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RM

Richmond Mutual Bancorporation, Inc. (RMBI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 EPS was $0.24, flat q/q and up vs $0.19 in Q4 2023; net income was $2.48M, essentially flat q/q and up 27% y/y, driven by margin expansion and loan growth .
  • Net interest margin expanded 10 bps q/q to 2.70% as funding costs eased post-Fed cuts; net interest income rose 4.6% q/q to $9.87M .
  • Credit quality remained stable/improved y/y: NPLs were 0.58% (vs 0.72% a year ago); provision of $196K followed a Q3 reversal as allowance modeling was refined; net charge-offs fell q/q to $286K .
  • Capital return continued: 133,858 shares repurchased at $13.95 in Q4; dividend of $0.14/share declared during Q4 (Nov 20, 2024). Catalysts include continued NIM recovery if rates drift lower and ongoing credit stability .

What Went Well and What Went Wrong

  • What Went Well

    • “Our earnings for the fourth quarter of 2024 benefited from our year-over-year loan growth as well as margin expansion during the fourth quarter, driven by lower funding costs.” – Garry Kleer, CEO .
    • NIM expanded to 2.70% (from 2.60% in Q3); net interest income increased 4.6% q/q to $9.87M on lower funding costs and modest earning asset growth .
    • Asset quality trend improved y/y: NPLs to loans fell to 0.58% (vs 0.72% in Q4’23); allowance coverage of NPLs at ~233% underscores reserve strength .

  • What Went Wrong

    • Noninterest income fell 10.1% q/q to $1.19M on lower loan/lease sale gains and servicing fees, partially offset by higher card fee income .
    • Effective tax rate rose to 15.7% (vs 13.0% in Q3 and 10.8% in Q4’23) due to expiration/write-off of certain charitable contribution carryforwards, lifting tax expense q/q and y/y .
    • Provision returned to a $196K expense after a Q3 reversal; quarterly net charge-offs remained positive at $286K (though improved vs $464K in Q3) .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Net Income ($M)$1.94 $2.47 $2.48
Diluted EPS ($)$0.19 $0.24 $0.24
Net Interest Income ($M)$9.33 $9.43 $9.87
Noninterest Income ($M)$1.18 $1.33 $1.19
Provision for Credit Losses ($K)$304 (99) $196
Noninterest Expense ($M)$8.03 $8.02 $7.93
Net Interest Margin (%)2.67% 2.60% 2.70%
Efficiency Ratio (%)76.39% 74.51% 71.68%

Balance sheet and credit metrics

MetricQ4 2023Q3 2024Q4 2024
Loans & Leases, net ($M)$1,090.07 $1,140.97 $1,158.88
Total Deposits ($M)$1,041.14 $1,089.09 $1,093.94
NPLs / Total Loans (%)0.72% 0.58% 0.58%
Net Charge-offs ($K)$241 $464 $286
Noninterest-bearing Deposits (% of total)11.0% 9.0% 10.1%
Brokered Time Deposits (% of total)25.8% 25.7% 23.5%
Effective Tax Rate (%)10.8% 13.0% 15.7%
Book Value/Share ($)12.03 12.79 12.29

Notes:

  • Q4 q/q drivers: NII +4.6% on lower funding costs; NIM +10 bps to 2.70% .
  • y/y drivers: Loans +$68.8M; NPL ratio improved; investment securities down as cash redeployed to loans .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ4 2024—$0.14 (payable Dec 19, 2024 to holders of record Dec 5, 2024) Declared
Financial guidance (revenue/margins/OpEx/tax)Q4 2024—None provided in releases/8-K N/A

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found in filings or the document catalog. Themes below reflect management commentary across Q2–Q4 press releases and 8-Ks.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Net interest marginNIM 2.64%; pressure from faster re-pricing liabilities NIM 2.60%; liability costs and balances rising faster than assets NIM 2.70%; improvement as funding costs eased after Fed cuts Improving sequentially
Funding costs/Deposits mixAvg rate on interest-bearing deposits 3.23% (Q2) 3.33% (Q3); uninsured 20.6% 3.33% deposit cost; uninsured 22.7% Stable costs; uninsured mix slightly higher
Loan growth/mixGrowth in multifamily/CRE/resi/C&I Continued growth; redeployed securities to loans Loans +$68.8M y/y; growth across multifamily, CRE, C&I, resi Consistent growth
Credit qualityNPLs 0.67%; provision $270K; NCOs $450K NPLs 0.58%; provision reversal; NCOs $464K NPLs 0.58%; provision $196K; NCOs $286K Stable/improving NCOs q/q
Capital returnBuybacks: 97,315 shares @ $11.68 Buybacks: 71,306 shares @ $12.42 Buybacks: 133,858 shares @ $13.95; dividend declared Nov Increasing buyback pace
Macro/FedHigher rates pressured margin Rates still elevated; costs rising Fed cut 100 bps from Sept 18 to YE; easing funding costs Tailwind emerging

Management Commentary

  • “Our earnings for the fourth quarter of 2024 benefited from our year-over-year loan growth as well as margin expansion during the fourth quarter, driven by lower funding costs.” – Garry Kleer, Chairman, President & CEO .
  • “We anticipate further improvements in credit quality if market interest rates continue to decrease.” – Garry Kleer .
  • Management redeployed securities cash flows/sales to fund loan growth during 2024; investment securities declined $25.9M y/y while loans increased $68.8M .
  • Focus on deposit mix and stability: noninterest-bearing deposits 10.1% (Dec 31), brokered time deposits 23.5% (down from 25.8% y/y) .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available in filings or the document catalog; no Q&A highlights to report [ListDocuments showed none].

Estimates Context

  • Wall Street consensus (S&P Global) for RMBI Q4 2024 EPS/revenue was unavailable for this report; we attempted retrieval but could not obtain data. Expect sell-side adjustments to reflect: (1) NIM improvement and NII +4.6% q/q, (2) slightly lower noninterest income q/q, and (3) a higher effective tax rate vs Q3 .

Key Takeaways for Investors

  • NIM inflected positively to 2.70% (+10 bps q/q) as funding costs eased following Fed cuts; watch for incremental margin tailwinds if rates drift lower .
  • Core earning power improving: NII up 4.6% q/q to $9.87M; efficiency ratio improved to 71.7% from 74.5% in Q3 .
  • Credit remains well-contained: NPLs at 0.58% and NCOs down q/q to $286K; modest provision normalizes reserve modeling after Q3 reversal .
  • Deposit mix stable with noninterest-bearing at 10.1% and brokered down to 23.5%; uninsured deposits at 22.7% warrant ongoing monitoring .
  • Capital return is an active lever: stepped-up buybacks (133,858 shares in Q4) and a $0.14 dividend support TSR while tangible equity remains solid (Tier 1 leverage 10.75%) .
  • Near-term trading: positive skew if investors extrapolate NIM improvement and credit stability; risks include noninterest income variability and elevated (though steady) deposit costs .
  • Medium-term: loan growth pipeline plus redeployment from securities could support NII, with valuation sensitive to sustained NIM recovery and deposit mix progress .

Appendix: Additional Q4 Detail

  • Fed policy context: From Sept 18, 2024 through year-end, the FOMC reduced the fed funds target range by 100 bps to 4.25%–4.50%, contributing to slightly lower costs on deposits and FHLB borrowings and aiding margin .
  • Noninterest income drivers: lower gains on loan and lease sales (down 36.6% q/q to $134K) and lower servicing fees, partially offset by higher card fee income during the holiday season .
  • Taxes: Effective tax rate of 15.7% in Q4 vs 13.0% in Q3 and 10.8% in Q4’23 due to expiration/write-off of certain charitable contribution carryforwards .