- Richmond Mutual Bancorporation (RMBI, Financial) reported a decline in Q1 2025 net income to $2.0 million, or $0.20 diluted EPS, compared to $2.5 million ($0.24 EPS) in Q4 2024.
- Net interest income rose by 4.0% to reach $10.3 million, with an improved net interest margin of 2.79%.
- A provision for credit losses increased significantly to $731,000 mainly due to growth in commercial loan portfolios.
Richmond Mutual Bancorporation, Inc. (NASDAQ: RMBI), the parent company of First Bank Richmond, announced its financial results for the first quarter of 2025. The company reported a net income of $2.0 million, translating to $0.20 diluted earnings per share. This marks a decrease from $2.5 million ($0.24 EPS) in the previous quarter and $2.4 million ($0.23 EPS) in Q1 2024.
The bank's net interest income experienced an increase of 4.0%, reaching $10.3 million with a net interest margin that improved to 2.79%. Despite this growth, the provision for credit losses saw a significant rise to $731,000, compared to $196,000 in Q4 2024 and $183,000 in Q1 2024, primarily due to an increase in commercial loan portfolios.
Nonperforming loans accounted for 0.59% of total loans, slightly up from 0.58% in the previous quarter. The company recorded a one-time pre-tax expense of $246,000, related to core provider contract negotiations, which impacted the EPS by $0.02. During Q1 2025, Richmond Mutual repurchased 324,696 shares at an average price of $13.04 per share, reflecting both their strong capital position and strategic focus on shareholder value.
Looking ahead, Richmond Mutual's management anticipates economic challenges but remains focused on maintaining its balance sheet strength and risk management strategies. The bank's Tier 1 capital ratio stood at 10.68%, well above regulatory requirements, demonstrating a robust capital framework.
