Richmond Mutual Bancorporation, Inc.

What they do

The company operates through one significant business segment: community banking, conducted primarily through its subsidiary First Bank Richmond (now operating as First Bank Midwest). It attracts deposits from the general public and brokered deposits, and invests funds in loans secured by commercial and multi-family real estate, first mortgages on one- to four-family residences, consumer loans, direct financing leases, and commercial and industrial loans. It also invests in mortgage-backed securities, agency and municipal bonds, and uses Federal Home Loan Bank advances for funding. The bank serves customers in Indiana (Wayne and Shelby Counties) and Ohio (Shelby, Miami, and Franklin Counties) through 7 full-service and 1 limited-service offices in Indiana, and 6 full-service offices in Ohio.

Revenue drivers

• Net interest income — Primary revenue source from the spread between interest earned on loans and securities and interest paid on deposits and borrowings. Net interest income was $12.1 million in Q2 2026, up 12.2% from the prior-year quarter, with net interest margin expanding to 3.22%.
• Noninterest income — Includes fees from deposit services, trust and wealth management, and other banking activities. Noninterest income was $1.6 million in Q2 2026, up 21.7% from the prior quarter.
• Loan portfolio — Commercial and multi-family real estate loans, residential mortgages, consumer loans, and commercial and industrial loans. Loan growth was solid in Q2 2026, contributing to higher net interest income.

Recent performance

For Q2 2026, the company reported net income of $2.2 million, or $0.22 diluted EPS, compared to $2.8 million in Q1 2026 and $2.6 million in Q2 2025. The decrease was primarily due to $1.9 million of non-recurring merger-related expenses and a higher provision for credit losses, partially offset by higher net interest income and noninterest income. Annual net income was $11.6 million in 2025, down from $9.4 million in 2024, with diluted EPS of $1.17 in 2025. Operating cash flow was $16.0 million in 2025, and dividends per share were $0.60.

Strategy

The company completed its merger with The Farmers Bancorp on July 1, 2026, which expands its market presence and scale; the combined bank operates as First Bank Midwest, headquartered in Frankfort, Indiana. Management emphasizes successful integration of the merger and realizing long-term benefits. They also focus on core operating performance, including loan growth, net interest margin expansion, and improved funding costs. The company maintains a strong capital position and remains committed to community banking in its primary markets.

Risks

• Merger integration risk — The integration of Farmers Bancorp may not achieve expected synergies or could disrupt operations, customer relationships, or employee retention.
• Credit risk — Adverse economic conditions in local markets (Indiana and Ohio) could increase loan delinquencies and credit losses, requiring higher provisions.
• Interest rate risk — Changes in interest rates could compress net interest margin or reduce loan originations and the fair value of financial instruments.
• Regulatory risk — As a state-chartered bank, the company is subject to examination and potential regulatory actions that could require increased credit loss allowances or affect capital.

Outlook

Management expects the merger with Farmers Bancorp to create a stronger community banking franchise with greater scale and enhanced opportunities. They plan to integrate the organizations seamlessly and position the combined company to realize long-term strategic benefits. Financial results for the quarter ended September 30, 2026 will first include Farmers Bancorp's operations. The company aims to continue improving core operating performance, including net interest income and margin.