RICHMOND, Ind., April 25,
2024 /PRNewswire/ -- Richmond
Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ:
RMBI), parent company of First Bank Richmond (the "Bank"), today
announced net income of $2.4 million,
or $0.23 diluted earnings per share,
for the first quarter of 2024, compared to net income of
$1.9 million, or $0.19 diluted earnings per share, for the fourth
quarter of 2023, and net income of $2.9
million, or $0.27 diluted
earnings per share, for the first quarter of 2023.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "The first quarter of 2024
saw improvement in our net interest margin compared to the prior
quarter, while credit quality continues to remain strong. We are
continuing to enhance our customer service while maintaining our
focus on improving our earnings compared to the end of 2023."
First Quarter Performance Highlights:
- Assets totaled $1.5 billion at
both March 31, 2024 and December 31, 2023.
- Loans and leases, net of allowance for credit losses, totaled
$1.1 billion at both March 31, 2024 and December 31, 2023.
- Nonperforming loans and leases totaled $6.9 million, or 0.61% of total loans and leases,
at March 31, 2024, compared to
$8.0 million, or 0.72% at
December 31, 2023.
- The allowance for credit losses totaled $15.8 million, or 1.39% of total loans and leases
outstanding, at March 31, 2024,
compared to $15.7 million, or 1.42%
of total loans and leases outstanding, at December 31, 2023.
- The provision for credit losses totaled $183,000 in the quarter ended March 31, 2024, compared to $304,000 in the preceding quarter, and
$170,000 in the first quarter of
2023.
- Deposits totaled $1.1 billion at
March 31, 2024, compared to
$1.0 billion at December 31, 2023. At March 31, 2024, noninterest-bearing deposits
totaled $108.8 million, or 10.2% of
total deposits, compared to $114.4
million, or 11.0% of total deposits at December 31, 2023. At March 31, 2024, approximately $206.9 million, or 19.3%, of our deposit
portfolio, excluding collateralized public deposits, was
uninsured.
- Stockholders' equity totaled $132.4
million at March 31, 2024,
compared to $134.9 million at
December 31, 2023. The Company's
equity to assets ratio was 8.9% at March 31,
2024.
- Book value per share and tangible book value per share was
$11.91 at March 31, 2024, compared to $12.03 per share at December 31, 2023.
- Net interest income increased $502,000, or 5.4%, to $9.8
million for the three months ended March 31, 2024, compared to net interest income
of $9.3 million for the prior
quarter, and decreased $38,000, or
0.4%, from $9.9 million for the
comparable quarter in 2023.
- Annualized net interest margin was 2.74% for the current
quarter, compared to 2.67% in the preceding quarter and 3.04% the
first quarter a year ago.
- The Company repurchased 92,613 shares of common stock at an
average price of $11.58 per share
during the quarter ended March 31,
2024.
- The Bank's Tier 1 capital to total assets was 10.67%, well in
excess of all regulatory requirements at March 31, 2024.
Income Statement Summary
Net interest income before the provision for credit losses
increased $502,000, or 5.4%, to
$9.8 million in the first quarter of
2024, compared to $9.3 million in the
fourth quarter of 2023, and decreased $38,000, or 0.4%, from $9.9 million in the first quarter of 2023. The
increase from the fourth quarter of 2023 was due to a four basis
point increase in the average interest rate spread and an
$11.9 million increase in average net
earning assets. The decrease from the comparable quarter in
2023 was due to a 48 basis point decrease in the average interest
rate spread as funding costs outpaced increased yields on
interest-earning assets, partially offset by a $138.4 million increase in average interest
earning assets. During the first half of 2023, in response to
continuing elevated inflation, the Federal Open Market Committee
("FOMC") of the Federal Reserve System increased the target range
for the federal funds rate by 100 basis points, to a range of 5.25%
to 5.50%. While net interest income benefited from the repricing
impact of the higher interest rate environment on earning asset
yields, the benefits were offset by the higher cost of
interest-bearing deposit accounts and borrowings, which tend to be
shorter in duration than our assets and re-price or reset faster
than assets.
Interest income increased $929,000, or 5.0%, to $19.5 million during the quarter ended
March 31, 2024, compared to the
quarter ended December 31, 2023, and
increased $4.3 million, or 28.4%,
compared to the quarter ended March 31,
2023.
Interest income on loans and leases increased $1.0 million, or 6.3%, to $17.3 million for the quarter ended March 31, 2024 compared to $16.2 million in the fourth quarter of 2023, due
to a $31.6 million increase in the
average balance of loans and leases, and an increase of 20 basis
points to 6.13% in the average yield earned on loans and leases.
Interest income on loans and leases increased $4.1 million, or 30.8%, in the first quarter of
2024 compared to the first quarter of 2023, due to an increase in
the average balance of loans and leases of $141.4 million, and an increase of 77 basis
points in the average yield earned on loans and leases.
Interest income on investment securities, excluding FHLB stock,
was unchanged during the quarter ended March
31, 2024, compared to the quarter ended December 31, 2023 and the comparable quarter in
2023. Dividends on FHLB stock increased $29,000, or 9.8%, during the quarter ended
March 31, 2024 compared to the
quarter ended December 31, 2023, and
increased $186,000, or 134.8%,
compared to the quarter ended March 31,
2023. Interest income on cash and cash equivalents decreased
$121,000, or 46.6%, during the
quarter ended March 31, 2024,
compared to the quarter ended December 31,
2023, and increased $73,000,
or 112.4%, compared to the quarter ended March 31, 2023. The decrease in interest
income on cash and cash equivalents in the first quarter of 2024
from the fourth quarter of 2023 was due to a 69 basis point
decrease in the average yield along with a decrease of $8.3 million in the average balance. The
increase in interest income on cash and cash equivalents in the
first quarter of 2024 from the first quarter of 2023 was due to a
126 basis point increase in the average yield along with a
$4.3 million increase in the average
balance of cash and cash equivalents.
Interest expense increased $427,000, or 4.6%, to $9.7
million for the quarter ended March
31, 2024 compared to the quarter ended December 31, 2023 and increased $4.4 million, or 81.8%, compared to the quarter
ended March 31, 2023. Interest
expense on deposits increased $144,000, or 2.1%, to $7.1
million for the quarter ended March
31, 2024, compared to the previous quarter and increased
$3.0 million, or 75.5%, from the
comparable quarter in 2023. The increase from the previous quarter
was primarily due to a six basis point increase in the average rate
paid on interest-bearing deposits. The increase from the comparable
quarter in 2023 was due to an increase of $44.3 million in average balance of, and a 120
basis point increase in the average rate paid on, interest-bearing
deposits. The average rate paid on interest-bearing deposits was
2.99% for the quarter ended March 31,
2024, compared to 2.93% and 1.79% for the quarters ended
December 31, 2023 and March 31, 2023, respectively.
Interest expense on FHLB borrowings increased $283,000, or 12.2%, to $2.6 million for the first quarter of 2024
compared to the previous quarter and increased $1.3 million, or 101.6%, from the comparable
quarter in 2023, primarily due to increases in the average rate
paid on FHLB borrowings and, to a lesser extent, an increase in the
average balance of FHLB borrowings. The average balance of FHLB
borrowings totaled $277.2 million
during the quarter ended March 31,
2024, compared to $251.0
million and $198.5 for the
quarters ended December 31, 2023 and
March 31, 2023, respectively. The
average rate paid on FHLB borrowings was 3.77% for the quarter
ended March 31, 2024, 3.71% for the
quarter ended December 31, 2023, and
2.61% for the first quarter of 2023.
Annualized net interest margin increased to 2.74% for the first
quarter of 2024, compared to 2.67% for the fourth quarter of 2023,
and decreased from 3.04% for the first quarter of 2023. The
increase in the net interest margin for the first quarter of 2024
compared to the fourth quarter of 2023 was primarily due to greater
increases in the yields and average balances of our
interest-earning assets as compared to our interest-bearing
liabilities, while the decrease from the first quarter of 2023 was
primarily due to the rate paid on interest-bearing liabilities
increasing faster than the yield on interest-earning
assets.
The provision for credit losses totaled $183,000 for the three months ended March 31, 2024, compared to $304,000 for the quarter ended December 31, 2023 and $170,000 for the quarter ended March 31, 2023. Net charge-offs during the first
quarter of 2024 were $324,000,
compared to net charge-offs of $241,000 during the fourth quarter of 2023 and
net recoveries of $78,000 in the
first quarter of 2023. Uncertainties relating to the level of our
allowance for credit losses remains heightened as a result of
continued concern about a potential recession due to inflation,
stock market volatility and overall geopolitical tensions.
Noninterest income decreased $50,000, or 4.2%, to $1.1
million for the quarter ended March
31, 2024 compared to the quarter ended December 31, 2023, and increased $32,000, or 2.9%, from the comparable quarter in
2023. The decrease in noninterest income in the first quarter of
2024 from the fourth quarter of 2023 primarily resulted from a
decrease in service fees earned on debit cards and service charges
on deposit accounts. Card fee income decreased $64,000, or 18.1%, to $290,000 for the quarter ended March 31, 2024, compared to $354,000 for the fourth quarter of 2023, while
service fees on deposit accounts decreased $11,000, or 3.8%, to $273,000 for the quarter ended March 31, 2024, compared to $284,000 for the fourth quarter of 2023. These
decreases were partially offset by an increase in loan and lease
servicing fees of $25,000, or 23.9%,
in the first quarter of 2024 compared to the fourth quarter of
2023. The increase in noninterest income from the comparable
quarter in 2023 was primarily due to an increase in other income
and loan and lease servicing fees, partially offset by decreases in
net gains on loan and lease sales and service charges on deposit
accounts. Other income increased $66,000, or 26.3%, to $319,000 for the quarter ended March 31, 2024, compared to $253,000 for the comparable quarter in 2023 due
to increased wealth management income. Loan and lease servicing
fees increased $7,000, or 6.0%, for
the quarter ended March 31, 2024
compared to the comparable quarter in 2023. Net gains on loan and
lease sales decreased $36,000, or
23.3%, compared to the same quarter in 2023, due to decreased
mortgage banking activity. Service fees on deposit accounts
decreased $8,000, or 2.9%, in the
first quarter of 2024 from the comparable quarter in 2023.
Total noninterest expense increased $29,000, or 0.4%, to $8.1
million for the three months ended March 31, 2024, compared to the fourth quarter of
2023, and increased $696,000, or
9.5%, compared to the same period in 2023. Salaries and employee
benefits increased $26,000, or 0.6%,
to $4.6 million for the quarter ended
March 31, 2024, compared to the
fourth quarter of 2023, and increased $332,000 compared to the quarter ended
March 31, 2023. The increase in
salaries and benefits in the first quarter of 2024 from the fourth
quarter of 2023 was primarily due to increased employment taxes and
insurance expenses, while the increase from the first quarter of
2023 was due to increased employee benefits expense. Deposit
insurance expense decreased $120,000,
or 23.0%, for the quarter ended March 31,
2024, compared to the fourth quarter of 2023 primarily due
to changes in the asset and deposit mix, and increased $235,000, or 139.9%, from the comparable quarter
in 2023 also primarily due to a change in the asset and deposit
mix. Data processing fees increased $70,000, or 8.4%, to $907,000 for the quarter ended March 31, 2024 compared to the fourth and first
quarters of 2023 primarily due to increased software and core
provider expenses. Advertising expense decreased $36,000, or 28.6%, in the first quarter of 2024
compared to the prior quarter due to decreased sales promotion
expense. Other expenses increased $78,000, or 8.7%, in the first quarter of 2024
compared to the prior quarter, and increased $27,000, or 2.8%, compared to the same quarter of
2023. The increase in other expenses in the first quarter of 2024
from the fourth quarter of 2023 primarily was due to increased
franchise tax expenses.
Income tax expense increased $117,000 during the three months ended
March 31, 2024 compared to the
quarter ended December 31, 2023, and
decreased $180,000 compared to the
quarter ended March 31, 2023, due to
changes in pre-tax income. The effective tax rate for the first
quarter of 2024 was 12.9% compared to 10.8% in the fourth quarter
of 2023, and 15.5% in the first quarter a year ago. The decrease in
the effective tax rate as compared to the first quarter of 2023 was
a result of the use of a captive insurance company, which allows
the Company to assume more control over insurance risks and
resulted in a more tax-effective structure.
Balance Sheet Summary
Total assets increased $26.6
million, or 1.8%, to $1.5
billion at March 31, 2024 from
December 31, 2023. The increase was
primarily the result of a $33.1
million, or 3.0%, increase in loans and leases, net of
allowance for credit losses, to $1.1
billion, partially offset by a $6.6
million, or 2.3%, decrease in investment securities to
$281.0 million at March 31, 2024.
The increase in loans and leases was attributable to an increase
in multi-family loans, residential mortgage loans, and commercial
and industrial loans of $15.0
million, $8.9 million and
$8.2 million, respectively.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past due
totaled $6.9 million, or 0.61% of
total loans and leases, at March 31,
2024, compared to $8.0
million, or 0.72%, at December 31,
2023. Accruing loans past due more than 90 days totaled
$1.9 million at March 31, 2024, compared to $1.7 million at December
31, 2023.
The allowance for credit losses on loans and leases increased
$162,000, or 1.0%, to $15.8 million at March 31,
2024 from $15.7 million at
December 31, 2023. At March 31, 2024 the allowance for credit losses on
loans and leases totaled 1.39% of total loans and leases
outstanding, compared to 1.42% at December
31, 2023. Net charge-offs during the first quarter of
2024 were $324,000 compared to net
recoveries of $78,000 during the
comparable quarter of 2023.
Management regularly analyzes conditions within its geographic
markets and evaluates its loan and lease portfolio. The Company
evaluated its exposure to potential credit losses as of
March 31, 2024, which evaluation
included consideration of a potential recession due to inflation,
stock market volatility, and overall geopolitical tensions.
Credit metrics are being reviewed and stress testing is being
performed on the loan portfolio on an ongoing basis.
Investment securities decreased $6.6
million, or 2.3%, to $281.0
million at March 31, 2024
compared to $287.6 million at
December 31, 2023. Investment
securities decreased primarily due to $4.4
million in maturities and principal repayments used to fund
loan growth.
Total deposits increased $28.5
million, or 2.7%, to $1.1
billion at March 31, 2024,
compared to December 31, 2023. The
increase in deposits from December 31,
2023 primarily was due to an increase in brokered time
deposits of $22.5 million, which were
used to fund loan demand, and other time deposits of $11.1 million, partially offset by a decrease in
demand deposit accounts of $3.9
million. Brokered time deposits totaled $291.3 million, or 27.2% of total deposits, at
March 31, 2024. Noninterest-bearing
demand deposits decreased $5.6
million to $108.8 million at
March 31, 2024 compared to
$114.4 million at December 31, 2023, and totaled 10.2% of total
deposits at March 31, 2024.
Management attributes the shift in funds from transaction accounts
to retail certificates of deposit to customers taking advantage of
higher rates being paid on time deposits as a result of interest
rate hikes enacted by the Federal Reserve.
As of March 31, 2024,
approximately $206.9 million of our
deposit portfolio, or 19.3% of total deposits, excluding
collateralized public deposits, was uninsured. The uninsured
amounts are estimated based on the methodologies and assumptions
used for First Bank Richmond's regulatory reporting
requirements.
Stockholders' equity totaled $132.4
million at March 31, 2024, a
decrease of $2.5 million, or 1.8%,
from December 31, 2023. The decrease
in stockholders' equity primarily was the result of a $2.8 million increase in accumulated other
comprehensive loss, the payment of $1.4
million in dividends to Company stockholders, and the
repurchase of $1.1 million of Company
common stock, partially offset by net income of $2.4 million.
During the quarter ended March 31,
2024, the Company repurchased a total of 92,613 shares of
Company common stock at an average price of $11.58 per share. As of March 31, 2024, the Company had approximately
775,423 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 39,878 shares.
About Richmond Mutual Bancorporation, Inc.
Richmond Mutual Bancorporation, Inc., headquartered in
Richmond, Indiana, is the holding
company for First Bank Richmond, a community-oriented financial
institution offering traditional financial and trust services
within its local communities through its eight locations in
Richmond, Centerville, Cambridge City and Shelbyville, Indiana, its five locations in
Sidney, Piqua and Troy,
Ohio, and its loan production office in Columbus, Ohio.
FORWARD-LOOKING STATEMENTS:
This document and other filings by the Company with the
Securities and Exchange Commission (the "SEC"), as well as press
releases or other public or stockholder communications released by
the Company, may contain forward-looking statements, including, but
not limited to, (i) statements regarding the financial condition,
results of operations and business of the Company, (ii) statements
about the Company's plans, objectives, expectations and intentions
and other statements that are not historical facts and (iii) other
statements identified by the words or phrases "will likely result,"
"are expected to," "will continue," "is anticipated," "estimate,"
"project," "intends" or similar expressions that are intended to
identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current beliefs and
expectations of the Company's management and are inherently subject
to significant business, economic and competitive uncertainties and
contingencies, many of which are beyond the Company's control. In
addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and
decisions that are subject to change. When considering
forward-looking statements, keep in mind these risks and
uncertainties. Undue reliance should not be placed on any
forward-looking statement, which speaks only as of the date
made.
The following factors, among others, could cause actual
results to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: potential
adverse impacts to economic conditions in our local market areas,
other markets where the Company has lending relationships, or other
aspects of the Company's business operations or financial markets,
including, without limitation, as a result of employment levels,
labor shortages and the effects of inflation, a potential recession
or slowed economic growth; changes in the interest rate
environment, including the recent increases in the Federal Reserve
benchmark rate and duration at which such increased interest rate
levels are maintained, which could adversely affect our revenues
and expenses, the value of assets and obligations, and the
availability and cost of capital and liquidity; the impact of
continuing inflation and the current and future monetary policies
of the Federal Reserve in response thereto; the effects of any
federal government shutdown; the impact of bank failures or adverse
developments at other banks and related negative press about the
banking industry in general on investor and depositor sentiment;
legislative changes; changes in policies by regulatory agencies;
fluctuations in interest rates; the risks of lending and investing
activities, including changes in the level and direction of loan
delinquencies and write-offs and changes in estimates of the
adequacy of the allowance for loan losses; the Company's ability to
access cost-effective funding, including maintaining the confidence
of depositors; fluctuations in real estate values and both
residential and commercial real estate market conditions; demand
for loans and deposits in the Company's market area; changes in
management's business strategies; changes in the regulatory and tax
environments in which the Company operates; disruptions, security
breaches, or other adverse events, failures or interruptions in, or
attacks on, our information technology systems or on the
third-party vendors who perform several of our critical processing
functions; the effects of climate change, severe weather events,
natural disasters, pandemics, epidemics and other public health
crises, acts of war or terrorism, and other external events on our
business; and other factors described in the Company's latest
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and
other reports filed with or furnished to the Securities and
Exchange Commission - that are available on our website at
www.firstbankrichmond.com and on the SEC's website at
www.sec.gov.
The factors listed above could materially affect the
Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any
opinions or statements expressed with respect to future periods in
any current statements. The Company does not undertake - and
specifically declines any obligation - to publicly release the
result of any revisions which may be made to any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events.
|
Financial Highlights
(unaudited)
|
|
|
Three Months
Ended
|
|
SELECTED OPERATIONS
DATA:
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
19,510
|
|
$
18,581
|
|
$
15,193
|
|
Interest
expense
|
9,677
|
|
9,250
|
|
5,322
|
|
Net interest
income
|
9,833
|
|
9,331
|
|
9,871
|
|
|
|
|
|
|
|
Provision for credit
losses
|
183
|
|
304
|
|
170
|
|
Net interest income
after provision for credit losses
|
9,650
|
|
9,027
|
|
9,701
|
|
Noninterest
income
|
1,129
|
|
1,179
|
|
1,096
|
|
Noninterest
expense
|
8,058
|
|
8,029
|
|
7,361
|
|
Income before income
tax expense
|
2,721
|
|
2,177
|
|
3,436
|
|
Income tax
provision
|
352
|
|
235
|
|
532
|
|
|
|
|
|
|
|
Net
income
|
$
2,369
|
|
$
1,942
|
|
$
2,904
|
|
|
|
|
|
|
|
Shares
outstanding
|
11,116
|
|
11,209
|
|
11,686
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
10,160
|
|
10,225
|
|
10,600
|
|
Diluted
|
10,230
|
|
10,260
|
|
10,736
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
$
0.23
|
|
$
0.19
|
|
$
0.27
|
|
Diluted
|
$
0.23
|
|
$
0.19
|
|
$
0.27
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,487,671
|
|
$
1,461,024
|
|
$
1,422,319
|
|
$
1,408,593
|
|
$
1,361,581
|
|
Cash and cash
equivalents
|
20,290
|
|
20,240
|
|
20,652
|
|
17,464
|
|
17,390
|
|
Interest-bearing time
deposits
|
—
|
|
—
|
|
245
|
|
490
|
|
490
|
|
Investment
securities
|
281,006
|
|
287,638
|
|
269,363
|
|
287,096
|
|
297,498
|
|
Loans and leases, net
of allowance for credit losses(1)
|
1,123,194
|
|
1,090,073
|
|
1,066,892
|
|
1,043,024
|
|
989,117
|
|
Loans held for
sale
|
85
|
|
794
|
|
568
|
|
340
|
|
—
|
|
Premises and equipment,
net
|
13,212
|
|
13,312
|
|
13,342
|
|
13,539
|
|
13,493
|
|
Federal Home Loan Bank
stock
|
13,907
|
|
12,647
|
|
11,297
|
|
10,802
|
|
10,082
|
|
Other assets
|
35,977
|
|
36,320
|
|
39,960
|
|
35,838
|
|
33,511
|
|
Deposits
|
1,069,642
|
|
1,041,140
|
|
1,053,909
|
|
1,039,573
|
|
1,030,034
|
|
Borrowings
|
273,000
|
|
271,000
|
|
238,000
|
|
226,000
|
|
183,500
|
|
Total stockholder's
equity
|
132,391
|
|
134,860
|
|
118,038
|
|
130,235
|
|
135,553
|
|
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
132,391
|
|
$
134,860
|
|
$
118,038
|
|
$
130,235
|
|
$
135,553
|
|
Tangible book value
(non-GAAP)
|
132,391
|
|
134,860
|
|
118,038
|
|
130,235
|
|
135,553
|
|
Book value per share
(GAAP)
|
11.91
|
|
12.03
|
|
10.45
|
|
11.38
|
|
11.60
|
|
Tangible book value per
share (non-GAAP)
|
11.91
|
|
12.03
|
|
10.45
|
|
11.38
|
|
11.60
|
|
The following table
summarizes information relating to our loan and lease portfolio at
the dates indicated:
|
|
|
(In
thousands)
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
338,434
|
|
$
341,633
|
|
$
345,714
|
|
$
341,475
|
|
$
321,314
|
|
Commercial and
industrial
|
123,661
|
|
115,428
|
|
111,450
|
|
114,162
|
|
97,880
|
|
Construction and
development
|
165,063
|
|
157,805
|
|
140,651
|
|
117,029
|
|
125,521
|
|
Multi-family
|
153,719
|
|
138,757
|
|
135,409
|
|
141,545
|
|
132,407
|
|
Residential
mortgage
|
171,050
|
|
162,123
|
|
160,488
|
|
159,753
|
|
152,376
|
|
Home equity
|
12,146
|
|
10,904
|
|
10,776
|
|
10,492
|
|
10,923
|
|
Direct financing
leases
|
152,468
|
|
156,598
|
|
154,520
|
|
152,181
|
|
143,281
|
|
Consumer
|
23,004
|
|
23,264
|
|
24,176
|
|
22,657
|
|
21,604
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
1,139,545
|
|
$
1,106,512
|
|
$
1,083,184
|
|
$
1,059,294
|
|
$
1,005,306
|
|
The following table
summarizes information relating to our deposits at the dates
indicated:
|
|
|
(In
thousands)
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
108,805
|
|
$
114,377
|
|
$
115,632
|
|
$
104,691
|
|
$
96,827
|
|
Interest-bearing
demand
|
153,460
|
|
151,809
|
|
146,118
|
|
149,770
|
|
148,798
|
|
Savings and money
market
|
255,634
|
|
256,811
|
|
249,575
|
|
267,624
|
|
275,006
|
|
Non-brokered time
deposits
|
260,451
|
|
249,305
|
|
240,297
|
|
226,493
|
|
218,262
|
|
Brokered time
deposits
|
291,292
|
|
268,838
|
|
302,287
|
|
290,995
|
|
291,141
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
1,069,642
|
|
$
1,041,140
|
|
$
1,053,909
|
|
$
1,039,573
|
|
$
1,030,034
|
Average Balances, Interest and Average Yields/Cost.
The following tables set forth for the periods indicated,
information regarding average balances of assets and liabilities as
well as the total dollar amounts of interest income from average
interest-earning assets and interest expense on average
interest-bearing liabilities, resultant yields, interest rate
spread, net interest margin (otherwise known as net yield on
interest-earning assets), and the ratio of average interest-earning
assets to average interest-bearing liabilities. Average balances
have been calculated using daily balances. Non-accruing loans have
been included in the table as loans carrying a zero yield. Loan
fees are included in interest income on loans and are not
material.
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
|
Average
Balance
Outstanding
|
|
Interest
Earned/
Paid
|
|
Yield/
Rate
|
|
Average
Balance
Outstanding
|
|
Interest
Earned/
Paid
|
|
Yield/
Rate
|
|
(Dollars in
thousands)
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
receivable
|
$ 1,125,586
|
|
$
17,251
|
|
6.13 %
|
|
$
984,202
|
|
$
13,193
|
|
5.36 %
|
|
Securities
|
284,002
|
|
1,796
|
|
2.53 %
|
|
294,947
|
|
1,796
|
|
2.44 %
|
|
FHLB stock
|
13,730
|
|
324
|
|
9.44 %
|
|
10,038
|
|
138
|
|
5.50 %
|
|
Cash and cash
equivalents and other
|
13,848
|
|
139
|
|
4.02 %
|
|
9,565
|
|
66
|
|
2.76 %
|
|
Total interest-earning
assets
|
1,437,166
|
|
19,510
|
|
5.43 %
|
|
1,298,752
|
|
15,193
|
|
4.68 %
|
|
Non-earning
assets
|
42,052
|
|
|
|
|
|
44,264
|
|
|
|
|
|
Total
assets
|
1,479,218
|
|
|
|
|
|
1,343,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
259,198
|
|
1,379
|
|
2.13 %
|
|
279,510
|
|
996
|
|
1.43 %
|
|
Interest-bearing
checking accounts
|
148,126
|
|
382
|
|
1.03 %
|
|
153,216
|
|
189
|
|
0.49 %
|
|
Certificate
accounts
|
537,894
|
|
5,304
|
|
3.95 %
|
|
468,220
|
|
2,842
|
|
2.43 %
|
|
Borrowings
|
277,220
|
|
2,612
|
|
3.77 %
|
|
198,517
|
|
1,295
|
|
2.61 %
|
|
Total interest-bearing
liabilities
|
1,222,438
|
|
9,677
|
|
3.17 %
|
|
1,099,463
|
|
5,322
|
|
1.94 %
|
|
Noninterest-bearing
demand deposits
|
108,577
|
|
|
|
|
|
97,278
|
|
|
|
|
|
Other
liabilities
|
14,676
|
|
|
|
|
|
14,004
|
|
|
|
|
|
Stockholders'
equity
|
133,527
|
|
|
|
|
|
132,271
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,479,218
|
|
|
|
|
|
1,343,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
9,833
|
|
|
|
|
|
$
9,871
|
|
|
|
Net earning
assets
|
$
214,728
|
|
|
|
|
|
$
199,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.26 %
|
|
|
|
|
|
2.74 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.74 %
|
|
|
|
|
|
3.04 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
117.57 %
|
|
|
|
|
|
118.13 %
|
|
|
|
|
|
________________________________________________
|
|
(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,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(1)
|
0.64 %
|
|
0.54 %
|
|
0.55 %
|
|
0.77 %
|
|
0.86 %
|
|
Return on average
equity(1)
|
7.10 %
|
|
6.45 %
|
|
6.04 %
|
|
8.05 %
|
|
8.78 %
|
|
Yield on
interest-earning assets
|
5.43 %
|
|
5.32 %
|
|
5.07 %
|
|
4.82 %
|
|
4.68 %
|
|
Rate paid on
interest-bearing liabilities
|
3.17 %
|
|
3.10 %
|
|
2.85 %
|
|
2.42 %
|
|
1.94 %
|
|
Average interest rate
spread
|
2.26 %
|
|
2.22 %
|
|
2.22 %
|
|
2.40 %
|
|
2.74 %
|
|
Net interest
margin(1)(2)
|
2.74 %
|
|
2.67 %
|
|
2.66 %
|
|
2.77 %
|
|
3.04 %
|
|
Operating expense to
average total assets(1)
|
2.18 %
|
|
2.22 %
|
|
2.26 %
|
|
2.11 %
|
|
2.19 %
|
|
Efficiency
ratio(3)
|
73.51 %
|
|
76.39 %
|
|
77.91 %
|
|
69.79 %
|
|
67.12 %
|
|
Average
interest-earning assets to average
interest-bearing liabilities
|
117.57 %
|
|
116.97 %
|
|
118.04 %
|
|
118.15 %
|
|
118.13 %
|
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(4)
|
0.47 %
|
|
0.56 %
|
|
0.60 %
|
|
0.62 %
|
|
0.66 %
|
|
Non-performing loans
and leases to total gross
loans and leases(5)
|
0.61 %
|
|
0.72 %
|
|
0.74 %
|
|
0.81 %
|
|
0.86 %
|
|
Allowance for credit
losses to non-performing
loans and leases(5)(6)
|
228.36 %
|
|
195.80 %
|
|
194.70 %
|
|
180.44 %
|
|
179.80 %
|
|
Allowance for credit
losses to total loans and
leases(6)
|
1.39 %
|
|
1.42 %
|
|
1.43 %
|
|
1.45 %
|
|
1.54 %
|
|
Net
charge-offs/(recoveries) to average
outstanding loans and leases during the
period(1)
|
0.12 %
|
|
0.09 %
|
|
0.11 %
|
|
0.08 %
|
|
(0.03) %
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
8.90 %
|
|
9.22 %
|
|
8.34 %
|
|
9.28 %
|
|
9.99 %
|
|
Average equity to
average assets
|
9.03 %
|
|
8.32 %
|
|
9.10 %
|
|
9.62 %
|
|
9.85 %
|
|
Common equity tier 1
capital (to risk weighted
assets)(7)
|
12.89 %
|
|
12.85 %
|
|
12.48 %
|
|
12.77 %
|
|
13.14 %
|
|
Tier 1 leverage (core)
capital (to adjusted
tangible assets)(7)
|
10.67 %
|
|
10.64 %
|
|
10.71 %
|
|
10.81 %
|
|
10.95 %
|
|
Tier 1 risk-based
capital (to risk weighted
assets)(7)
|
12.89 %
|
|
12.85 %
|
|
12.48 %
|
|
12.77 %
|
|
13.14 %
|
|
Total risk-based
capital (to risk weighted
assets)(7)
|
14.14 %
|
|
14.10 %
|
|
13.73 %
|
|
14.02 %
|
|
14.39 %
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
|
Full-time equivalent
employees
|
178
|
|
176
|
|
176
|
|
183
|
|
181
|
|
|
|
(1)
|
Annualized
|
|
(2)
|
Net interest income
divided by average interest-earning assets.
|
|
(3)
|
Total noninterest
expenses as a percentage of net interest income and total
noninterest income.
|
|
(4)
|
Non-performing assets
consist of nonaccrual loans and leases, accruing loans and leases
more than 90 days past due and foreclosed assets.
|
|
(5)
|
Non-performing loans
and leases consist of nonaccrual loans and leases and accruing
loans and leases more than 90 days past due.
|
|
(6)
|
As a result of the
adoption of CECL on January 1, 2023, the allowance for credit
losses calculated prior to that date was determined using the
previously applied incurred loss methodology rather than the
current expected credit losses methodology, and as a result the
balances are not directly comparable.
|
|
(7)
|
Capital ratios are for
First Bank Richmond.
|
View original
content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2024-first-quarter-financial-results-302127903.html
SOURCE Richmond Mutual Bancorporation, Inc.