Executive Summary

Q2 2025 delivered EPS of $0.26 and net income of $2.60M, up 30% QoQ and YoY, as net interest margin expanded to 2.93% and operating efficiency improved; no formal guidance was issued, but the Board maintained the quarterly dividend at $0.15 per share post-quarter, reinforcing capital return discipline .
Margin expansion and lower noninterest expense drove the upside, aided by a modest decline in deposit costs and stable asset yields amid a favorable repricing backdrop following 2024 Fed cuts; provision rose on higher charge-offs and mix shift toward commercial portfolios .
Credit remains manageable: ACL/loans at 1.37% (up 2 bps QoQ) with NPLs at 0.68% of loans; uninsured deposits are 22.8% of total deposits, a watch point for liquidity risk management .
Stock reaction catalysts: continued NIM/efficiency improvements, stable credit metrics, sustained dividend/buybacks (101,127 shares at $13.46 in Q2), and deposit mix normalization (lower brokered CDs) .

What Went Well and What Went Wrong

What Went Well

Margin and spread inflected positively: NIM rose to 2.93% (from 2.79% in Q1 and 2.64% in Q2’24) as asset yields outpaced funding costs in a supportive rate environment .
Operating efficiency improved: efficiency ratio fell to 68.50% (from 73.31% in Q1), with Q1’s one-time core contract costs rolling off and ongoing cost initiatives helping .
Management tone constructive: “We saw improvement in our net interest margin and maintained solid credit quality, all while keeping a close eye on expenses.” – Garry Kleer, CEO .

What Went Wrong

Provision and charge-offs climbed: provision of $745K (vs. $731K in Q1; $270K YoY) driven by higher charge-offs and growth in commercial portfolios with higher loss rates; net charge-offs rose to $626K (vs. $395K in Q1) .
Noninterest income dipped: -$82K QoQ to $1.08M on $157K realized securities losses; partially offset by higher card, servicing, and deposit service fees .
Asset quality mixed: NPLs rose to 0.68% of loans (vs. 0.59% in Q1), and uninsured deposits remain notable at 22.8% of total deposits, a continuing focus for deposit stability/liquidity monitoring .

Financial Results

Notes: RMBI does not present a single “Revenue” line; we show Net Interest Income and Noninterest Income. EPS is GAAP diluted.

Metric	Q4 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Millions)	$9.87	$10.26	$10.76
Noninterest Income ($USD Millions)	$1.19	$1.16	$1.08
Provision for Credit Losses ($USD Millions)	$0.20	$0.73	$0.75
Noninterest Expense ($USD Millions)	$7.93	$8.37	$8.11
Net Income ($USD Millions)	$2.48	$1.97	$2.60
Diluted EPS ($)	$0.24	$0.20	$0.26
Net Interest Margin (%)	2.70%	2.79%	2.93%
Efficiency Ratio (%)	71.68%	73.31%	68.50%

Balance sheet snapshot and mix:

Metric	Q4 2024	Q1 2025	Q2 2025
Total Assets ($USD Billions)	$1.505	$1.523	$1.508
Loans & Leases, net ($USD Billions)	$1.159	$1.176	$1.168
Deposits ($USD Billions)	$1.094	$1.106	$1.096
Stockholders’ Equity ($USD Millions)	$132.87	$130.93	$132.32
Book Value/Share ($)	$12.29	$12.48	$12.74
Noninterest-Bearing Deposits ($USD Millions)	$110.11	$103.35	$106.22
Brokered Time Deposits ($USD Millions)	$257.59	$264.79	$239.47

Key KPIs and credit:

KPI	Q4 2024	Q1 2025	Q2 2025
ROAA (annualized)	0.66%	0.52%	0.69%
ROAE (annualized)	7.23%	5.89%	7.99%
NPLs / Total Loans (%)	0.58%	0.59%	0.68%
ACL / Total Loans (%)	1.34%	1.35%	1.37%
Net Charge-offs / Avg Loans (annualized)	0.10%	0.13%	0.21%
Tier 1 Leverage (Bank)	10.75%	10.68%	10.75%

Loan and deposit composition (Q2 2025 period-end):

Loans & leases by category ($USD Millions): Commercial mortgage $393.6; C&I $140.7; Construction $102.4; Multi-family $191.8; Residential mortgage $169.0; Home equity $19.4; Direct financing leases $147.2; Consumer $20.6; Total $1,184.6 .
Deposits by type ($USD Millions): Noninterest-bearing $106.2; Interest-bearing demand $147.3; Savings/MM $303.2; Non-brokered time $300.1; Brokered time $239.5; Total $1,096.4 .

Shareholder returns and capital:

Repurchased 101,127 shares at $13.46 average in Q2 2025; equity/assets 8.78% .
Declared $0.15 dividend on Aug 20, 2025 (payable Sep 18, record Sep 4); $0.15 dividend on May 21, 2025; increased from $0.14 to $0.15 on Feb 14, 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share (quarterly)	Q3 2025 payment (declared Aug 20)	$0.15 declared May 21, 2025	$0.15 declared Aug 20, 2025 (pay Sep 18)	Maintained
Dividend per share (quarterly)	Q1 2025 payment (declared Feb 14)	$0.14 prior run-rate	$0.15 (increase of $0.01; +7%)	Raised
Financial guidance (revenue, margins, opex, tax)	2025	Not provided	Not provided	N/A

No formal forward financial guidance was issued in the Q2 materials; management emphasized steady execution amid macro uncertainty .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was posted; themes are derived from management commentary in Q4’24, Q1’25, and Q2’25 releases.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Net Interest Margin	Q4: Margin expansion on lower funding costs ; Q1: NIM improved to 2.79% with rate cuts lowering deposit costs .	NIM rose to 2.93% as asset yields outpaced funding costs; supportive post-cut repricing .	Improving
Expense Discipline/Tech	Q1: One-time core provider contract costs; expected long-term savings .	Q2: Q1 one-time costs absent; new core tools to enhance efficiency, lower vendor reliance .	Positive
Credit Quality	Q4/Q1: Credit described as strong; ACL stable .	Q2: Provision higher on commercial mix/charge-offs; ACL/loans 1.37%; NPLs 0.68% .	Mixed (stable reserves, higher NCOs)
Deposit Mix & Pricing	Q4: Shift to retail CDs; higher deposit competition . Q1: Brokered CDs up; NIB down .	Q2: Brokered CDs down, retail time and IBDDA up; NIBDDA 9.7%; deposit pricing responsive to competition .	Stabilizing, constructive
Macro/Rate Backdrop	Q1: Cautious on 2025 macro; margin improvement from late-2024 cuts .	Q2: “Economic outlook remains uncertain…inflation, rate pressures, global tensions,” focus on controllables .	Cautious
Capital Returns	Q4/Q1: Buybacks active .	Q2: Repurchased 101K shares; maintained $0.15 dividend .	Ongoing

Management Commentary

“We saw improvement in our net interest margin and maintained solid credit quality, all while keeping a close eye on expenses.” – Garry Kleer, Chairman, President & CEO .
“While the broader economic outlook remains uncertain with inflation, rate pressures, and global tensions, we’re staying focused on what we can control… disciplined decisions that support long-term value for our shareholders.” – Garry Kleer .
On operating discipline: Q1’s core systems renewal was expected to “generate meaningful cost savings… reduce reliance on third-party services,” with efficiencies and customer experience enhancements—benefits now flowing through in Q2 expense metrics .

Q&A Highlights

No Q2 2025 earnings call transcript was available in company or filings repositories; investor communications centered on the earnings press release and subsequent dividend declaration .

Estimates Context

Wall Street (S&P Global) consensus estimates for Q2 2025 EPS and revenue were not available; therefore, no beat/miss determination versus consensus can be provided. Comparison focuses on QoQ and YoY performance from company-reported results [GetEstimates returned no consensus entries].

Key Takeaways for Investors

Margin trajectory is improving and appears sustainable near term: NIM at 2.93% with spread tailwinds from favorable repricing and competitive yet easing deposit costs; watch for further stabilization in H2 .
Operating leverage is re-emerging: efficiency ratio improved to 68.5% as one-time costs rolled off and core contract renewal benefits begin to accrue .
Credit remains manageable but requires monitoring: higher charge-offs and NPLs reflect mix and normalization; reserves modestly strengthened (ACL/loans 1.37%) .
Deposit quality and funding mix are trending better: brokered CDs down QoQ; noninterest-bearing improved sequentially; uninsured deposits at 22.8% remain a risk factor to monitor .
Capital returns are intact: continued buybacks (101K shares in Q2) and sustained $0.15 dividend support TSR while book value per share increased to $12.74 .
Near-term trading implication: “grind higher” setup on NIM/efficiency momentum and capital return; risks include macro/slower rate relief, deposit competition, and any uptick in commercial credit stress .
Medium-term thesis: community bank with improving core earnings power (margin + cost), stable credit, and disciplined capital return; multiple catalysts include further NIM recovery, continued expense efficiencies, and balance sheet remix toward lower-cost funding .

Supporting references:

Q2 2025 earnings press release and financial tables .
8-K furnishing Q2 2025 results (Ex. 99.1) .
Prior quarters for trend: Q1 2025 press release ; Q4 2024 press release .
Dividend press releases during/after Q2 2025 .

Richmond Mutual Bancorporation, Inc. (RMBI)·Q2 2025 Earnings Summary