Richmond Mutual Bancorporation(RMBI) - 2021 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2021, the company reported a net income of $11.1 million, an increase from $10.0 million in the previous year, representing an 11% growth[22] - The total loans outstanding increased to $845.951 million in 2021, up from $746.348 million in 2020, marking a growth of 13.3%[112] - Loan and lease originations increased by $129.2 million, or 31.9%, to $533.7 million during 2021 compared to $404.6 million in 2020[87] - Total deposits increased by 29.9% to $900.175 million in 2021[126][131] - The net increase in total deposits for 2021 was $207.130 million, compared to a net increase of $75.826 million in 2020[131] Asset and Loan Portfolio - As of December 31, 2021, Richmond Mutual Bancorporation had total assets of $1.3 billion, with loans and leases amounting to $832.8 million and deposits totaling $900.2 million[22] - As of December 31, 2021, First Bank Richmond's total loan and lease portfolio amounted to $845.951 million, with a weighted average yield of 4.3%[40] - The total loan and lease portfolio was secured by commercial and multi-family real estate, amounting to $368.6 million, or 43.6%[51] - Residential real estate loans accounted for $141.3 million, or 16.7% of the total loan and lease portfolio[41] - The company retains jumbo loans which exceed conforming loan limits, amounting to $44.1 million or 31.2% of the one- to four-family loan portfolio[43] Capital and Regulatory Compliance - The total risk-based capital ratio for First Bank Richmond was 17.3% as of December 31, 2021, exceeding the 10.0% requirement for a well-capitalized institution[22] - The bank's capital exceeded all applicable regulatory requirements as of December 31, 2021, ensuring financial stability[160] - First Bank Richmond met the criteria to be considered "well capitalized" with a total risk-based capital ratio of 10% or more, a Tier 1 risk-based ratio of 8.0% or more, and a common equity Tier 1 ratio of 6.5% or more as of December 31, 2021[162] - The implementation of the Current Expected Credit Loss (CECL) standard in 2023 is expected to reduce retained earnings and affect regulatory capital[161] Deposits and Funding - Core deposits totaled $716.4 million, representing 79.6% of total deposits[126][131] - Brokered deposits rose to $121.8 million, or 13.5% of total deposits, compared to $23.3 million, or 3.4% in 2020[126] - The largest banking office, located in Richmond, Indiana, accounted for $425.0 million or 47.2% of total deposits[128] - Total deposits as of December 31, 2021, included $61.3 million in time deposits exceeding the FDIC insurance limit[137] Non-Performing Assets - Nonperforming loans and leases totaled $8.1 million, or 0.95% of total loans and leases at December 31, 2021, compared to $4.8 million, or 0.64%, at December 31, 2020[96] - The total non-performing assets to total assets ratio increased to 0.64% in 2021 from 0.45% in 2020[101] - Non-accrual loans represented 0.73% of total loans outstanding as of December 31, 2021, compared to 0.11% in 2020[112] - The allowance for loan and lease losses was $12.108 million, which is 1.43% of total loans outstanding, slightly up from 1.42% in 2020[112] Employment and Workforce - As of December 31, 2021, Richmond Mutual Bancorporation had 173 full-time equivalent employees, with an average tenure of 10.4 years[200] - Approximately 71.1% of the workforce at Richmond Mutual Bancorporation was female as of December 31, 2021[201] Market Presence - The unemployment rate in Wayne County was 1.4% in December 2021, compared to the national rate of 3.7%[24] - The bank's share of deposits in Wayne County was approximately 22.7% as of June 30, 2021, indicating a strong market presence[145] Taxation and Regulatory Environment - Richmond Mutual Bancorporation and First Bank Richmond are subject to federal income taxation in a manner similar to other corporations[193] - The Indiana financial institutions tax rate was 5.5% on adjusted gross income as of December 31, 2021, with a planned reduction to 4.9% by 2023[197] - The bank is subject to a maximum deposit insurance of $250,000 for each separately insured depositor[169] Interest Rate Risk Management - The Asset/Liability Committee monitors interest rate risk and meets quarterly to assess pricing and liquidity needs[346] - Richmond Mutual Bancorporation utilizes a third-party modeling program to evaluate sensitivity to changing interest rates on a quarterly basis[346]