RICHMOND, Ind., Jan. 26,
2023 /PRNewswire/ -- Richmond Mutual
Bancorporation, Inc., a Maryland
corporation (the "Company") (NASDAQ: RMBI), parent company of First
Bank Richmond (the "Bank"), today announced net income of
$3.3 million, or $0.31 diluted earnings per share, for the fourth
quarter of 2022, compared to net income of $3.2 million, or $0.29 diluted earnings per share, for the third
quarter of 2022, and net income of $2.7
million, or $0.24 diluted
earnings per share, for the fourth quarter of 2021. Diluted
earnings per share increased 6.9% and 29.2% for the fourth quarter
of 2022 as compared to the third quarter of 2022 and the fourth
quarter of 2021, respectively. Net income was $13.0 million, or $1.17 diluted earnings per share for the year
ended December 31, 2022, compared to
net income of $11.1 million, or
$0.96 diluted earnings per share for
the year ended December 31, 2021.
President's Comments
Garry Kleer, Chairman, President
and Chief Executive Officer, commented, "While the Federal Reserve
continued to raise interest rates, we were able to grow our loan
and lease portfolios while increasing profitability and returning
excess capital to shareholders through dividends and share
repurchases. We are very pleased to have been able to deliver
another record year for our shareholders while continuing to invest
in our people, businesses and communities."
Fourth Quarter Performance Highlights:
- Assets increased slightly to $1.33
billion at December 31, 2022,
compared to $1.28 billion at
September 30, 2022 and $1.27 billion at December
31, 2021.
- Loans and leases, net of allowance, totaled $961.7 million at December
31, 2022, compared to $915.5
million at September 30, 2022,
and $832.8 million at December 31, 2021.
- Nonperforming loans and leases totaled $9.2 million, or 0.94% of total loans and leases,
at December 31, 2022, compared to
$8.5 million, or 0.92% at
September 30, 2022, and $8.0 million, or 0.95% at December 31, 2021.
- The allowance for loan and lease losses totaled $12.4 million, or 1.27% of total loans and leases
outstanding, at December 31, 2022,
compared to $12.6 million, or 1.35%
of total loans and leases outstanding, at September 30, 2022 and $12.1 million, or 1.43% of total loans and leases
outstanding, at December 31,
2021.
- There was no provision for loan and lease losses in the quarter
ended December 31, 2022, compared to
$200,000 in the quarter ended
September 30, 2022, and no provision
in the fourth quarter of 2021.
- Deposits totaled $1.0 billion at
December 31, 2022, compared to
$958.6 million at September 30, 2022 and $900.2 million at December
31, 2021. At December 31,
2022, noninterest bearing deposits totaled $106.4 million, or 10.6% of total deposits,
compared to $114.8 million, or 12.0%
of total deposits, at September 30,
2022, and $114.3 million, or
12.7%, of total deposits at December 31,
2021.
- Stockholders' equity totaled $133.0
million at December 31, 2022,
compared to $125.0 million at
September 30, 2022, and $180.5 million at December
31, 2021. The Company's equity to assets ratio was 10.0% at
December 31, 2022.
- Net interest income increased $11,000, or 0.1%, to $10.5
million for the three months ended December 31, 2022, compared to net interest
income of $10.5 million for the prior
quarter, and increased $429,000, or
4.3%, from $10.1 million for the
comparable quarter in 2021.
- Annualized net interest margin was 3.33% for the current
quarter, compared to 3.39% in the preceding quarter and 3.31% the
fourth quarter a year ago.
- The Company repurchased 18,178 shares of common stock at an
average price of $13.11 per share
during the quarter ended December 31,
2022.
- The Bank's Tier 1 capital to total assets was 11.20%, well in
excess of all regulatory requirements at December 31, 2022.
Income Statement Summary
Net interest income before the provision for loan and lease
losses increased $11,000, or 0.1%, to
$10.5 million in the fourth quarter
of 2022, compared to $10.5 million in
the third quarter of 2022, and increased $429,000, or 4.3%, from $10.1 million in the fourth quarter of 2021. The
increase from the third quarter of 2022 was due to a $24.9 million increase in average interest
earning assets, partially offset by an 11 basis point decrease in
the average interest rate spread, during the fourth quarter of
2022. The increase from the comparable quarter in 2021 was due to
an increase in average interest earning assets of $44.0 million, partially offset by a two basis
point decrease in the average interest rate spread during the
fourth quarter of 2022. 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 425 basis points,
including 125 basis points during the fourth quarter of 2022, to a
range of 4.25% to 4.50%. 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 $1.1
million, or 8.6%, to $14.3
million during the quarter ended December 31, 2022, compared to the quarter ended
September 30, 2022, and increased
$2.3 million, or 18.8%, compared to
the quarter ended December 31, 2021.
Interest income on loans and leases increased $1.0 million, or 9.2%, to $12.3 million for the quarter ended December 31, 2022 compared to $11.3 million in the third quarter of 2022, due
to a $47.4 million increase in the
average balance of loans and leases, and an increase of 18 basis
points to 5.16% in the average yield earned on loans and leases.
Interest income on loans and leases increased $1.9 million, or 18.5%, in the fourth quarter of
2022 compared to the fourth quarter of 2021, due to an increase in
the average balance of loans and leases of $136.6 million, and an increase of eight basis
points in the average yield earned on loans and leases.
Interest income on investment securities, excluding FHLB stock,
increased $49,000, or 2.9%, to
$1.8 million during the quarter ended
December 31, 2022, compared to the
quarter ended September 30, 2022, and
increased $250,000, or 16.6%, from
the comparable quarter in 2021. The increase in interest income on
investment securities, excluding FHLB stock, in the fourth quarter
of 2022 from the third quarter of 2022 was due to a 24 basis point
increase in the average yield earned on investment securities to
2.44%, partially offset by a $23.1
million decrease in average balance of investment
securities. The increase in interest on investment
securities, excluding FHLB stock, in the fourth quarter of 2022
from the fourth quarter of 2021 was due to an 80 basis point
increase in the average yield earned on investment securities,
partially offset by a $79.5 million
decrease in average balance of investment securities. Dividends on
FHLB stock decreased $4,000, or 3.3%,
during the quarter ended December 31,
2022 compared to the quarter ended September 30, 2022, and increased $46,000, or 64.8%, compared to the quarter ended
December 31, 2021. Interest income on
cash and cash equivalents increased $42,000, or 116.7%, during the quarter ended
December 31, 2022, compared to the
quarter ended September 30, 2022, and
increased $46,000, or 143.8%,
compared to the quarter ended December
31, 2021. The increase in interest income on cash and
cash equivalents in the fourth quarter of 2022 from the third
quarter of 2022 was due to a 160 basis point increase in the
average yield along with an increase of $396,000 in the average balance. The
increase in interest income of cash and cash equivalents in the
fourth quarter of 2022 from the fourth quarter of 2021 was due to a
253 basis point increase in the average yield, partially offset by
a $13.1 million decrease in the
average balance of cash and cash equivalents.
Interest expense increased $1.1
million, or 42.0%, to $3.8
million for the quarter ended December 31, 2022 compared to the quarter ended
September 30, 2022 and increased
$1.8 million, or 94.9%, compared to
the quarter ended December 31, 2021.
Interest expense on deposits increased $1.0
million, or 56.0%, to $2.8
million for the quarter ended December 31, 2022, compared to the previous
quarter and increased $1.5 million,
or 120.4%, from the comparable quarter in 2021. The increase from
the previous quarter was primarily due to a 42 basis points
increase in the average rate paid on interest-bearing deposits and,
to a lesser extent, a $43.1 million
increase in average balance of interest-bearing deposits. The
increase from the comparable quarter in 2021 was due to an increase
of $127.7 million in average balance
of, and a 60 basis point increase in the average rate paid on,
interest-bearing deposits. The average rate paid on
interest-bearing deposits was 1.28% for the quarter ended
December 31, 2022, compared to 0.86%
and 0.68% for the quarters ended September
30, 2022 and December 31,
2021, respectively. Interest expense on FHLB borrowings
increased $110,000, or 12.8%, to
$968,000 for the fourth quarter of
2022 compared to the previous quarter and increased $306,000, or 46.1%, from the comparable quarter
in 2021 primarily due to increases in the average rate paid on FHLB
borrowings. The average balance of FHLB borrowings totaled
$183.5 million during the quarter
ended December 31, 2022, compared to
$182.5 million and $191.4 million for the quarters ended
September 30, 2022 and December 31, 2021, respectively. The average rate
paid on FHLB borrowings was 2.11% for the quarter ended
December 31, 2022, 1.88% for the
quarter ended September 30, 2022, and
1.39% for the fourth quarter of 2021.
Annualized net interest margin decreased to 3.33% for the fourth
quarter of 2022, compared to 3.39% for the third quarter of 2022
and increased from 3.31% for the fourth quarter of 2021. The
decrease in the net interest margin for the fourth quarter of 2022
compared to the third quarter of 2022 was primarily due to the rate
paid on interest-bearing liabilities increasing faster than the
yield on interest-earning assets. The increase in the net
interest margin for the fourth quarter of 2022 compared to the
fourth quarter of 2021 was primarily due the similar increases in
the yield on interest-earning assets and interest-bearing
liabilities.
There was no provision for loan and lease losses for the quarter
ended December 31, 2022 and
$200,000 for the quarter ended
September 30, 2022, compared to no
provision recorded for the quarter ended December 31, 2021. Net charge-offs during
the fourth quarter of 2022 were $143,000, compared to net charge-offs of
$25,000 during the third quarter of
2022 and net recoveries of $259,000
in the fourth quarter of 2021. Uncertainties relating to the level
of our allowance for loan losses remains heightened as a result of
continued concern about a potential recession due to inflation,
rising interest rates, stock market volatility and the Russia-Ukraine conflict.
Noninterest income increased $208,000, or 17.5%, to $1.4 million for the quarter ended December 31, 2022 compared to the quarter ended
September 30, 2022, and increased
$289,000, or 26.2%, from the
comparable quarter in 2021. The increase in noninterest income in
the fourth quarter of 2022 from the third quarter of 2022 primarily
resulted from an increase in loan and lease servicing fees and
service fees on deposit accounts. Loan and lease servicing fees
increased $184,000 in the fourth
quarter of 2022 compared to the third quarter of 2022 as a recovery
of $302,000 to mortgage servicing
rights was recorded in the fourth quarter of 2022 compared to a
recovery of $114,000 in the third
quarter of 2022, due to continued rising interest rates increasing
the expected duration of our loans. In addition, service fees
on deposit accounts increased $47,000, or 18.1%, to $307,000 for the quarter ended December 31, 2022, compared to $260,000 for the third quarter of 2022. These
increases were partially offset by a $58,000, or 49.8%, decrease in net gains on loan
and lease sales in the fourth quarter of 2022 from the third
quarter of 2022, as mortgage banking activity declined primarily
due to lower refinancing activity, a lower supply of houses for
sale in the Bank's market area, and increases in residential
mortgage rates. The increase in noninterest income from the
comparable quarter in 2021, also primarily was due to an increase
in loan and lease servicing fees and service fees on deposit
accounts, as well as increases in card fee income and other income,
partially offset by a decrease in net gains on loan and lease
sales. Loan and lease servicing fees in the fourth quarter of
2022 reflected a recovery of $302,000
to mortgage servicing rights compared to an impairment charge of
$129,000 recorded in the fourth
quarter of 2021. Service fees on deposit accounts increased
$55,000, or 21.7%, in the fourth
quarter of 2022 from the comparable quarter in 2021. In addition,
card fee income increased $29,000, or
9.5%, in the fourth quarter of 2022 due to higher card usage and
other income increased $40,000, or
17.3% in the fourth quarter of 2022 compared to the comparable
quarter of 2021 primarily due to increased wealth management
income. Net gains on loan and lease sales decreased $301,000, or 83.8%, to $58,000 during the current quarter compared to
the comparable quarter a year ago.
Total noninterest expense increased $220,000, or 2.8%, to $7.9
million for the three months ended December 31, 2022, compared to the third quarter
of 2022, and decreased $6,000, or
0.1% compared to the same period in 2021. Salaries and
employee benefits increased $91,000,
or 1.9%, to $4.8 million for the
quarter ended December 31, 2022,
compared to the third quarter of 2022, and decreased $364,000 compared to the quarter ended
December 31, 2021. The increase in
salaries and benefits in the fourth quarter of 2022 from the third
quarter of 2022 was primarily due to annual merit increases. The
decrease in salaries and benefits in the fourth quarter of 2022
from the comparable quarter in 2021 was due to a one-time expense
recorded in the fourth quarter of 2021 to complete the termination
of the Company's defined benefit pension plan. Deposit insurance
expense increased $160,000, or 186.0%
for the quarter ended December 31,
2022, compared to the third quarter of 2022, and increased
$156,000, or 173.3%, from the
comparable quarter in 2021 due to slightly lower capital levels, a
change in our loan composition and a greater use of wholesale
certificates of deposit during the fourth quarter of 2022.
Data processing fees increased $163,000, or 28.2%, to $743,000 for the quarter ended December 31, 2022 compared to the fourth quarter
of 2021, primarily due to the Company's change to a new digital
banking provider in the fourth quarter of 2021. Other
expenses decreased $153,000, or 15.9%
in the fourth quarter of 2022 compared to the prior quarter, and
decreased $190,000, or 18.9%,
compared to the same quarter of 2021. of deposit. The
decrease in other expenses in the fourth quarter of 2022 from the
third quarter of 2022 primarily was due to lower loan related and
employee professional development expenses. The decrease in
other expenses in the fourth quarter of 2022 from the same period
in 2021 primarily was due to lower loan related commissions and
franchise tax expense.
Income tax expense increased $53,000 during the three months ended
December 31, 2022 compared to the
quarter ended September 30, 2022, and
increased $138,000 compared to the
quarter ended December 31, 2021, due
to a higher level of pre-tax income compared to the third quarter
of 2022 and the fourth quarter of 2021. The effective tax
rate for the fourth quarter of 2022 was 16.8% compared to 16.3% in
the third quarter of 2022, and 16.3% in the fourth quarter a year
ago.
Balance Sheet Summary
Total assets increased $61.0
million, or 4.8%, to $1.33
billion at December 31, 2022
from December 31, 2021. The increase
was primarily the result of a $128.8
million, or 15.5%, increase in loans and leases, net of
allowance, to $961.7 million and a
$14.6 million, or 71.9%, increase in
other assets to $34.9 million at
December 31, 2022. These increases
were partially offset by decreases of $75.0
million, or 20.5%, in investment securities to $291.6 million and $7.1
million, or 30.9%, in cash and cash equivalents to
$15.9 million at December 31, 2022.
The increase in loans and leases was attributable to an increase
in commercial real estate loans, construction and development
loans, and multi-family loans of $36.9
million, $46.2 million and
$17.5 million, respectively. Paycheck
Protection Program ("PPP") loans totaled $994,000 at December 31,
2022. Other assets increased primarily due to a $12.9 million increase in deferred tax assets due
to the mark-to-market adjustment on the investment portfolio. The
decrease in investment securities primarily was the result of
reinvesting only a portion of normal recurring maturities and
payments on securities and using the remainder to fund growth in
the loan and lease portfolio.
Nonperforming loans and leases, consisting of nonaccrual loans
and leases and accruing loans and leases more than 90 days past
due, totaled $9.2 million, or 0.94%
of total loans and leases, at December 31,
2022, compared to $8.0
million, or 0.95%, at December 31,
2021. Accruing loans past due more than 90 days totaled
$3.2 million at December 31, 2022, compared to $1.8 million at December
31, 2021.
The allowance for loan and lease losses increased $305,000, or 2.5%, to $12.4 million at December
31, 2022 from $12.1 million at
December 31, 2021. At December 31, 2022 the allowance for loan and
lease losses totaled 1.27% of total loans and leases outstanding,
compared to 1.43% at December 31,
2021. Net charge-offs during 2022 were $295,000 compared to net recoveries of
$91,000 during 2021.
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, 2022, which evaluation
included consideration of a potential recession due to inflation,
rising interest rates, stock market volatility, and the
Russia-Ukraine conflict. Credit metrics are
being reviewed and stress testing is being performed on the loan
portfolio on an ongoing basis.
Total deposits increased $105.1
million, or 11.7%, to $1.0
billion at December 31, 2022,
compared to December 31, 2021. The
increase in deposits from December 31,
2021 primarily was due to an increase in brokered time
deposits of $136.1 million and
savings and money market accounts of $26.7
million, partially offset by a decrease in other time
deposits of $42.9 million. Management
attributes the shift in funds to customers anticipating potentially
higher rates being paid on time deposits in 2023 in connection with
the additional expected interest rate hikes by the Federal Reserve.
Brokered time deposits totaled $257.9
million, or 25.7% of total deposits, at December 31, 2022. Noninterest-bearing demand
deposits decreased $7.9 million to
$106.4 million at December 31, 2022 compared to $114.3 million at December
31, 2021, and totaled 10.6% of total deposits at
December 31, 2022.
Stockholders' equity totaled $133.0
million at December 31, 2022,
a decrease of $47.5 million, or
26.3%, from December 31, 2021. The
decrease in stockholders' equity from December 31, 2021 primarily was the result of a
reduction in accumulated comprehensive income of $48.5 million due to a greater mark-to-market
adjustment to the investment portfolio as a result of higher
interest rates, the payment of $4.4
million in dividends to Company stockholders, and the
repurchase of $9.9 million of Company
common stock, partially offset by net income of $13.0 million.
During the quarter ended December 31,
2022, the Company repurchased a total of 18,178 shares of
Company common stock at an average price of $13.11 per share. As of December 31, 2022, the Company had approximately
1,122,396 shares available for repurchase under its existing stock
repurchase program. Subsequent to quarter end, the Company
repurchased an additional 10,292 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.
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 caused by increasing political
instability from acts of war including Russia's invasion of Ukraine, as well as supply chain disruptions
and any governmental or societal response to new COVID-19 variants;
significant short-term interest rate increases by the Federal
Reserve; recessionary pressures caused by inflation and the Federal
Reserve actions to combat inflation; 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,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
14,298
|
|
$
13,170
|
|
$
12,030
|
|
$
51,858
|
|
$
45,926
|
|
Interest
expense
|
3,774
|
|
2,657
|
|
1,936
|
|
10,219
|
|
7,682
|
|
Net interest
income
|
10,524
|
|
10,513
|
|
10,094
|
|
41,639
|
|
38,244
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
—
|
|
200
|
|
—
|
|
600
|
|
1,430
|
|
Net interest income
after provision
|
10,524
|
|
10,313
|
|
10,094
|
|
41,039
|
|
36,814
|
|
Noninterest
income
|
1,391
|
|
1,184
|
|
1,102
|
|
4,867
|
|
5,416
|
|
Noninterest
expense
|
7,942
|
|
7,723
|
|
7,947
|
|
30,157
|
|
28,649
|
|
Income before income
tax expense
|
3,973
|
|
3,774
|
|
3,249
|
|
15,749
|
|
13,581
|
|
Income tax
provision
|
669
|
|
616
|
|
530
|
|
2,784
|
|
2,436
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
3,304
|
|
$
3,158
|
|
$
2,719
|
|
$
12,965
|
|
$
11,145
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
11,784
|
|
11,802
|
|
12,400
|
|
11,784
|
|
12,400
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
10,623
|
|
10,638
|
|
11,104
|
|
10,766
|
|
11,356
|
|
Diluted
|
10,782
|
|
10,836
|
|
11,465
|
|
11,058
|
|
11,632
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.31
|
|
$
0.30
|
|
$
0.24
|
|
$
1.20
|
|
$
0.98
|
|
Diluted
|
$
0.31
|
|
$
0.29
|
|
$
0.24
|
|
$
1.17
|
|
$
0.96
|
|
SELECTED FINANCIAL
CONDITION DATA:
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
(In thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,328,620
|
|
$
1,278,606
|
|
$
1,271,640
|
|
$
1,267,640
|
|
Cash and cash
equivalents
|
15,922
|
|
19,352
|
|
14,419
|
|
23,038
|
|
Interest-bearing time
deposits
|
490
|
|
—
|
|
—
|
|
—
|
|
Investment
securities
|
291,572
|
|
287,104
|
|
310,776
|
|
366,579
|
|
Loans and leases, net
of allowance
|
961,691
|
|
915,464
|
|
891,877
|
|
832,846
|
|
Loans held for
sale
|
474
|
|
78
|
|
1,120
|
|
558
|
|
Premises and equipment,
net
|
13,668
|
|
13,776
|
|
14,010
|
|
14,347
|
|
Federal Home Loan Bank
stock
|
9,947
|
|
9,902
|
|
9,781
|
|
9,992
|
|
Other assets
|
34,856
|
|
32,930
|
|
29,657
|
|
20,280
|
|
Deposits
|
1,005,261
|
|
958,640
|
|
948,333
|
|
900,175
|
|
Borrowings
|
180,000
|
|
187,000
|
|
177,000
|
|
180,000
|
|
Total stockholder's
equity
|
132,978
|
|
124,972
|
|
138,945
|
|
180,481
|
|
|
|
|
|
|
|
|
|
Book value
(GAAP)
|
$
132,978
|
|
$
124,972
|
|
$
138,945
|
|
$
180,481
|
|
Tangible book value
(non-GAAP)
|
132,978
|
|
124,972
|
|
138,945
|
|
180,481
|
|
Book value per share
(GAAP)
|
11.28
|
|
10.59
|
|
11.73
|
|
14.55
|
|
Tangible book value per
share (non-GAAP)
|
11.28
|
|
10.59
|
|
11.73
|
|
14.55
|
The following table summarizes information relating to our loan
and lease portfolio at the dates indicated:
|
(In
thousands)
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
$
298,087
|
|
$
282,758
|
|
$
278,490
|
|
$
261,202
|
|
Commercial and
industrial
|
100,420
|
|
96,720
|
|
106,427
|
|
99,682
|
|
Construction and
development
|
139,923
|
|
140,035
|
|
104,832
|
|
93,678
|
|
Multi-family
|
124,914
|
|
107,640
|
|
121,424
|
|
107,421
|
|
Residential
mortgage
|
146,129
|
|
141,162
|
|
135,486
|
|
134,155
|
|
Home equity
|
11,010
|
|
9,750
|
|
9,347
|
|
7,146
|
|
Direct financing
leases
|
133,469
|
|
129,884
|
|
130,859
|
|
126,762
|
|
Consumer
|
21,048
|
|
20,806
|
|
18,229
|
|
15,905
|
|
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
975,000
|
|
$
928,755
|
|
$
905,094
|
|
$
845,951
|
The following table summarizes information relating to our
deposits at the dates indicated:
|
(In
thousands)
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$
106,415
|
|
$
114,780
|
|
$
119,774
|
|
$
114,303
|
|
Interest-bearing
demand
|
157,429
|
|
162,053
|
|
166,775
|
|
164,356
|
|
Savings and money
market
|
280,666
|
|
274,690
|
|
284,740
|
|
253,957
|
|
Non-brokered time
deposits
|
202,862
|
|
213,164
|
|
224,069
|
|
245,808
|
|
Brokered time
deposits
|
257,889
|
|
193,953
|
|
152,975
|
|
121,751
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
$
1,005,261
|
|
$
958,640
|
|
$
948,333
|
|
$
900,175
|
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,
|
|
2022
|
|
2021
|
|
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
|
$
956,030
|
|
$
12,343
|
|
5.16 %
|
|
$
819,443
|
|
$ 10,417
|
|
5.08 %
|
|
Securities
|
288,204
|
|
1,760
|
|
2.44 %
|
|
367,685
|
|
1,510
|
|
1.64 %
|
|
FHLB stock
|
9,942
|
|
117
|
|
4.71 %
|
|
9,936
|
|
71
|
|
2.86 %
|
|
Cash and cash
equivalents and other
|
10,118
|
|
78
|
|
3.08 %
|
|
23,210
|
|
32
|
|
0.55 %
|
|
Total interest-earning
assets
|
1,264,294
|
|
14,298
|
|
4.52 %
|
|
1,220,274
|
|
12,030
|
|
3.94 %
|
|
Non-earning
assets
|
45,149
|
|
|
|
|
|
33,603
|
|
|
|
|
|
Total
assets
|
1,309,443
|
|
|
|
|
|
1,253,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
296,747
|
|
859
|
|
1.16 %
|
|
262,960
|
|
335
|
|
0.51 %
|
|
Interest-bearing
checking accounts
|
156,365
|
|
163
|
|
0.42 %
|
|
158,266
|
|
95
|
|
0.24 %
|
|
Certificate
accounts
|
426,054
|
|
1,784
|
|
1.67 %
|
|
330,235
|
|
843
|
|
1.02 %
|
|
Borrowings
|
183,538
|
|
968
|
|
2.11 %
|
|
191,424
|
|
663
|
|
1.39 %
|
|
Total interest-bearing
liabilities
|
1,062,704
|
|
3,774
|
|
1.42 %
|
|
942,885
|
|
1,936
|
|
0.82 %
|
|
Noninterest-bearing
demand deposits
|
110,631
|
|
|
|
|
|
110,680
|
|
|
|
|
|
Other
liabilities
|
9,081
|
|
|
|
|
|
21,200
|
|
|
|
|
|
Stockholders'
equity
|
127,027
|
|
|
|
|
|
179,112
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,309,443
|
|
|
|
|
|
1,253,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
10,524
|
|
|
|
|
|
$ 10,094
|
|
|
|
Net earning
assets
|
$
201,590
|
|
|
|
|
|
$
277,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.10 %
|
|
|
|
|
|
3.12 %
|
|
Net interest
margin(2)
|
|
|
|
|
3.33 %
|
|
|
|
|
|
3.31 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
118.97 %
|
|
|
|
|
|
129.42 %
|
|
|
|
|
|
___________________________________
|
|
(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,
|
|
2022
|
|
2021
|
|
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
|
$
897,918
|
|
$
44,594
|
|
4.97 %
|
|
$
786,686
|
|
$ 40,579
|
|
5.16 %
|
|
Securities
|
318,917
|
|
6,712
|
|
2.10 %
|
|
324,372
|
|
5,022
|
|
1.55 %
|
|
FHLB stock
|
9,856
|
|
399
|
|
4.05 %
|
|
9,281
|
|
273
|
|
2.94 %
|
|
Cash and cash
equivalents and other
|
13,739
|
|
153
|
|
1.11 %
|
|
23,750
|
|
52
|
|
0.22 %
|
|
Total interest-earning
assets
|
1,240,430
|
|
51,858
|
|
4.18 %
|
|
1,144,089
|
|
45,926
|
|
4.01 %
|
|
Non-earning
assets
|
40,659
|
|
|
|
|
|
38,840
|
|
|
|
|
|
Total
assets
|
1,281,089
|
|
|
|
|
|
1,182,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money
market accounts
|
284,725
|
|
2,153
|
|
0.76 %
|
|
247,431
|
|
1,256
|
|
0.51 %
|
|
Interest-bearing
checking accounts
|
165,213
|
|
534
|
|
0.32 %
|
|
154,938
|
|
362
|
|
0.23 %
|
|
Certificate
accounts
|
384,038
|
|
4,441
|
|
1.16 %
|
|
287,051
|
|
3,318
|
|
1.16 %
|
|
Borrowings
|
179,966
|
|
3,091
|
|
1.72 %
|
|
178,540
|
|
2,746
|
|
1.54 %
|
|
Total interest-bearing
liabilities
|
1,013,942
|
|
10,219
|
|
1.01 %
|
|
867,960
|
|
7,682
|
|
0.89 %
|
|
Noninterest-bearing
demand deposits
|
111,990
|
|
|
|
|
|
108,374
|
|
|
|
|
|
Other
liabilities
|
7,686
|
|
|
|
|
|
22,458
|
|
|
|
|
|
Stockholders'
equity
|
147,471
|
|
|
|
|
|
184,137
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
1,281,089
|
|
|
|
|
|
1,182,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
41,639
|
|
|
|
|
|
$ 38,244
|
|
|
|
Net earning
assets
|
$
226,488
|
|
|
|
|
|
$
276,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread(1)
|
|
|
|
|
3.17 %
|
|
|
|
|
|
3.12 %
|
|
Net interest
margin(2)
|
|
|
|
|
3.36 %
|
|
|
|
|
|
3.34 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
122.34 %
|
|
|
|
|
|
131.81 %
|
|
|
|
|
|
____________________________________
|
|
(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,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
Performance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
1.01 %
|
|
0.99 %
|
|
1.10 %
|
|
0.96 %
|
|
0.87 %
|
|
Return on average
equity (annualized)
|
10.40 %
|
|
8.94 %
|
|
9.41 %
|
|
7.15 %
|
|
6.06 %
|
|
Yield on
interest-earning assets
|
4.52 %
|
|
4.25 %
|
|
4.07 %
|
|
3.88 %
|
|
3.94 %
|
|
Rate paid on
interest-bearing liabilities
|
1.42 %
|
|
1.04 %
|
|
0.76 %
|
|
0.77 %
|
|
0.82 %
|
|
Average interest rate
spread
|
3.10 %
|
|
3.21 %
|
|
3.31 %
|
|
3.11 %
|
|
3.12 %
|
|
Net interest margin
(annualized)(1)
|
3.33 %
|
|
3.39 %
|
|
3.45 %
|
|
3.26 %
|
|
3.31 %
|
|
Operating expense to
average total assets
(annualized)
|
2.43 %
|
|
2.41 %
|
|
2.27 %
|
|
2.32 %
|
|
2.55 %
|
|
Efficiency
ratio(2)
|
66.66 %
|
|
66.03 %
|
|
61.05 %
|
|
65.66 %
|
|
70.99 %
|
|
Average
interest-earning assets to average
interest-bearing liabilities
|
118.97 %
|
|
121.68 %
|
|
122.81 %
|
|
126.10 %
|
|
129.42 %
|
|
Asset quality
ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets(3)
|
0.69 %
|
|
0.67 %
|
|
0.64 %
|
|
0.64 %
|
|
0.64 %
|
|
Non-performing loans
and leases to total gross
loans and leases(4)
|
0.94 %
|
|
0.92 %
|
|
0.89 %
|
|
0.92 %
|
|
0.95 %
|
|
Allowance for loan and
lease losses to non-
performing loans and leases(4)
|
135.28 %
|
|
147.12 %
|
|
153.32 %
|
|
154.91 %
|
|
150.76 %
|
|
Allowance for loan and
lease losses to total
loans and leases
|
1.27 %
|
|
1.35 %
|
|
1.37 %
|
|
1.43 %
|
|
1.43 %
|
|
Net (recoveries)
charge-offs (annualized) to
average outstanding loans and leases during
the period
|
0.06 %
|
|
0.01 %
|
|
0.06 %
|
|
— %
|
|
(0.13) %
|
|
Capital
ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
at end of period
|
10.01 %
|
|
9.77 %
|
|
10.93 %
|
|
12.53 %
|
|
14.27 %
|
|
Average equity to
average assets
|
9.70 %
|
|
11.04 %
|
|
11.72 %
|
|
13.39 %
|
|
14.39 %
|
|
Common equity tier 1
capital (to risk weighted
assets)(5)
|
13.23 %
|
|
13.59 %
|
|
15.55 %
|
|
15.62 %
|
|
16.02 %
|
|
Tier 1 leverage (core)
capital (to adjusted
tangible assets)(5)
|
11.20 %
|
|
11.29 %
|
|
12.74 %
|
|
12.64 %
|
|
12.53 %
|
|
Tier 1 risk-based
capital (to risk weighted assets)(5)
|
13.23 %
|
|
13.59 %
|
|
15.55 %
|
|
15.62 %
|
|
16.02 %
|
|
Total risk-based
capital (to risk weighted assets)(5)
|
14.31 %
|
|
14.74 %
|
|
16.72 %
|
|
16.81 %
|
|
17.25 %
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
Number of full-service
offices
|
12
|
|
12
|
|
12
|
|
12
|
|
12
|
|
Full-time equivalent
employees
|
181
|
|
184
|
|
177
|
|
177
|
|
173
|
|
|
|
(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.
|
|
(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.
|
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content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2022-fourth-quarter-and-full-year-financial-results-301731969.html
SOURCE Richmond Mutual Bancorporation, Inc.
