Richmond Mutual Bancorporation, Inc. (NASDAQ: RMBI)

Richmond Mutual Bancorporation, Inc. is a Maryland corporation that acts as the holding company for First Bank Richmond. It was formed in February 2019 to facilitate the reorganization of First Bank Richmond from a mutual to a stock holding company structure. The reorganization was completed on July 1 2019 after which First Bank Richmond became a wholly owned subsidiary of Richmond Mutual Bancorporation Maryland. First Bank Richmond is a state chartered commercial bank headquartered in Richmond Indiana. It provides full service banking through a network of branches located in Indiana and Ohio. The bank offers traditional deposit products, lending services and wealth management to customers in its primary market area.

The company generates revenue primarily from net interest income which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings. Additional revenue comes from service charges on deposit accounts and loan servicing fees. The bank also earns fees from the sale of residential mortgage loans in the secondary market. Income from the sale of investment securities contributes to revenue. Trust and wealth management activities provide fee based income as well.

The company operates through the following segments.

• The community banking segment encompasses all traditional banking activities performed by First Bank Richmond. This includes attracting deposits from individuals and businesses and investing those funds in loans secured by commercial and multi family real estate, first mortgages on owner occupied one to four family residences, consumer loans, direct finance leases and commercial and industrial loans. The segment also provides trust and wealth management services such as estate administration, investment management and private banking. Revenue from this segment is driven by net interest income, service charges, gains on loan sales and wealth management fees.

Richmond Mutual Bancorporation operates in a competitive banking environment that includes large national banks, regional banks, other community banks and credit unions. The bank holds a meaningful share of deposits in its core markets with approximately 25.9 percent of bank deposits in Wayne County Indiana and 2.0 percent in Shelby County Indiana. In Ohio the bank holds about 12.3 percent of deposits in Shelby County and 4.2 percent in Miami County. The institution maintains a strong capital position with a total risk based capital ratio of 14.6 percent well above the regulatory minimum for a well capitalized bank. These factors give the bank a stable foundation to compete for loans and deposits while managing risk.

The customer base consists of individuals and small to medium sized businesses located primarily in Wayne and Shelby counties in Indiana and Shelby Miami and Franklin counties in Ohio. The bank serves retail customers who maintain checking and savings accounts, obtain mortgages and consumer loans and use wealth management services. Commercial clients include local manufacturers, service providers and real estate developers that rely on the bank for loans, lines of credit and cash management. The bank also works with municipal entities and nonprofit organizations within its service area. No specific customer names are disclosed in the filing.