Richmond Mutual Bancorporation(US:RMBI)2025-03-27 21:13Financial Performance - For the year ended December 31, 2024, the company reported a net income of $9.4 million, slightly down from $9.5 million in 2023[26]. - The total loans and leases outstanding increased to $1,175,296,000 in 2024, up from $1,106,512,000 in 2023, reflecting a growth of approximately 6.2%[109]. - Loan and lease originations decreased by $135.8 million, or 36.4%, to $237.1 million during 2024 compared to $372.9 million during 2023, primarily due to higher market interest rates[90]. - The total non-performing loans to total loans ratio improved to 0.58% in 2024 from 0.72% in 2023[101]. - The allowance for credit losses on loans and leases was $15,791,000, or 1.34% of total loans and leases outstanding, compared to $15,663,000, or 1.42% in 2023[109]. Asset and Loan Composition - As of December 31, 2024, Richmond Mutual Bancorporation-Maryland had total assets of $1.5 billion, net loans and leases of $1.2 billion, and deposits of $1.1 billion[26]. - The total loans and leases amounted to $1,175.3 million as of December 31, 2024[42]. - At December 31, 2024, 16.1% of the total loan and lease portfolio, amounting to $189.5 million, was secured by residential real estate[42]. - As of December 31, 2024, $557.6 million, or 47.4%, of the total loan and lease portfolio was secured by commercial and multi-family real estate[52]. - The construction and development loan portfolio amounted to $132.6 million, or 11.3% of the total loan and lease portfolio[67]. Deposits and Funding - Total deposits increased by $52.8 million, or 5.1%, from $1,041.1 million in 2023 to $1,093.9 million in 2024[129]. - Brokered deposits totaled $257.6 million, representing 23.5% of total deposits, with an average interest rate of 4.25%[123]. - Core deposits reached $767.1 million, accounting for 70.1% of total deposits, an increase from $715.3 million or 68.7% in 2023[124]. - The average rate paid on total deposits increased to 2.9% in 2024 from 2.4% in 2023[134]. - As of December 31, 2024, approximately $248.1 million of the deposit portfolio, or 22.7% of total deposits, was uninsured[136]. Capital and Regulatory Compliance - The total risk-based capital ratio for First Bank Richmond was 14.2%, exceeding the 10.0% requirement for a well-capitalized institution[26]. - As of December 31, 2024, First Bank Richmond's capital exceeded all applicable requirements, meeting the criteria to be considered "well capitalized" with a total risk-based capital ratio of 10% or more[160][164]. - The Bank adopted the Current Expected Credit Loss (CECL) accounting standard on January 1, 2023, which requires earlier recognition of credit losses, impacting retained earnings and regulatory capital[162][163]. - The federal banking regulators have provided an option to phase in the day-one adverse effects of CECL on regulatory capital over three years, but management chose to record the full effects in 2023[162]. - First Bank Richmond's share of bank deposits in Wayne County, Indiana, was approximately 29.6% as of June 30, 2024[147]. Loan Performance and Risk Management - Nonperforming loans and leases totaled $6.8 million, or 0.58% of total loans and leases at December 31, 2024, down from $8.0 million, or 0.72% at December 31, 2023[97]. - The largest nonperforming loan was a $4.9 million nonaccrual commercial construction and development loan subject to litigation as of December 31, 2024[97]. - The allowance for credit losses on loans and leases to nonaccrual loans and leases ratio increased to 311.89% in 2024 from 247.68% in 2023, indicating improved coverage[109]. - The company requires a debt service coverage ratio of at least 1.10x for multi-family and commercial real estate loans[56]. - First Bank Richmond's loan policy includes strict underwriting standards and procedures to assess borrowers' ability to repay loans[39]. Employee and Corporate Governance - As of December 31, 2024, the Bank had 173 full-time equivalent employees, with an average tenure of 10.3 years[205]. - Approximately 74% of the workforce was female, indicating a strong commitment to diversity[206]. - The Chief Financial Officer, Bradley M. Glover, was appointed in March 2024 after serving as Acting CFO since May 2023[212]. - Richmond Mutual Bancorporation is subject to a federal income tax similar to other corporations, with no audits conducted in the past five years[197]. - The company emphasizes talent development from within while also supplementing with external hires to foster a continuous improvement mindset[209].