RICHMOND, Ind., Jan. 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 $1.9 million, or $0.19 diluted earnings per share, for the fourth
quarter of 2023, compared to net income of $1.9 million, or $0.19 diluted earnings per share, for the third
quarter of 2023, and net income of $3.3
million, or $0.31 diluted
earnings per share, for the fourth quarter of 2022. Net income was
$9.5 million, or $0.91 diluted earnings per share, for the year
ended December 31, 2023, compared to
net income of $13.0 million, or
$1.17 diluted earnings per share, for
the year ended December 31, 2022.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "Our net interest margin
and overall profitability continue to be impacted by the
significantly higher interest rate environment in 2023 compared to
2022. In spite of the challenges imposed by the current interest
rate environment, we were able to maintain our loan and deposit
portfolios and our profitability. Furthermore, credit quality
remained stable with nonperforming loans and leases totaling 0.72%
of total loans and leases at December 31,
2023."
Fourth Quarter Performance Highlights:
- Assets totaled $1.5 billion at
December 31, 2023, up from
$1.4 billion at September 30, 2023, and $1.3 billion at December
31, 2022.
- Loans and leases, net of allowance for credit losses, totaled
$1.1 billion at both December 31, 2023 and September 30, 2023, and totaled $961.7 million at December
31, 2022.
- Nonperforming loans and leases totaled $8.0 million, or 0.72% of total loans and leases,
at December 31, 2023, compared to
$8.0 million, or 0.74% of total loans
and leases, at September 30, 2023,
and $9.2 million, or 0.94% at
December 31, 2022.
- The allowance for credit losses totaled $15.7 million, or 1.42% of total loans and leases
outstanding, at December 31, 2023,
compared to $15.5 million, or 1.43%
of total loans and leases outstanding, at September 30, 2023. The allowance for loan and
lease losses totaled $12.4 million,
or 1.27% of total loans and leases outstanding, at December 31, 2022. On January 1, 2023, the Bank adopted the accounting
standard referred to as Current Expected Credit Loss ("CECL"),
which resulted in a one-time adjustment from equity into the
allowance for credit losses and the allowance for off-balance sheet
commitments in the amount of $3.8
million, net of tax.
- The provision for credit losses totaled $304,000 in the quarter ended December 31, 2023, compared to $50,000 in the quarter ended September 30, 2023, and no provision in the
fourth quarter of 2022.
- Deposits totaled $1.0 billion at
December 31, 2023, compared to
$1.1 billion at September 30, 2023 and $1.0 billion at December
31, 2022. At December 31,
2023, noninterest-bearing deposits totaled $114.4 million, or 11.0% of total deposits,
compared to $115.6 million, or 11.0%
of total deposits at September 30,
2023, and $106.4 million, or
10.6% of total deposits at December 31,
2022. At December 31, 2023,
approximately $216.0 million, or
20.7%, of our deposit portfolio, excluding collateralized public
deposits, was uninsured.
- Stockholders' equity totaled $134.9
million at December 31, 2023,
compared to $118.0 million at
September 30, 2023, and $132.4 million at December
31, 2022. The Company's equity to assets ratio was 9.22% at
December 31, 2023.
- Book value per share and tangible book value per share were
both $12.03 at December 31, 2023, compared to $10.45 per share at September 30, 2023 and $11.23 per share at December 31, 2022.
- Net interest income increased to $9.3
million for the three months ended December 31, 2023, up $204,000 or 2.2% from $9.1
million for the prior quarter, and down $1.2 million or 11.3% from $10.5 million for the comparable quarter in
2022.
- Annualized net interest margin was 2.67% for the current
quarter, compared to 2.66% in the preceding quarter and 3.33% the
fourth quarter a year ago.
- The Company repurchased 91,575 shares of common stock at an
average price of $10.66 per share
during the quarter ended December 31,
2023.
- The Bank's Tier 1 capital to total assets was 10.64%, well in
excess of all regulatory requirements at December 31, 2023.
Income Statement Summary
Net interest income before the provision for credit losses
increased $204,000, or 2.2%, to
$9.3 million in the fourth quarter of
2023, compared to $9.1 million in the
third quarter of 2023, and decreased $1.2
million, or 11.3%, from $10.5
million in the fourth quarter of 2022. The increase from the
third quarter of 2023 primarily was due to a 25 basis point
increase in the average yield earned on interest earning assets; in
particular, the average yield on loans and leases receivable and
cash and cash equivalents increased 22 basis points and 78 basis
points, respectively. Additionally, a $25.2
million growth in the average balance of interest-earning
assets contributed to the overall improvement. These increases were
partially offset by a 25 basis point increase in the average rate
paid on interest bearing liabilities and a $31.4 million increase in the average balance of
interest bearing liabilities. The decrease from the comparable
quarter in 2022 was due to an 88 basis point decrease in the
average interest rate spread, partially offset by a $133.8 million increase in average interest
earning assets. Since March
2022, in response to inflation, the Federal Open Market
Committee ("FOMC") of the Federal Reserve System has increased the
target range for the federal funds rate by 500 basis points,
including 25 basis points during the third quarter of 2023, 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 $1.2
million, or 6.7%, to $18.6
million during the quarter ended December 31, 2023, compared to the quarter ended
September 30, 2023, and increased
$4.3 million, or 30.0%, compared to
the quarter ended December 31,
2022.
Interest income on loans and leases increased $961,000, or 6.3%, to $16.2 million for the quarter ended December 31, 2023, compared to $15.3 million in the third quarter of 2023, due
to a $24.9 million increase in the
average balance of loans and leases, and an increase of 22 basis
points to 5.93% in the average yield earned on loans and leases.
Interest income on loans and leases increased $3.9 million, or 31.5%, in the fourth quarter of
2023 compared to the fourth quarter of 2022, due to an increase in
the average balance of loans and leases of $138.0 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,
decreased $8,000, or 0.4%, to
$1.8 million during the quarter ended
December 31, 2023, compared to the
quarter ended September 30, 2023, and
increased $34,000, or 1.9%, from the
comparable quarter in 2022. The decrease in interest income on
investment securities, excluding FHLB stock, from the third quarter
of 2023 was due to a $13.5 million
decrease in the average balance of investment securities, partially
offset by a 12 basis point increase in the average yield earned on
those securities. The increase in interest on investment
securities, excluding FHLB stock, from the fourth quarter of 2022
was due to a 22 basis point increase in the average yield earned on
investment securities, partially offset by an $18.1 million decrease in average balance of
those securities. Dividends on FHLB stock increased $56,000, or 23.4%, during the quarter ended
December 31, 2023 compared to the
quarter ended September 30, 2023, and
increased $178,000, or 152.1%,
compared to the quarter ended December 31,
2022. Interest income on cash and cash equivalents increased
$158,000, or 155.1%, during the
quarter ended December 31, 2023,
compared to the quarter ended September 30,
2023, and increased $182,000,
or 233.0%, compared to the quarter ended December 31, 2022. The increase in interest
income on cash and cash equivalents from the third quarter of 2023
was due to an increase of $11.8
million in the average balance, along with a 78 basis point
increase in the average yield. The increase in interest income on
cash and cash equivalents from the fourth quarter of 2022 was due
to a 163 basis point increase in the average yield and a
$12.0 million increase in the average
balance of cash and cash equivalents.
Interest expense increased $964,000, or 11.6%, to $9.3 million for the quarter ended December 31, 2023, compared to the quarter ended
September 30, 2023, and increased
$5.5 million, or 145.1%, compared to
the quarter ended December 31, 2022.
Interest expense on deposits increased $603,000, or 9.6%, to $6.9
million for the quarter ended December 31, 2023, compared to the previous
quarter and increased $4.1 million,
or 146.7%, from the comparable quarter in 2022. The increase in
interest expense on deposits from the previous quarter was
primarily due to a 24 basis points increase in the average rate
paid on interest-bearing deposits. The increase from the comparable
quarter in 2022 was due to an increase of $65.1 million in average balance of, and a 165
basis point increase in the average rate paid on, interest-bearing
deposits. The average rate paid on interest-bearing deposits was
2.93% for the quarter ended December 31,
2023, compared to 2.69% and 1.28% for the quarters ended
September 30, 2023 and December 31, 2022, respectively.
Interest expense on FHLB borrowings increased $361,000, or 18.3%, to $2.3 million for the fourth quarter of 2023
compared to the previous quarter and increased $1.4 million, or 140.5%, from the comparable
quarter in 2022, primarily due to increases in the average rate
paid on FHLB borrowings and the average balance of outstanding
borrowings. The average balance of FHLB borrowings totaled
$251.0 million during the quarter
ended December 31, 2023, compared to
$224.8 million and $183.5 million for the quarters ended
September 30, 2023 and December 31, 2022, respectively. The average rate
paid on FHLB borrowings was 3.71% for the quarter ended
December 31, 2023, 3.50% for
September 30, 2023 and 2.11% for the
fourth quarter of 2022.
Annualized net interest margin was 2.67% for the fourth quarter
of 2023, relatively unchanged compared to 2.66% for the third
quarter of 2023 and down from 3.33% for the fourth quarter of 2022.
The decrease in the net interest margin for the fourth quarter of
2023 compared to the comparable quarter in 2022 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 $304,000 for the three months ended December 31, 2023, compared to $50,000 during the quarter ended September 30, 2023 and no provision for the
quarter ended December 31, 2022. The
increase in the provision for credit losses primarily was due to
loan growth. Net charge-offs during the fourth quarter of 2023 were
$241,000, compared to net charge-offs
of $299,000 during the third quarter
of 2023 and net charge-offs of $143,000 in the fourth quarter of 2022.
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, higher interest rates, stock
market volatility, and overall geopolitical tensions.
Noninterest income increased $22,000, or 1.9%, to $1.2
million for the quarter ended December 31, 2023, compared to the quarter ended
September 30, 2023, and decreased
$212,000, or 15.3%, from the
comparable quarter in 2022. The increase compared to the third
quarter of 2023 primarily resulted from increases in card fee
income and net gains on loan and lease sales, partially offset by a
decrease in other income. Card fee income increased $50,000, or 16.6%, to $354,000 in the fourth quarter of 2023 compared
to the previous quarter due to the renegotiation of terms with our
credit card provider, and increased account activity during the
holiday season. Net gains on loan and lease sales increased
$29,000, or 32.7%, to $119,000 for the quarter ended December 31, 2023 compared to the previous
quarter due to a slight increase in mortgage banking activity
during the quarter. Other income decreased $62,000, or 16.5%, to $315,000 for the quarter ended December 31, 2023 compared to the prior quarter
due to expenses associated with our captive insurance company. The
decrease from the comparable quarter in 2022 was primarily due to
decreases in loan and lease servicing fees, partially offset by
increases in net gains on loan and lease sales and other income.
Loan and lease servicing fees decreased $313,000, or 74.6%, to $107,000 for the quarter ended December 31, 2023 as compared to the comparable
quarter in 2022 due to a recovery of $302,000 of mortgage servicing rights recorded in
the fourth quarter of 2022 due to rising interest rates and not
replicated in the current quarter. Net gains on loan and lease
sales increased $60,000, or 103.5%,
during the fourth quarter of 2023 compared to the fourth quarter of
2022 due to a slight increase in mortgage banking activity. Other
income increased $41,000, or 14.8%,
for the fourth quarter of 2023 compared to the same quarter in 2022
primarily due to fees earned from our participation in a loan
hedging program with a correspondent bank. Service fees on deposit
accounts decreased $23,000, or 7.6%,
in the fourth quarter of 2023 from the comparable quarter in 2022.
Card fee income increased $23,000, or
6.8%, in the fourth quarter of 2023 compared to the comparable
quarter in 2022.
Total noninterest expense increased $17,000, or 0.2%, to $8.0
million for the three months ended December 31, 2023, compared to the third quarter
of 2023, and increased $87,000, or
1.1%, compared to the same period in 2022. Salaries and employee
benefits increased $170,000, or 3.9%,
to $4.5 million for the quarter ended
December 31, 2023, compared to the
third quarter of 2023, and decreased $254,000, or 5.3%, compared to the quarter ended
December 31, 2022. The increase in
salaries and benefits from the third quarter of 2023 was primarily
due to increased bonus expense, while the decrease in salaries and
benefits compared to the fourth quarter of 2022 was primarily due
to decreased bonus expense. Deposit insurance expense increased
$243,000, or 86.8%, for the quarter
ended December 31, 2023, compared to
the third quarter of 2023, and increased $277,000, or 112.6%, from the comparable quarter
in 2022, primarily due to a change in our asset and deposit mix, as
well as an increase in the initial base deposit insurance
assessment rate during 2023. Equipment expenses decreased
$20,000 or 7.4%, during the fourth
quarter of 2023 as compared to the prior quarter, and decreased
$62,000, or 19.6%, compared to the
comparable quarter in 2022. Data processing fees decreased
$17,000, or 2.0%, to $836,000 for the quarter ended December 31, 2023 compared to the third quarter
of 2023, and increased $94,000, or
12.6%, compared to the quarter ended December 31, 2022. The increase in data
processing fees from the fourth quarter of 2022 was primarily due
to increased software and online services expenses. Legal and
professional fees decreased $125,000,
or 23.7%, in the fourth quarter of 2023 compared to the prior
quarter, and increased $42,000, or
11.7%, from the fourth quarter of 2022. The decrease in legal and
professional fees from the prior quarter was due to decreases in
other professional services expenses. Other expenses decreased
$256,000, or 22.2%, in the fourth
quarter of 2023 compared to the prior quarter, and increased
$85,000, or 10.5%, compared to the
same quarter of 2022. The decrease in other expenses from the third
quarter of 2023 primarily was due to decreases in losses due to
fraud in the fourth quarter of 2023. The increase in
other expenses from the comparable quarter in 2022 was primarily
due to increased franchise tax expenses and loan tax and insurance
expenses in the fourth quarter of 2023.
Income tax expense decreased $39,000 during the three months ended
December 31, 2023 compared to the
quarter ended September 30, 2023, and
decreased $433,000 compared to the
same quarter in 2022. The decrease in income tax expense from the
prior quarter primarily was due to a lower effective tax rate,
while the decrease from the same quarter in 2022 was due to both a
lower level of pre-tax income and a lower effective tax rate.
The effective tax rate for the fourth quarter of 2023 was 10.8%
compared to 12.3% in the third quarter of 2023, and 16.8% in the
fourth quarter a year ago. The decrease in the effective tax rate
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 $134.0
million, or 10.1%, to $1.5
billion at December 31, 2023
from December 31, 2022. The increase
was primarily the result of a $129.4
million, or 13.5%, increase in loans and leases, net of
allowance for credit losses, to $1.1
billion at December 31, 2023,
partially offset by a decrease of $3.9
million, or 1.3%, in investment securities to $287.6 million at December
31, 2023.
The increase in loans and leases was attributable to an increase
in commercial real estate loans, direct financing leases and
construction and development loans of $43.5
million, $23.1 million and
$17.9 million, respectively.
Investment securities decreased primarily due to maturities and
principal repayments on investment securities exceeding purchases
of new securities.
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 0.72%
of total loans and leases, at December 31,
2023, compared to $9.2
million, or 0.94%, at December 31,
2022. Accruing loans past due more than 90 days totaled
$1.7 million at December 31, 2023, compared to $3.2 million at December
31, 2022.
On January 1, 2023, the Bank
adopted the accounting standard referred to as the current expected
credit loss, or CECL. As a result of the change in methodology from
the incurred loss method to the CECL method, on January 1, 2023 the Company recorded a one-time
adjustment from equity into the allowance for credit losses in the
amount of $3.8 million, net of tax.
The allowance for credit losses totaled $15.7 million, or 1.42% of total loans and leases
outstanding at December 31, 2023. At
December 31, 2022, the allowance for
loan and lease losses totaled $12.4
million, or 1.27% of total loans and leases outstanding.
Additionally, as a part of the CECL adoption, the Bank established
an allowance for off-balance sheet commitments. This allowance,
which is reported in other liabilities, totaled $1.6 million at December
31, 2023. Net charge-offs during 2023 were $678,000 compared to net charge-offs of
$295,000 during 2022.
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
December 31, 2023, which evaluation
included consideration of a potential recession due to inflation,
higher interest rates, stock market volatility, and overall
geopolitical tensions. Credit metrics are reviewed and stress
testing is performed on the loan portfolio on an ongoing basis.
Total deposits increased $36.9
million, or 3.7%, to $1.0
billion at December 31, 2023,
compared to December 31, 2022,
primarily due to an increase in non-brokered time deposits of
$46.4 million and brokered time
deposits of $10.9 million, partially
offset by a $23.9 million decrease in
savings and money market accounts and a $4.6
million decrease in interest-bearing demand accounts.
Management attributes the shift in funds to customers taking
advantage of higher rates being paid on time deposits in 2023 as a
result of interest rate hikes enacted by the Federal Reserve.
Brokered time deposits totaled $268.8
million, or 25.8% of total deposits, at December 31, 2023. Noninterest-bearing demand
deposits increased $8.0 million to
$114.4 million at December 31, 2023 compared to $106.4 million at December
31, 2022, and totaled 11.0% of total deposits at
December 31, 2023.
As of December 31, 2023,
approximately $216.0 million of our
deposit portfolio, or 20.7% 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 $134.9
million at December 31, 2023,
an increase of $2.5 million, or 1.9%,
from December 31, 2022. The increase
in stockholders' equity primarily was the result of net income of
$9.5 million and a decrease in
Accumulated Other Comprehensive Loss ("AOCL") of $6.7 million, partially offset by the payment of
$5.9 million in dividends to Company
stockholders, the repurchase of $6.3
million of Company common stock, and the one-time adjustment
to retained earnings of $3.8 million
for the adoption of CECL during the first quarter. The decrease in
AOCL is primarily due to the improvement in mark-to-market values
associated with our available-for-sale investment securities
portfolio. At December 31, 2023, the
available for sale portfolio had a net unrealized loss of
$54.5 million compared to a net
unrealized loss of $63.0 million at
December 31, 2022. The AOCL impact to
equity, after tax effecting the unrealized loss, was $43.0 million at December
31, 2023, compared to $49.8
million at December 31,
2022.
During the quarter ended December 31,
2023, the Company repurchased a total of 91,575 shares of
Company common stock at an average price of $10.66 per share. As of December 31, 2023, the Company had approximately
868,036 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 16,818 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 past 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 high 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
|
|
Year
Ended
|
|
SELECTED OPERATIONS
DATA:
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
18,581
|
|
$
17,413
|
|
$
14,298
|
|
$
67,410
|
|
$
51,858
|
|
Interest
expense
|
9,250
|
|
8,286
|
|
3,774
|
|
29,748
|
|
10,219
|
|
Net interest
income
|
9,331
|
|
9,127
|
|
10,524
|
|
37,662
|
|
41,639
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses(1)
|
304
|
|
50
|
|
—
|
|
532
|
|
600
|
|
Net interest income
after provision for credit losses
|
9,027
|
|
9,077
|
|
10,524
|
|
37,130
|
|
41,039
|
|
Noninterest
income
|
1,179
|
|
1,159
|
|
1,391
|
|
4,611
|
|
4,867
|
|
Noninterest
expense
|
8,029
|
|
8,013
|
|
7,942
|
|
30,738
|
|
30,157
|
|
Income before income
tax expense
|
2,177
|
|
2,223
|
|
3,973
|
|
11,003
|
|
15,749
|
|
Income tax
provision
|
235
|
|
274
|
|
669
|
|
1,516
|
|
2,784
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
1,942
|
|
$
1,949
|
|
$
3,304
|
|
$
9,487
|
|
$
12,965
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
11,209
|
|
11,300
|
|
11,784
|
|
11,209
|
|
11,784
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
10,225
|
|
10,359
|
|
10,623
|
|
10,396
|
|
10,766
|
|
Diluted
|
10,260
|
|
10,382
|
|
10,782
|
|
10,451
|
|
11,058
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.19
|
|
$
0.19
|
|
$
0.31
|
|
$
0.91
|
|
$
1.20
|
|
Diluted
|
$
0.19
|
|
$
0.19
|
|
$
0.31
|
|
$
0.91
|
|
$
1.17
|
|
|
________________________________________________
|
|
(1)
|
As a result of the
adoption of CECL on January 1, 2023, the provision 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
amounts are not directly comparable.
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,462,037
|
|
$
1,422,319
|
|
$
1,408,593
|
|
$
1,361,581
|
|
$
1,328,026
|
|
Cash and cash
equivalents
|
20,225
|
|
20,652
|
|
17,464
|
|
17,390
|
|
15,922
|
|
Interest-bearing time
deposits
|
—
|
|
245
|
|
490
|
|
490
|
|
490
|
|
Investment
securities
|
287,638
|
|
269,363
|
|
287,096
|
|
297,498
|
|
291,572
|
|
Loans and leases, net
of allowance for credit losses(1)
|
1,091,101
|
|
1,066,892
|
|
1,043,024
|
|
989,117
|
|
961,691
|
|
Loans held for
sale
|
794
|
|
568
|
|
340
|
|
—
|
|
474
|
|
Premises and equipment,
net
|
13,312
|
|
13,342
|
|
13,539
|
|
13,493
|
|
13,668
|
|
Federal Home Loan Bank
stock
|
12,647
|
|
11,297
|
|
10,802
|
|
10,082
|
|
9,947
|
|
Other assets
|
36,320
|
|
39,960
|
|
35,838
|
|
33,511
|
|
34,262
|
|
Deposits
|
1,042,153
|
|
1,053,909
|
|
1,039,573
|
|
1,030,034
|
|
1,005,261
|
|
Borrowings
|
271,000
|
|
238,000
|
|
226,000
|
|
183,500
|
|
180,000
|
|
Total stockholder's
equity
|
134,860
|
|
118,038
|
|
130,235
|
|
135,553
|
|
132,385
|
|
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
134,860
|
|
$
118,038
|
|
$
130,235
|
|
$
135,553
|
|
$
132,385
|
|
Tangible book value
(non-GAAP)
|
134,860
|
|
118,038
|
|
130,235
|
|
135,553
|
|
132,385
|
|
Book value per share
(GAAP)
|
12.03
|
|
10.45
|
|
11.38
|
|
11.60
|
|
11.23
|
|
Tangible book value per
share (non-GAAP)
|
12.03
|
|
10.45
|
|
11.38
|
|
11.60
|
|
11.23
|
|
|
________________________________________________
|
|
(1)
|
As a result of the
adoption of CECL on January 1, 2023, the allowance amounts
calculated prior to that date were 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.
|
The following table summarizes information relating to our loan
and lease portfolio at the dates indicated:
|
(In
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
341,633
|
|
$
345,714
|
|
$
341,475
|
|
$
321,314
|
|
$
298,087
|
|
Commercial and
industrial
|
115,428
|
|
111,450
|
|
114,162
|
|
97,880
|
|
100,420
|
|
Construction and
development
|
157,805
|
|
140,651
|
|
117,029
|
|
125,521
|
|
139,923
|
|
Multi-family
|
138,757
|
|
135,409
|
|
141,545
|
|
132,407
|
|
124,914
|
|
Residential
mortgage
|
162,123
|
|
160,488
|
|
159,753
|
|
152,376
|
|
146,129
|
|
Home equity
|
10,904
|
|
10,776
|
|
10,492
|
|
10,923
|
|
11,010
|
|
Direct financing
leases
|
156,598
|
|
154,520
|
|
152,181
|
|
143,281
|
|
133,469
|
|
Consumer
|
24,292
|
|
24,176
|
|
22,657
|
|
21,604
|
|
21,048
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
1,107,540
|
|
$
1,083,184
|
|
$
1,059,294
|
|
$
1,005,306
|
|
$
975,000
|
The following table summarizes information relating to our
deposits at the dates indicated:
|
(In
thousands)
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
114,377
|
|
$
115,632
|
|
$
104,691
|
|
$
96,827
|
|
$
106,415
|
|
Interest-bearing
demand
|
152,878
|
|
146,118
|
|
149,770
|
|
148,798
|
|
157,429
|
|
Savings and money
market
|
256,755
|
|
249,575
|
|
267,624
|
|
275,006
|
|
280,666
|
|
Non-brokered time
deposits
|
249,305
|
|
240,297
|
|
226,493
|
|
218,262
|
|
202,862
|
|
Brokered time
deposits
|
268,838
|
|
302,287
|
|
290,995
|
|
291,141
|
|
257,889
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
1,042,153
|
|
$
1,053,909
|
|
$
1,039,573
|
|
$
1,030,034
|
|
$
1,005,261
|
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
December 31,
|
|
2023
|
|
2022
|
|
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
|
$ 1,093,993
|
|
$
16,231
|
|
5.93 %
|
|
$
956,030
|
|
$ 12,343
|
|
5.16 %
|
|
Securities
|
270,093
|
|
1,794
|
|
2.66 %
|
|
288,204
|
|
1,760
|
|
2.44 %
|
|
FHLB stock
|
11,882
|
|
295
|
|
9.93 %
|
|
9,942
|
|
117
|
|
4.71 %
|
|
Cash and cash
equivalents and other
|
22,166
|
|
261
|
|
4.71 %
|
|
10,118
|
|
78
|
|
3.08 %
|
|
Total interest-earning
assets
|
1,398,134
|
|
18,581
|
|
5.32 %
|
|
1,264,294
|
|
14,298
|
|
4.52 %
|
|
Non-earning
assets
|
47,818
|
|
|
|
|
|
45,149
|
|
|
|
|
|
Total
assets
|
1,445,952
|
|
|
|
|
|
1,309,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
270,226
|
|
1,452
|
|
2.15 %
|
|
296,747
|
|
859
|
|
1.16 %
|
|
Interest-bearing
checking accounts
|
146,259
|
|
346
|
|
0.95 %
|
|
156,365
|
|
163
|
|
0.42 %
|
|
Certificate
accounts
|
527,781
|
|
5,123
|
|
3.88 %
|
|
426,054
|
|
1,784
|
|
1.67 %
|
|
Borrowings
|
251,043
|
|
2,329
|
|
3.71 %
|
|
183,538
|
|
968
|
|
2.11 %
|
|
Total interest-bearing
liabilities
|
1,195,309
|
|
9,250
|
|
3.10 %
|
|
1,062,704
|
|
3,774
|
|
1.42 %
|
|
Noninterest-bearing
demand deposits
|
115,890
|
|
|
|
|
|
110,631
|
|
|
|
|
|
Other
liabilities
|
14,392
|
|
|
|
|
|
9,081
|
|
|
|
|
|
Stockholders'
equity
|
120,361
|
|
|
|
|
|
127,027
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,445,952
|
|
|
|
|
|
1,309,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
9,331
|
|
|
|
|
|
$ 10,524
|
|
|
|
Net earning
assets
|
$
202,825
|
|
|
|
|
|
$
201,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.22 %
|
|
|
|
|
|
3.10 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.67 %
|
|
|
|
|
|
3.33 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.97 %
|
|
|
|
|
|
118.97 %
|
|
|
|
|
|
|
________________________________________________
|
|
(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,
|
|
2023
|
|
2022
|
|
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
|
$ 1,044,471
|
|
$
58,794
|
|
5.63 %
|
|
$
897,918
|
|
$ 44,594
|
|
4.97 %
|
|
Securities
|
285,600
|
|
7,203
|
|
2.52 %
|
|
318,917
|
|
6,712
|
|
2.10 %
|
|
FHLB stock
|
10,750
|
|
851
|
|
7.92 %
|
|
9,856
|
|
399
|
|
4.05 %
|
|
Cash and cash
equivalents and other
|
13,728
|
|
562
|
|
4.09 %
|
|
13,739
|
|
153
|
|
1.11 %
|
|
Total interest-earning
assets
|
1,354,549
|
|
67,410
|
|
4.98 %
|
|
1,240,430
|
|
51,858
|
|
4.18 %
|
|
Non-earning
assets
|
45,212
|
|
|
|
|
|
40,659
|
|
|
|
|
|
Total
assets
|
1,399,761
|
|
|
|
|
|
1,281,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
274,497
|
|
4,989
|
|
1.82 %
|
|
284,725
|
|
2,153
|
|
0.76 %
|
|
Interest-bearing
checking accounts
|
147,964
|
|
1,054
|
|
0.71 %
|
|
165,213
|
|
534
|
|
0.32 %
|
|
Certificate
accounts
|
509,316
|
|
16,767
|
|
3.29 %
|
|
384,038
|
|
4,441
|
|
1.16 %
|
|
Borrowings
|
218,025
|
|
6,938
|
|
3.18 %
|
|
179,966
|
|
3,091
|
|
1.72 %
|
|
Total interest-bearing
liabilities
|
1,149,802
|
|
29,748
|
|
2.59 %
|
|
1,013,942
|
|
10,219
|
|
1.01 %
|
|
Noninterest-bearing
demand deposits
|
107,192
|
|
|
|
|
|
111,990
|
|
|
|
|
|
Other
liabilities
|
13,924
|
|
|
|
|
|
7,686
|
|
|
|
|
|
Stockholders'
equity
|
128,843
|
|
|
|
|
|
147,471
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,399,761
|
|
|
|
|
|
1,281,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
37,662
|
|
|
|
|
|
$ 41,639
|
|
|
|
Net earning
assets
|
$
204,747
|
|
|
|
|
|
$
226,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
2.39 %
|
|
|
|
|
|
3.17 %
|
|
Net interest
margin(2)
|
|
|
|
|
2.78 %
|
|
|
|
|
|
3.36 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
117.81 %
|
|
|
|
|
|
122.34 %
|
|
|
|
|
|
|
________________________________________________
|
|
(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,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(1)
|
0.54 %
|
|
0.55 %
|
|
0.77 %
|
|
0.86 %
|
|
1.01 %
|
|
Return on average
equity(1)
|
6.45 %
|
|
6.04 %
|
|
8.05 %
|
|
8.78 %
|
|
10.40 %
|
|
Yield on
interest-earning assets
|
5.32 %
|
|
5.07 %
|
|
4.82 %
|
|
4.68 %
|
|
4.52 %
|
|
Rate paid on
interest-bearing liabilities
|
3.10 %
|
|
2.85 %
|
|
2.42 %
|
|
1.94 %
|
|
1.42 %
|
|
Average interest rate
spread
|
2.22 %
|
|
2.22 %
|
|
2.40 %
|
|
2.74 %
|
|
3.10 %
|
|
Net interest
margin(1)(2)
|
2.67 %
|
|
2.66 %
|
|
2.77 %
|
|
3.04 %
|
|
3.33 %
|
|
Operating expense to
average total assets(1)
|
2.22 %
|
|
2.26 %
|
|
2.11 %
|
|
2.19 %
|
|
2.43 %
|
|
Efficiency
ratio(3)
|
76.39 %
|
|
77.91 %
|
|
69.79 %
|
|
67.12 %
|
|
66.66 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
116.97 %
|
|
118.04 %
|
|
118.15 %
|
|
118.13 %
|
|
118.97 %
|
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(4)
|
0.56 %
|
|
0.60 %
|
|
0.62 %
|
|
0.66 %
|
|
0.69 %
|
|
Non-performing loans
and leases to total gross loans and leases(5)
|
0.72 %
|
|
0.74 %
|
|
0.81 %
|
|
0.86 %
|
|
0.94 %
|
|
Allowance for credit
losses to non-performing loans and
leases(5)(6)
|
195.80 %
|
|
194.70 %
|
|
180.44 %
|
|
179.80 %
|
|
135.28 %
|
|
Allowance for credit
losses to total loans and leases(6)
|
1.42 %
|
|
1.43 %
|
|
1.45 %
|
|
1.54 %
|
|
1.27 %
|
|
Net
charge-offs/(recoveries) to average outstanding loans and leases
during the period(1)
|
0.09 %
|
|
0.11 %
|
|
0.08 %
|
|
(0.03) %
|
|
0.06 %
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
9.22 %
|
|
8.34 %
|
|
9.28 %
|
|
9.99 %
|
|
10.01 %
|
|
Average equity to
average assets
|
8.32 %
|
|
9.10 %
|
|
9.62 %
|
|
9.85 %
|
|
9.70 %
|
|
Common equity tier 1
capital (to risk weighted assets)(7)
|
12.85 %
|
|
12.48 %
|
|
12.77 %
|
|
13.14 %
|
|
13.23 %
|
|
Tier 1 leverage (core)
capital (to adjusted tangible assets)(7)
|
10.64 %
|
|
10.71 %
|
|
10.81 %
|
|
10.95 %
|
|
11.20 %
|
|
Tier 1 risk-based
capital (to risk weighted assets)(7)
|
12.85 %
|
|
12.48 %
|
|
12.77 %
|
|
13.14 %
|
|
13.23 %
|
|
Total risk-based
capital (to risk weighted assets)(7)
|
14.10 %
|
|
13.73 %
|
|
14.02 %
|
|
14.39 %
|
|
14.31 %
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
|
Full-time equivalent
employees
|
176
|
|
176
|
|
183
|
|
181
|
|
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-2023-fourth-quarter-financial-results-302045248.html
SOURCE Richmond Mutual Bancorporation, Inc.