Richmond Mutual Bancorporation(US:RMBI)2022-05-13 19:14Financial Position - As of March 31, 2022, the Company had total assets of $1.3 billion, with loans and leases amounting to $850.0 million and deposits totaling $909.5 million[119]. - Total assets decreased by $11.5 million, or 0.9%, to $1.3 billion as of March 31, 2022, primarily due to an $31.6 million decrease in investment securities[132]. - Loans and leases increased by $17.1 million, or 2.1%, to $850.0 million, driven by increases in multi-family loans and construction loans[135]. - Total deposits increased by $9.3 million, or 1.0%, to $909.5 million, attributed to a rise in savings and money market accounts[141]. - Other assets increased by $6.9 million, or 64.2%, to $17.8 million, mainly due to a rise in deferred tax assets[140]. - Shareholders' equity decreased to $157.3 million as of March 31, 2022, down from $180.5 million at the end of 2021[158]. Income and Earnings - For the three months ended March 31, 2022, net income was $3.0 million, an increase from $2.6 million for the same period in 2021, representing a growth of approximately 15.4%[119]. - Net income for Q1 2022 was $3.0 million, a 17.8% increase from $2.6 million in Q1 2021, resulting in diluted earnings per share of $0.26[145]. - Net interest income for Q1 2022 was $10.05 million, compared to $9.00 million in Q1 2021, representing an increase of 11.7%[151]. - Interest income increased by $1.1 million, or 9.7%, to $11.9 million in Q1 2022, with interest income on loans and leases rising by 4.0%[146]. - Noninterest income fell by 27.0% to $1.1 million in Q1 2022, primarily due to a 74.8% decrease in net gains on loan and lease sales[154]. Capital and Risk Management - The total risk-based capital ratio for First Bank Richmond was 16.81%, exceeding the 10.0% requirement for a well-capitalized institution[119]. - As of March 31, 2022, total risk-based capital to risk-weighted assets was $173,358 thousand, representing a ratio of 16.8%[170]. - Tier 1 risk-based capital to risk-weighted assets was $161,041 thousand, with a ratio of 15.6% as of March 31, 2022[170]. - Common equity tier 1 capital to risk-weighted assets was $161,041 thousand, also at 15.6% as of March 31, 2022[170]. - The bank's CET1 capital exceeded the required capital conservation buffer, which is greater than 2.5% of risk-weighted assets[170]. - Richmond Mutual Bancorporation would have exceeded all regulatory capital requirements if subject to guidelines for bank holding companies with $3.0 billion or more in assets as of March 31, 2022[171]. Operational Highlights - The Company operates through seven full-service offices and one limited-service office in Indiana, and five full-service offices in Ohio[113]. - The Company primarily generates income from net interest income, service charges, and fees from the sale of residential mortgage loans originated for sale in the secondary market[116]. - The Company is focused on attracting deposits and investing those funds primarily in loans secured by commercial and multi-family real estate, as well as consumer loans[114]. - The Company has a significant exposure to economic conditions, including potential adverse impacts from the COVID-19 pandemic and changes in interest rates[109]. - The Company maintains an allowance for loan and lease losses to cover probable incurred credit losses, which is subject to significant estimates and management judgment[121]. - The Company evaluates all securities quarterly for potential other-than-temporary impairments, considering various factors including the financial condition of the issuer[126]. Expenses and Cash Flow - Noninterest expense rose by 5.1% to $7.3 million in Q1 2022, driven by a 25.2% increase in data processing fees[156]. - Provision for loan and lease losses decreased by 50.0% to $200,000 in Q1 2022 from $400,000 in Q1 2021, attributed to economic improvements post-COVID-19[153]. - Net cash provided by operating activities was $3.9 million in Q1 2022, compared to a cash outflow of $2.4 million in Q1 2021[166]. Dividends and Taxation - The company paid a regular quarterly dividend of $0.10 per common share in Q1 2022, with an expected total quarterly dividend of approximately $1.2 million[159]. - The effective tax rate for Q1 2022 was 17.0%, a decrease from 18.7% in Q1 2021, due to higher pre-tax income[157].