RICHMOND, Ind., Jan. 27, 2022 /PRNewswire/ -- Richmond Mutual
Bancorporation, Inc., a Maryland
corporation (the "Company") (NASDAQ: RMBI), parent company of First
Bank Richmond (the "Bank"), today announced net income of
$2.7 million, or $0.24 diluted earnings per share, for the fourth
quarter of 2021, compared to net income of $3.1 million, or $0.27 diluted earnings per share, for the third
quarter of 2021, and net income of $2.5
million, or $0.21 diluted
earnings per share, for the fourth quarter of 2020. Net income was
$11.1 million, or $0.96 diluted earnings per share for the year
ended December 31, 2021, compared to
net income of $10.0 million, or
$0.82 diluted earnings per share for
the year ended December 31, 2020.
The Company recorded an additional one-time expense of
$665,000, pre-tax, during the fourth
quarter of 2021 to complete the termination of its defined benefit
pension plan (the "DB Plan"). Net income, excluding the
one-time charge associated with the DB Plan, was $3.2 million, or $0.28 diluted earnings per share for the fourth
quarter of 2021, compared to net income of $3.1 million, or $0.27 diluted earnings per share, for the third
quarter of 2021, and net income of $2.5
million, or $0.21 diluted
earnings per share, for the comparable quarter of 2020. Net
income, excluding the one-time charge, was $11.6 million, or $1.00 diluted earnings per share for the year
ended December 31, 2021, compared to
net income of $10.0 million, or
$0.82 diluted earnings per share for
the year ended December 31, 2020.
Management believes it is appropriate to eliminate this one-time
charge as it is not reflective of the Company's ongoing operations
and the presentation of these adjusted financial measures is more
meaningful to investors in evaluating the financial results of the
Company. See the section entitled "Non-GAAP Reconciliations" at the
end of this release for a reconciliation of net income.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "Despite the many
challenges we experienced in 2021, it was a strong year for the
Company. We generated record earnings and produced core loan and
lease and deposit growth during the year. Looking forward, we
anticipate having another solid year even though the earnings
benefit provided by the PPP in 2021 will not be present. Over the
past few quarters, we have experienced pressure on our margins due
to the low interest rate environment. However, the recent comments
by the Fed suggesting rate increases in 2022 are promising for
future margin expansion and earnings for our Company and the
industry."
Fourth Quarter Performance Highlights:
- Assets totaled $1.3 billion at
December 31, 2021, compared to
$1.2 billion at September 30, 2021 and $1.1 billion at December
31, 2020.
- Loans and leases, net of allowance, totaled $832.8 million at December
31, 2021, compared to $795.4
million at September 30, 2021
and $734.4 million at December 31, 2020.
- Nonperforming loans and leases totaled $8.0 million, or 0.95% of total loans and leases,
at December 31, 2021, compared to
$8.5 million, or 1.05% at
September 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 $12.1 million, or 1.43% of total loans and leases
outstanding, at December 31, 2021,
compared to $11.8 million, or 1.47%
at September 30, 2021 and
$10.6 million, or 1.42% of total
loans and leases outstanding at December 31,
2020.
- There was no provision for loan and lease losses in the quarter
ended December 31, 2021, compared to
$500,000 in the preceding quarter,
and $940,000 in the fourth quarter of
2020.
- Deposits totaled $900.2 million
at December 31, 2021, compared to
$824.3 million at September 30, 2021 and $693.0 million at December
31, 2020. At December 31,
2021, noninterest bearing deposits totaled $114.3 million or 12.7% of total deposits,
compared to $106.2 million or 12.9%
of total deposits at September 30,
2021 and $98.7 million or
14.2% of total deposits at December 31,
2020.
- Stockholders' equity totaled $180.5
million at December 31, 2021,
compared to $178.6 million at
September 30, 2021 and $192.7 million at December
31, 2020. The Company's equity to asset ratio was 14.27% at
December 31, 2021.
- Net interest income increased $136,000 or 1.4% to $10.1
million for the three months ended December 31, 2021, compared to net interest
income of $10.0 million for the prior
quarter, and increased $1.1 million
or 12.8% from $8.9 million for the
comparable quarter in 2020.
- Annualized net interest margin was 3.31% for the current
quarter, compared to 3.42% in the preceding quarter and 3.46% the
fourth quarter a year ago.
- The Company repurchased 45,945 shares of common stock at an
average price of $15.97 per share
during the quarter ended December 31,
2021.
- The Bank's Tier 1 capital to total assets was 12.53% and the
Bank's capital was well in excess of all regulatory requirements at
December 31, 2021.
Balance Sheet Summary
Total assets increased $180.8
million, or 16.7%, to $1.3
billion at December 31, 2021,
from $1.1 billion at December 31, 2020. The increase was primarily the
result of a $98.4 million, or 13.4%,
increase in loans and leases, net of allowance, to $832.8 million and a $109.8 million, or 42.8%, increase in investment
securities to $366.6 million at
December 31, 2021. The increase
in loans and leases was attributable to an increase in multi-family
loans of $51.4 million, an increase
in construction and development loans of $35.3 million, an increase in commercial real
estate loans of $13.6 million, and an
increase in residential loans and leases of $9.0 million and $9.6
million, respectively. Commercial and industrial loans
declined $23.1 million due to a
decrease in PPP loans of $34.0
million resulting from PPP loan forgiveness by the SBA. As
of December 31, 2021, we had funded a
total of 892 PPP loans totaling $103.1
million and the SBA had approved 802 loan forgiveness
applications totaling $92.1 million.
PPP loans totaled $9.4 million at
December 31, 2021.
The increase in investment securities was primarily the result
of using our excess liquidity to purchase securities during the
early part of 2021. The balance of the change in assets was
attributable to a $25.7 million, or
52.8%, decrease in cash and cash equivalents to $23.0 million at December
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 $8.0 million or 0.95% of
total loans and leases at December 31,
2021, compared to $8.5 million
or 1.05% at September 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 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
December 31, 2021 totaled
$1.8 million, compared to
$2.3 million at September 30, 2021 and $4.0 million at December
31, 2020.
The allowance for loan and lease losses increased $259,000, or 2.2%, to $12.1 million at December
31, 2021 from $11.8 million at
September 30, 2021, and increased
$1.5 million, or 14.4%, from
$10.6 million at December 31, 2020. At December 31, 2021, the allowance for loan and
lease losses totaled 1.43% of total loans and leases outstanding
compared to 1.47% at September 30,
2021 and 1.42% at December 31,
2020. The allowance for loan and lease losses to total loans
at December 31, 2021, September 30, 2021, and December 31, 2020 would increase two, three, and
eight basis points, respectively, if PPP loans, which totaled
$9.4 million, $16.3 million, and $43.3
million at December 31, 2021,
September 30, 2021 and December 31, 2020, respectively, and are 100%
guaranteed by the SBA, are excluded from the calculation. Net
recoveries during 2021 were $91,000
or 0.01% of average loans and leases outstanding, compared to net
charge-offs of $273,000 during
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
December 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. 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 $75.9
million or 9.2% to $900.2
million at December 31, 2021,
compared to September 30, 2021 and
increased $207.1 million or 29.9%
compared to December 31, 2020. The
increase in deposits from September 30,
2021 primarily was due to an increase in brokered time
deposits of $58.0 million, and the
increase from December 31, 2020
primarily was due to a $98.5 million
increase in brokered time deposits, 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
$121.8 million, or 13.5% of total
deposits, at December 31, 2021
compared to $63.8 million, or 7.7% of
total deposits, at September 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 $11.0 million, or 2.7%, to
$418.3 million at December 31, 2021 from September 30, 2021, and increased $66.5 million, or 18.9%, from December 31, 2020. Noninterest-bearing demand
deposits increased $8.1 million, or
7.7%, to $114.3 million at
December 31, 2021 from September 30, 2021, and increased $15.6 million, or 15.8%, from December 31, 2020. At December 31, 2021, noninterest bearing deposits
totaled 12.7% of total deposits, compared to 12.9% of total
deposits at September 30, 2021 and
14.2% of total deposits at December 31,
2020.
Stockholders' equity totaled $180.5
million at December 31, 2021,
an increase of $1.8 million or 1.0%
from September 30, 2021 and a
decrease of $12.2 million or 6.3%
from December 31, 2020. The increase
in stockholders' equity from September 30,
2021 primarily was the result of net income of $2.7 million, offset by the payment of
$799,000 in dividends to Company
stockholders and the repurchase of $734,000 of Company common stock. The decrease in
stockholders' equity from the year ended December 31, 2020 primarily was the result of the
repurchase of $11.9 million of
Company common stock, the payment of $9.3
million in dividends to Company stockholders and a reduction
in accumulated comprehensive income of $4.9
million, partially offset by net income of $11.1 million.
During the quarter ended December 31,
2021, the Company repurchased a total of 45,945 shares of
Company common stock at an average price of $15.97 per share. As of December 31, 2021, the Company had approximately
999,553 shares available for repurchase under its existing stock
repurchase programs. Subsequent to quarter end through January 27, 2022, the Company purchased an
additional 52,515 shares, leaving 947,038 shares available for
future repurchase.
Income Statement Summary
Net interest income before the provision for loan and lease
losses increased $136,000, or 1.4%,
to $10.1 million in the fourth
quarter of 2021, compared to $10.0
million in the third quarter of 2021, and increased
$1.1 million, or 12.8%, from
$8.9 million in the fourth quarter of
2020. The increase from the third quarter of 2021 was due to a
$54.9 million increase in average
interest-earning assets during the fourth quarter of 2021,
partially offset by a nine basis point decrease 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
$184.5 million during the fourth
quarter of 2021 compared to the comparable quarter of 2020,
partially offset by a seven basis point decrease in the average
interest rate spread during the fourth quarter of 2021 compared to
the comparable quarter in 2020.
Interest income increased $130,000, or 1.1%, to $12.0 million during the quarter ended
December 31, 2021, compared to the
quarter ended September 30, 2021 and
increased $1.0 million, or 9.4%,
compared to quarter ended December 31,
2020. Interest income on loans and leases was steady at
$10.4 million for the quarter ended
December 31, 2021 compared to the
third quarter of 2021, as a $34.9
million increase in the average balance of loans and leases
was offset by a decrease in the average yield earned on loans and
leases of 24 basis point to 5.08%. Interest income on loans and
leases increased $384,000, or 3.8%,
in the fourth quarter of 2021 compared to the fourth quarter of
2020, due to an increase in the average balance of loans and leases
of $66.4 million, partially offset by
a decrease in the average loan and lease yield of 25 basis
points.
Interest income on investment securities, excluding FHLB
stock, increased $123,000, or 8.9%,
to $1.5 million during the quarter
ended December 31, 2021, compared to
the quarter ended September 30, 2021,
and increased $634,000, or 72.4%,
from the comparable quarter in 2020. The increase in interest
income on investment securities, excluding FHLB stock, from the
comparable periods ended September 30,
2021 and December 31, 2020 was
due to a $13.5 million and
$120.2 million increase in the
average balance and a seven basis point and 23 basis point increase
in the average yield earned on investment securities,
respectively.
Interest expense remained relatively flat at $1.9 million for the quarter ended December 31, 2021 compared to the quarter ended
September 30, 2021, and decreased
$110,000, or 5.4%, compared to the
quarter ended December 31, 2020.
Interest expense on deposits increased $19,000, or 1.6%, to $1.3
million for the quarter ended December 31, 2021, compared to the previous
quarter primarily due to a $33.3
million increase in average interest-bearing certificate of
deposit account balances, partially offset by a decrease of 10
basis points in the average rate paid on those accounts. The
decrease from the comparable quarter in 2020 was due to a decrease
of 20 basis points in the average rate paid on interest-bearing
deposits, partially offset by an increase of $155.7 million in average interest-bearing
deposit balances. The average rate paid on interest-bearing
deposits was 0.68% for the quarter ended December 31, 2021, compared to 0.70% and 0.88%
for the quarters ended September 30,
2021 and December 31, 2020,
respectively. Interest expense on FHLB borrowings decreased
$26,000, or 3.7%, to $663,000 for the fourth quarter of 2021 compared
to the previous quarter and decreased $74,000, or 10.1%, from the comparable quarter in
2020. The average balance of FHLB borrowings totaled $191.4 million during the quarter ended
December 31, 2021, compared to
$179.4 million and $173.4 million for the quarters ended
September 30, 2021 and December 31, 2020, respectively. The average rate
paid on FHLB borrowings was 1.39% for the quarter ended
December 31, 2021, 1.54% for
September 30, 2021, and 1.70% for the
fourth quarter of 2020.
Annualized net interest margin decreased to 3.31% for the fourth
quarter of 2021, compared to 3.42% for the third quarter of 2021
and 3.46% for the fourth quarter of 2020. The decrease in the net
interest margin for the fourth quarter of 2021 compared to the
third quarter of 2021 and the comparable quarter in 2020 was due to
increases in total average interest earning assets and compression
in the average interest rate spread.
There was no provision for loan and lease losses recorded for
the three months ended December 31,
2021, compared to $500,000 for
the quarter ended September 30, 2021
and $940,000 for the quarter ended
December 31, 2020. Net
recoveries during the fourth quarter of 2021 were $259,000, compared to net charge-offs of
$82,000 during the third quarter of
2021 and $163,000 in the fourth
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 $43,000, or 3.7%, to $1.1
million for the quarter ended December 31, 2021 compared to the quarter
ended September 30, 2021, and
decreased $848,000, or 43.5%, from
the comparable quarter in 2020. The decrease in noninterest income
in the fourth quarter of 2021 from the third quarter of 2021 and
the fourth quarter of 2020 resulted primarily from a decrease in
gains on loan and lease sales. Gain on sale of loans and
leases declined $197,000, or 35.5% in
the fourth quarter of 2021 compared to the third quarter of 2021,
and decreased $687,000, or 65.7% from
the fourth 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 increased $135,000 in
the fourth quarter of 2021 compared to the third quarter of 2021 as
an impairment charge of $129,000 to
mortgage servicing rights was recorded in the fourth quarter of
2021 compared to an impairment charge of $251,000 recorded in the third quarter of
2021. Loan and lease servicing fees declined $234,000 in the fourth quarter of 2021 compared
to the same quarter in 2020 as a recovery of impaired mortgage
servicing rights of $98,000 was
recorded in the fourth quarter of 2020. Card fee income increased
$36,000, or 13.7% to $303,000 in the fourth quarter of 2021 from the
third quarter of 2021, and increased $60,000, or 24.6% from $243,000 in the fourth quarter of 2020. Service
fees on deposit accounts increased $16,000, or 6.8%, to $252,000 for the quarter ended December 31, 2021, compared to $236,000 for the third quarter of 2021, and
increased $32,000, or 14.7%, from
$220,000 for the quarter ended
December 31, 2020. The increase in
service fees on deposit accounts during the fourth quarter of 2021
compared to the third quarter of 2021, and the fourth quarter of
2020 was primarily due to increased overdraft fees.
Total noninterest expense increased $1.1
million to $7.9 million for
the three months ended December 31,
2021, compared to both the third quarter of 2021 and the
same period in 2020. Salaries and employee benefits increased
$948,000, or 22.5%, to $5.2 million for the quarter ended December 31, 2021, compared to the third quarter
of 2021, and increased $666,000, or
14.8%, from the quarter ended December 31,
2020. The increase in salaries and benefits in the fourth
quarter of 2021 from the third quarter of 2021 was primarily due to
several open positions being filled and a $665,000 expense associated with the termination
of the Company's DB Plan in the fourth quarter of 2021. The
increase in salaries and benefits from the fourth quarter of 2020
primarily was due to the DB Plan termination expense of
$665,000, an increase in personnel
during the year, increased ESOP expense of $49,000 resulting from an increase in the
Company's stock price, and normal merit increases partially offset
by a decrease of $423,000 of expenses
associated with the acceleration of restricted stock awards upon
the death of a director during the fourth quarter of 2020.
Other expenses increased $114,000, or
12.9% in the fourth quarter of 2021 compared to the prior quarter,
and increased $227,000, or 29.2%,
compared to the same quarter of 2020. The increase in other
expenses in the fourth quarter of 2021 from the fourth quarter of
2020 primarily was due to increased franchise tax expense.
Income tax expense decreased $146,000 during the three months ended
December 31, 2021 compared to the
prior quarter due to a lower level of pre-tax income and a lower
effective tax rate. Income tax expense decreased $47,000 during the three months ended
December 31, 2021, compared to the
same period in 2020 due to a lower effective tax rate. The
effective tax rate for the fourth quarter of 2021 was 16.3%
compared to 18.0% in the third quarter, and 18.6% in the fourth
quarter a year ago. The reduction in the effective tax rate for the
fourth quarter of 2021 was primarily due to increased holdings of
tax-free municipal securities.
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
|
|
Year
Ended
|
SELECTED
OPERATIONS DATA:
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
12,030
|
|
$
11,900
|
|
$
10,992
|
|
$
45,926
|
|
$
42,861
|
Interest
expense
|
1,936
|
|
1,942
|
|
2,046
|
|
7,682
|
|
9,393
|
Net interest
income
|
10,094
|
|
9,958
|
|
8,946
|
|
38,244
|
|
33,468
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
—
|
|
500
|
|
940
|
|
1,430
|
|
3,770
|
Net interest income
after provision
|
10,094
|
|
9,458
|
|
8,006
|
|
36,814
|
|
29,698
|
Noninterest
income
|
1,102
|
|
1,145
|
|
1,951
|
|
5,416
|
|
6,806
|
Noninterest
expense
|
7,947
|
|
6,844
|
|
6,852
|
|
28,649
|
|
24,009
|
Income before income
tax expense
|
3,249
|
|
3,759
|
|
3,105
|
|
13,581
|
|
12,495
|
Income tax
provision
|
530
|
|
677
|
|
577
|
|
2,436
|
|
2,477
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
2,719
|
|
$
3,082
|
|
$
2,528
|
|
$
11,145
|
|
$
10,018
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
12,400
|
|
12,432
|
|
13,194
|
|
12,400
|
|
13,194
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
11,104
|
|
11,173
|
|
11,832
|
|
11,356
|
|
12,264
|
Diluted
|
11,465
|
|
11,473
|
|
11,928
|
|
11,632
|
|
12,286
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.24
|
|
$
0.28
|
|
$
0.21
|
|
$
0.98
|
|
$
0.82
|
Diluted
|
$
0.24
|
|
$
0.27
|
|
$
0.21
|
|
$
0.96
|
|
$
0.82
|
SELECTED FINANCIAL
CONDITION DATA:
|
December
31,
2021
|
|
September
30,
2021
|
|
June 30,
2021
|
|
December
31,
2020
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
1,264,972
|
|
$
1,230,712
|
|
$
1,188,480
|
|
$
1,084,192
|
Cash and cash
equivalents
|
23,038
|
|
19,837
|
|
17,087
|
|
48,768
|
Investment
securities
|
366,579
|
|
367,658
|
|
339,630
|
|
256,730
|
Loans and leases, net
of allowance
|
832,846
|
|
795,407
|
|
785,339
|
|
734,413
|
Loans held for
sale
|
558
|
|
903
|
|
603
|
|
1,987
|
Premises and
equipment, net
|
14,347
|
|
14,227
|
|
14,441
|
|
14,892
|
Federal Home Loan
Bank stock
|
9,992
|
|
9,542
|
|
9,050
|
|
9,050
|
Other
assets
|
17,612
|
|
23,138
|
|
22,330
|
|
18,352
|
Deposits
|
900,175
|
|
824,257
|
|
793,070
|
|
693,045
|
Borrowings
|
180,000
|
|
202,000
|
|
189,000
|
|
170,000
|
Total stockholder's
equity
|
180,481
|
|
178,638
|
|
182,569
|
|
192,713
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
180,481
|
|
$
178,638
|
|
$
182,569
|
|
$
192,713
|
Tangible book value
(non-GAAP)
|
180,481
|
|
178,638
|
|
182,569
|
|
192,713
|
Book value per share
(GAAP)
|
14.55
|
|
14.37
|
|
14.39
|
|
14.61
|
Tangible book value
per share (non-GAAP)
|
14.55
|
|
14.37
|
|
14.39
|
|
14.61
|
The following table summarizes information relating to our loan
and lease portfolio at the dates indicated:
(In
thousands)
|
December
31,
2021
|
|
September
30,
2021
|
|
June 30,
2021
|
|
December
31,
2020
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
261,202
|
|
$
255,211
|
|
$
249,376
|
|
$
247,564
|
Commercial and
industrial
|
99,682
|
|
101,818
|
|
117,079
|
|
122,831
|
Construction and
development
|
93,678
|
|
82,511
|
|
80,685
|
|
58,424
|
Multi-family
|
107,421
|
|
92,652
|
|
80,534
|
|
55,998
|
Residential
mortgage
|
134,155
|
|
131,094
|
|
129,049
|
|
125,121
|
Home
equity
|
7,146
|
|
6,784
|
|
6,325
|
|
5,982
|
Direct financing
leases
|
126,762
|
|
123,025
|
|
121,006
|
|
117,171
|
Consumer
|
15,905
|
|
15,347
|
|
14,676
|
|
13,257
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
845,951
|
|
$
808,442
|
|
$
798,730
|
|
$
746,348
|
The following table summarizes information relating to our
deposits at the dates indicated:
(In
thousands)
|
December
31,
2021
|
|
September
30,
2021
|
|
June 30,
2021
|
|
December
31,
2020
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
114,303
|
|
$
106,167
|
|
$
110,494
|
|
$
98,725
|
Interest-bearing
demand
|
164,356
|
|
159,973
|
|
155,565
|
|
141,990
|
Savings and money
market
|
253,957
|
|
247,310
|
|
246,542
|
|
209,861
|
Non-brokered time
deposits
|
245,808
|
|
247,054
|
|
238,789
|
|
219,194
|
Brokered time
deposits
|
121,751
|
|
63,753
|
|
41,680
|
|
23,275
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
900,175
|
|
$
824,257
|
|
$
793,070
|
|
$
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
December 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
|
$
819,443
|
|
$
10,417
|
|
5.08%
|
|
$
753,073
|
|
$
10,033
|
|
5.33%
|
Securities
|
367,685
|
|
1,510
|
|
1.64%
|
|
247,505
|
|
875
|
|
1.41%
|
FHLB stock
|
9,936
|
|
71
|
|
2.86%
|
|
9,166
|
|
78
|
|
3.40%
|
Cash and cash
equivalents and other
|
23,210
|
|
32
|
|
0.55%
|
|
25,989
|
|
6
|
|
0.09%
|
Total interest-earning
assets
|
1,220,274
|
|
12,030
|
|
3.94%
|
|
1,035,733
|
|
10,992
|
|
4.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
262,960
|
|
335
|
|
0.51%
|
|
215,984
|
|
274
|
|
0.51%
|
Interest-bearing
checking accounts
|
158,266
|
|
95
|
|
0.24%
|
|
131,958
|
|
76
|
|
0.23%
|
Certificate
accounts
|
330,235
|
|
843
|
|
1.02%
|
|
247,810
|
|
959
|
|
1.55%
|
Borrowings
|
191,424
|
|
663
|
|
1.39%
|
|
173,391
|
|
737
|
|
1.70%
|
Total interest-bearing
liabilities
|
942,885
|
|
1,936
|
|
0.82%
|
|
769,143
|
|
2,046
|
|
1.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
10,094
|
|
|
|
|
|
$
8,946
|
|
|
Net earning
assets
|
$
277,389
|
|
|
|
|
|
$
266,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.12%
|
|
|
|
|
|
3.19%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin(2)
|
|
|
|
|
3.31%
|
|
|
|
|
|
3.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-
bearing liabilities
|
129.42%
|
|
|
|
|
|
134.66%
|
|
|
|
|
______________________________
|
(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.
|
|
Year Ended December
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
|
$
786,686
|
|
$
40,579
|
|
5.16%
|
|
$ 735,959
|
|
$
38,297
|
|
5.20%
|
Securities
|
324,372
|
|
5,022
|
|
1.55%
|
|
241,659
|
|
4,127
|
|
1.71%
|
FHLB stock
|
9,281
|
|
273
|
|
2.94%
|
|
8,803
|
|
285
|
|
3.24%
|
Cash and cash
equivalents and other
|
23,750
|
|
52
|
|
0.22%
|
|
35,247
|
|
152
|
|
0.43%
|
Total interest-earning
assets
|
1,144,089
|
|
45,926
|
|
4.01%
|
|
1,021,668
|
|
42,861
|
|
4.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
247,431
|
|
1,256
|
|
0.51%
|
|
188,379
|
|
1,062
|
|
0.56%
|
Interest-bearing
checking accounts
|
154,938
|
|
362
|
|
0.23%
|
|
118,668
|
|
293
|
|
0.25%
|
Certificate
accounts
|
287,051
|
|
3,318
|
|
1.16%
|
|
278,018
|
|
5,028
|
|
1.81%
|
Borrowings
|
178,540
|
|
2,746
|
|
1.54%
|
|
175,060
|
|
3,010
|
|
1.72%
|
Total interest-bearing
liabilities
|
867,960
|
|
7,682
|
|
0.89%
|
|
760,125
|
|
9,393
|
|
1.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
38,244
|
|
|
|
|
|
$
33,468
|
|
|
Net earning
assets
|
$
276,129
|
|
|
|
|
|
$
261,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.12%
|
|
|
|
|
|
2.96%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin(2)
|
|
|
|
|
3.34%
|
|
|
|
|
|
3.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-
bearing liabilities
|
131.81%
|
|
|
|
|
|
134.41%
|
|
|
|
|
________________________________
|
(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:
|
December
31,
2021
|
|
September
30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December
31,
2020
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
0.87
%
|
|
1.02
%
|
|
0.96
%
|
|
0.92
%
|
|
0.95
%
|
Return on average
equity (annualized)
|
6.06
%
|
|
6.83
%
|
|
5.98
%
|
|
5.36
%
|
|
5.26
%
|
Yield on
interest-earning assets
|
3.94
%
|
|
4.08
%
|
|
3.96
%
|
|
4.27
%
|
|
4.25
%
|
Rate paid on
interest-bearing liabilities
|
0.82
%
|
|
0.87
%
|
|
0.91
%
|
|
0.96
%
|
|
1.06
%
|
Average interest rate
spread
|
3.12
%
|
|
3.21
%
|
|
3.05
%
|
|
3.31
%
|
|
3.19
%
|
Net interest margin
(annualized)(1)
|
3.31
%
|
|
3.42
%
|
|
3.27
%
|
|
3.53
%
|
|
3.46
%
|
Operating expense to
average total assets
(annualized)
|
2.55
%
|
|
2.26
%
|
|
2.36
%
|
|
2.51
%
|
|
2.57
%
|
Efficiency
ratio(2)
|
70.99
%
|
|
61.74
%
|
|
63.74
%
|
|
66.27
%
|
|
62.89
%
|
Average
interest-earning assets to average
interest-bearing liabilities
|
129.42
%
|
|
130.45
%
|
|
132.31
%
|
|
129.96
%
|
|
134.66
%
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(3)
|
0.64
%
|
|
0.69
%
|
|
0.65
%
|
|
0.71
%
|
|
0.45
%
|
Non-performing loans
and leases to total
gross loans and leases(4)
|
0.95
%
|
|
1.05
%
|
|
0.97
%
|
|
1.05
%
|
|
0.65
%
|
Allowance for loan
and lease losses to non-
performing loans and leases(4)
|
150.76
%
|
|
139.23
%
|
|
147.62
%
|
|
135.07
%
|
|
220.57
%
|
Allowance for loan
and lease losses to total
loans and leases
|
1.43
%
|
|
1.47
%
|
|
1.43
%
|
|
1.41
%
|
|
1.42
%
|
Net (recoveries)
charge-offs (annualized) to
average outstanding loans and leases during the period
|
(0.13)
%
|
|
0.04
%
|
|
0.03
%
|
|
0.01
%
|
|
0.09
%
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
Equity to total
assets at end of period
|
14.27
%
|
|
14.51
%
|
|
15.36
%
|
|
16.61
%
|
|
17.85
%
|
Average equity to
average assets
|
14.39
%
|
|
14.93
%
|
|
15.97
%
|
|
17.18
%
|
|
18.01
%
|
Common equity tier 1
capital (to risk
weighted assets)(5)
|
16.02
%
|
|
16.38
%
|
|
17.81
%
|
|
19.52
%
|
|
20.64
%
|
Tier 1 leverage
(core) capital (to adjusted
tangible assets)(5)
|
12.53
%
|
|
12.76
%
|
|
13.68
%
|
|
14.19
%
|
|
14.28
%
|
Tier 1 risk-based
capital (to risk weighted
assets)(5)
|
16.02
%
|
|
16.38
%
|
|
17.81
%
|
|
19.52
%
|
|
20.64
%
|
Total risk-based
capital (to risk weighted
assets)(5)
|
17.25
%
|
|
17.63
%
|
|
19.06
%
|
|
20.77
%
|
|
21.90
%
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Number of
full-service offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
Full-time equivalent
employees
|
173
|
|
175
|
|
178
|
|
175
|
|
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.
|
NON-GAAP RECONCILIATIONS:
($ in thousands,
except EPS, shares)
|
Three
Months
Ended
December
31, 2021
|
|
Adjustments
|
|
Adjusted Three
Months Ended
December 31,
2021
|
|
|
|
|
|
|
Net interest income
and noninterest income
|
$
11,196
|
|
$
—
|
|
$
11,196
|
Less: Provision for
loan and lease losses
|
—
|
|
—
|
|
—
|
Less: Noninterest
expenses
|
(7,947)
|
|
665
|
|
(7,282)
|
Income (loss) before
income taxes
|
3,249
|
|
665
|
|
3,914
|
Income taxes
(benefit)
|
530
|
|
166
|
|
696
|
Net income
(loss)
|
2,719
|
|
499
|
|
3,218
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
Basic
|
11,104
|
|
|
|
11,104
|
Diluted
|
11,465
|
|
|
|
11,465
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$
0.24
|
|
|
|
$
0.29
|
Diluted
|
$
0.24
|
|
|
|
$
0.28
|
($ in thousands,
except EPS, shares)
|
Year Ended
December 31,
2021
|
|
Adjustments
|
|
Adjusted Year
Ended
December 31,
2021
|
|
|
|
|
|
|
Net interest income
and noninterest income
|
$
43,660
|
|
$
—
|
|
$
43,660
|
Less: Provision for
loan and lease losses
|
(1,430)
|
|
—
|
|
(1,430)
|
Less: Noninterest
expenses
|
(28,649)
|
|
665
|
|
(27,984)
|
Income (loss) before
income taxes
|
13,581
|
|
665
|
|
14,246
|
Income taxes
(benefit)
|
2,436
|
|
166
|
|
2,602
|
Net income
(loss)
|
11,145
|
|
499
|
|
11,644
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
Basic
|
11,356
|
|
|
|
11,356
|
Diluted
|
11,632
|
|
|
|
11,632
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$
0.98
|
|
|
|
$
1.03
|
Diluted
|
$
0.96
|
|
|
|
$
1.00
|
View original
content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2021-fourth-quarter-and-full-year-financial-results-301470143.html
SOURCE Richmond Mutual Bancorporation, Inc.