Richmond Mutual Bancorporation(RMBI) - 2024 Q3 - Quarterly Report

Financial Performance - For the nine months ended September 30, 2024, net income was $6.9 million, a decrease from $7.5 million for the same period in 2023, reflecting a decline of approximately 8%[136] - Net income for the three months ended September 30, 2024, was $2.5 million, a 26.8% increase from $1.9 million in the same period of 2023[151] - Noninterest income rose by $168,000, or 14.5%, to $1.3 million, driven by a 135.8% increase in net gains on loan and lease sales[165] - Noninterest income rose by $134,000 or 3.9% to $3.6 million for the nine months ended September 30, 2024, driven by higher service charges and other income[183] - Net cash provided by operating activities was $8.0 million for the nine months ended September 30, 2024, compared to $8.3 million for the same period in 2023[193] Asset Quality - Nonaccrual loans and leases decreased to $5.1 million at September 30, 2024, down from $6.3 million at December 31, 2023, indicating improved asset quality[142] - Nonperforming loans and leases totaled $6.7 million, or 0.58% of total loans and leases, down from $8.0 million, or 0.72%, at December 31, 2023[143] - The allowance for credit losses on loans and leases increased by $110,000, or 0.7%, to $15.8 million, representing 1.36% of total loans and leases outstanding[144] - Net charge-offs during the first nine months of 2024 were $1.2 million, compared to $436,000 during the same period in 2023, indicating increased credit losses[144] - Provision for credit losses increased by $127,000 or 55.6% to $355,000 for the nine months ended September 30, 2024, compared to $228,000 for the same period in 2023[182] Capital Position - The Company's total risk-based capital ratio was 14.35%, exceeding the 10.0% requirement for a well-capitalized institution[136] - As of September 30, 2024, First Bank Richmond's total risk-based capital was $180,328 thousand, representing a ratio of 14.3% to risk-weighted assets, exceeding the minimum requirement of 8.0%[196] - The Tier 1 risk-based capital was $164,609 thousand, with a ratio of 13.1% to risk-weighted assets, surpassing the minimum requirement of 6.0%[196] - Common equity tier 1 capital stood at $164,609 thousand, also at 13.1% to risk-weighted assets, exceeding the minimum requirement of 4.5%[196] - The Tier 1 leverage capital ratio was 10.7%, with $164,609 thousand in capital against adjusted tangible assets, above the minimum requirement of 4.0%[196] Deposits and Borrowings - Total deposits increased by $48.0 million, or 4.6%, to $1.1 billion as of September 30, 2024, driven by a rise in non-brokered time deposits and savings accounts[147] - Total borrowings decreased by $19.0 million, or 7.0%, to $252.0 million at September 30, 2024, due to increased deposits reducing the need for additional borrowing[149] - Approximately $224.6 million, or 20.6% of total deposits, was uninsured as of September 30, 2024[148] Interest Income and Expense - Interest income rose by $2.8 million, or 16.4%, to $20.3 million for the quarter ended September 30, 2024, primarily due to an increase in loans and leases[152] - Interest expense increased by $2.5 million, or 30.7%, to $10.8 million for the quarter ended September 30, 2024, largely due to higher rates on interest-bearing deposits[155] - Interest income increased by $11.0 million, or 22.6%, to $59.9 million, with interest income on loans and leases up by 24.8% to $53.1 million[170] - The average yield on loans and leases increased to 6.27% for the quarter ended September 30, 2024, compared to 5.71% for the same quarter in 2023[152] - The average yield on loans and leases increased to 6.20%, up from 5.52% in the previous year[170] Noninterest Expense - Noninterest expense remained stable at $8.0 million, with salaries and employee benefits increasing by 4.7% to $4.6 million[167] - Noninterest expense increased by $1.4 million or 6.2% to $24.1 million for the nine months ended September 30, 2024, primarily due to higher salaries and employee benefits[185] Tax Rate - The effective tax rate increased to 13.0% from 12.3% due to higher pre-tax income levels[168] - The effective tax rate decreased to 12.9% for the first nine months of 2024, down from 14.5% for the same period in 2023, due to lower pre-tax income[186] Liquidity - The company had approximately $287.1 million in liquid assets as of September 30, 2024, enhancing its liquidity position[191] Stock Repurchase - The stock repurchase program allows for the purchase of up to an additional 321,386 shares, with approximately 606,802 shares remaining available for repurchase as of September 30, 2024[188] Market Risk - There has been no material change in market risk disclosures since the 2023 Form 10-K[198]