Richmond Mutual Bancorporation(US:RMBI)2022-11-10 20:33Financial Position - As of September 30, 2022, the Company had total assets of $1.3 billion, net loans and leases of $915.5 million, total deposits of $958.6 million, and stockholders' equity of $125.0 million[131]. - Total assets increased by $11.0 million, or 0.9%, to $1.3 billion at September 30, 2022, primarily due to an $82.6 million, or 9.9%, increase in loans and leases[144]. - Loans and leases increased by $82.6 million, or 9.9%, to $915.5 million, driven by increases in commercial real estate loans, construction loans, and residential mortgages[146]. - Total deposits increased by $58.5 million, or 6.5%, to $958.6 million, attributed to an increase in brokered time deposits and savings accounts[152]. - Stockholders' equity decreased by $55.5 million, or 30.8%, to $125.0 million, primarily due to a reduction in accumulated comprehensive income and stock repurchases[154]. Income and Earnings - For the nine months ended September 30, 2022, net income was $9.7 million, an increase from $8.4 million for the same period in 2021, representing a growth of approximately 15.5%[131]. - Net income for the three months ended September 30, 2022, was $3.2 million, a 2.5% increase from $3.1 million for the same period in 2021[155]. - Net income for the nine months ended September 30, 2022, was $9.7 million, a 14.7% increase from $8.4 million in the same period of 2021[169]. - Noninterest income increased by $39,000, or 3.4%, to $1.2 million for the quarter ended September 30, 2022, compared to $1.1 million in the same quarter of 2021[165]. - Noninterest income fell by $838,000, or 19.4%, to $3.5 million for the nine months ended September 30, 2022, primarily due to a 72.2% decrease in net gains on loan and lease sales[4]. Capital and Risk Management - First Bank Richmond's total risk-based capital ratio was 14.74%, exceeding the 10.0% requirement for a well-capitalized institution[131]. - The bank maintained a Tier 1 leverage capital ratio of 11.3%, exceeding the required minimum of 4.0%[192]. - Richmond Mutual Bancorporation would have exceeded all regulatory capital requirements if it were subject to guidelines for bank holding companies with assets of $3.0 billion or more[193]. - The Company has a significant exposure to market risks, including fluctuations in interest rates and economic conditions, which could impact net interest margin and income[130]. - There has been no material change in the market risk disclosures since the 2021 Form 10-K[194]. Income Sources and Expenses - 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[129]. - Interest income increased by $3.7 million, or 10.8%, to $37.6 million during the nine months ended September 30, 2022, compared to $33.9 million in the same period of 2021[170]. - Interest expense on deposits increased by $660,000, or 18.0%, to $4.3 million for the nine months ended September 30, 2022[172]. - Noninterest expense increased by $878,000, or 12.8%, to $7.7 million for the three months ended September 30, 2022, compared to $6.8 million in the same period of 2021[167]. - Noninterest expense rose by $1.5 million, or 7.3%, to $22.2 million for the nine months ended September 30, 2022, driven by increases in salaries, data processing fees, and legal expenses[5]. Allowance and Provisions - 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[133]. - The allowance for loan and lease losses increased by $448,000, or 3.7%, to $12.6 million, representing 1.35% of total loans and leases[149]. - Provision for loan and lease losses decreased by $300,000, or 60.0%, to $200,000 for the three months ended September 30, 2022, compared to $500,000 in the same period of 2021[164]. - The provision for loan and lease losses decreased by $830,000, or 58.0%, to $600,000 for the nine months ended September 30, 2022, compared to $1.4 million in 2021, attributed to economic improvements post-COVID-19[3]. Operational Overview - The Company operates through seven full-service offices and one limited-service office in Indiana, and five full-service offices in Ohio, with a loan production office in Columbus, Ohio[126]. - The average outstanding loan and lease balances were $878.3 million for the first nine months of 2022, a 12.5% increase from $775.6 million in the same period of 2021[170]. - The company sold $25.7 million of loans during the nine months ended September 30, 2022, down from $62.3 million in the same period of 2021[10]. - The effective tax rate for the first nine months of 2022 was 18.0%, slightly down from 18.4% in 2021, due to a higher proportion of tax-free income[7]. - The effective tax rate for the third quarter of 2022 was 16.3%, down from 18.0% in the same quarter of 2021[168]. Dividend Policy - The company plans to continue paying regular quarterly dividends of $0.10 per share, with an average total dividend of approximately $1.2 million per quarter based on current outstanding shares[11].