Richmond Mutual Bancorporation(US:RMBI)2026-01-22 22:06Financial Performance - Net income for Q4 2025 was $3.4 million, or $0.35 diluted earnings per share, a decrease of 2.8% from Q3 2025 but an increase of 45.8% from Q4 2024[1]. - For the full year 2025, net income totaled $11.6 million, or $1.17 per diluted earnings share, up from $9.4 million, or $0.92 per diluted earnings share in 2024[3]. - Net income for the year ended December 31, 2025, was $11,577,000, representing a 23.5% increase from $9,377,000 in 2024[40]. Interest Income and Margin - Net interest income before provision for credit losses increased by $239,000, or 2.1%, to $11.5 million in Q4 2025 compared to Q3 2025, and increased by $1.7 million, or 16.9%, from Q4 2024[9]. - The annualized net interest margin improved to 3.11% in Q4 2025, compared to 3.07% in Q3 2025 and 2.70% in Q4 2024[19]. - Net interest income for the three months ended December 31, 2025, was $11,534,000, an increase of 16.8% compared to $9,866,000 for the same period in 2024[40]. - The net interest margin for the three months ended December 31, 2025, was 3.11%, compared to 2.70% for the same period in 2024[44]. - The net interest margin improved to 2.97% in 2025 compared to 2.67% in 2024, reflecting a stronger yield on interest-earning assets at 5.83%[46][48]. Credit Losses and Provisions - The Company recorded a provision for credit losses of $409,000 in Q4 2025, compared to $269,000 in Q3 2025 and $196,000 in Q4 2024[20]. - The provision for credit losses for the three months ended December 31, 2025, was $409,000, compared to $196,000 for the same period in 2024, indicating a rise in credit loss provisions[40]. - The allowance for credit losses on loans and leases increased by $675,000, or 4.3%, to $16.5 million at December 31, 2025, representing 1.38% of total loans and leases outstanding[27]. - The allowance for credit losses to total loans and leases was 1.38% as of December 31, 2025, slightly up from 1.34% in December 2024, showing a cautious approach to credit risk[48]. Asset and Equity Management - Total assets remained stable at $1.5 billion as of December 31, 2025, consistent with the previous quarters[12]. - Stockholders' equity increased to $145.8 million at December 31, 2025, compared to $140.0 million at September 30, 2025[12]. - Stockholders' equity totaled $145.8 million at December 31, 2025, an increase of $12.9 million, or 9.7%, from December 31, 2024, primarily due to net income of $11.6 million[33]. - Total assets as of December 31, 2025, reached $1,525,790, an increase from $1,504,875 as of December 31, 2024[41]. - Total assets increased by $20.9 million, or 1.4%, to $1.5 billion at December 31, 2025, driven by a $17.9 million increase in loans and leases[24]. Nonperforming Loans and Asset Quality - Nonperforming loans and leases totaled $17.4 million, or 1.46% of total loans and leases, at December 31, 2025, up from $10.8 million, or 0.90%, at September 30, 2025[12]. - Nonperforming loans and leases totaled $17.4 million, or 1.46% of total loans and leases, at December 31, 2025, up from $6.8 million, or 0.58%, at December 31, 2024[26]. - Non-performing assets to total assets ratio increased to 1.14% in December 2025, up from 0.45% in December 2024, indicating a decline in asset quality[48]. Deposits and Funding - Total deposits increased by $21.0 million, or 1.9%, to $1.1 billion at December 31, 2025, with retail time deposits contributing significantly to this growth[31]. - Total deposits as of December 31, 2025, were $1,114,893, an increase from $1,093,940 as of December 31, 2024[42]. Operational Efficiency - Total noninterest expense rose by $454,000, or 5.6%, to $8.5 million for the three months ended December 31, 2025, compared to the third quarter of 2025, and increased by $611,000, or 7.7%, compared to the same period in 2024[22]. - The efficiency ratio improved to 65.39% in December 2025, compared to 71.68% in December 2024, indicating better cost management[48]. Merger and Corporate Actions - The proposed merger with Farmers Bancorp is valued at approximately $82 million, with Farmers Bancorp shareholders receiving 3.40 shares of Company common stock for each share of Farmers Bancorp[5]. - The proposed merger with Farmers Bancorp is underway, with a registration statement on Form S-4 to be filed with the SEC[51]. Tax and Regulatory Metrics - The effective tax rate for the fourth quarter of 2025 was 17.0%, compared to 15.2% in the third quarter of 2025 and 15.7% in the fourth quarter of the previous year[23]. - Common equity tier 1 capital ratio was 13.38% as of December 31, 2025, reflecting a stable capital position[48]. Interest Rate and Asset Management - Average interest rate spread increased to 2.61% in December 2025, compared to 2.19% in December 2024, indicating improved profitability on interest-earning assets[48]. - Total interest-earning assets increased to $1,473,865 thousand in 2025, up from $1,451,544 thousand in 2024, with a net interest income of $43,846 thousand[46].