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RM

Richmond Mutual Bancorporation, Inc. (RMBI)·Q1 2025 Earnings Summary

Executive Summary

  • Net income was $2.0M and diluted EPS $0.20; net interest margin expanded to 2.79% (+9 bps QoQ), while noninterest expense rose on a one-time $246k core-provider renegotiation cost (EPS impact −$0.02). Credit quality remained stable with NPLs at 0.59% of loans .
  • No formal financial guidance was issued; strategic commentary emphasized balance sheet strength, disciplined risk management, and customer focus amid macro uncertainty .
  • Capital return: 324,696 shares repurchased at $13.04 average in Q1; a $0.15 per-share dividend was declared subsequent to quarter-end (payable June 18, 2025) .
  • Estimate context: Wall Street consensus from S&P Global was not available for EPS; limited “Revenue” data was present without a consensus count, preventing beat/miss determination (see Estimates Context)*.

What Went Well and What Went Wrong

What Went Well

  • Net interest margin improvement to 2.79% from 2.70% QoQ and 2.74% YoY, driven by lower rates on interest-bearing liabilities and stable/improving asset yields .
  • Loan growth in multifamily (+$25.6M QoQ), commercial mortgage (+$15.8M), and C&I (+$10.2M) with deposits up $11.7M QoQ; book value per share rose to $12.48 .
  • Management’s tone: “We are focused on keeping our balance sheet strong, managing risk, and staying close to our customers and communities,” highlighting disciplined execution and long-term value creation .

What Went Wrong

  • Higher provision for credit losses ($731k vs $196k in Q4’24) on mix shift to higher-loss-rate commercial portfolios; net charge-offs increased to $395k .
  • Noninterest expense increased 5.6% QoQ to $8.4M, including the one-time core-provider renegotiation cost; efficiency ratio rose to 73.31% .
  • Noninterest income declined slightly QoQ (−2.5%) on lower card fee income and reduced gains on loan/lease sales; service charges fell QoQ .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Diluted EPS ($)$0.23 $0.24 $0.20
Net Income ($MM)$2.369 $2.476 $1.968
Net Interest Income ($MM)$9.833 $9.866 $10.258
Noninterest Income ($MM)$1.129 $1.192 $1.162
Provision for Credit Losses ($MM)$0.183 $0.196 $0.731
Net Interest Margin (%)2.74% 2.70% 2.79%
Efficiency Ratio (%)73.51% 71.68% 73.31%

Segment and Balance Mix

Loans & Leases ($MM)Mar 31, 2024Dec 31, 2024Mar 31, 2025
Commercial Mortgage$338.434 $371.705 $387.516
Commercial & Industrial$123.661 $126.367 $136.524
Construction & Development$165.063 $132.570 $99.953
Multi-family$153.719 $185.864 $211.485
Residential Mortgage$171.050 $172.644 $172.614
Direct Financing Leases$152.468 $148.102 $146.067
Total Loans & Leases$1,139.545 $1,175.296 $1,192.517

Deposits & Capital

Deposits ($MM)Mar 31, 2024Dec 31, 2024Mar 31, 2025
Noninterest-bearing Demand$108.805 $110.106 $103.353
Interest-bearing Demand$153.460 $135.310 $142.203
Savings & Money Market$255.634 $301.311 $301.427
Non-brokered Time$260.451 $289.626 $293.892
Brokered Time$291.292 $257.587 $264.787
Total Deposits$1,069.642 $1,093.940 $1,105.662
Uninsured Deposits (% of total)—22.7% 22.0%
Equity ($MM)$132.391 $132.872 $130.932
Book Value/Share ($)$11.91 $12.29 $12.48

KPIs

KPIQ1 2024Q4 2024Q1 2025
ROA (annualized)0.64% 0.66% 0.52%
ROE (annualized)7.10% 7.23% 5.89%
NPL Ratio (NPLs/Total Loans)0.61% 0.58% 0.59%
ACL Coverage (ACL/NPL)228.36% 232.99% 229.90%
Net Charge-offs (annualized)0.12% 0.10% 0.13%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial guidance (revenue, margins, OpEx, tax rate)Q1 2025Not provided Not provided Maintained (no formal guidance)
DividendQ2 2025Prior $0.15 last declared Feb 14, 2025 [13 not read]$0.15 declared May 21, 2025 (payable Jun 18) Maintained

Earnings Call Themes & Trends

Note: No earnings call transcript was available for Q1 2025; themes reflect press releases and management commentary ; Q-1 and Q-2 refer to Q4 2024 and Q2 2025.

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q2 2025)Current Period (Q1 2025)Trend
Net Interest MarginMargin expanded to 2.70% on lower funding costs Margin improved to 2.93% QoQ with wider spread Margin rose to 2.79% QoQ/YoY Improving sequentially
Deposit Mix & UninsuredUninsured deposits 22.7%; shift to time deposits Brokered time deposits down; retail CDs up Uninsured at 22.0%; brokered CDs 23.9% of deposits Stable with preference for CDs
Loan Growth CompositionMultifamily/CRE/C&I growth YoY CRE, multifamily, C&I up; construction down Multifamily, CRE, C&I up; construction down Mix shifting to income-producing real estate
Credit QualityNPLs 0.58%; provision modest NPLs up to 0.68%; provision $745k, higher charge-offs NPLs 0.59%; provision $731k, charge-offs $395k Slight normalization with higher provisioning
Operating EfficiencyEfficiency ratio 71.68% Efficiency improved to 68.50% Efficiency 73.31% (one-time cost) Mixed; near-term pressure from one-time cost

Management Commentary

  • “The first quarter of 2025 saw improvement in our net interest margin compared to the prior quarters. Credit quality continues to remain strong… We are focused on keeping our balance sheet strong, managing risk, and staying close to our customers and communities.” — Garry Kleer, Chairman, President & CEO .
  • On core-provider renegotiation: “The renegotiated agreement is expected to generate meaningful cost savings over the new contract term… adding new products to enhance efficiency and customer experience, decreasing the Company's reliance on third-party services.” .

Q&A Highlights

  • No Q1 2025 earnings call transcript was available; no Q&A highlights could be verified [ListDocuments returned none for earnings-call-transcript].

Estimates Context

  • EPS consensus: Not available from S&P Global for Q1 2025; Primary EPS Consensus Mean and # of estimates not returned, therefore beat/miss vs Street cannot be determined*.
  • Revenue: S&P Global shows “Revenue Consensus Mean” with only an actual value of $10.689M for Q1 2025 without consensus estimates or count, precluding comparison to Street expectations*.
  • Investor implication: With no formal guidance and limited consensus coverage, near-term estimate revisions will likely hinge on observed margin trajectory, provisioning trends, and deposit mix reported in subsequent quarters .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sequential NIM improvement (2.79%) and higher net interest income indicate asset repricing benefits; monitor sustainability as deposit pricing and FHLB costs evolve .
  • Provisioning increased with commercial loan growth; watch credit normalization and charge-off trends in CRE/multifamily/C&I as mix shifts toward higher loss-rate segments .
  • One-time core-provider expense temporarily pressured efficiency; management expects cost savings and productivity gains from the renewed agreement — a potential margin/efficiency tailwind .
  • Deposit base grew QoQ with continued tilt to time deposits; uninsured deposits ~22% remain manageable; brokered CDs at ~24% of deposits merit ongoing liquidity scrutiny .
  • Capital return continues: sizable buybacks in Q1 and dividend maintained at $0.15, supporting shareholder yield while book value per share rose to $12.48 .
  • Without Street EPS consensus, trading reactions likely center on reported NIM trajectory, provisioning cadence, and any subsequent qualitative updates; watch Q2/Q3 disclosures for sustained spread widening .
  • Medium term, balance sheet strength and disciplined risk posture position RMBI to benefit from stable-to-moderating rate backdrops, with loan growth in income-producing real estate segments and potential efficiency gains from tech/vendor consolidation .