Richmond Mutual Bancorporation(US:RMBI)2025-11-10 22:10Financial Performance - For the nine months ended September 30, 2025, net income was $8.2 million, an increase of 18.8% compared to $6.9 million for the same period in 2024[137]. - Net income for the three months ended September 30, 2025, was $3.6 million, a 45.5% increase from $2.5 million for the same period in 2024[154]. - Net income for the nine months ended September 30, 2025, was $8.2 million, an increase of $1.3 million or 18.3% from $6.9 million in the same period of 2024[169]. - Noninterest income decreased by $27,000, or 2.0%, to $1.3 million for the quarter ended September 30, 2025, compared to the same quarter in 2024[166]. - Noninterest income decreased by $26,000, or 0.7%, to $3.5 million for the nine months ended September 30, 2025, with net gains on loan and lease sales dropping 30.9% to $291,000[184]. Assets and Liabilities - As of September 30, 2025, the Company reported total assets of $1.5 billion, with loans and leases net of allowance at $1.2 billion and deposits at $1.1 billion[137]. - Total assets increased by $20.7 million, or 1.4%, from December 31, 2024, primarily due to a $19.4 million, or 1.7%, increase in loans and leases[140]. - Cash and cash equivalents rose by $12.5 million, or 57.5%, to $34.3 million at September 30, 2025[140]. - Total deposits rose by $24.3 million, or 2.2%, to $1.1 billion at September 30, 2025, driven by increases in retail time deposits, interest-bearing demand deposits, and savings accounts[148]. - Total borrowings decreased by $11.0 million, or 4.2%, to $254.0 million at September 30, 2025, reflecting reduced liquidity needs from deposit growth[150]. Loans and Credit Quality - Loans and leases increased by $19.4 million, or 1.7%, with notable increases in commercial real estate, multi-family, and commercial and industrial loans[142]. - Nonaccrual loans and leases rose to $6.4 million, up from $5.1 million at December 31, 2024, primarily due to one commercial real estate loan[143]. - Nonperforming loans and leases totaled $10.8 million, or 0.90% of total loans and leases, compared to $6.8 million, or 0.58%, at December 31, 2024[144]. - The allowance for credit losses on loans and leases increased by $574,000, or 3.6%, to $16.4 million as of September 30, 2025, representing 1.37% of total loans and leases outstanding[145]. - The provision for credit losses was $1.7 million for the nine months ended September 30, 2025, significantly higher than $355,000 for the same period in 2024, driven by loan growth in higher-risk portfolios[181]. Capital and Equity - The total risk-based capital ratio was 14.36%, exceeding the 10.0% requirement for a well-capitalized institution[137]. - Stockholders' equity increased by $7.2 million, or 5.4%, to $140.0 million at September 30, 2025, primarily due to net income of $8.2 million and a decrease in accumulated other comprehensive loss[152]. - Shareholders' equity increased to $140.0 million at September 30, 2025, from $132.9 million at December 31, 2024, supported by net income of $8.2 million[187]. - First Bank Richmond's regulatory capital exceeded FDIC requirements as of September 30, 2025, maintaining a well-capitalized status[200]. - As of September 30, 2025, First Bank Richmond's total risk-based capital to risk-weighted assets was $184,296 thousand, representing a ratio of 14.4%[201]. Interest Income and Expenses - Net interest income before the provision for credit losses increased by $1.9 million, or 19.7%, to $11.3 million for the third quarter of 2025[160]. - Interest income on loans and leases increased by $1.6 million, or 8.9%, to $19.7 million for the quarter ended September 30, 2025, due to a higher average balance and yield[155]. - Interest expense on deposits decreased by $574,000, or 6.9%, to $7.8 million for the quarter ended September 30, 2025, attributed to a decrease in the average rate paid[158]. - Interest income increased by $4.1 million, or 7.0%, to $64.0 million for the nine months ended September 30, 2025, compared to $59.9 million for the same period in 2024[170]. - Interest expense increased by $699,000, or 2.3%, to $31.7 million for the nine months ended September 30, 2025[174]. Tax and Regulatory Compliance - The effective tax rate for the third quarter of 2025 was 15.2%, compared to 13.0% for the same quarter a year ago[168]. - The effective tax rate for the first nine months of 2025 was 14.4%, up from 12.9% in the same period of 2024, due to higher pre-tax income[186]. - If Richmond Mutual Bancorporation were subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets, it would have exceeded all regulatory capital requirements as of September 30, 2025[202]. Other Financial Metrics - The net interest margin (annualized) improved to 3.07% for the three months ended September 30, 2025, compared to 2.60% for the same period in 2024[161]. - The average yield on loans and leases increased to 6.63% for the quarter ended September 30, 2025, compared to 6.27% for the same period in 2024[155]. - Net interest margin (annualized) was 2.93% for the nine months ended September 30, 2025, compared to 2.66% for the same period in 2024[177]. - Noninterest expense increased by $67,000, or 0.8%, to $8.1 million for the three months ended September 30, 2025[167]. - Noninterest expense rose by $441,000, or 1.8%, to $24.6 million for the nine months ended September 30, 2025, primarily due to increased salaries and one-time expenses related to contract negotiations[185].