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RICHMOND, INDIANA (April 21, 2022) – Richmond Mutual Bancorporation, Inc., a Maryland corporation (the “Company”) (NASDAQ: RMBI), parent company of First Bank Richmond (the “Bank”), today announced net income of $3.0 million, or $0.26 diluted earnings per share, for the first quarter of 2022, compared to net income of $2.7 million, or $0.24 diluted earnings per share, for the fourth quarter of 2021, and net income of $2.6 million, or $0.22 diluted earnings per share, for the first quarter of 2021. Diluted earnings per share increased 8.3% and 18.2% for the first quarter of 2022 as compared to the fourth and first quarters of 2021, respectively.

Garry Kleer, Chairman, President and Chief Executive Officer, commented, “Despite a challenging interest rate environment and the tragedy of the war in Ukraine impacting all of us in various ways, in the first quarter of 2022 we continued to increase profitability, grow our loan and lease and deposit portfolios and return excess capital to shareholders through dividends and share repurchases. We continued to experience margin compression but remain optimistic that anticipated Fed interest rate increases will provide some relief in future quarters.”

Net interest income before the provision for loan and lease losses decreased $41,000, or 0.4%, to $10.1 million in the first quarter of 2022, compared to $10.1 million in the fourth quarter of 2021, and increased $1.1 million, or 11.7%, from $9.0 million in the first quarter of 2021. The decrease from the fourth quarter of 2021 was due to a $22.4 million decrease in average net earning assets during the first quarter of 2022, and a one basis point decrease in the average interest rate spread. The increase from the comparable quarter in 2021 was due to an increase in net average earning assets of $19.9 million during the

Interest income decreased $88,000, or 0.7%, to $11.9 million during the quarter ended March 31, 2022, compared to the quarter ended December 31, 2021 and increased $1.1 million, or 9.7%, compared to the quarter ended March 31, 2021. Interest income on loans and leases decreased $151,000, or 1.4%, to $10.3 million for the quarter ended March 31, 2022 compared to $10.4 million in the fourth quarter of 2021, as a $30.5 million increase in the average balance of loans and leases was offset by a decrease in the average yield earned on loans and leases of 25 basis point to 4.83%. Interest income on loans and leases increased $399,000, or 4.0%, in the first quarter of 2022 compared to the first quarter of 2021, due to an increase in the average balance of loans and leases of $132.0 million, partially offset by a decrease in the average loan and lease yield of 67 basis points.

Interest income on investment securities, excluding FHLB stock, increased $76,000, or 5.0%, to $1.6 million during the quarter ended March 31, 2022, compared to the quarter ended December 31, 2021, and increased $646,000, or 68.7%, from the comparable quarter in 2021. The increase in interest income on investment securities, excluding FHLB stock, in the first quarter of 2022 from the fourth quarter of 2021 was due to a 16 basis point increase in the average yield earned on investment securities offset by a $14.4 million decrease in average balances. The increase in interest on investment securities, excluding FHLB stock, in the first quarter of 2022 from the first quarter of 2021 was due to a $92.5 million increase in the average balance and a 36 basis point increase in the average yield earned on investment securities.

Interest expense remained relatively flat at $1.9 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021 and the quarter ended March 31, 2021. Interest expense on deposits decreased $25,000, or 1.9%, to $1.2 million for the quarter ended March 31, 2022, compared to the previous quarter primarily due to a 12 basis point decrease in the average rate paid on interest-bearing certificate of deposit accounts, partially offset by a $32.7 million increase in average interest-bearing certificate of deposit account balances. The decrease from the comparable quarter in 2021 was due to a decrease of 43 basis points in the average rate paid on certificate of deposit accounts, partially offset by an increase of $179.0 million in average interest-bearing deposit balances. The average rate paid on interest-bearing deposits was 0.63% for the quarter ended March 31, 2022, compared to 0.68% and 0.77% for the quarters ended December 31, 2021 and March 31, 2021, respectively. Interest expense on FHLB borrowings decreased $23,000, or 3.5%, to $640,000 for the first quarter of 2022 compared to the previous quarter and decreased $54,000, or 7.8%, from the comparable quarter in 2021. The average balance of FHLB borrowings totaled $183.5 million during the quarter ended March 31, 2022, compared to $191.4 million and $170.0 million for the quarters ended December 31, 2021 and March 31, 2021, respectively. The average rate paid on FHLB borrowings was 1.40% for the quarter ended March 31, 2022, 1.39% for December 31, 2021, and 1.63% for the first quarter of 2021.

Annualized net interest margin decreased to 3.26% for the first quarter of 2022, compared to 3.31% for the fourth quarter of 2021 and 3.53% for the first quarter of 2021. The decrease in the net interest margin for the first quarter of 2022 compared to the fourth quarter of 2021 and the comparable quarter in 2021 was primarily due to the yield on interest-earnings assets dropping faster than the rate paid on interest-bearing liabilities.

The provision for loan and lease losses totaled $200,000 for the three months ended March 31, 2022, compared to no provision during the quarter ended December 31, 2021 and $400,000 for the quarter ended March 31, 2021. Net recoveries during the first quarter of 2022 were $9,000, compared to net recoveries of $259,000 during the fourth quarter of 2021 and net charge-offs of $27,000 in the first quarter of 2021. While we believe the steps we have taken and continue to take are necessary to effectively manage our portfolio and assist our clients through the ongoing uncertainty surrounding the duration and impact of the COVID-19 pandemic, uncertainties relating to our allowance for loan losses are heightened as a result of any possible continuing effects of the COVID-19 pandemic.

Total noninterest income increased $13,000, or 1.2%, to $1.1 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021, and decreased $412,000, or 27.0%, from the comparable quarter in 2021. The increase in noninterest income in the first quarter of 2022 from the fourth quarter of 2021 occurred despite a decrease in gains on loan and lease sales. Gain on sale of loans and leases decreased $116,000, or 32.4%, to $243,000 in the first quarter of 2022 compared to the fourth quarter of 2021 and was offset primarily by increases in loan and lease servicing fees and other income. Loan and lease servicing fees increased $74,000 in the first quarter of 2022 compared to the fourth quarter of 2021 as an impairment charge of $111,000 to mortgage servicing rights was recorded in the first quarter of 2022 compared to an impairment charge of $129,000 in the fourth quarter of 2021. Other income increased $98,000 in the first quarter of 2022 compared to the fourth quarter of 2021 primarily due to fees associated with several letters of credit and the sale of a repossessed asset. In addition,

card fee income decreased $25,000, or 8.3%, to $278,000 in the first quarter of 2022 from the fourth quarter of 2021 and service fees on deposit accounts decreased $18,000, or 7.0%, to $235,000 for the quarter ended March 31, 2022, compared to $252,000 for the fourth quarter of 2021. The decrease in card fee income was due to higher card activity in the fourth quarter of 2021 and the decrease in service fees on deposit accounts was primarily attributable to decreased overdraft fees during the first quarter of 2022 compared to the fourth quarter of 2021.

The decrease in noninterest income in the first quarter of 2022 from the comparable quarter of 2021 was due to a $722,000, or 74.8%, decrease in gain on sale of loans as mortgage banking activity declined primarily due to lower refinancing activity and a lower supply of houses for sale in the Bank’s market area. Partially offsetting this decrease were increases in loan and lease servicing fees, card fee income and service fees on deposit accounts. Loan and lease servicing fees increased $133,000 in the first quarter of 2022 compared to the same quarter in 2021 as an impairment charge of $111,000 to mortgage servicing rights was recorded in the first quarter of 2022 compared as an impairment charge of $158,000 in the first quarter of 2021. Card fee income increased $35,000, or 14.5%, in the first quarter of 2022 due to higher card usage. Service fees on deposit accounts increased $40,000, or 20.6%, in the first quarter of 2022 from the comparable quarter in 2021 due to increased overdraft fees, many of which were waived in the first quarter of 2021.

Total noninterest expense decreased $614,000, or 7.7%, to $7.3 million for the three months ended March 31, 2022, compared to the fourth quarter of 2021, and increased $356,000, or 5.1% compared to the same period in 2021. Salaries and employee benefits decreased $715,000, or 13.8%, to $4.5 million for the quarter ended March 31, 2022, compared to the fourth quarter of 2021, and were steady compared to the quarter ended March 31, 2021. The decrease in salaries and benefits in the first quarter of 2022 from the fourth quarter of 2021 was primarily due to a $665,000 expense associated with the termination of the Company’s DB Plan in the fourth quarter of 2021. Data processing fees increased $80,000, or 13.7% to $659,000 for the quarter ended March 31, 2022, compared to the fourth quarter of 2021, and increased $133,000, or 25.2%, compared to the same quarter of 2021 due to enhancements to our digital banking products. Other expenses decreased $46,000, or 4.6% in the first quarter of 2022 compared to the prior quarter, and increased $185,000, or 24.0%, compared to the same quarter of 2021. The increase in other expenses in the first quarter of 2022 from the first quarter of 2021 primarily was due to increased loan expenses, franchise tax expense and expenses related to employee professional development.

Income tax expense increased $88,000 during the three months ended March 31, 2022 compared to the prior quarter due to a higher level of pre-tax income and a higher effective tax rate. Income tax expense increased $28,000 during the three months ended March 31, 2022, compared to the same period in 2021 due to a higher level of pre-tax income, partially offset by a lower effective tax rate. The effective tax rate for the first quarter of 2022 was 17.0% compared to 16.3% in the fourth quarter of 2021, and 18.7% in the first quarter a year ago.

Total assets decreased $11.5 million, or 0.9%, to $1.3 billion at March 31, 2022 from December 31, 2021. The decrease was primarily the result of a $31.6 million, or 8.6%, decrease in investment securities to $335.0 million and a $3.5 million, or 15.0% decrease in cash and cash equivalents to $19.6 million at March 31, 2022. These decreases were partially offset by increases of $17.1 million or 2.1% in loans and leases, net of allowance, to $850.0 million and $6.8 million or 33.4% in other assets to $27.1 million at March 31, 2022.

The decrease in investment securities primarily was the result of reinvesting only a portion of normal recurring maturities and payments on securities and using the remainder to fund growth in the loan and lease portfolio. The increase in loans and leases was attributable to an increase in multi-family loans, construction and development loans, and direct financing leases of $9.0 million, $8.4 million and $3.7 million, respectively, partially offset by declines in commercial mortgage loans of $3.4 million and commercial and industrial loans of $3.1 million. The decline in commercial and industrial loans was due to a decrease in PPP loans of $3.4 million resulting from PPP loan forgiveness by the SBA. As of March 31, 2022, we had funded a total of 892 PPP loans totaling $103.1 million and the SBA had approved 853 loan forgiveness applications totaling $95.4 million. PPP loans totaled $6.0 million at March 31, 2022. Other assets increased primarily due to a $6.4 million increase in deferred tax assets due to the mark-to-market adjustment on the investment portfolio.

Management regularly analyzes conditions within its geographic markets and evaluates its loan and lease portfolio. The Company evaluated its exposure to potential loan and lease losses as of March 31, 2022, which evaluation included consideration of potential credit losses due to economic conditions driven by any lingering impact of the COVID-19 pandemic. Any lingering impact of the pandemic on the Company’s deposit and loan customers is still not fully known at this time. Credit metrics are being reviewed and stress testing is being performed on the loan portfolio on an ongoing basis. Potentially higher risk segments of the portfolio, such as hotels and restaurants, are being closely monitored.

Total deposits increased $9.3 million or 1.0% to $909.5 million at March 31, 2022, compared to December 31, 2021. The increase in deposits from December 31, 2021 primarily was due to an increase in savings and money market accounts of $21.2 million, partially offset by a decrease in time deposits of $13.8 million. Management attributes the shift in funds to customers anticipating potentially higher rates being paid on time deposits in 2022 in connection with the expected interest rate hikes by the Federal Reserve this year. Brokered time deposits totaled $120.1 million or 13.2% of total deposits at March 31, 2022. Noninterest-bearing demand deposits decreased slightly and totaled 12.5% of total deposits at March 31, 2022.

Stockholders’ equity totaled $157.3 million at March 31, 2022, a decrease of $23.1 million or 12.8% from December 31, 2021. The decrease in stockholders’ equity from December 31, 2021 primarily was the result of a reduction in accumulated comprehensive income of $24.1 million due to a greater mark-to-market adjustment to the investment portfolio as a result of higher interest rates, the payment of $1.1 million in dividends to Company stockholders, and the repurchase of $1.5 million of Company common stock, partially offset by net income of $3.0 million.

During the quarter ended March 31, 2022, the Company repurchased a total of 90,191 shares of Company common stock at an average price of $16.62 per share. As of March 31, 2022, the Company had approximately 909,362 shares available for repurchase under its existing stock repurchase program. Subsequent to quarter end through April 21, 2022, the Company repurchased an additional 12,896 shares, leaving 896,466 shares available for future repurchase.

Richmond Mutual Bancorporation, Inc., headquartered in Richmond, Indiana, is the holding company for First Bank Richmond, a community-oriented financial institution offering traditional financial and trust services within its local communities through its eight locations in Richmond, Centerville, Cambridge City and Shelbyville, Indiana, its five locations in Sidney, Piqua and Troy, Ohio, and its loan production office in Columbus, Ohio.

This document and other filings by the Company with the Securities and Exchange Commission (the "SEC"), as well as press releases or other public or stockholder communications released by the Company, may contain forward-looking statements, including, but not limited to, (i) statements regarding the financial condition, results of operations and business of the Company, (ii) statements about the Company's plans, objectives, expectations and intentions and other statements that are not historical facts and (iii) other statements identified by the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions that are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current beliefs and expectations of the Company's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the effect of the COVID-19 pandemic, including on the Company’s credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties such as the extent and duration of the impact of the pandemic on public health, the U.S. and global economies, and on consumer and corporate customers, including economic activity, employment levels and market liquidity; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area;

The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. When considering forward-looking statements, keep in mind these risks and uncertainties. Undue reliance should not be placed on any forward-looking statement, which speaks only as of the date made. Refer to the Company's periodic and current reports filed with the SEC for specific risks that could cause actual results to be significantly different from those expressed or implied by any forward-looking statements.


	Three Months Ended
SELECTED OPERATIONS DATA:	March 31, 2022		December 31, 2021		March 31, 2021
(In thousands, except for per share amounts)

Interest income	$	11,942	$	12,030	$	10,883
Interest expense	1,888		1,936		1,881
Net interest income	10,054		10,094		9,002

Provision for loan losses	200		—		400
Net interest income after provision	9,854		10,094		8,602
Noninterest income	1,116		1,102		1,528
Noninterest expense	7,334		7,947		6,978
Income before income tax expense	3,636		3,249		3,152
Income tax provision	618		530		590

Net income	$	3,018	$	2,719	$	2,562

Shares outstanding	12,310		12,400		13,051
Average shares outstanding:
Basic	11,048		11,104		11,687
Diluted	11,474		11,465		11,864
Earnings per share:
Basic	$	0.27	$	0.24	$	0.22
Diluted	$	0.26	$	0.24	$	0.22


SELECTED FINANCIAL CONDITION DATA:	March 31, 2022		December 31, 2021
(In thousands, except for per share amounts)

Total assets	$	1,256,113	$	1,267,640
Cash and cash equivalents	19,576		23,038
Investment securities	334,981		366,579
Loans and leases, net of allowance	849,987		832,846
Loans held for sale	583		558
Premises and equipment, net	14,146		14,347
Federal Home Loan Bank stock	9,781		9,992
Other assets	27,059		20,280
Deposits	909,495		900,175
Borrowings	182,000		180,000
Total stockholder’s equity	157,343		180,481

Book value (GAAP)	$	157,343	$	180,481
Tangible book value (non-GAAP)	157,343		180,481
Book value per share (GAAP)	12.78		14.55
Tangible book value per share (non-GAAP)	12.78		14.55

Average Balances, Interest and Average Yields/Cost. The following tables set forth for the periods indicated, information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities, resultant yields, interest rate spread, net interest margin (otherwise known as net yield on interest-earning assets), and the ratio of average interest-earning assets to average interest-bearing liabilities. Average balances have been calculated using daily balances. Non-accruing loans have been included in the table as loans carrying a zero yield. Loan fees are included in interest income on loans and are not material.


	Three Months Ended March 31,
	2022							2021
	Average Balance Outstanding			Interest Earned/ Paid		Yield/ Rate		Average Balance Outstanding			Interest Earned/ Paid		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans and leases receivable	$	849,936		$	10,266	4.83	%	$	717,980		$	9,867	5.50	%
Securities	353,285			1,586		1.80	%	260,763			940		1.44	%
FHLB stock	9,908			83		3.35	%	9,050			69		3.05	%
Cash and cash equivalents and other	18,704			7		0.15	%	31,595			7		0.09	%
Total interest-earning assets	1,231,833			11,942		3.88	%	1,019,388			10,883		4.27	%

Interest-bearing liabilities:
Savings and money market accounts	264,822			336		0.51	%	223,560			278		0.50	%
Interest-bearing checking accounts	165,619			98		0.24	%	142,457			81		0.23	%
Certificate accounts	362,945			814		0.90	%	248,360			828		1.33	%
Borrowings	183,500			640		1.40	%	170,000			694		1.63	%
Total interest-bearing liabilities	976,886			1,888		0.77	%	784,377			1,881		0.96	%

Net interest income				$	10,054						$	9,002
Net earning assets	$	254,947						$	235,011

Net interest rate spread(1)						3.11	%						3.31	%

Net interest margin(2)						3.26	%						3.53	%

Average interest-earning assets to average interest-bearing liabilities	126.10		%					129.96		%


	At and for the Three Months Ended
Selected Financial Ratios and Other Data:	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Performance ratios:
Return on average assets (annualized)	0.96	%	0.87	%	1.02	%	0.96	%	0.92	%
Return on average equity (annualized)	7.15	%	6.06	%	6.83	%	5.98	%	5.36	%
Yield on interest-earning assets	3.88	%	3.94	%	4.08	%	3.96	%	4.27	%
Rate paid on interest-bearing liabilities	0.77	%	0.82	%	0.87	%	0.91	%	0.96	%
Average interest rate spread	3.11	%	3.12	%	3.21	%	3.05	%	3.31	%
Net interest margin (annualized)(1)	3.26	%	3.31	%	3.42	%	3.27	%	3.53	%
Operating expense to average total assets (annualized)	2.32	%	2.55	%	2.26	%	2.36	%	2.51	%
Efficiency ratio(2)	65.66	%	70.99	%	61.74	%	63.74	%	66.27	%
Average interest-earning assets to average interest-bearing liabilities	126.10	%	129.42	%	130.45	%	132.31	%	129.96	%
Asset quality ratios:
Non-performing assets to total assets(3)	0.64	%	0.64	%	0.69	%	0.65	%	0.71	%
Non-performing loans and leases to total gross loans and leases(4)	0.92	%	0.95	%	1.05	%	0.97	%	1.05	%
Allowance for loan and lease losses to non-performing loans and leases(4)	154.91	%	150.76	%	139.23	%	147.62	%	135.07	%
Allowance for loan and lease losses to total loans and leases	1.43	%	1.43	%	1.47	%	1.43	%	1.41	%
Net (recoveries) charge-offs (annualized) to average outstanding loans and leases during the period	—	%	(0.13)	%	0.04	%	0.03	%	0.01	%
Capital ratios:
Equity to total assets at end of period	12.53	%	14.27	%	14.51	%	15.36	%	16.61	%
Average equity to average assets	13.39	%	14.39	%	14.93	%	15.97	%	17.18	%
Common equity tier 1 capital (to risk weighted assets)(5)	15.62	%	16.02	%	16.38	%	17.81	%	19.52	%
Tier 1 leverage (core) capital (to adjusted tangible assets)(5)	12.64	%	12.53	%	12.76	%	13.68	%	14.19	%
Tier 1 risk-based capital (to risk weighted assets)(5)	15.62	%	16.02	%	16.38	%	17.81	%	19.52	%
Total risk-based capital (to risk weighted assets)(5)	16.81	%	17.25	%	17.63	%	19.06	%	20.77	%
Other data:
Number of full-service offices	12		12		12		12		12
Full-time equivalent employees	177		173		175		178		175


(In thousands)	March 31, 2022		December 31, 2021

Commercial mortgage	$	257,755	$	261,202
Commercial and industrial	96,609		99,682
Construction and development	102,123		93,678
Multi-family	116,439		107,421
Residential mortgage	135,155		134,155
Home equity	8,393		7,146
Direct financing leases	130,451		126,762
Consumer	16,130		15,905

Total loans and leases	$	863,055	$	845,951


(In thousands)	March 31, 2022		December 31, 2021

Noninterest-bearing demand	$	113,662	$	114,303
Interest-bearing demand	166,902		164,356
Savings and money market	275,173		253,957
Non-brokered time deposits	233,703		245,808
Brokered time deposits	120,055		121,751

Total deposits	$	909,495	$	900,175