|
|
6,104
|
|
|
5,982
|
|
Direct financing
leases
|
123,025
|
|
|
121,006
|
|
|
117,725
|
|
|
117,171
|
|
Consumer
|
15,347
|
|
|
14,676
|
|
|
13,183
|
|
|
13,257
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
|
808,442
|
|
|
$
|
798,730
|
|
|
$
|
776,093
|
|
|
$
|
746,348
|
|
The following table summarizes information relating to our
deposits at the dates indicated:
(In
thousands)
|
September
30,
2021
|
|
June
30,
2021
|
|
March
31,
2021
|
|
December
31,
2020
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
|
106,167
|
|
|
$
|
110,494
|
|
|
$
|
118,076
|
|
|
$
|
98,725
|
|
Interest-bearing
demand
|
159,973
|
|
|
155,565
|
|
|
151,364
|
|
|
141,990
|
|
Savings and money
market
|
247,310
|
|
|
246,542
|
|
|
231,199
|
|
|
209,861
|
|
Non-brokered time
deposits
|
247,054
|
|
|
238,789
|
|
|
229,755
|
|
|
219,194
|
|
Brokered time
deposits
|
63,753
|
|
|
41,680
|
|
|
26,680
|
|
|
23,275
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
|
824,257
|
|
|
$
|
793,070
|
|
|
$
|
757,074
|
|
|
$
|
693,045
|
|
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 quarterly 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,
|
|
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
|
$
|
784,531
|
|
$
|
10,437
|
|
|
5.32
|
%
|
|
$
|
756,307
|
|
$
|
9,720
|
|
5.14
|
%
|
Securities
|
354,211
|
|
1,387
|
|
|
1.57
|
%
|
|
247,113
|
|
891
|
|
1.44
|
%
|
FHLB stock
|
9,081
|
|
69
|
|
|
3.04
|
%
|
|
9,083
|
|
126
|
|
5.55
|
%
|
Cash and cash
equivalents and other
|
17,515
|
|
7
|
|
|
0.16
|
%
|
|
28,096
|
|
9
|
|
0.13
|
%
|
Total interest-earning
assets
|
1,165,338
|
|
11,900
|
|
|
4.08
|
%
|
|
1,040,599
|
|
10,746
|
|
4.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
250,799
|
|
325
|
|
|
0.52
|
%
|
|
189,848
|
|
243
|
|
0.51
|
%
|
Interest-bearing
checking accounts
|
166,138
|
|
98
|
|
|
0.24
|
%
|
|
123,271
|
|
68
|
|
0.22
|
%
|
Certificate
accounts
|
296,954
|
|
830
|
|
|
1.12
|
%
|
|
282,306
|
|
1,234
|
|
1.75
|
%
|
Borrowings
|
179,413
|
|
689
|
|
|
1.54
|
%
|
|
180,913
|
|
763
|
|
1.69
|
%
|
Total interest-bearing
liabilities
|
893,304
|
|
1,942
|
|
|
0.87
|
%
|
|
776,338
|
|
2,308
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
9,958
|
|
|
|
|
|
|
$
|
8,438
|
|
|
Net earning
assets
|
$
|
272,034
|
|
|
|
|
|
$
|
264,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.21
|
%
|
|
|
|
|
|
2.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin(2)
|
|
|
|
|
3.42
|
%
|
|
|
|
|
|
3.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-
bearing liabilities
|
130.45 %
|
|
|
|
|
|
134.04 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(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,
|
|
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
|
$
|
775,647
|
|
$
|
30,162
|
|
|
5.18
|
%
|
|
$
|
691,890
|
|
|
$
|
28,264
|
|
5.45
|
%
|
Securities
|
309,776
|
|
3,512
|
|
|
1.51
|
%
|
|
239,696
|
|
|
3,252
|
|
1.81
|
%
|
FHLB stock
|
9,060
|
|
202
|
|
|
2.97
|
%
|
|
8,681
|
|
|
207
|
|
3.18
|
%
|
Cash and cash
equivalents and other
|
23,932
|
|
20
|
|
|
0.11
|
%
|
|
38,355
|
|
|
146
|
|
0.51
|
%
|
Total interest-earning
assets
|
1,118,415
|
|
33,896
|
|
|
4.04
|
%
|
|
978,622
|
|
|
31,869
|
|
4.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
242,257
|
|
921
|
|
|
0.51
|
%
|
|
178,699
|
|
|
787
|
|
0.59
|
%
|
Interest-bearing
checking accounts
|
153,817
|
|
267
|
|
|
0.23
|
%
|
|
114,205
|
|
|
216
|
|
0.25
|
%
|
Certificate
accounts
|
272,440
|
|
2,475
|
|
|
1.21
|
%
|
|
288,571
|
|
|
4,071
|
|
1.88
|
%
|
Borrowings
|
174,198
|
|
2,083
|
|
|
1.59
|
%
|
|
175,620
|
|
|
2,273
|
|
1.73
|
%
|
Total interest-bearing
liabilities
|
842,712
|
|
5,746
|
|
|
0.91
|
%
|
|
757,095
|
|
|
7,347
|
|
1.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
28,150
|
|
|
|
|
|
|
$
|
24,522
|
|
|
Net earning
assets
|
$
|
275,703
|
|
|
|
|
|
$
|
221,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.13
|
%
|
|
|
|
|
|
3.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin(2)
|
|
|
|
|
3.36
|
%
|
|
|
|
|
|
3.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-
bearing liabilities
|
132.72 %
|
|
|
|
|
|
129.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(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,
2021
|
|
June
30,
2021
|
|
March
31,
2021
|
|
December
31,
2020
|
|
September
30,
2020
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
1.02
|
%
|
|
0.96
|
%
|
|
0.92
|
%
|
|
0.95
|
%
|
|
0.92
|
%
|
Return on average
equity (annualized)
|
6.83
|
%
|
|
5.98
|
%
|
|
5.36
|
%
|
|
5.26
|
%
|
|
5.22
|
%
|
Yield on
interest-earning assets
|
4.08
|
%
|
|
3.96
|
%
|
|
4.27
|
%
|
|
4.25
|
%
|
|
4.13
|
%
|
Rate paid on
interest-bearing liabilities
|
0.87
|
%
|
|
0.91
|
%
|
|
0.96
|
%
|
|
1.06
|
%
|
|
1.19
|
%
|
Average interest rate
spread
|
3.21
|
%
|
|
3.05
|
%
|
|
3.31
|
%
|
|
3.19
|
%
|
|
2.94
|
%
|
Net interest margin
(annualized)(1)
|
3.42
|
%
|
|
3.27
|
%
|
|
3.53
|
%
|
|
3.46
|
%
|
|
3.24
|
%
|
Operating expense to
average total assets
(annualized)
|
2.26
|
%
|
|
2.36
|
%
|
|
2.51
|
%
|
|
2.57
|
%
|
|
2.18
|
%
|
Efficiency
ratio(2)
|
61.74
|
%
|
|
63.74
|
%
|
|
66.27
|
%
|
|
62.89
|
%
|
|
58.04
|
%
|
Average
interest-earning assets to average
interest-bearing liabilities
|
130.45
|
%
|
|
132.31
|
%
|
|
129.96
|
%
|
|
134.66
|
%
|
|
134.04
|
%
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(3)
|
0.69
|
%
|
|
0.65
|
%
|
|
0.71
|
%
|
|
0.45
|
%
|
|
0.32
|
%
|
Non-performing loans
and leases to total
gross loans and leases(4)
|
1.05
|
%
|
|
0.97
|
%
|
|
1.05
|
%
|
|
0.65
|
%
|
|
0.44
|
%
|
Allowance for loan
and lease losses to
non-performing loans and leases(4)
|
139.23
|
%
|
|
147.62
|
%
|
|
135.07
|
%
|
|
220.57
|
%
|
|
290.88
|
%
|
Allowance for loan
and lease losses to
total loans and leases
|
1.47
|
%
|
|
1.43
|
%
|
|
1.41
|
%
|
|
1.42
|
%
|
|
1.29
|
%
|
Net charge-offs
(annualized) to average
outstanding loans and leases during the
period
|
0.04
|
%
|
|
0.03
|
%
|
|
0.01
|
%
|
|
0.09
|
%
|
|
0.01
|
%
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
Equity to total
assets at end of period
|
14.51
|
%
|
|
15.36
|
%
|
|
16.61
|
%
|
|
17.85
|
%
|
|
18.17
|
%
|
Average equity to
average assets
|
16.01
|
%
|
|
16.55
|
%
|
|
17.18
|
%
|
|
18.01
|
%
|
|
18.35
|
%
|
Common equity tier 1
capital (to
risk weighted assets)(5)
|
16.38
|
%
|
|
17.81
|
%
|
|
19.52
|
%
|
|
20.64
|
%
|
|
18.89
|
%
|
Tier 1 leverage
(core) capital (to
adjusted tangible assets)(5)
|
12.76
|
%
|
|
13.68
|
%
|
|
14.19
|
%
|
|
14.28
|
%
|
|
13.87
|
%
|
Tier 1 risk-based
capital (to risk weighted
assets)(5)
|
16.38
|
%
|
|
17.81
|
%
|
|
19.52
|
%
|
|
20.64
|
%
|
|
18.89
|
%
|
Total risk-based
capital (to risk weighted
assets)(5)
|
17.63
|
%
|
|
19.06
|
%
|
|
20.77
|
%
|
|
21.90
|
%
|
|
20.13
|
%
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Number of
full-service offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
Full-time equivalent
employees
|
175
|
|
178
|
|
175
|
|
170
|
|
170
|
____________________
|
(1)
|
Net interest income
divided by average interest-earning assets.
|
(2)
|
Total noninterest
expenses as a percentage of net interest income and total
noninterest income, excluding net securities
transactions.
|
(3)
|
Non-performing assets
consist of nonaccrual loans and leases, accruing loans and leases
more than 90 days past due and foreclosed assets.
|
(4)
|
Non-performing loans
and leases consist of nonaccrual loans and leases and accruing
loans and leases more than 90 days past due.
|
(5)
|
Capital ratios are
for First Bank Richmond.
|
View original
content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-third-quarter-2021-financial-results-301406168.html
SOURCE Richmond Mutual Bancorporation, Inc.