Richmond Mutual Bancorporation(US:RMBI)2025-08-08 20:46Financial Performance - For the six months ended June 30, 2025, net income was $4.6 million, an increase from $4.4 million for the same period in 2024, representing a growth of approximately 4.5%[140] - Net income for the three months ended June 30, 2025, was $2.6 million, a $541,000 or 26.3% increase from $2.1 million for the same period in 2024[156] - Net income for the six months ended June 30, 2025, was $4.6 million, a 3.2% increase from $4.4 million in the same period of 2024[173] - Noninterest income decreased by $32,000, or 2.9%, to $1.1 million for the quarter ended June 30, 2025[170] - Noninterest income remained flat at $2.2 million for both periods, with an 8.2% increase in other income primarily due to wealth management[8] Asset Quality - Nonaccrual loans and leases rose to $5.6 million at June 30, 2025, compared to $5.1 million at December 31, 2024, indicating a deterioration in asset quality[147] - Nonperforming loans and leases totaled $8.1 million, or 0.68% of total loans and leases, at June 30, 2025, up from $6.8 million, or 0.58%, at December 31, 2024[147] - The allowance for credit losses on loans and leases increased by $428,000, or 2.7%, to $16.2 million at June 30, 2025, representing 1.37% of total loans and leases outstanding[148] - The provision for credit losses was $1.5 million for the first half of 2025, compared to $454,000 for the same period in 2024, reflecting loan growth in higher-risk portfolios[4] Capital and Liquidity - The Company's total risk-based capital ratio was 14.24% at June 30, 2025, exceeding the 10.0% requirement for a well-capitalized institution[140] - Stockholders' equity totaled $132.3 million at June 30, 2025, a decrease of $550,000, or 0.4%, due to $2.9 million in dividends and $5.6 million in stock repurchases, partially offset by net income of $4.6 million[154] - As of June 30, 2025, liquid assets totaled $276.9 million, with $414.2 million in certificates of deposit maturing within one year[13] - The company had a total remaining borrowing capacity with the FHLB of approximately $112.5 million as of June 30, 2025[14] - 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, 2025[203] Loans and Deposits - As of June 30, 2025, the Company reported total assets of $1.5 billion, with net loans and leases of $1.2 billion and deposits of $1.1 billion[140] - Total deposits increased by $2.4 million, or 0.2%, to $1.1 billion at June 30, 2025, driven by a $12.0 million increase in interest-bearing demand deposits and a $10.5 million increase in retail time deposits[151] - Loans and leases increased by $9.0 million, or 0.8%, with significant contributions from commercial real estate, commercial and industrial, and multi-family loans[145] Interest Income and Expense - Interest income increased by $1.3 million, or 6.3%, to $21.3 million for the quarter ended June 30, 2025, with interest income on loans and leases rising by $1.4 million, or 7.7%[157] - Interest income increased by $2.6 million, or 6.6%, to $42.2 million for the six months ended June 30, 2025, compared to $39.6 million for the same period in 2024[174] - Interest expense increased by $1.0 million, or 5.0%, to $21.2 million for the six months ended June 30, 2025[178] - Interest expense increased by $77,000, or 0.7%, to $10.6 million for the quarter ended June 30, 2025, with interest expense on deposits decreasing by $189,000, or 2.4%[160] Margins and Yields - The net interest margin (annualized) was 2.93% for the three months ended June 30, 2025, compared to 2.64% for the same period in 2024[164] - The average yield on loans and leases increased to 6.51% for the quarter ended June 30, 2025, compared to 6.20% for the same quarter in 2024[157] - The average yield on loans and leases was 6.44% for the six months ended June 30, 2025, compared to 6.16% for the same period in 2024[174] - Net interest margin (annualized) was 2.86% for the six months ended June 30, 2025, compared to 2.69% for the same period in 2024[180] Expenses and Tax Rate - Noninterest expense increased by $58,000, or 0.7%, to $8.1 million for the three months ended June 30, 2025[171] - Noninterest expense rose to $16.5 million, a 2.3% increase from $16.1 million in 2024, driven by higher salaries and one-time expenses related to contract negotiations[9] - The effective tax rate for the second quarter of 2025 was 12.8%, compared to 12.9% for the same quarter in 2024[172] - The effective tax rate increased to 13.8% for the first half of 2025, up from 12.9% in 2024, mainly due to the expiration of certain charitable contribution carryforwards[10]