Richmond Mutual Bancorporation(RMBI) - 2024 Q2 - Quarterly Report

Financial Performance - For the six months ended June 30, 2024, net income was $4.4 million, a decrease from $5.6 million for the same period in 2023, reflecting a decline of approximately 21.4%[112] - Net income for the three months ended June 30, 2024, was $2.1 million, a decrease of $632,000 or 23.5% from $2.7 million in the same period of 2023[124] - Net income for the six months ended June 30, 2024, was $4.4 million, a decrease of $1.2 million or 20.8% from $5.6 million in the same period of 2023[141] Assets and Liabilities - As of June 30, 2024, the Company reported total assets of $1.5 billion, with loans and leases net of allowance at $1.1 billion and deposits also at $1.1 billion[112] - Total assets increased by $34.1 million, or 2.3%, from December 31, 2023, primarily due to a $50.5 million, or 4.6%, increase in loans and leases[115] - Investment securities available for sale decreased by $15.3 million, or 5.4%, to $267.3 million at June 30, 2024, due to maturities and market adjustments[116] - Loans held for sale decreased to $370,000 at June 30, 2024, from $794,000 at December 31, 2023[117] - Total deposits increased by $58.9 million, or 5.7%, to $1.1 billion as of June 30, 2024, primarily driven by non-brokered time deposits and savings accounts[121] Credit Quality - Nonaccrual loans and leases decreased to $5.1 million at June 30, 2024, down from $6.3 million at December 31, 2023[118] - The allowance for credit losses on loans and leases increased by $219,000, or 1.4%, to $15.9 million at June 30, 2024, representing 1.37% of total loans and leases[119] - Net charge-offs during the first half of 2024 were $774,000, compared to $137,000 during the same period in 2023, indicating a significant increase in charge-offs[119] - Nonperforming loans and leases totaled $7.7 million, or 0.67% of total loans and leases, at June 30, 2024, compared to $8.0 million, or 0.72%, at December 31, 2023[118] Income and Expenses - Interest income rose by $3.9 million, or 23.8%, to $20.1 million for the quarter ended June 30, 2024, compared to $16.2 million in the prior year[125] - Interest expense increased by $3.6 million, or 52.5%, to $10.5 million for the quarter ended June 30, 2024, primarily due to higher rates on deposits[128] - Noninterest income decreased by $66,000, or 5.6%, to $1.1 million for the quarter ended June 30, 2024, compared to the same quarter in 2023[137] - Noninterest expense increased by $716,000, or 9.8%, to $8.1 million for the three months ended June 30, 2024[139] - Net interest income before the provision for credit losses increased by $243,000, or 2.6%, to $9.6 million for the second quarter of 2024[129] Capital Ratios - The total risk-based capital ratio for First Bank Richmond was 14.21% at June 30, 2024, exceeding the 10.0% requirement for a well-capitalized institution[112] - The Tier 1 capital to total assets ratio was 10.65% at June 30, 2024, well above regulatory requirements[123] - Approximately $253.0 million, or 21.4% of total deposits, was uninsured as of June 30, 2024[122] - First Bank Richmond's total risk-based capital ratio was 14.2% as of June 30, 2024, exceeding the minimum requirement of 8.0%[165] - Tier 1 risk-based capital ratio for First Bank Richmond was 13.0% as of June 30, 2024, above the required minimum of 6.0%[165] - Common equity tier 1 capital ratio was 13.0% as of June 30, 2024, exceeding the minimum requirement of 4.5%[165] - First Bank Richmond maintained a tier 1 leverage capital ratio of 10.7% as of June 30, 2024, surpassing the minimum of 4.0%[165] - Richmond Mutual Bancorporation would have exceeded all regulatory capital requirements if it were subject to guidelines for bank holding companies with $3.0 billion or more in assets as of June 30, 2024[166] Tax and Dividends - The effective tax rate for the second quarter of 2024 was 12.9%, down from 15.0% for the same quarter a year ago[140] - The effective tax rate decreased to 12.9% for the first half of 2024, down from 15.3% in the same period of 2023, due to lower pre-tax income[154] - The company paid a regular quarterly dividend of $0.14 per common share, with an expected total dividend of approximately $1.5 million per quarter based on outstanding shares[156] Liquidity - As of June 30, 2024, the company had approximately $286.4 million in liquid assets, including cash and cash equivalents[159] - The company had approximately $201.5 million in unencumbered securities available to support additional borrowings if needed[160] - As of June 30, 2024, Richmond Mutual Bancorporation had $7.1 million in cash, noninterest-bearing deposits, and liquid investments available for its cash needs[163] - Net cash provided by operating activities was $5.1 million for the six months ended June 30, 2024, compared to $6.4 million for the same period in 2023[161] Market Risk - There has been no material change in market risk disclosures since the 2023 Form 10-K[167]