Richmond Mutual Bancorporation, parent company of First Bank Richmond, announced a net loss of $12.5 million for the fourth quarter of 2019 compared to net income of $1.5 million for the fourth quarter of 2018.
The net loss for the fourth quarter of 2019 reflects an estimated after tax charge of $14.3 million ($1.15 per share) to terminate Richmond Mutual Bancorporation's participation in a multiemployer defined benefit pension plan or the DB Plan which resulted in a $19.3 million reduction in revenue and pre-tax earnings in the quarter.
Richmond Mutual Bancorporation net loss for the year ended December 31, 2019 was $14.1 million compared to net income of $5.7 million in 2018.
Richmond Mutual Bancorporation net income for the year ended December 31, 2019 was affected by the estimated after tax charge associated with the termination of the DB Plan mentioned above, an after tax charge of $4.9 million associated with the Company's contribution to the First Bank Richmond, Inc.
Community Foundation which was formed in connection with our reorganization and stock offering completed on July 1, 2019, and an after tax charge of $1.3 million related to the adoption of a nonqualified deferred compensation plan in the second quarter of 2019.
Richmond Mutual Bancorporation net income for the fourth quarter of 2019, excluding the one time expenses associated with the DB Plan, was $1.8 million, or $0.14 per diluted share, a 19.0% increase over net income for fourth quarter of 2018.
Richmond Mutual Bancorporation net income for the full year 2019, excluding the one-time charges associated with the DB Plan, the contribution to the Foundation, and the nonqualified deferred compensation plan, was $6.4 million, a 12.3% increase over net income for 2018.
Management believes it is appropriate to eliminate these one-time charges as they are not reflective of the Company's ongoing operations and that the presentation of these adjusted financial measures are more meaningful to investors in evaluating the financial results of Richmond Mutual Bancorporation.
Effective July 1, 2019, Richmond Mutual Bancorporation completed its initial public offering in connection with the reorganization from a mutual to a stock holding company form of organization.
Richmond Mutual Bancorporation sold 13,026,625 shares of common stock at $10.00 per share, for gross offering proceeds of approximately $130.3 million and contributed 500,000 shares and $1.25 million cash to the Foundation. ■