Richmond Mutual Bancorporation(US:RMBI)2023-05-15 20:38Financial Position - As of March 31, 2023, the Company had total assets of $1.4 billion, net loans and leases of $989.1 million, total deposits of $1.0 billion, and stockholders' equity of $136.1 million[133]. - Total assets increased by $33.6 million, or 2.5%, to $1.4 billion as of March 31, 2023, compared to December 31, 2022[146]. - Loans and leases increased by $27.4 million, or 2.9%, to $989.1 million at March 31, 2023, driven by increases in commercial real estate loans, direct financing leases, and multi-family loans[148]. - Total deposits rose by $24.8 million, or 2.5%, to $1.0 billion at March 31, 2023, with brokered time deposits increasing by $33.3 million[154]. - Stockholders' equity increased by $3.2 million, or 2.4%, to $136.1 million at March 31, 2023, supported by $2.9 million in net income[157]. - Liquid assets totaled $309.1 million at March 31, 2023, with $357.3 million in certificates of deposit maturing within one year[179]. Income and Expenses - For the three months ended March 31, 2023, net income was $2.9 million, a slight decrease from $3.0 million for the same period in 2022[133]. - Net income for the three months ended March 31, 2023, was $2.9 million, a decrease of $114,000 or 3.8% from the same period in 2022[159]. - Interest income increased by $3.3 million, or 27.2%, to $15.2 million for the quarter ended March 31, 2023, compared to $11.9 million for the same quarter in 2022[160]. - Interest expense on deposits surged by $2.8 million, or 222.5%, to $4.0 million for the quarter ended March 31, 2023, due to a significant increase in the average balance and rate paid on interest-bearing deposits[162]. - Net interest income before the provision for credit losses decreased by $183,000, or 1.8%, to $9.9 million in the first quarter of 2023[163]. - Net interest income for Q1 2023 was $9.871 million, compared to $10.054 million in Q1 2022, reflecting a decrease of 1.8%[167]. - Noninterest income decreased by $19,000 or 1.7% to $1.1 million in Q1 2023, primarily due to a 36.0% decrease in net gains on loan and lease sales[168]. - Noninterest expense increased by $27,000 or 0.4% to $7.4 million in Q1 2023, with data processing fees rising by 27.0%[170]. Credit Losses and Capital - The Company has adopted the Current Expected Credit Loss (CECL) model as of January 1, 2023, impacting the allowance for credit losses[135]. - The allowance for credit losses is based on expected future credit losses and is charged to operations based on periodic evaluations[137]. - The allowance for credit losses on loans and leases totaled $15.5 million, or 1.54% of total loans and leases outstanding at March 31, 2023, following the adoption of the CECL accounting standard[151]. - Provision for credit losses decreased by $30,000 or 14.9% to $170,000 in Q1 2023 from $200,000 in Q1 2022[167]. - Nonperforming loans and leases decreased to $8.6 million, or 0.86% of total loans and leases, from $9.2 million, or 0.94%, at December 31, 2022[149]. Regulatory Compliance - The total risk-based capital ratio for First Bank Richmond was 14.39%, exceeding the 10.0% requirement for a well-capitalized institution[133]. - As of March 31, 2023, First Bank Richmond's total risk-based capital was $166,213 thousand, representing a ratio of 14.4%, exceeding the minimum requirement of 8.0%[184]. - The Tier 1 risk-based capital was $151,738 thousand, with a ratio of 13.1%, above the required minimum of 6.0%[184]. - Common equity tier 1 capital stood at $151,738 thousand, with a ratio of 13.1%, surpassing the minimum requirement of 4.5%[184]. - The Tier 1 leverage capital ratio was 10.9% as of March 31, 2023, exceeding the minimum requirement of 4.0%[184]. - First Bank Richmond maintained a capital conservation buffer above the required 2.5% of risk-weighted assets as of March 31, 2023[184]. - 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[185]. - The Company is subject to regulation by the Board of Governors of the Federal Reserve System and the Indiana Department of Financial Institutions[126]. Market and Operational Overview - The Company operates primarily in Wayne and Shelby Counties in Indiana and Shelby, Miami, and Franklin Counties in Ohio[130]. - The Company’s principal business involves attracting deposits and investing those funds primarily in loans secured by commercial and multi-family real estate[129]. - There has been no material change in market risk disclosures since the 2022 Form 10-K[186]. - The effective tax rate for Q1 2023 was 15.5%, down from 17.0% in Q1 2022[171]. - Net cash provided by operating activities was $3.6 million in Q1 2023, compared to $3.9 million in Q1 2022[181]. - The company paid a quarterly dividend of $0.14 per common share in Q1 2023, compared to $0.10 per share in 2022[173].