What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-09 · 219 added, 118 removed, 205 unchanged (62% of the section changed)

1 unchanged sentence

Management’s discussion and analysis of financial condition of the Richmond Mutual Bancorporation, Inc.

(the “Company”) at March 31, 2025, and the consolidated results of operations for the three month period ended March 31, 2025, compared to the same period in 2024, is intended to assist in understanding the financial condition and results of operations of the Company.

(the “Company”) at June 30, 2025, and the consolidated results of operations for the three and six month periods ended June 30, 2025, compared to the same periods in 2024, is intended to assist in understanding the financial condition and results of operations of the Company.

The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto appearing in Part I, Item 1, of this Form 10-Q.

13 unchanged sentences

• adverse impacts to economic conditions in our local market areas and other markets where we have lending relationships;

• effects of employment levels, labor shortages and inflation, a recession, or slowed economic growth;

• changes in the interest rate environment, including increases or decreases in the Board of Governors of the Federal Reserve System (the "Federal Reserve") benchmark rate and the duration of such changed levels;

• the impact of inflation and the Federal Reserve monetary policies;

• effects of any federal government shutdown;

• effects of employment levels, labor shortages, persistent inflation, recessionary pressures, or slowing economic growth;

• changes in interest rate levels and the duration of such changes, including actions by the Board of Governors of the Federal Reserve System (the "Federal Reserve");

• the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer behavior;

• effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty;

• changes in the level and direction of loan or lease delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

20 unchanged sentences

• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission ("SEC") or the Public Company Accounting Oversight Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods;

• legislative or regulatory changes, including changes in banking, securities, tax law, regulatory policies, and principles;

• legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws;

• our ability to pay dividends on our common stock;

• the potential for new or increased tariffs, trade restrictions, or geopolitical tensions that could affect economic activity or specific industry sectors;

• our ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity;

• geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy prices, or economic activity in specific industry sectors;

• other economic, competitive, governmental, regulatory, and technical factors affecting our operations, pricing, products and services;

24 unchanged sentences

First Bank Richmond’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets.

Our leasing operation consists of direct investments in equipment that we lease (referred to as direct finance leases) to small businesses located throughout the United States.

Our leasing operation consists of direct investments in equipment that we lease (referred to as direct finance leases) to small businesses located throughout the United

Our lease portfolio consists of various kinds of equipment, generally technology-related, such as computer systems, medical equipment and general manufacturing, industrial, construction and transportation equipment.

We seek leasing transactions where we believe the equipment leased is integral to the lessee's business.

We also provide trust and wealth management services, including serving as executor and trustee under wills and deeds and as guardian and custodian of

employee benefits, and manage private investment accounts for individuals and institutions.

Total wealth management assets under management and administration were $194.5 million at March 31, 2025.

We also provide trust and wealth management services, including serving as executor and trustee under wills and deeds and as guardian and custodian of employee benefits, and manage private investment accounts for individuals and institutions.

Total wealth management assets under management and administration were $214.2 million at June 30, 2025.

Our results of operations are primarily dependent on net interest income.

3 unchanged sentences

Changes in market interest rates, the slope of the yield curve, and interest we earn on interest-earning assets or pay on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and noninterest-bearing liabilities and shareholders’ equity, usually have the largest impact on changes in our net interest spread, net interest margin and net interest income during a reporting period.

At March 31, 2025, on a consolidated basis, we had $1.5 billion in assets, $1.2 billion in loans and leases, net of allowance, $1.1 billion in deposits, and $130.9 million in stockholders’ equity.

At March 31, 2025, First Bank Richmond’s total risk-based capital ratio was 14.04%, exceeding the 10.0% requirement for a well-capitalized institution.

For the three months ended March 31, 2025, net income was $2.0 million, compared with net income of $2.4 million for the three months ended March 31, 2024.

At June 30, 2025, on a consolidated basis, we had $1.5 billion in assets, $1.2 billion in loans and leases, net of allowance, $1.1 billion in deposits, and $132.3 million in stockholders’ equity.

At June 30, 2025, First Bank Richmond’s total risk-based capital ratio was 14.24%, exceeding the 10.0% requirement for a well-capitalized institution.

For the six months ended June 30, 2025, net income was $4.6 million, compared with net income of $4.4 million for the six months ended June 30, 2024.

Critical Accounting Estimates

5 unchanged sentences

We have reviewed our critical accounting estimates with the audit committee of our Board of Directors.

There have been no significant changes during the three months ended March 31, 2025 to the critical accounting estimates reported in Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K.

There have been no significant changes during the six months ended June 30, 2025 to the critical accounting estimates reported in Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K.

See "Critical Accounting Estimates" included in Part II, Item 7 of our 2024 Form 10-K for a further discussion of our Critical Accounting Estimates.

Comparison of Financial Condition at March 31, 2025 and December 31, 2024

Total assets increased $17.9 million, or 1.2%, to $1.5 billion at March 31, 2025 from December 31, 2024.

The increase was primarily the result of a $17.0 million, or 1.5%, increase in loans and leases, net of allowance for credit losses, to $1.2 billion, partially offset by a $2.7 million, or 1.0%, decrease in investment securities to $259.0 million at March 31, 2025.

Comparison of Financial Condition at June 30, 2025 and December 31, 2024

Total assets increased $2.9 million, or 0.2%, to $1.5 billion at June 30, 2025 from December 31, 2024.

The increase was primarily the result of a $9.0 million, or 0.8%, increase in loans and leases, net of allowance for credit losses, to $1.2 billion, and a $5.5 million, or 25.1%, increase in cash and cash equivalents to $27.2 million.

These increases were partially offset by a $9.4 million, or 3.6%, decrease in investment securities to $252.3 million, and a $1.6 million decrease in other assets, primarily deferred tax assets.

Investment Securities.

Investment securities available for sale totaled $256.1 million and $258.2 million, while investment securities held to maturity totaled $2.9 million and $3.5 million at March 31, 2025 and December 31, 2024, respectively.

The $2.1 million, or 0.8%, decrease in investment securities available for sale was primarily due to maturities and principal repayments of $4.5 million, partially offset by a $1.6 million upward mark-to-market adjustment on the investment portfolio and purchases of securities of $1.0 million.

Investment securities available for sale totaled $249.3 million and $258.2 million, while investment securities held to maturity totaled $2.9 million and $3.5 million at June 30, 2025 and December 31, 2024, respectively.

The $8.8 million, or 3.4%, decrease in investment securities available for sale was primarily due to maturities and principal repayments of $8.9 million and $6.8 million in sales of securities, partially offset by a $3.0 million upward mark-to-market adjustment on the investment portfolio resulting from lower market interest rates and purchases of securities totaling $4.3 million.

The $566,000 decrease in investment securities held to maturity was the result of scheduled principal repayments and maturities.

1 unchanged sentence

Loans and Leases.

Loans and leases, net of allowance for credit losses on loans and leases, increased $17.0 million, or 1.5%, to $1.2 billion at March 31, 2025 from December 31, 2024.

The increase in loans and leases was attributable to increases in multi-family, commercial real estate, and commercial and industrial loans of $25.6 million, $15.8 million, and $10.2 million, respectively.

Loans and leases, net of allowance for credit losses on loans and leases, increased $9.0 million, or 0.8%, to $1.2 billion at June 30, 2025 from December 31, 2024.

The increase in loans and leases was attributable to increases in commercial real estate, commercial and industrial, and multi-family loans of $21.9 million, $14.3 million, and $5.9 million,

respectively.

These increases were partially offset by a $30.2 million decrease in construction and development loans.

At March 31, 2025, loans held for sale totaled $388,000, compared to $1.1 million at December 31, 2024.

Nonaccrual loans and leases totaled $5.3 million at March 31, 2025, compared to $5.1 million at December 31, 2024.

The increase in nonaccrual loans and leases reflects a $250,000 increase in nonaccrual direct financing leases.

Accruing loans

and leases past due 90 days or more totaled $1.7 million at both March 31, 2025 and December 31, 2024.

Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases 90 days or more past due, totaled $7.0 million, or 0.59% of total loans and leases, at March 31, 2025, compared to $6.8 million, or 0.58% of total loans and leases, at December 31, 2024.

At June 30, 2025, loans held for sale totaled $136,000, compared to $1.1 million at December 31, 2024.

Nonaccrual loans and leases totaled $5.6 million at June 30, 2025, compared to $5.1 million at December 31, 2024.

The increase was primarily due to a $530,000 increase in nonaccrual direct financing leases, which increased to $564,000 from $34,000.

Accruing loans and leases past due 90 days or more totaled $2.5 million and $1.7 million at June 30, 2025 and December 31, 2024, respectively.

The increase in accruing loans past due 90 days or more was primarily due to one commercial real estate loan of $704,000.

At June 30, 2025, this loan had a loan to value ratio of 79.1%, and was largely guaranteed by the U.S.

Small Business Administration ("SBA").

Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases 90 days or more past due, totaled $8.1 million, or 0.68% of total loans and leases, at June 30, 2025, compared to $6.8 million, or 0.58% of total loans and leases, at December 31, 2024.

Allowance for Credit Losses.

The allowance for credit losses on loans and leases increased $287,000, or 1.8%, to $16.1 million at March 31, 2025 from December 31, 2024.

At March 31, 2025, the allowance for credit losses on loans and leases totaled 1.35% of total loans and leases outstanding.

The allowance for credit losses on loans and leases increased $428,000, or 2.7%, to $16.2 million at June 30, 2025 from December 31, 2024.

At June 30, 2025, the allowance for credit losses on loans and leases totaled 1.37% of total loans and leases outstanding.

The increase in the allowance was primarily due to changes in portfolio composition, primarily growth in commercial real estate, multi-family, and commercial and industrial loans, which generally carry higher reserve requirements relative to other segments.

1 unchanged sentence

At December 31, 2024, the allowance for credit losses on loans and leases totaled $15.8 million, or 1.34% of total loans and leases outstanding.

Net charge-offs during the first three months of 2025 totaled $395,000, and were primarily attributable to direct financing leases, compared to net charge-offs of $324,000 during the first three months of 2024.

Net charge-offs during the first half of 2025 totaled $1.0 million, and were primarily attributable to direct financing leases, compared to net charge-offs of $774,000 during the first half of 2024.

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, 2025, which evaluation included consideration of a potential recession due to inflation, stock market volatility, and overall geopolitical tensions.

The Company evaluated its exposure to potential loan and lease losses as of June 30, 2025, which evaluation included consideration of a potential recession due to inflation, stock market volatility, and overall geopolitical tensions.

Credit metrics are being reviewed and stress testing is being performed on the loan portfolio on an ongoing basis.

For additional information on the allowance for credit losses, see "Allowance for Credit Losses on Loans and Leases" and "Economic Outlook" in "Note 4 Loans, Leases and Allowance" of the "Notes to Condensed Consolidated Financial Statements" in this report.

For additional information on the allowance for credit losses, see "Allowance for Credit Losses on Loans and Leases" and "Economic Outlook" in "Note 4:

Loans, Leases and Allowance" of the "Notes to Condensed Consolidated Financial Statements" in this report.

Other Assets .

Other assets decreased $843,000, or 3.7%, to $21.6 million at March 31, 2025 from $22.5 million at December 31, 2024.

The decrease was primarily caused by a reduction in the Company's deferred tax asset, which resulted from an upward mark-to-market adjustment on the available-for-sale investment portfolio due to a reduction in market rates of interest, thereby reducing unrealized losses previously reflected in accumulated other comprehensive loss ("AOCL").

Total deposits increased $11.7 million, or 1.1%, to $1.1 billion at March 31, 2025 from December 31, 2024.

The increase in deposits primarily was due to an increase in brokered time deposits of $7.2 million, which were used to fund loan demand, retail (non-brokered) time deposits of $4.2 million, and interest-bearing demand deposits of $6.9 million.

These increases were partially offset by a decrease in noninterest-bearing accounts of $6.8 million.

Brokered deposits totaled $264.8 million, or 23.9% of total deposits, at March 31, 2025, compared to $257.6 million, or 23.5% of total deposits, at December 31, 2024.

At March 31, 2025, noninterest-bearing deposits totaled $103.4 million, or 9.3% of total deposits, compared to $110.1 million, or 10.1% of total deposits, at December 31, 2024.

Management attributes the shift in funds from transaction accounts to retail certificates of deposit to customers taking advantage of higher rates being paid on time deposits as a result of interest rate hikes enacted by the Federal Reserve.

As of March 31, 2025, approximately $243.0 million of our deposit portfolio, or 22.0% of total deposits, excluding collateralized public deposits, was uninsured.

Other assets decreased $1.6 million, or 7.2%, to $20.9 million at June 30, 2025 from $22.5 million at December 31, 2024.

The decrease was primarily caused by a reduction in the Company's deferred tax asset, reflecting lower unrealized losses in the available for sale investment portfolio following a decline in market rates.

Total deposits increased $2.4 million, or 0.2%, to $1.1 billion at June 30, 2025 from December 31, 2024.

The increase in deposits primarily was due to an increase in interest-bearing demand deposits of $12.0 million, and retail (non-brokered) time deposits of $10.5 million.

These increases were partially offset by decreases in brokered time deposits of $18.1 million, and noninterest-bearing accounts of $3.9 million.

Brokered deposits totaled $239.5 million, or 21.8% of total deposits, at June 30, 2025, compared to $257.6 million, or 23.5% of total deposits, at December 31, 2024.

At June 30, 2025, noninterest-bearing deposits totaled $106.2 million, or 9.7% of total deposits, compared to $110.1 million, or 10.1% of total deposits, at December 31, 2024.

Management attributes the shift from transaction accounts to time deposits to customer demand for higher yields, as financial institutions continue to offer competitive rates on certificates of deposit in response to elevated market rate levels during late 2024.

Although the Federal Reserve began lowering rates in late 2024, deposit pricing remains responsive to competitive pressures and customer preferences for rate certainty.

As of June 30, 2025, approximately $249.8 million of our deposit portfolio, or 22.8% of total deposits, excluding collateralized public deposits, was uninsured.

The uninsured amounts are estimated based on the methodologies and assumptions used for First Bank Richmond's regulatory reporting requirements.

Total borrowings, consisting solely of FHLB advances, increased $9.0 million, or 3.4%, to $274.0 million at March 31, 2025, compared to $265.0 million at December 31, 2024.

Total borrowings, consisting solely of FHLB advances, increased $2.0 million, or 0.8%, to $267.0 million at June 30, 2025, compared to $265.0 million at December 31, 2024.

The increased borrowings were used to fund loan growth.

Stockholders’ Equity.

Stockholders’ equity totaled $130.9 million at March 31, 2025, a decrease of $1.9 million, or 1.5%, from December 31, 2024.

Stockholders’ equity totaled $132.3 million at June 30, 2025, a decrease of $550,000, or 0.4%, from December 31, 2024.

The decrease in stockholders' equity resulted from the payment of $2.9 million in dividends to Company stockholders and the repurchase of $5.6 million of Company common stock, partially offset by net income of $4.6 million and a decrease in AOCL of $2.4 million.

The decrease in AOCL was a result of improved fair values in the Company's available for sale investment portfolio, resulting from a reduction in market rates of interest.

At December 31, 2024, the available for sale portfolio had a net unrealized loss of $58.0 million compared to a net unrealized loss of $56.4 million at March 31, 2025.

The AOCL impact to equity, after tax affecting the unrealized loss, was $44.5 million at March 31, 2025 compared to $45.8 million at December 31, 2024.

The Company repurchased 324,696 shares of Company common stock at an average price of $13.04 per share for a total of $4.2 million during the first three months of 2025.

The Company's equity to asset ratio was 8.60% at March 31, 2025.

At March 31, 2025, the Bank's Tier 1 capital to total assets ratio was 10.68% and the Bank's capital was well in excess of all regulatory requirements.

Comparison of Results of Operations for the Three Months Ended March 31, 2025 and 2024.

Net income for the three months ended March 31, 2025 was $2.0 million, a $401,000 or 16.9% decrease from net income of $2.4 million for the three months ended March 31, 2024.

Diluted earnings per share were $0.20 for the first quarter of 2025, compared to $0.23 diluted earnings per share for the first quarter of 2024.

The decrease in net income primarily was the result of a $548,000 increase in the provision for credit losses and a $315,000 increase in noninterest expense, partially offset by an increase in net interest income of $425,000 and an increase of $33,000 in noninterest income.

At December 31, 2024, the available for sale portfolio had a net unrealized loss of $58.0 million compared to a net unrealized loss of $55.0 million at

June 30, 2025.

The AOCL impact to equity, after tax affecting the unrealized loss, was $43.4 million at June 30, 2025 compared to $45.8 million at December 31, 2024.

The Company repurchased 425,823 shares of Company common stock at an average price of $13.14 per share for a total of $5.6 million during the first half of 2025.

The Company's equity to asset ratio was 8.78% at June 30, 2025.

At June 30, 2025, the Bank's Tier 1 capital to total assets ratio was 10.75% and the Bank's capital was well in excess of all regulatory requirements.

Comparison of Results of Operations for the Three Months Ended June 30, 2025 and 2024.

Net income for the three months ended June 30, 2025 was $2.6 million, a $541,000 or 26.3% increase from net income of $2.1 million for the three months ended June 30, 2024.

Diluted earnings per share were $0.26 for the second quarter of 2025, compared to $0.20 diluted earnings per share for the second quarter of 2024.

The increase in net income primarily was the result of an increase in net interest income of $1.2 million, partially offset by a $474,000 increase in the provision for credit losses.

In addition, noninterest income declined $32,000, and noninterest expense increased $58,000.

Interest Income.

Interest income increased $1.4 million, or 7.0%, to $20.9 million during the quarter ended March 31, 2025, compared to $19.5 million during the quarter ended March 31, 2024.

Interest income on loans and leases increased $1.5 million, or 8.8%, to $18.8 million for the quarter ended March 31, 2025, from $17.3 million for the comparable quarter in 2024, due to an increase in the average balance of loans and leases of $55.1 million, and an increase of 23 basis points in the average yield earned on loans and leases as new loans and leases were originated at higher rates and existing variable rate loans in the portfolio adjusted upward due to the overall higher interest rate environment.

The average outstanding loan and lease balance was $1.2 billion for the quarter ended March 31, 2025, compared to $1.1 billion for the quarter ended March 31, 2024.

The average yield on loans and leases was 6.36% for the quarter ended March 31, 2025, compared to 6.13% for the comparable quarter in 2024.

Interest income on investment securities, excluding FHLB stock, decreased $144,000, or 8.0%, to $1.7 million for the first quarter of 2025 from the comparable quarter in 2024.

The decrease was due to a $21.9 million decrease in the average balance, primarily as a result of maturities and paydowns on securities being used to fund loan growth, and a one basis point decrease in the average yield earned on investment securities.

The average yield on investment securities, excluding FHLB stock, decreased to 2.52% for the first quarter of 2025, compared to 2.53% for the first quarter of 2024.

The average balance of investment securities, excluding FHLB stock, decreased to $262.1 million for the quarter ended March 31, 2025, compared to $284.0 million for the quarter ended March 31, 2024.

Dividends on FHLB stock decreased $13,000, or 4.0%, during the quarter ended March 31, 2025, from the comparable quarter in 2024, resulting in an average yield on FHLB stock of 8.95% for the three months ended March 31, 2025, compared to 9.44% for the three months ended March 31, 2024.

Interest income on cash and cash equivalents decreased $8,000, or 6.1%, to $131,000 during the quarter ended March 31, 2025, from the comparable quarter in 2024, due to a 31 basis point decrease in the average yield, partially offset by a $273,000 increase in the average balance of cash and cash equivalents.

Interest income increased $1.3 million, or 6.3%, to $21.3 million during the quarter ended June 30, 2025, compared to $20.1 million during the quarter ended June 30, 2024.

Interest income on loans and leases increased $1.4 million, or 7.7%, to $19.2 million for the quarter ended June 30, 2025, from $17.8 million for the comparable quarter in 2024, due to an increase in the average balance of loans and leases of $28.6 million, and an increase of 31 basis points in the average yield earned on loans and leases as new loans and leases were originated at higher rates and existing variable rate loans in the portfolio adjusted upward due to the overall higher interest rate environment.

The average outstanding loan and lease balance was $1.2 billion for the quarter ended June 30, 2025 and $1.1 billion for the same quarter of 2024.

The average yield on loans and leases was 6.51% for the quarter ended June 30, 2025, compared to 6.20% for the comparable quarter in 2024.

Interest income on investment securities, excluding FHLB stock, decreased $123,000, or 7.1%, to $1.6 million for the second quarter of 2025 from the comparable quarter in 2024.

The decrease was due to a $21.4 million decrease in the average balance, primarily as a result of maturities and paydowns on securities being used to fund loan growth, partially offset by a two basis point increase in the average yield earned on investment securities.

The average yield on investment securities, excluding FHLB stock, increased to 2.56% for the second quarter of 2025, compared to 2.54% for the second quarter of 2024.

The average balance of investment securities, excluding FHLB stock, decreased to $251.7 million for the quarter ended June 30, 2025, compared to $273.1 million for the quarter ended June 30, 2024.

Dividends on FHLB stock decreased $13,000, or 4.0%, during the quarter ended June 30, 2025, from the comparable quarter in 2024, resulting in an average yield on FHLB stock of 8.89% for the three months ended June 30, 2025, compared to 9.26% for the three months ended June 30, 2024.

Interest income on cash and cash equivalents increased $25,000, or 11.5%, to $243,000 during the quarter ended June 30, 2025 from the comparable quarter in 2024, due to a $7.7 million increase in the average balance of cash and cash equivalents, partially offset by a 127 basis point decrease in the average yield.

Interest Expense.

Interest expense increased $933,000, or 9.6%, to $10.6 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024.

Interest expense on deposits increased $779,000, or 11.0%, to $7.8 million for the quarter ended March 31, 2025, from the comparable quarter in 2024.

The increase in interest expense on deposits primarily was attributable to a $44.2 million increase in the average balance of, and an 18 basis point increase in the average rate paid on, interest-bearing deposits.

The average rate paid on interest-bearing deposits was 3.17% for the quarter ended March 31, 2025, compared to 2.99% for the quarter ended March 31, 2024.

The average balance of interest-bearing deposits was $989.4 million for the quarter ended March 31, 2025, compared to $945.2 million in the comparable quarter in 2024.

The increase in interest-bearing deposit balances and rates reflects ongoing competitive pressures for deposits, as well as a continued shift in customer preferences from non-maturity deposit products into higher-yielding time deposits.

Interest expense on FHLB borrowings increased $154,000, or 5.9%, to $2.8 million in the first quarter of 2025 compared to $2.6 million for the same quarter in 2024, due to an increase in the average rate paid on FHLB borrowings of 26 basis points.

The average rate paid on FHLB borrowings was 4.03% for the quarter ended March 31, 2025, compared to 3.77% for the first quarter of 2024.

The average balance of FHLB borrowings totaled $274.7 million during the quarter ended March 31, 2025, compared to $277.2 million for the quarter ended March 31, 2024.

Interest expense increased $77,000, or 0.7%, to $10.6 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024.

Interest expense on deposits decreased $189,000, or 2.4%, to $7.8 million for the quarter ended June 30, 2025, from the comparable quarter in 2024.

The decrease in interest expense on deposits primarily was attributable to a nine basis point decrease in the average rate paid on interest-bearing deposits, partially offset by a $4.3 million increase in the average balance.

The average rate paid on interest-bearing deposits was 3.14% for the quarter ended June 30, 2025, compared to 3.23% for the quarter ended June 30, 2024.

The average balance of interest-bearing deposits was $995.4 million for the quarter ended June 30, 2025, compared to $991.1 million in the comparable quarter in 2024.

Interest expense on FHLB borrowings increased $267,000, or 10.6%, to $2.8 million in the second quarter of 2025 compared to $2.5 million for the same quarter in 2024, due to an increase in the average rate paid on FHLB borrowings of 35 basis points.

The average rate paid on FHLB borrowings was 4.24% for the quarter ended June 30, 2025, compared to 3.89% for the second quarter of 2024.

The average balance of FHLB borrowings totaled $262.1 million during the quarter ended June 30, 2025, compared to $257.9 million for the quarter ended June 30, 2024.

Management continues to actively evaluate funding mix and pricing strategies to balance interest expense with overall liquidity needs.

1 unchanged sentence

Net Interest Income.

Net interest income before the provision for credit losses increased $425,000, or 4.3%, to $10.3 million for the first quarter of 2025, compared to $9.8 million for the first quarter of 2024.

This increase was due to a six basis point increase in the average interest rate spread, partially offset by an $8.0 million decrease in average net earning assets.

Net interest income before the provision for credit losses increased $1.2 million, or 12.4%, to $10.8 million for the second quarter of 2025, compared to $9.6 million for the second quarter of 2024.

This increase was due to a 29 basis point increase in the average interest rate spread and a $6.3 million increase in average net earning assets.

improved spread reflects a favorable shift in asset yields outpacing the increase in funding costs, as loans and investment securities repriced or were originated at higher market rates.

Net interest margin (annualized) was 2.93% for the three months ended June 30, 2025, compared to 2.64% for the three months ended June 30, 2024.

The increase in net interest margin was attributable to improved asset yields, particularly on loans and leases, outpacing the modest rise in funding costs.

The Company also benefited from a more favorable asset repricing environment following the Federal Reserve's rate cuts in late 2024, which reduced deposit costs while asset yields remained elevated.

Average Balances, Interest and Average Yields/Cost.

The following table sets 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 June 30,

Outstanding Interest

(Dollars in thousands)

Interest-earning assets:

Loans and leases receivable $ 1,178,026 $ 19,183 6.51 % $ 1,149,457 $ 17,811 6.20 %

Securities 251,717 1,611 2.56 % 273,142 1,734 2.54 %

FHLB stock 13,907 309 8.89 % 13,907 322 9.26 %

Cash and cash equivalents and other 24,156 243 4.02 % 16,492 218 5.29 %

Total interest-earning assets 1,467,806 21,346 5.82 % 1,452,998 20,085 5.53 %

Non-earning assets 40,536 44,668

Total assets 1,508,342 1,497,666

Interest-bearing liabilities:

Savings and money market accounts 316,419 1,833 2.32 % 290,250 1,803 2.48 %

Interest-bearing checking accounts 140,977 373 1.06 % 144,363 437 1.21 %

Certificate accounts 538,026 5,605 4.17 % 556,521 5,761 4.14 %

Borrowings 262,088 2,775 4.24 % 257,885 2,508 3.89 %

Total interest-bearing liabilities 1,257,510 10,586 3.37 % 1,249,019 10,509 3.37 %

Noninterest-bearing demand deposits 107,351 106,924

Other liabilities 13,222 13,287

Stockholders' equity 130,259 128,436

Total liabilities and stockholders' equity 1,508,342 1,497,666

Net interest income $ 10,760 $ 9,576

Net earning assets $ 210,296 $ 203,979

Net interest rate spread (1)

2.45 % 2.16 %

Net interest margin (2)

2.93 % 2.64 %

Average interest-earning assets to average interest-bearing liabilities

116.72 % 116.33 %

_____________

(1) Annualized.

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(2) Annualized.

Net interest margin represents net interest income divided by average total interest-earning assets.

Provision for Credit Losses.

A provision for credit losses of $745,000 was recognized during the three months ended June 30, 2025, compared to a provision for credit losses of $270,000 for the three months ended June 30, 2024.

Net charge-offs during the second quarter of 2025 were $626,000, compared to $450,000 in the second quarter of 2024.

The increased provision for credit losses during the quarter was primarily due to loan growth in the commercial real estate and commercial and industrial loan portfolios, which generally carry higher estimated loss rates compared to other segments.

Additionally, the provision reflected replenishment of the allowance following charge-offs and was influenced by changes in the macroeconomic forecast, including a modest deterioration in projected economic indicators such as national GDP and unemployment rates.

While we believe the steps we have taken and continue to take are necessary to effectively manage our portfolio, uncertainties relating to the level of our allowance for credit losses remain heightened as a result of continued concern about a potential recession due to tariffs, inflation, stock market volatility, and overall geopolitical tensions.

Noninterest Income.

Noninterest income decreased $32,000, or 2.9%, to $1.1 million for the quarter ended June 30, 2025, compared to the same quarter in 2024.

The decline resulted primarily from an increase in net losses on sales of securities of $95,000, partially offset by higher card fee income and other income.

Card fee income increased $34,000, or 11.4%, to $336,000, primarily due to higher transaction volume and increased customer utilization of debit and credit card services.

Other income increased $13,000, or 3.8%, to $354,000 for the quarter ended June 30, 2025, compared to $341,000 for the comparable quarter in 2024 due to increased wealth management income.

Additionally, net gains on loan and lease sales increased $11,000, or 12.2%, in the second quarter of 2025 from the comparable quarter in 2024.

Noninterest Expense.

Noninterest expense increased $58,000, or 0.7%, to $8.1 million for the three months ended June 30, 2025, compared to the same period in 2024.

Salaries and employee benefits increased $95,000, or 2.0%, to $4.8 million, primarily due to annual merit increases and higher staffing levels.

Legal and professional fees decreased $33,000, or 6.9%, reflecting lower external consulting and legal service costs.

Deposit insurance expense decreased $76,000, or 20.0%, primarily due to changes in the Company's asset and deposit mix.

Data processing fees increased $46,000, or 5.3%, to $926,000, primarily due to increased software implementation expenses.

Income Tax Expense.

The provision for income taxes increased $77,000 during the three months ended June 30, 2025, compared to the same period in 2024.

The effective tax rate for the second quarter of 2025 was 12.8% compared to 12.9% for the same quarter a year ago.

Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024.

Net income for the six months ended June 30, 2025 was $4.6 million, a $141,000 or 3.2% increase from net income of $4.4 million for the six months ended June 30, 2024.

Diluted earnings per share were $0.46 for the first half of 2025, compared to $0.43 diluted earnings per share for the first half of 2024.

The increase in net income primarily was the result of an increase in net interest income of $1.6 million, partially offset by a $1.0 million increase in the provision for credit losses and a $214,000 increase in noninterest expense, with noninterest income remaining relatively unchanged.

Interest Income.

Interest income increased $2.6 million, or 6.6%, to $42.2 million during the six months ended June 30, 2025, compared to $39.6 million during the six months ended June 30, 2024.

Interest income on loans and leases increased $2.9 million, or 8.3%, to $38.0 million for the six months ended June 30, 2025, from $35.1 million for the comparable period in 2024, due to an increase in the average balance of loans and leases of $48.1 million, and an increase of 28 basis points in the average yield earned on loans and leases as new loans and leases were originated at higher rates and existing variable rate loans in the portfolio adjusted upward due to the overall higher interest rate environment.

The average outstanding loan and lease balance was $1.2 billion for the six months ended June 30, 2025, compared to $1.1 billion for the same period of 2024.

The average yield on loans and leases was 6.44% for the six months ended June 30, 2025, compared to 6.16% for the comparable period in 2024.

Interest income on investment securities, excluding FHLB stock, decreased $267,000, or 7.6%, to $3.3 million for the first half of 2025 from the comparable period in 2024.

The decrease was due to a $21.6 million decrease in the average balance, primarily as a result of maturities and paydowns on securities being used to fund loan growth.

The average yield on investment securities, excluding FHLB stock, was 2.54% for both the first half of 2025 and the first half of 2024.

The average balance of investment securities, excluding FHLB stock, decreased to $256.9 million for the six months ended June 30, 2025, compared to $278.5 million for the six months ended June 30, 2024.

Dividends on FHLB stock decreased $26,000, or 4.0%, during the six months ended June 30, 2025, from the comparable period in 2024, resulting in an average yield on FHLB stock of 8.92% for the six months ended June 30, 2025,

compared to 9.35% for the six months ended June 30, 2024.

Interest income on cash and cash equivalents increased $17,000, or 4.8%, to $374,000 during the six months ended June 30, 2025 from the comparable period in 2024, due to a $3.9 million increase in the average balance of cash and cash equivalents, partially offset by a 79 basis point decrease in the average yield.

Interest Expense.

Interest expense increased $1.0 million, or 5.0%, to $21.2 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Interest expense on deposits increased $589,000, or 3.9%, to $15.7 million for the six months ended June 30, 2025, from the comparable period in 2024.

The increase in interest expense on deposits primarily was attributable to a $24.2 million increase in the average balance of, and a five basis point increase in the average rate paid on, interest-bearing deposits.

The average rate paid on interest-bearing deposits was 3.16% for the six months ended June 30, 2025, compared to 3.11% for the six months ended June 30, 2024.

The average balance of interest-bearing deposits was $992.4 million for the six months ended June 30, 2025, compared to $968.2 million in the comparable period in 2024.

Interest expense on FHLB borrowings increased $420,000, or 8.2%, to $5.5 million in the first half of 2025 compared to $5.1 million for the same period in 2024, due to an increase in the average rate paid on FHLB borrowings of 30 basis points.

The average rate paid on FHLB borrowings was 4.13% for the six months ended June 30, 2025, compared to 3.83% for the first half of 2024.

The average balance of FHLB borrowings totaled $268.3 million during the six months ended June 30, 2025, compared to $267.6 million for the period ended June 30, 2024.

Net Interest Income.

Net interest income before the provision for credit losses increased $1.6 million, or 8.3%, to $21.0 million for the first six months of 2025, compared to $19.4 million for the first six months of 2024.

This increase was due to an 18 basis point increase in the average interest rate spread, partially offset by a decrease of $827,000 in average net earning assets.

The improved spread reflects a favorable shift in asset yields outpacing the increase in funding costs, as loans and investment securities repriced or were originated at higher market rates.

The modest decline in average net earning assets was primarily the result of lower average balances of investment securities, as management actively redeployed excess liquidity toward higher-yielding loan production.

Net interest margin (annualized) was 2.79% for the three months ended March 31, 2025, compared to 2.74% for the three months ended March 31, 2024.

The modest decline in average net earning assets was primarily the result of higher average balances of interest-bearing deposits.

Net interest margin (annualized) was 2.86% for the six months ended June 30, 2025, compared to 2.69% for the six months ended June 30, 2024.

The increase in net interest margin primarily was due to the yield on interest-earning assets increasing faster than the rate paid on interest-bearing liabilities.

5 unchanged sentences

Loan fees are included in interest income on loans and are not material.

Three Months Ended March 31,

Six Months Ended June 30,

Outstanding Interest

33 unchanged sentences

Provision for Credit Losses.

A provision for credit losses of $731,000 was recognized during the three months ended March 31, 2025, compared to a provision for credit losses of $183,000 for the three months ended March 31, 2024.

Net charge-offs during the first quarter of 2025 were $395,000, compared to $324,000 in the first quarter of 2024.

The provision for credit losses during the quarter was primarily due to loan growth in the commercial real estate and commercial and industrial loan

portfolios, which generally carry higher estimated loss rates compared to other segments.

A provision for credit losses of $1.5 million was recognized during the six months ended June 30, 2025, compared to a provision for credit losses of $454,000 for the six months ended June 30, 2024.

Net charge-offs during the first half of 2025 were $1.0 million, compared to $774,000 in the first half of 2024.

The increased provision for credit losses during the period was primarily due to loan growth in the commercial real estate and commercial and industrial loan portfolios, which generally carry higher estimated loss rates compared to other segments.

Additionally, the provision

reflected replenishment of the allowance following charge-offs and was influenced by changes in the macroeconomic forecast, including a modest deterioration in projected economic indicators such as national GDP and unemployment rates.

Noninterest Income.

Noninterest income increased $33,000, or 3.0%, to $1.2 million for the quarter ended March 31, 2025, compared to the same quarter in 2024.

The increase resulted primarily from increases in other income and service charges on deposit accounts, partially offset by decreases in net gains on loan and lease sales and loan and lease servicing fees.

Other income increased $41,000, or 12.9%, to $360,000 for the quarter ended March 31, 2025, compared to $319,000 for the comparable quarter in 2024 due to increased wealth management income.

Service fees on deposit accounts increased $23,000, or 8.4%, in the first quarter of 2025 from the comparable quarter in 2024, due to year-over-year deposit growth.

Partially offsetting these increases were modest declines in net gains on loan and lease sales and loan and lease servicing fees, reflecting lower mortgage banking activity and a decrease in the servicing portfolio.

Card fee income also increased slightly, rising $8,000, or 2.9%, to $298,000.

Noninterest income remained relatively flat for the six months ended June 30, 2025, compared to the same period in 2024, totaling $2.2 million for both periods.

Other income increased $54,000, or 8.2%, to $714,000 for the six months ended June 30, 2025, compared to $660,000 for the comparable period in 2024, primarily due to increased wealth management income.

Service fees on deposit accounts increased $23,000, or 4.0%, in the first half of 2025 from the comparable period in 2024, due to year-over-year deposit growth.

Card fee income increased $43,000, or 7.2%, to $634,000.

Offsetting these increases was an increase in net losses on sales of securities of $95,000 for the first half of 2025 compared to the first half of 2024.

Additionally, decreases were recognized in net gains on loan and lease sales of $13,000, or 6.3%, and loan and lease servicing fees of $11,000, or 4.1%.

Noninterest Expense.

Noninterest expense increased $315,000, or 3.9%, to $8.4 million for the three months ended March 31, 2025, compared to $8.1 million for the same period in 2024.

Salaries and employee benefits increased $138,000, or 3.0%, to $4.7 million, primarily due to annual merit increases.

Other expenses increased $118,000, or 12.1%, in the first quarter of 2025 compared to the same quarter in 2024, primarily due to one-time expenses associated with contract negotiations with our core service provider.

Noninterest expense increased $373,000, or 2.3%, to $16.5 million for the six months ended June 30, 2025, compared to $16.1 million for the same period in 2024.

Salaries and employee benefits increased $233,000, or 2.5%, to $9.5 million, primarily due to annual merit increases and increased staffing.

Other expenses increased $132,000, or 7.1%, in the first half of 2025 compared to the same period in 2024, primarily due to one-time expenses associated with contract negotiations with our core service provider.

The renegotiated agreement is expected to produce meaningful cost savings over the term of the contract by reducing costs on existing services and adding new products aimed at improving operational efficiency and the customer experience, while reducing reliance on third-party vendors.

Legal and professional fees increased $98,000, or 22.7%, driven by elevated consulting and advisory services during the quarter.

Deposit insurance expense decreased $64,000, or 15.9%, primarily due to changes in the Company's asset and deposit mix.

Data processing fees decreased $21,000, or 2.3%, to $902,000, primarily due to lower core processing and software-related costs.

Deposit insurance expense decreased $140,000, or 17.9%, primarily due to changes in the Company's asset and deposit mix and related assessments.

Data processing fees increased $42,000, or 2.3%, to $1.8 million, primarily due to increased software implementation expenses.

Income Tax Expense.

The provision for income taxes decreased $4,000 during the three months ended March 31, 2025, compared to the same period in 2024.

The effective tax rate for the first quarter of 2025 was 15.0% compared to 12.9% for the same quarter a year ago.

The provision for income taxes increased $74,000 during the six months ended June 30, 2025, compared to the same period in 2024.

The effective tax rate for the first half of 2025 was 13.8% compared to 12.9% for the same period a year ago.

The increase in the effective tax rate was primarily due to the expiration and write-off of certain charitable contribution carryforwards.

Capital and Liquidity

Shareholders' equity totaled $130.9 million at March 31, 2025 and $132.9 million at December 31, 2024.

In addition to net income of $2.0 million, other sources of capital during the first three months of 2025 included $178,000 related to the allocation of ESOP shares, $363,000 related to stock-based compensation, and a $1.3 million reduction in AOCL.

Uses of capital during the first three months of 2025 included $1.5 million of dividends paid on common stock and $4.2 million of stock repurchases.

We paid a regular quarterly dividend of $0.15 per common share during the first quarter of 2025, compared to $0.14 per common share during the first quarter of 2024.

Shareholders' equity totaled $132.3 million at June 30, 2025 and $132.9 million at December 31, 2024.

In addition to net income of $4.6 million, other sources of capital during the first half of 2025 included $360,000 related to the allocation of ESOP shares, $727,000 related to stock-based compensation, and a $4.6 million reduction in AOCL.

Uses of capital during the first half of 2025 included $2.9 million of dividends paid on common stock and $5.6 million of stock repurchases.

We paid a regular quarterly dividend of $0.15 per common share during the second quarter of 2025, compared to $0.14 per common share during the second quarter of 2024.

We currently expect to continue our practice of paying regular quarterly cash dividends on common stock subject to the Board of Directors' discretion to modify or terminate this practice at any time and for any reason without prior notice.

Assuming continued payment during 2025 at the current dividend rate of $0.15 per share, our average total dividend paid each quarter would be approximately $1.6 million based on the number of our currently outstanding shares at March 31, 2025.

Stock Repurchase Plans.

4 unchanged sentences

On May 16, 2024, the Company announced that the Board of Directors approved a further extension of the Company's existing stock repurchase program, setting a new expiration date of June 6, 2025.

As of March 31, 2025, approximately 148,248 shares remained available for repurchase under the existing stock

repurchase program.

The repurchase program does not obligate the Company to purchase any particular number of shares.

As of the expiration date, approximately 47,121 shares remained available for repurchase under the program.

The repurchase program did not obligate the Company to purchase any particular number of shares.

See Part II, Item 2 - "Unregistered Sales of Equity Securities and Use of Proceeds."

12 unchanged sentences

These scenarios are incorporated into our contingency funding plan, which provides the basis for the identification of our liquidity needs.

Our liquid assets in the form of cash and cash equivalents and investments available for sale totaled $283.4 million at March 31, 2025.

Certificates of deposit scheduled to mature in less than one year from March 31, 2025 totaled $418.6 million.

Our liquid assets in the form of cash and cash equivalents and investments available for sale totaled $276.9 million at June 30, 2025.

Certificates of deposit scheduled to mature in less than one year from June 30, 2025 totaled $414.2 million.

Historically, the Bank has been able to retain a significant amount of its deposits as they mature.

As of March 31, 2025, we had approximately $13.6 million held in an interest-bearing account at the Federal Reserve.

As of June 30, 2025, we had approximately $12.4 million held in an interest-bearing account at the Federal Reserve.

We also have the ability to borrow funds as a member of the FHLB.

As of March 31, 2025, based upon available, pledgeable collateral, our total remaining borrowing capacity with the FHLB was approximately $101.1 million.

Furthermore, at March 31, 2025, we had approximately $177.7 million in securities that were unencumbered by a pledge and could be used to support additional borrowings through repurchase agreements or the Federal Reserve discount window, as needed.

As of March 31, 2025, management was not aware of any events that are reasonably likely to have a material adverse effect on our liquidity, capital resources or operations.

As of June 30, 2025, based upon available, pledgeable collateral, our total remaining borrowing capacity with the FHLB was approximately $112.5 million.

Furthermore, at June 30, 2025, we had approximately $165.4 million in securities that were unencumbered by a pledge and could be used to support additional borrowings through repurchase agreements or the Federal Reserve discount window, as needed.

As of June 30, 2025, management was not aware of any events that are reasonably likely to have a material adverse effect on our liquidity, capital resources or operations.

In addition, management is not aware of any regulatory recommendations regarding liquidity that would have a material adverse effect on us.

1 unchanged sentence

cash flows from operating activities, investing activities, and financing activities.

Net cash provided by operating activities was $2.2 million for both the three months ended March 31, 2025 and March 31, 2024.

During the three months ended March 31, 2025, net cash used in investing activities was $12.0 million, which consisted primarily of a $16.0 million increase in loans receivable, compared to $30.2 million of cash used in investing activities for the three months ended March 31, 2024.

Net cash provided by financing activities for the three months ended March 31, 2025 was $15.1 million, which was comprised primarily of an $11.7 million increase in deposits, compared to $28.1 million provided by financing activities during the three months ended March 31, 2024.

Net cash provided by operating activities was $7.0 million for the six months ended June 30, 2025, compared to $5.1 million provided by operating activities for the six months ended June 30, 2024.

During the six months ended June 30, 2025, net cash provided by investing activities was $2.5 million, compared to $41.2 million of net cash used in investing activities for the same period in 2024.

The increase in cash provided was primarily due to a significant net increase in loans during the 2024 period, as well as higher proceeds from sales and maturities of securities available for sale in 2025.

Net cash used in financing activities was $4.0 million for the six months ended June 30, 2025, compared to $34.9 million of net cash provided by financing activities during the same period in 2024.

The use of cash in 2025 primarily reflected increased activity in issuing certificates of deposit, stock repurchases, and dividends paid, partially offset by an increase in demand and savings deposits and a modest net increase in FHLB advances.

Management believes the capital sources are adequate to meet all reasonably foreseeable short-term and long-term cash requirements and there has not been a material change in our liquidity and capital resources since the information disclosed in our 2024 Form 10-K other than set forth above.

3 unchanged sentences

Banking regulations may limit the amount of dividends that may be paid to us by First Bank Richmond.

At March 31, 2025, Richmond Mutual Bancorporation, on an unconsolidated basis, had $2.2 million in cash, noninterest-bearing deposits and liquid investments generally available for its cash needs.

At June 30, 2025, Richmond Mutual Bancorporation, on an unconsolidated basis, had $1.0 million in cash, noninterest-bearing deposits, and liquid investments generally available for its cash needs.

Regulatory Capital Requirements.

1 unchanged sentence

The FDIC may require us to have additional capital above the specific regulatory levels if it believes we are subject to increased risk due to asset problems, high interest rate risk and other risks.

At March 31, 2025, First Bank Richmond’s regulatory capital exceeded the FDIC regulatory requirements, and First Bank Richmond was well-capitalized under regulatory prompt corrective action standards.

At June 30, 2025, First Bank Richmond’s regulatory capital exceeded the FDIC regulatory requirements, and First Bank Richmond was well-capitalized under regulatory prompt corrective action standards.

Consistent with our goals to operate a sound and profitable organization, our policy is for First Bank Richmond to maintain well-capitalized status.

2 unchanged sentences

(Dollars in thousands)

As of March 31, 2025

As of June 30, 2025

Total risk-based capital (to risk weighted assets) $ 182,591 14.2 % $ 102,575 8.0 % $ 128,219 10.0 %

9 unchanged sentences

Failure to maintain the required buffer could result in limitations on the Bank's ability to pay dividends and discretionary bonuses and the Company's ability to repurchase shares based on specified percentages of eligible retained income.

At March 31, 2025, the Bank’s capital exceeded the conservation buffer.

At June 30, 2025, the Bank’s capital exceeded the conservation buffer.

For a bank holding company with less than $3.0 billion in assets, the capital guidelines apply on a bank only basis and the Federal Reserve Board expects the holding company’s subsidiary banks to be well capitalized under the prompt corrective action regulations.

If Richmond Mutual Bancorporation was subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets, at March 31, 2025, it would have exceeded all regulatory capital requirements.

If Richmond Mutual Bancorporation was subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets, at June 30, 2025, it would have exceeded all regulatory capital requirements.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis