RMBI

RICHMOND, Ind., July 27, 2026 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ: RMBI), parent company of First Bank Richmond, today reported net income of $2.2 million, or diluted earnings per share of $0.22, for the second quarter of 2026. This compares to net income of $2.8 million, or $0.28 diluted earnings per share, for the first quarter of 2026, and net income of $2.6 million, or diluted earnings per share of $0.26, for the second quarter of 2025. The decrease in net income and diluted earnings per share from the first quarter of 2026 was primarily due to higher noninterest expense, reflecting $1.9 million of non-recurring merger-related expenses associated with the Company's acquisition of The Farmers Bancorp, Frankfort, Indiana ("Farmers Bancorp"), as well as a higher provision for credit losses. These items were partially offset by higher net interest income resulting from an expanded net interest margin and increased average loan balances, as well as higher noninterest income. Compared to the second quarter of 2025, net income decreased primarily as a result of merger-related expenses and a higher provision for credit losses, partially offset by higher net interest income driven by an expanded net interest margin and increased average interest-earning assets, together with higher noninterest income. On July 1, 2026, the Company completed its previously announced merger with Farmers Bancorp pursuant to the Agreement and Plan of Merger dated November 11, 2025. Immediately thereafter, The Farmers Bank merged with and into First Bank Richmond. The combined company continues to operate as Richmond Mutual Bancorporation, Inc., while the combined bank is operating under the name First Bank Midwest. The combined company continues to trade on the Nasdaq Capital Market under the ticker symbol "RMBI." The administrative headquarters of the holding company remains in Richmond, Indiana, while the combined bank is headquartered in Frankfort, Indiana. The financial results presented in this earnings release reflect the Company's operations through June 30, 2026, immediately prior to the completion of the merger. Accordingly, the operating results of Farmers Bancorp will first be included in the Company's financial results for the quarter ending September 30, 2026. CEO's and President's Message Garry Kleer, Chairman and Chief Executive Officer, commented, "Our second quarter results reflected continued improvement in our core operating performance, highlighted by growth in net interest income and expansion of our net interest margin compared to both the prior quarter and the second quarter of last year. Loan growth remained solid, funding costs continued to improve, and our capital position remained strong. While earnings were impacted by a higher provision for credit losses and merger-related expenses during the quarter, we believe the Company entered this next phase from a position of financial strength. "The successful completion of our merger with Farmers Bancorp marks an important milestone in our Company's history. The combination creates a stronger community banking franchise with greater scale, an expanded market presence and enhanced opportunities to serve our customers and communities. I am pleased to welcome Christopher Cook as our President, along with our new colleagues from Farmers Bancorp, and I look forward to working together as we integrate our organizations and execute on the strategic opportunities this combination creates," concluded Kleer. Christopher Cook, President stated, "I am honored to join Richmond Mutual at such an exciting time. Our immediate priority is a successful integration that is seamless for our customers, employees and communities, while positioning the combined organization to realize the long-term benefits of this merger. I look forward to working alongside Garry and our entire team as we build on the strong foundation established by both organizations." Second Quarter Performance Highlights: Net interest income increased by $628,000, or 5.5%, to $12.1 million for the three months ended June 30, 2026, from to $11.4 million for the quarter ended March 31, 2026. Net interest income increased by $1.3 million, or 12.2%, from $10.8 million for the comparable quarter in 2025. Annualized net interest margin was 3.22% for the current quarter, compared to 3.10% in the prior quarter and 2.93% for the comparable quarter in 2025. A provision for credit losses of $823,000 was recorded for the quarter ended June 30, 2026, compared to $693,000 and $745,000 for the quarters ended March 31, 2026 and June 30, 2025, respectively. Noninterest income increased $282,000, or 21.7%, to $1.6 million for the three months ended June 30, 2026, compared to $1.3 million for the quarter ended March 31, 2026, and increased $500,000, or 46.3%, from $1.1 million for the comparable quarter in 2025. Noninterest expense increased $1.5 million, or 16.8%, to $10.2 million for the three months ended June 30, 2026, compared to $8.7 million for the quarter ended March 31, 2026, and increased $2.1 million, or 25.4%, from $8.1 million for the comparable quarter in 2025. The increase in noninterest expense was primarily attributable to $1.9 million of nonrecurring merger-related expenses recorded during the second quarter of 2026, consisting primarily of professional fees and other transaction-related costs. Assets totaled $1.6 billion at June 30, 2026, compared to $1.5 billion at March 31, 2026 and December 31, 2025. Loans and leases, net of allowance for credit losses, totaled $1.2 billion at June 30, 2026, March 31, 2026, and December 31, 2025. Nonperforming loans and leases totaled $21.8 million, or 1.78% of total loans and leases, at June 30, 2026, compared to $17.6 million, or 1.48%, at March 31, 2026, and $17.4 million, or 1.46%, at December 31, 2025. The allowance for credit losses totaled $17.0 million, or 1.39% of total loans and leases outstanding, at June 30, 2026, compared to $16.7 million, or 1.41%, at March 31, 2026, and $16.5 million, or 1.38%, at December 31, 2025. Deposits totaled $1.1 billion at June 30, 2026, March 31, 2026, and December 31, 2025. At June 30, 2026, noninterest-bearing deposits totaled $100.1 million, or 8.7% of total deposits, compared to $99.4 million, or 9.0%, at March 31, 2026, and $100.1 million, or 9.0%, at December 31, 2025. Stockholders' equity totaled $148.3 million at June 30, 2026, compared to $144.9 million at March 31, 2026, and $145.8 million at December 31, 2025. The Company's equity to assets ratio was 9.55% at June 30, 2026. Book value per share and tangible book value per share were each $14.11 at June 30, 2026, compared to $13.80 at March 31, 2026 and $13.88 per share at December 31, 2025. The Bank's Tier 1 capital to total assets was 10.90% at June 30, 2026, well in excess of regulatory requirements, reflecting the Company's strong capital position. Income Statement Summary Net interest income before the provision for credit losses increased $628,000, or 5.5%, to $12.1 million in the second quarter of 2026, compared to $11.4 million in the first quarter of 2026, and increased $1.3 million, or 12.2%, from $10.8 million in the second quarter of 2025. The increase from the first quarter of 2026 was due to an increase in the average interest rate spread of 13 basis points, partially offset by a $3.0 million decrease in average net earning assets. Compared to the second quarter of 2025, the increase in net interest income was due to a 32 basis point increase in the average interest rate spread and a $9.4 million increase in average net earning assets. Interest income increased $736,000, or 3.5%, to $21.9 million during the quarter ended June 30, 2026, compared to $21.2 million during the quarter ended March 31, 2026, and increased $552,000, or 2.6%, compared to $21.3 million during the quarter ended June 30, 2025, primarily due to higher interest income on loans and leases resulting from loan growth and higher yields. Interest income on loans and leases increased $679,000, or 3.6%, to $19.8 million for the quarter ended June 30, 2026, compared to $19.1 million in the first quarter of 2026, due to a nine basis point increase in the average yield earned on loans and leases to 6.55%, and a $24.7 million increase in the average balance of loans and leases. Compared to the second quarter of 2025, interest income on loans and leases increased $607,000, or 3.2%, due to a $29.8 million increase in the average balance of loans and leases and a four basis point increase in the average yield earned, reflecting new loans originated at higher rates and variable-rate loans repricing. Interest income on investment securities, excluding FHLB stock, decreased $2,000, or 0.1%, to $1.6 million during the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026, and decreased $31,000, or 1.9%, from the comparable quarter in 2025. The decrease compared to the first quarter of 2026 was due to a $6.1 million decrease in the average balance of investment securities, partially offset by a six basis point increase in the average yield earned. The decrease compared to the second quarter of 2025 was primarily due to a $1.1 million decrease in the average balance of investment securities, and a four basis point decrease in the average yield earned on investment securities. Dividends on FHLB stock increased $10,000, or 3.4%, to $301,000 during the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026, due to a 29 basis point increase in the average yield on FHLB stock, and decreased $8,000, or 2.6%, compared to the quarter ended June 30, 2025, due to a 23 basis point decrease in the average yield on FHLB stock. Interest income on cash and cash equivalents increased $50,000, or 28.1%, to $228,000 during the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026, and decreased $15,000, or 6.2%, compared to the quarter ended June 30, 2025. The increase from the first quarter of 2026 was primarily due to a $4.4 million increase in the average balance of cash and cash equivalents and a 20 basis point increase in the average yield. Compared to the second quarter of 2025, the decrease in interest income was due to a 40 basis point decrease in the average yield, partially offset by a $1.1 million increase in the average balance of cash and cash equivalents. Interest expense increased $109,000, or 1.1%, to $9.8 million for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026, and decreased $762,000, or 7.2%, compared to the quarter ended June 30, 2025. Interest expense on deposits decreased $85,000, or 1.2%, to $7.2 million for the quarter ended June 30, 2026, compared to the previous quarter and decreased $599,000, or 7.7%, from the comparable quarter in 2025. The decrease from the previous quarter was primarily due to a seven basis point decrease in the average rate paid on interest-bearing deposits. The decrease from the comparable quarter in 2025 was due to a 32 basis point decrease in the average rate paid on interest-bearing deposits, partially offset by a $28.8 million increase in the average balance of interest-bearing deposits. The average rate paid on interest-bearing deposits was 2.82%, 2.89%, and 3.14% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Interest expense on FHLB borrowings increased $194,000, or 8.0%, to $2.6 million for the second quarter of 2026 compared to the previous quarter, and decreased $163,000, or 5.9%, from the comparable quarter in 2025. The increase from the previous quarter was primarily due to an 11 basis point increase in the average rate paid on FHLB borrowings and a $12.5 million increase in the average balance. The decrease from the comparable quarter in 2025 was primarily due to an $8.5 million decrease in the average balance and a 12 basis point decrease in the average rate paid on FHLB borrowings. The average balance of FHLB borrowings totaled $253.6 million during the quarter ended June 30, 2026, compared to $241.1 million and $262.1 million for the quarters ended March 31, 2026, and June 30, 2025, respectively. The average rate paid on FHLB borrowings was 4.12% for the quarter ended June 30, 2026, compared to 4.01% for the quarter ended March 31, 2026, and 4.24% for the second quarter of 2025. Annualized net interest margin was 3.22% for the second quarter of 2026, compared to 3.10% for the first quarter of 2026 and 2.93% for the second quarter of 2025. The increase in net interest margin from the first quarter of 2026 primarily reflected a higher average balance of interest-earning assets, continued improvement in funding costs, and a favorable change in the interest rate spread. The improvement compared to the second quarter of 2025 was driven by a higher average yield on loans and leases, and lower funding costs. The Federal Open Market Committee maintained the target federal funds rate range at 3.50% to 3.75% through the second quarter of 2026 following rate reductions implemented in late 2025. A provision for credit losses of $823,000 was recorded in the second quarter of 2026, compared to $693,000 in the first quarter of 2026 and $745,000 in the second quarter of 2025. Net charge-offs for the second quarter of 2026 were $557,000, compared to $347,000 in the first quarter of 2026 and $626,000 in the second quarter of 2025. Noninterest income increased $282,000, or 21.8%, to $1.6 million for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026, and increased $500,000, or 46.3%, from the comparable quarter in 2025. The increase from the first quarter of 2026 primarily resulted from an increase in other income, primarily due to increased wealth management income. Compared to the second quarter of 2025, the increase in noninterest income primarily resulted from net losses on sales of securities totaling $157,000 in the second quarter of 2025, while no securities were sold during the second quarter of 2026, and other income. Other income increased $243,000, or 62.0%, to $635,000 for the three months ended June 30, 2026, compared to the first quarter of 2026, and increased $281,000, or 79.5%, compared to the same period in 2025 as a result of increased estate fees included in wealth management income. Total noninterest expense increased $1.5 million, or 16.8%, to $10.2 million for the three months ended June 30, 2026, compared to the first quarter of 2026, and increased $2.1 million, or 25.4%, compared to the same period in 2025. The increase in both comparisons was primarily attributable to $1.9 million of nonrecurring merger-related expenses recorded in the current quarter, consisting primarily of professional fees and other transaction-related costs. Salaries and employee benefits increased $163,000, or 3.6%, to $4.7 million for the quarter ended June 30, 2026, compared to the first quarter of 2026, and decreased $41,000, or 0.9%, compared to the quarter ended June 30, 2025, reflecting normal annual salary and benefit increases. Data processing fees decreased $91,000, or 7.6%, to $1.1 million for the quarter ended June 30, 2026, compared to the prior quarter, and increased $175,000, or 18.9%, compared to the same quarter of 2025, primarily due to new product implementations. Income tax expense decreased $126,000 during the three months ended June 30, 2026, compared to the quarter ended March 31, 2026, and increased $54,000 compared to the quarter ended June 30, 2025. The effective tax rate for the second quarter of 2026 was 16.4%, compared to 16.8% in the first quarter of 2026 and 12.8% in the second quarter a year ago. Balance Sheet Summary Total assets increased $26.2 million, or 1.7%, to $1.6 billion at June 30, 2026, as compared to December 31, 2025. The increase was primarily the result of a $31.0 million, or 2.6%, increase in loans and leases, net of allowance for credit losses to $1.2 billion, partially offset by a $7.0 million, or 2.8%, decrease in investment securities to $247.6 million. Investment securities decreased $7.0 million, or 2.8%, to $247.6 million at June 30, 2026, compared to $254.7 million at December 31, 2025. The decrease was primarily due to $7.4 million in maturities and principal repayments, partially offset by $955,000 in purchases of investment securities. The proceeds from maturities and principal repayments were redeployed to support loan growth. While these portfolio shifts contributed to a decline in average balances and interest income from investment securities, they supported overall growth in net interest income and an improved net interest margin for the quarter. The increase in loans and leases was attributable to increases in commercial mortgage loans, commercial and industrial loans, construction and development loans, and home equity lines of credit of $4.8 million, $15.6 million, $14.5 million, and $2.3 million, respectively. These increases were partially offset by a $1.1 million decrease in multi-family loans, a $1.0 million decrease in residential mortgage loans, a $1.3 million decrease in consumer loans, and a $2.2 million decrease in direct financing leases. Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases 90 days or more past due, totaled $21.8 million, or 1.78% of total loans and leases, at June 30, 2026, compared to $17.4 million, or 1.46%, at December 31, 2025. Nonaccrual loans and leases increased $6.9 million, or 52.2%, to $20.0 million at June 30, 2026, from $13.2 million at December 31, 2025, primarily due to a multi-family loan of $2.4 million, which was past due 90 days or more at December 31, 2025, and a multi-family loan of $3.5 million, which was current but placed on nonaccrual status as of June 30, 2026 due to a troubled loan modification. The allowance for credit losses on loans and leases increased $508,000, or 3.1%, to $17.0 million, or 1.39% of total loans and leases, at June 30, 2026, from $16.5 million, or 1.38% of total loans and leases, at December 31, 2025. The allowance for credit losses provided coverage of 77.9% of nonperforming loans and leases at June 30, 2026, compared to 94.6% at December 31, 2025, primarily due to the increase in nonperforming loans during the period. Net charge-offs during the first half of 2026 were $904,000, or an annualized 0.18% of average loans and leases, compared to $1.0 million during the comparable period of 2025, as realized credit losses remained low. Management regularly evaluates credit exposure across its loan portfolio and within its geographic markets. As of June 30, 2026, the Company's credit risk assessment incorporated ongoing economic conditions, including inflationary pressures, capital market volatility, and geopolitical risks. Management continues to conduct portfolio stress testing and monitor credit metrics and believes the allowance for credit losses is appropriate based on the current composition of the loan and lease portfolio, the level of individually evaluated reserves, and the continued low level of net charge-offs. Total deposits increased $31.8 million, or 2.8%, to $1.1 billion at June 30, 2026, compared to December 31, 2025. The increase in deposits from December 31, 2025 was primarily due to increases in brokered time deposits of $28.3 million and savings and money market accounts of $11.0 million, partially offset by a decrease in retail (non-brokered) time deposits of $17.8 million. Brokered time deposits totaled $264.3 million, or 23.0% of total deposits, at June 30, 2026, compared to $235.9 million, or 21.2% of total deposits at December 31, 2025. Noninterest-bearing demand deposits totaled $100.1 million at both June 30, 2026 and December 31, 2025, and were 8.7% and 9.0% of total deposits at June 30, 2026 and December 31, 2025, respectively. Borrowings decreased $8.0 million, or 3.2%, to $244.0 million at June 30, 2026, compared to $252.0 million at December 31, 2025, reflecting decreases in other borrowings, partially offset by a $4.0 million increase in FHLB advances. Stockholders' equity totaled $148.3 million at June 30, 2026, an increase of $2.5 million, or 1.7%, from December 31, 2025. The increase in stockholders' equity was primarily attributable to net income of $5.0 million, partially offset by $2.9 million in dividends paid to Company stockholders. About Richmond Mutual Bancorporation, Inc. Richmond Mutual Bancorporation, Inc., headquartered in Richmond, Indiana, is the holding company for First Bank Midwest, a community-oriented financial institution offering traditional financial and trust services within its local communities through its branch locations in Cambridge City, Centerville, Fishers, Frankfort, Kirklin, Lebanon, Michigantown, Mulberry, Noblesville, Richmond, Rossville, Shelbyville, Sheridan, Tipton, and Westfield, Indiana, and its locations in Columbus, Sidney, Piqua, and Troy, Ohio. FORWARD-LOOKING STATEMENTS: 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. 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. 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: adverse economic conditions in the Company's local market areas or other markets where the Company has lending relationships; employment levels, labor shortages, and the effects of persistent inflation, recessionary pressures, or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect the Company's revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment; legislative changes; changes in policies by regulatory agencies; 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 credit losses on loans and leases; the Company's ability to access cost-effective funding, including maintaining the confidence of depositors; fluctuations in real estate values and both residential and commercial real estate market conditions; competitive pressures among depository institutions, including repricing and competitors' pricing initiatives, and their impact on the Company's market position, loan, and deposit products; changes in management's business strategies, including expectations regarding key growth initiatives and strategic priorities; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking platforms, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information technology systems or third-party service providers, including disruptions, breaches, or attacks; geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, South America, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest, and other external events on the Company's business; and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission that are available on our website at www.firstbankrichmond.com and on the SEC's website at www.sec.gov. In addition, statements about the potential effects of the Company's completed merger with Farmers Bancorp on the Company's business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond the Company's control, including the following: the potential that anticipated cost savings, synergies, or revenue enhancements from the merger may not be realized or may take longer to achieve than expected; the ability to successfully integrate the operations, systems, personnel, and technologies of the combined company; disruption to customer, employee, or vendor relationships, including key community relationships; diversion of management's attention from ongoing operations and strategic initiatives as a result of integration activities; lower-than-expected revenues or profitability following the merger; and higher-than expected transaction or integration costs; as well as other factors detailed in the Company's filings with the SEC. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and expressly disclaims 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 except as required by law. The following table summarizes information relating to the Company's loan and lease portfolio at the dates indicated: The following table summarizes information relating to the Company's deposits at the dates indicated: 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. View original content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2026-second-quarter-financial-results-302835676.html

RICHMOND, Ind., April 23, 2026 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ: RMBI), parent company of First Bank Richmond, today reported net income of $2.8 million, or $0.28 diluted earnings per share, for the first quarter of 2026. This compares to net income of $3.4 million, or $0.35 diluted earnings per share, for the fourth quarter of 2025, and net income of $2.0 million, or $0.20 diluted earnings per share, for the first quarter of 2025. The decrease in net income and diluted earnings per share from the fourth quarter of 2025 primarily reflects a higher provision for credit losses, a slight decline in net interest income due to two fewer calendar days in the quarter, lower noninterest income, and higher noninterest expense. The increase in net income and diluted earnings per share for the first quarter of 2026 compared to the same quarter of 2025 was primarily driven by higher net interest income resulting from an expanded net interest margin, reflecting higher asset yields and lower funding costs, as well as an increase in noninterest income, partially offset by higher noninterest expense. Proposed Merger with The Farmers Bancorp, Frankfort, Indiana On November 11, 2025, the Company entered into an Agreement and Plan of Merger (the "merger agreement") with Farmers Bancorp, pursuant to which Farmers Bancorp will merge with and into the Company, with the Company as the surviving corporation (the "merger"). Immediately following the merger, The Farmers Bank will merge with and into First Bank Richmond, with First Bank Richmond as the surviving institution. The transaction has been approved by the boards of directors of both companies, and all required regulatory approvals have been received. A special meeting of Farmers Bancorp shareholders to approve the merger agreement and related transactions is scheduled for May 26, 2026. The Company will seek shareholder approval of the issuance of its shares in the transaction at its annual meeting of shareholders to be held on May 27, 2026. The transaction is expected to be completed during the second quarter of 2026, subject to shareholder approvals and the satisfaction of customary closing conditions. Under the terms of the merger agreement, holders of Farmers Bancorp common stock will receive 3.40 shares of Company common stock for each share of Farmers Bancorp common stock. The total value of the transaction will fluctuate based on the Company's stock price prior to closing. Upon completion of the transaction, Farmers Bancorp shareholders are expected to own approximately 38% of the Company. The combined company will continue to trade on the Nasdaq Capital Market under the ticker symbol "RMBI." The holding company will operate under the name "Richmond Mutual Bancorporation, Inc.," and the combined bank will operate under a new name to be jointly determined by the parties prior to closing. The administrative headquarters of the combined company will be located in Richmond, Indiana, and the administrative headquarters of the combined bank will be located in Frankfort, Indiana. President's Message Garry Kleer, Chairman, President, and Chief Executive Officer, commented, "We had a solid quarter relative to a year ago, with earnings per share up 41% from the first quarter of 2025, driven by meaningful improvement in our net interest margin. Compared to the fourth quarter, earnings were lower, reflecting a higher provision for credit losses, modest declines in net interest income and noninterest income, and higher noninterest expense. We saw an increase in nonaccrual loans during the quarter, which we are monitoring closely and working through on a case-by-case basis. Our capital remains strong, charge-offs continue to be low, and we remain committed to the businesses and families in the communities we have served for the last 139 years. As we look ahead, we are focused on disciplined credit management and maintaining a strong, well-positioned balance sheet." Mr. Kleer concluded, "We also recently announced our proposed merger with Farmers Bancorp, a transaction we believe will enhance our scale, broaden our market presence, and strengthen our ability to serve customers across our combined footprint while preserving our community banking culture. We have received all required regulatory approvals, and shareholder voting is scheduled for later this quarter. As we move toward closing, we are focused on thoughtful execution and disciplined integration planning. As we move through the conversion and integration process, we expect some variability in reported earnings due to timing of expenses and realization of cost savings. We anticipate these impacts to normalize as integration activities are completed and synergies are fully realized." First Quarter Performance Highlights: Net interest income decreased $88,000, or 0.8%, to $11.4 million for the three months ended March 31, 2026, compared to $11.5 million for the quarter ended December 31, 2025, and increased $1.2 million, or 11.6%, from $10.3 million for the comparable quarter in 2025. Net income was negatively impacted in the current quarter by nonrecurring expenses of $188,000, $263,000, and $150,000 related to core processor implementation fees, fraud losses, and real estate taxes paid on a nonaccrual loan, respectively. Annualized net interest margin was 3.10% for the current quarter, compared to 3.11% in the preceding quarter and 2.79% for the comparable quarter in 2025. A provision for credit losses of $693,000 was recorded for the quarter ended March 31, 2026, compared to $409,000 for the quarter ended December 31, 2025. Assets totaled $1.5 billion at both March 31, 2026 and December 31, 2025. Loans and leases, net of allowance for credit losses, totaled $1.2 billion at both March 31, 2026 and December 31, 2025. Nonperforming loans and leases totaled $17.6 million, or 1.48% of total loans and leases, at March 31, 2026, compared to $17.4 million, or 1.46%, at December 31, 2025. The allowance for credit losses totaled $16.7 million, or 1.41% of total loans and leases outstanding, at March 31, 2026, compared to $16.5 million, or 1.38%, at December 31, 2025. Deposits totaled $1.1 billion at both March 31, 2026 and December 31, 2025. At March 31, 2026, noninterest-bearing deposits totaled $99.4 million, or 9.0% of total deposits, compared to $100.1 million, or 9.0%, at December 31, 2025. Stockholders' equity totaled $144.9 million at March 31, 2026, compared to $145.8 million at December 31, 2025. The Company's equity to assets ratio was 9.54% at March 31, 2026. Book value per share and tangible book value per share were $13.80 at March 31, 2026, compared to $13.88 per share at December 31, 2025. The Bank's Tier 1 capital to total assets was 11.10% at March 31, 2026, well in excess of regulatory requirements, reflecting the Company's strong capital position. Income Statement Summary Net interest income before the provision for credit losses decreased $88,000, or 0.8%, to $11.4 million in the first quarter of 2026, compared to $11.5 million in the fourth quarter of 2025, and increased $1.2 million, or 11.6%, from $10.3 million in the first quarter of 2025. The decrease from the fourth quarter of 2025 was due to a $2.4 million decrease in average net earning assets, partially offset by an increase in the average interest rate spread of three basis points. Compared to the first quarter of 2025, the increase in net interest income was due to a 32 basis point increase in the average interest rate spread and a $16.0 million increase in average net earning assets. Interest income decreased $718,000, or 3.3%, to $21.2 million during the quarter ended March 31, 2026, compared to $21.9 million during the quarter ended December 31, 2025, and increased $294,000, or 1.4%, compared to $20.9 million during the quarter ended March 31, 2025. Interest income on loans and leases decreased $640,000, or 3.2%, to $19.1 million for the quarter ended March 31, 2026 compared to $19.8 million in the fourth quarter of 2025, due to an 18 basis point decrease in the average yield earned on loans and leases to 6.46%, and a $7.1 million decrease in the average balance of loans and leases. Compared to the first quarter of 2025, interest income on loans and leases increased $337,000, or 1.8%, due to a $2.5 million increase in the average balance of loans and leases and a 10 basis point increase in the average yield earned, reflecting new loans originated at higher rates and variable-rate loans repricing in the higher interest rate environment. Interest income on investment securities, excluding FHLB stock, decreased $5,000, or 0.3%, to $1.6 million during the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025, and decreased $70,000, or 4.2%, from the comparable quarter in 2025. The decrease compared to the fourth quarter of 2025 was due to a three basis point decrease in the average yield earned, partially offset by a $1.3 million increase in the average balance of investment securities. The decrease compared to the first quarter of 2025 was primarily due to a $5.3 million decrease in the average balance of investment securities, as proceeds from maturing and sold investment securities were used to fund loan growth, and a six basis point decrease in the average yield earned on investment securities. Dividends on FHLB stock decreased $11,000, or 3.6%, to $291,000 during the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025, due to a 32 basis point decrease in the average yield on FHLB stock, and decreased $20,000, or 6.4%, compared to the quarter ended March 31, 2025, due to a 58 basis point decrease in the average yield on FHLB stock. Interest income on cash and cash equivalents decreased $63,000, or 26.0%, to $178,000 during the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025, and increased $47,000, or 35.9%, compared to the quarter ended March 31, 2025. The decrease from the fourth quarter of 2025 was primarily due to a $5.2 million decrease in the average balance of cash and cash equivalents and a 29 basis point decrease in the average yield. Compared to the first quarter of 2025, the increase in interest income was due to a $6.7 million increase in the average balance of cash and cash equivalents, partially offset by a 29 basis point decrease in the average yield. Interest expense decreased $630,000 or 6.1%, to $9.7 million for the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025, and decreased $894,000, or 8.4%, compared to the quarter ended March 31, 2025. Interest expense on deposits decreased $536,000, or 6.8%, to $7.3 million for the quarter ended March 31, 2026, compared to the previous quarter and decreased $546,000, or 7.0%, from the comparable quarter in 2025. The decrease from the previous quarter was primarily due to a $3.7 million decrease in the average balance of interest-bearing deposits, primarily savings and money market accounts, and a 20 basis point decrease in the average rate paid. The decrease from the comparable quarter in 2025 was due to a 28 basis point decrease in the average rate paid on interest-bearing deposits, partially offset by a $21.4 million increase in the average balance. The average rate paid on interest-bearing deposits was 2.89%, 3.09%, and 3.17% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Interest expense on FHLB borrowings decreased $94,000, or 3.7%, to $2.4 million for the first quarter of 2026 compared to the previous quarter, and decreased $348,000, or 12.6%, from the comparable quarter in 2025. The decrease from the previous quarter was primarily due to a seven basis point decrease in the average rate paid on FHLB borrowings, and a $4.9 million decrease in the average balance. The decrease from the comparable quarter in 2025 was primarily due to a $33.6 million decrease in the average balance and a two basis point decrease in the average rate paid on FHLB borrowings. The average balance of FHLB borrowings totaled $241.1 million during the quarter ended March 31, 2026, compared to $246.0 million and $274.7 million for the quarters ended December 31, 2025, and March 31, 2025, respectively. The average rate paid on FHLB borrowings was 4.01% for the quarter ended March 31, 2026, compared to 4.08% for the quarter ended December 31, 2025, and 4.03% for the first quarter of 2025. Annualized net interest margin was 3.10% for the first quarter of 2026, compared to 3.11% for the fourth quarter of 2025 and 2.79% for the first quarter of 2025. The slight decline from the fourth quarter of 2025 reflects a decrease in average interest-earning assets, which more than offset improvements in both asset yields and funding costs. The improvement compared to the first quarter of 2025 was driven by higher asset yields, particularly on loans and leases, and lower funding costs. The Federal Open Market Committee maintained the target range at 3.50% to 3.75% through the first quarter of 2026 following rate reductions implemented in late 2025. The relatively stable rate environment during the quarter contributed to modest declines in the cost of interest-bearing deposits and borrowings, while yields on earning assets decreased to a similar extent. A provision for credit losses of $693,000 was recorded in the first quarter of 2026, compared to $409,000 in the fourth quarter of 2025 and $731,000 in the first quarter of 2025. The increase in the provision from the prior quarter was primarily due to an increase in reserves placed on individually evaluated loans. Net charge-offs for the first quarter of 2026 were $347,000, compared to $369,000 in the fourth quarter of 2025 and $395,000 in the first quarter of 2025. Noninterest income decreased $224,000, or 14.7%, to $1.3 million for the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025, and increased $136,000, or 11.7%, from the comparable quarter in 2025. The decrease from the fourth quarter of 2025 primarily resulted from a decrease in loan and lease servicing fees of $175,000, or 65.2%, to $94,000 due to increased payoff fees on serviced loans received in the prior quarter. Card fee income also decreased $49,000, or 13.3%, to $317,000 for the quarter ended March 31, 2026, as compared to the prior quarter, reflecting lower transaction volume and usage resulting from seasonal fluctuations and contract income from our credit card provider recognized in the fourth quarter of 2025. Compared to the first quarter of 2025, the increase in noninterest income was largely attributable to higher net gains on loan and lease sales and other income. Net gains on loan and lease sales increased $78,000, or 82.0%, due to increased mortgage banking activity. Other income increased $32,000, or 8.8%, to $392,000 primarily as a result of increased wealth management income. Total noninterest expense increased $166,000, or 1.9%, to $8.7 million for the three months ended March 31, 2026, compared to the fourth quarter of 2025, and increased $331,000, or 4.0%, compared to the same period in 2025. Data processing fees increased $185,000, or 18.4%, to $1.2 million for the quarter ended March 31, 2026, compared to the prior quarter, and increased $290,000, or 32.2%, compared to the same quarter of 2025, primarily due to one-time core processor fees of $188,000 related to new product implementations. Other expenses decreased $198,000, or 13.2%, in the first quarter of 2026 compared to the prior quarter and increased $213,000, or 19.5%, compared to the same quarter of 2025. The current quarter included $263,000 in check fraud losses related to a single customer and $150,000 in real estate taxes paid on a nonaccrual loan, while the fourth quarter ended December 31, 2025 included $467,000 in nonrecurring merger-related expenses. Legal and professional fees increased $138,000, or 43.0%, from the fourth quarter of 2025, primarily as a result of merger-related costs, and decreased $72,000, or 13.6%, from the first quarter of 2025. Salaries and employee benefits were essentially unchanged at $4.6 million for the quarter ended March 31, 2026, compared to the fourth quarter of 2025, and decreased $148,000 compared to the quarter ended March 31, 2025, reflecting reduced equity compensation expense. Income tax expense decreased $138,000 during the three months ended March 31, 2026, compared to the quarter ended December 31, 2025, and increased $214,000 compared to the quarter ended March 31, 2025. The effective tax rate for the first quarter of 2026 was 16.8%, compared to 17.0% in the fourth quarter of 2025 and 15.0% in the first quarter a year ago. Balance Sheet Summary Total assets decreased $6.6 million, or 0.4%, to $1.5 billion at March 31, 2026, as compared to December 31, 2025. The decrease was primarily the result of a $6.8 million, or 2.7%, decrease in investment securities, to $247.9 million, and a $2.7 million, or 0.2%, decrease in loans and leases, net of allowance for credit losses, to $1.2 billion, partially offset by a $1.7 million, or 5.0%, increase in cash and cash equivalents to $34.8 million. Investment securities decreased $6.8 million, or 2.7%, to $247.9 million at March 31, 2026, compared to $254.7 million at December 31, 2025. The decrease was primarily due to $4.4 million in maturities and principal repayments and a $3.1 million downward mark-to-market adjustment on the available-for-sale investment portfolio, partially offset by $955,000 in purchases of investment securities. The proceeds from maturities and principal repayments were redeployed to support loan growth, consistent with the Company's strategy to prioritize higher-yielding assets in a moderating interest rate environment. While these portfolio shifts contributed to a decline in average balances and interest income from investment securities, they supported overall growth in net interest income and an improved net interest margin for the quarter. The decrease in loans and leases was attributable to decreases in residential mortgage, direct financing leases, and consumer loans of $4.8 million, $2.8 million and $1.1 million, respectively. These decreases were partially offset by a $2.7 million increase in commercial and industrial loans, and a $2.6 million increase in construction and development loans. Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases 90 days or more past due, totaled $17.6 million, or 1.48% of total loans and leases, at March 31, 2026, compared to $17.4 million, or 1.46%, at December 31, 2025. While total nonperforming loans were relatively stable, the composition shifted during the quarter: nonaccrual loans and leases increased $2.7 million, or 20.5%, to $15.9 million at March 31, 2026, from $13.2 million at December 31, 2025, primarily due to one multi-family loan of $2.4 million, which was past due 90 days or more at December 31, 2025. This increase was largely offset by a $2.5 million decrease in accruing loans and leases past due 90 days or more, which totaled $1.7 million at March 31, 2026, down from $4.2 million at December 31, 2025, as those credits were either resolved or moved to nonaccrual status. The allowance for credit losses on loans and leases increased $274,000, or 1.7%, to $16.7 million, or 1.41% of total loans and leases, at March 31, 2026, from $16.5 million, or 1.38% of total loans and leases, at December 31, 2025. The allowance for credit losses provided coverage of 95.0% of nonperforming loans and leases at March 31, 2026, compared to 94.6% at December 31, 2025. Net charge-offs during the first quarter of 2026 were $347,000, or an annualized 0.12% of average loans and leases, compared to $395,000 during the comparable quarter of 2025, reflecting continued low levels of realized credit losses. Management regularly evaluates credit exposure across its loan portfolio and within its geographic markets. As of March 31, 2026, the Company's credit risk assessment incorporated ongoing inflationary pressures, capital market volatility, and geopolitical risks. Portfolio stress testing and credit metric monitoring are conducted on an ongoing basis, and management believes the allowance for credit losses remains appropriate given the current composition of the loan and lease portfolio, the level of individually evaluated reserves, and the continued low level of net charge-offs. Total deposits decreased $8.5 million, or 0.8%, to $1.1 billion at March 31, 2026, compared to December 31, 2025. The decrease in deposits from December 31, 2025 primarily was due to decreases in retail (non-brokered) time deposits of $13.9 million, and savings and money market accounts of $3.1 million, partially offset by an increase in interest-bearing demand deposits of $8.6 million. Brokered time deposits totaled $236.5 million, or 21.4% of total deposits, at March 31, 2026, compared to $235.9 million, or 21.2% of total deposits at December 31, 2025. Noninterest-bearing demand deposits totaled $99.4 million at March 31, 2026, compared to $100.1 million at December 31, 2025, and were 9.0% of total deposits at March 31, 2026. Borrowings increased $4.0 million, or 1.6%, to $256.0 million at March 31, 2026, compared to $252.0 million at December 31, 2025, reflecting modest increases in FHLB advances. However, the average balance of FHLB borrowings decreased $4.9 million to $241.1 million during the first quarter of 2026 compared to the fourth quarter of 2025, as the Company continued to reduce its reliance on wholesale funding over the course of the quarter. Stockholders' equity totaled $144.9 million at March 31, 2026, a decrease of $871,000, or 0.6%, from December 31, 2025. The decrease in stockholders' equity primarily was the result of a $2.5 million increase in accumulated other comprehensive loss as a result of a reduction in fair values in the Company's available-for-sale investment portfolio, and the payment of $1.5 million in dividends to Company stockholders, partially offset by net income of $2.8 million About Richmond Mutual Bancorporation, Inc. 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, and its six locations in Sidney, Piqua, Troy, and Columbus, Ohio. FORWARD-LOOKING STATEMENTS: 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. 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. 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: adverse economic conditions in the Company's local market areas or other markets where the Company has lending relationships; employment levels, labor shortages, and the effects of persistent inflation, recessionary pressures, or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect the Company's revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment; legislative changes; changes in policies by regulatory agencies; 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 credit losses on loans and leases; the Company's ability to access cost-effective funding, including maintaining the confidence of depositors; fluctuations in real estate values and both residential and commercial real estate market conditions; competitive pressures among depository institutions, including repricing and competitors' pricing initiatives, and their impact on the Company's market position, loan, and deposit products; changes in management's business strategies, including expectations regarding key growth initiatives and strategic priorities; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking platforms, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information technology systems or third-party service providers, including disruptions, breaches, or attacks; geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, South America, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest, and other external events on the Company's business; and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission that are available on our website at www.firstbankrichmond.com and on the SEC's website at www.sec.gov. Further, statements about the potential effects of the Company's proposed merger with Farmers Bancorp on the Company's business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond the Company's control, including the following: events, changes, or circumstances that could give rise to the right of either party to terminate the merger agreement; the possibility that the merger may not be completed on the anticipated terms, within the expected timeframe, or at all; failure to obtain required regulatory or shareholder approvals, or the imposition of conditions that could adversely affect the combined company or expected benefits; challenges in meeting expectations regarding the timing, completion, accounting, and tax treatment of the merger; the potential that anticipated cost savings, synergies, or revenue enhancements may not be realized or may take longer to achieve; higher-than-expected transaction costs or unexpected events; dilution from the issuance of additional Company shares in connection with the merger; potential litigation or other legal proceedings related to the merger; restrictions during pendency of the transaction that may limit business opportunities or strategic initiatives; the ability to successfully integrate operations, systems, personnel, and technologies post-merger; disruption to customer, employee, or vendor relationships, including key community relationships; diversion of management's attention from ongoing operations and strategic initiatives; lower-than-expected revenues or profitability following the merger; changes in credit, capital markets, or economic, political, or regulatory conditions; and competition from banks and other financial service providers; as well as other factors detailed in the Company's filings with the SEC. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and expressly disclaims 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 except as required by law. The following table summarizes information relating to the Company's loan and lease portfolio at the dates indicated: The following table summarizes information relating to the Company's deposits at the dates indicated: 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. Additional Information About the Merger and Where to Find It This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval with respect to the proposed transaction. In connection with the proposed merger, a registration statement on Form S-4 was filed with the SEC and declared effective on April 3, 2026. The joint proxy statement of the Company and Farmers Bancorp and prospectus of the Company included therein has been mailed to shareholders of the Company and Farmers Bancorp in connection with their votes on the merger of Farmers Bancorp with and into the Company and the issuance of Company common stock in the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE JOINT PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS. Investors and security holders may obtain free copies of the registration statement on Form S-4 and the related joint proxy statement/prospectus, as well as other documents filed with the SEC by the Company, through the website maintained by the SEC at www.sec.gov. These documents can also be obtained free of charge by accessing the Company's website at www.firstbankrichmond.com under the tab "Investor Relations" and then under "SEC Filings." Alternatively, these documents can be obtained free of charge by writing Richmond Mutual at 31 North 9th Street, Richmond, Indiana 47374, Attn: Bradley Glover or by calling (765) 962-2581. Participants in the Solicitation The Company, Farmers Bancorp and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of the Company and Farmers Bancorp in connection with the proposed transaction. Information about the Company's and Farmers Bancorp's directors, executive officers, and other participants in the solicitation and their interests in the proposed transaction is included in the joint proxy statement/prospectus regarding the proposed transaction, which was filed with the SEC as a prospectus pursuant to Rule 424(b)(3) on April 15, 2026. Free copies of this document may be obtained as described above. View original content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2026-first-quarter-financial-results-302752283.html

RICHMOND, Ind., Jan. 22, 2026 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ: RMBI), parent company of First Bank Richmond, today reported net income of $3.4 million, or $0.35 diluted earnings per share, for the fourth quarter of 2025. This compares to net income of $3.6 million, or $0.36 diluted earnings per share, for the third quarter of 2025, and net income of $2.5 million, or $0.24 diluted earnings per share, for the fourth quarter of 2024. Diluted earnings per share decreased 2.8% compared to the prior quarter and increased 45.8% compared to the fourth quarter of 2024. Results for the quarter ended December 31, 2025, were negatively impacted by approximately $467,000, pre-tax, in acquisition-related expenses incurred in connection with the Company's previously announced merger with The Farmers Bancorp, Frankfort, Indiana ("Farmers Bancorp"), which reduced diluted earnings per share by approximately $0.04 for the quarter. The growth in net income and diluted earnings per share for the fourth quarter of 2025 compared to same quarter of 2024, was primarily driven by higher net interest income resulting from an expanded net interest margin, reflecting higher asset yields and lower funding costs. For the year ended December 31, 2025, net income totaled $11.6 million, or $1.17 per diluted earnings share, compared to $9.4 million, or $0.92 per diluted earnings share, for the prior year. The increase in net income and diluted earnings per share for the year ended December 31, 2025, was primarily due to higher net interest income, reflecting an expansion in the net interest margin driven by higher yields on interest-earning assets, particularly loans and leases, partially offset by changes in funding costs. Proposed Merger with The Farmers Bancorp, Frankfort, Indiana On November 11, 2025, the Company entered into an Agreement and Plan of Merger (the "merger agreement") with Farmers Bancorp. The merger agreement provides that, upon the terms and subject to the conditions set forth therein, Farmers Bancorp will merge with and into the Company, with the Company as the surviving corporation (the "merger"). Immediately after the merger, the Company intends to merge The Farmers Bank, a wholly owned subsidiary of Farmers Bancorp, with and into First Bank Richmond, a wholly owned subsidiary of the Company, with First Bank Richmond as the surviving institution. The transaction was approved and adopted by the Board of Directors of each company and is expected to be completed during the second quarter of 2026, subject to customary closing conditions, regulatory approval, and approval of the Company's and Farmers Bancorp's shareholders. Under the terms of the merger agreement, holders of Farmers Bancorp common stock will receive 3.40 shares of Company common stock for each share of Farmers Bancorp common stock. The aggregate consideration was valued at approximately $82 million, or $44.71 per share of Farmers Bancorp common stock, based on the closing price for the Company's common stock of $13.15 as of November 10, 2025. The total value of the transaction will fluctuate until closing based on the value of the Company's common stock price. Upon consummation of the transaction, the shareholders of Farmers Bancorp will own approximately 38% of the Company. The combined company will continue to trade on the Nasdaq Capital Market under the ticker symbol "RMBI." The holding company will operate under the name "Richmond Mutual Bancorporation, Inc.," while the combined bank will operate under a new name to be jointly determined by the parties prior to closing. The administrative headquarters of the combined company will be located in Richmond, Indiana, and the administrative headquarters of the combined bank will be located in Frankfort, Indiana. President's Message Garry Kleer, Chairman, President, and Chief Executive Officer, commented, "Our fourth quarter and full-year 2025 results reflect the continued strength of our core banking franchise, disciplined balance sheet management, and the dedication of our employees. Net income and earnings per share increased meaningfully compared to the prior year, driven primarily by higher net interest income resulting from an expanded net interest margin, as we benefited from higher asset yields and prudent management of funding costs." Mr. Kleer concluded, "During the quarter, we also announced our proposed merger with Farmers Bancorp, a transaction we believe will enhance our scale, broaden our market presence, create significant earnings per share growth, and strengthen our ability to serve customers across our combined footprint while preserving our community banking culture. As we work toward a successful closing, subject to regulatory and shareholder approvals, we remain focused on thoughtful execution and disciplined integration planning." Fourth Quarter Performance Highlights: Assets totaled $1.5 billion at December 31, 2025, September 30, 2025, and December 31, 2024. Loans and leases, net of allowance for credit losses, totaled $1.2 billion at December 31, 2025, September 30, 2025, and December 31, 2024. Nonperforming loans and leases totaled $17.4 million, or 1.46% of total loans and leases, at December 31, 2025, compared to $10.8 million, or 0.90%, at September 30, 2025, and $6.8 million, or 0.58%, at December 31, 2024. The allowance for credit losses totaled $16.5 million, or 1.38% of total loans and leases outstanding, at December 31, 2025, compared to $16.4 million, or 1.37%, at September 30, 2025, and $15.8 million, or 1.34%, at December 31, 2024. A provision for credit losses of $409,000 was recorded for the quarter ended December 31, 2025, compared to $269,000 for the quarter ended September 30, 2025, and $196,000 for the fourth quarter of 2024. Deposits totaled $1.1 billion at December 31, 2025, September 30, 2025, and December 31, 2024. At December 31, 2025, noninterest-bearing deposits totaled $100.1 million, or 9.0% of total deposits, compared to $110.8 million, or 9.9%, at September 30, 2025, and $110.1 million, or 10.1%, at December 31, 2024. Stockholders' equity totaled $145.8 million at December 31, 2025, compared to $140.0 million at September 30, 2025, and $132.9 million at December 31, 2024. The Company's equity to assets ratio was 9.55% at December 31, 2025. Book value per share and tangible book value per share were $13.88 at December 31, 2025, compared to $13.43 per share at September 30, 2025, and $12.29 per share at December 31, 2024. Net interest income increased $239,000, or 2.1%, to $11.5 million for the three months ended December 31, 2025, compared to $11.3 million for the quarter ended September 30, 2025, and increased $1.7 million, or 16.9%, from $9.9 million for the comparable quarter in 2024. The fourth quarter of 2025 included nonrecurring acquisition-related items that negatively impacted net income by approximately $467,000 on a pre-tax basis, $369,000 on an after-tax basis, and $0.04 per diluted earnings per share. Annualized net interest margin was 3.11% for the current quarter, compared to 3.07% in the preceding quarter and 2.70% for the comparable quarter in 2024. The Bank's Tier 1 capital to total assets was 10.95% at December 31, 2025, well in excess of regulatory requirements, reflecting the Company's strong capital position. Income Statement Summary Net interest income before the provision for credit losses increased $239,000, or 2.1%, to $11.5 million in the fourth quarter of 2025, compared to $11.3 million in the third quarter of 2025, and increased $1.7 million, or 16.9%, from $9.9 million in the fourth quarter of 2024. The increase from the third quarter of 2025 was due to a three basis point increase in the average interest rate spread and an $8.7 million increase in average net earning assets. Compared to the fourth quarter of 2024, the increase in net interest income was due to a 42 basis point increase in the average interest rate spread and a $10.0 million increase in average net earning assets. Following the peak of the federal funds rate in mid-2023, the Federal Open Market Committee maintained the target range at 4.25% to 4.50% through most of 2025, before three reductions totaling 1.00% during the last four months of the year. This relatively stable interest rate environment contributed to modest declines in the cost of interest-bearing deposits and borrowings, particularly for instruments with shorter durations or frequent repricing, while yields on earning assets remained steady or continued to adjust upward. This favorable repricing environment supported a wider net interest spread and an improvement in net interest margin to 3.11% in the fourth quarter of 2025, compared to 3.07% in the prior quarter and 2.70% a year earlier. Interest income increased $67,000, or 0.3%, to $21.9 million during the quarter ended December 31, 2025, compared to $21.8 million during the quarter ended September 30, 2025, and increased $1.2 million, or 5.9%, compared to $20.7 million during the quarter ended December 31, 2024. Interest income on loans and leases increased $74,000, or 0.4%, to $19.8 million for the quarter ended December 31, 2025 compared to $19.7 million in the third quarter of 2025, due to a one basis point increase in the average yield earned on loans and leases to 6.64%, and a $3.7 million increase in the average balance of loans and leases. Compared to the fourth quarter of 2024, interest income on loans and leases increased $1.3 million, or 7.0%, due to a $34.9 million increase in the average balance of loans and leases and a 25 basis point increase in the average yield earned, reflecting new loans originated at higher rates and variable-rate loans repricing in the higher interest rate environment. Interest income on investment securities, excluding FHLB stock, decreased $33,000, or 2.0%, to $1.6 million during the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, and decreased $54,000, or 3.3%, from the comparable quarter in 2024. The decrease compared to the third quarter of 2025 was due to a 10 basis point decrease in the average yield earned, partially offset by a $5.6 million increase in the average balance of investment securities. The decrease compared to the fourth quarter of 2024 was primarily due to an $11.8 million decrease in the average balance of investment securities, as proceeds from maturing and sold investment securities were used to fund loan growth, partially offset by a three basis point increase in the average yield earned on investment securities. Dividends on FHLB stock decreased $12,000, or 3.8%, to $302,000 during the quarter ended December 31, 2025 compared to the quarter ended September 30, 2025, due to a 34 basis point decrease in the average yield on FHLB stock, and increased $18,000, or 6.3%, compared to the quarter ended December 31, 2024, due to a 52 basis point increase in the average yield on FHLB stock. Interest income on cash and cash equivalents increased $38,000, or 18.5%, to $241,000 during the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, and decreased $41,000, or 14.4%, compared to the quarter ended December 31, 2024. The increase from the third quarter of 2025 was primarily due to a $5.1 million increase in the average balance of cash and cash equivalents, partially offset by a 16 basis point decrease in the average yield. Compared to the fourth quarter of 2024, the decrease in interest income was due to a 71 basis point decrease in the average yield. Interest expense decreased $172,000, or 1.6%, to $10.3 million for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, and decreased $458,000, or 4.2%, compared to the quarter ended December 31, 2024. Interest expense on deposits increased $77,000, or 1.0%, to $7.8 million for the quarter ended December 31, 2025, compared to the previous quarter and decreased $518,000, or 6.2%, from the comparable quarter in 2024. The increase from the previous quarter was primarily due to a $25.5 million increase in the average balance of interest-bearing deposits, primarily savings and money market accounts, partially offset by a five basis point decrease in the average rate paid. The decrease from the comparable quarter in 2024 was due to a 24 basis point decrease in the average rate paid on interest-bearing deposits, partially offset by a $12.0 million increase in the average balance. The average rate paid on interest-bearing deposits was 3.09%, 3.14%, and 3.33% for the quarters ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Interest expense on FHLB borrowings decreased $250,000, or 9.0%, to $2.5 million for the fourth quarter of 2025 compared to the previous quarter, and increased $60,000, or 2.4%, from the comparable quarter in 2024. The decrease from the previous quarter was primarily due to an eight basis point decrease in the average rate paid on FHLB borrowings, and a $19.8 million decrease in the average balance. The increase from the comparable quarter in 2024 was primarily due to a $1.8 million increase in the average balance and a seven basis point increase in the average rate paid on FHLB borrowings. The average balance of FHLB borrowings totaled $246.0 million during the quarter ended December 31, 2025, compared to $265.8 million and $244.2 million for the quarters ended September 30, 2025, and December 31, 2024, respectively. The average rate paid on FHLB borrowings was 4.08% for the quarter ended December 31, 2025, compared to 4.16% for the quarter ended September 30, 2025, and 4.01% for the fourth quarter of 2024. Annualized net interest margin increased to 3.11% for the fourth quarter of 2025, compared to 3.07% for the third quarter of 2025 and 2.70% for the fourth quarter of 2024. The increase for the fourth quarter of 2025 compared to the third quarter of 2025 was primarily due to a decrease in the average rate paid on interest-bearing liabilities. The increase compared to the fourth quarter of 2024 was attributable to improved asset yields, particularly on loans and leases. The Company continued to benefit from a favorable repricing environment, as the Federal Open Market Committee maintained the target range at 4.25% to 4.50% through most of 2025, before three reductions totaling 1.00% during the last four months of the year, helping to keep funding costs steady while earning asset yields remained elevated. A provision for credit losses of $409,000 was recorded in the fourth quarter of 2025, compared to $269,000 in the third quarter of 2025 and $196,000 in the fourth quarter of 2024. The increase in the provision primarily reflected updated credit metrics that improved the precision of our allowance calculation, along with adjustments to qualitative factors within the leasing portfolio based on a review of historical credit performance and portfolio trends. The increase also reflected higher net charge-offs during the quarter. Net charge-offs for the fourth quarter of 2025 were $369,000, compared to $317,000 in the third quarter of 2025 and $286,000 in the fourth quarter of 2024. Noninterest income increased $224,000, or 17.2%, to $1.5 million for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, and increased $330,000, or 27.7%, from the comparable quarter in 2024. The increase from the third quarter of 2025 primarily resulted from an increase in loan and lease servicing fees of $105,000, or 63.7%, to $269,000 due to increased fees from the payoff of serviced loans. Additionally, card fee income increased $49,000, or 15.6%, to $366,000 for the quarter ended December 31, 2025, as compared to the prior quarter, reflecting higher transaction volume and usage. Compared to the fourth quarter of 2024, the increase in noninterest income was largely attributable to higher loan and lease servicing fees and other income. Loan and lease servicing fees increased $186,000, or 226.4%, due to increased fees from the payoff of serviced loans. Other income increased $126,000, or 41.8%, to $428,000 primarily as a result of increased wealth management income. Total noninterest expense increased $454,000, or 5.6%, to $8.5 million for the three months ended December 31, 2025, compared to the third quarter of 2025, and increased $611,000, or 7.7%, compared to the same period in 2024. Salaries and employee benefits increased $64,000, or 1.4%, to $4.6 million for the quarter ended December 31, 2025, compared to the third quarter of 2025, and increased $43,000 compared to the quarter ended December 31, 2024, reflecting normal merit adjustments and staffing changes. Other expenses increased $501,000, or 50.0%, in the fourth quarter of 2025 compared to the prior quarter, and increased $619,000, or 70.0%, compared to the same quarter of 2024. This increase primarily reflects nonrecurring acquisition-related costs and other operational items, which were partially offset by reductions in legal and professional fees. Legal and professional fees decreased $220,000, or 40.6%, from the third quarter of 2025 and $125,000, or 28.0%, from the fourth quarter of 2024. Deposit insurance expense decreased $123,000, or 33.3%, for the quarter ended December 31, 2025, compared to the same quarter of 2024, primarily due to shifts in the Bank's asset and deposit mix and related assessments. Data processing fees increased $52,000, or 5.4%, to $1.0 million for the quarter ended December 31, 2025, compared to the prior quarter, and increased $71,000 or 7.6%, compared to the same quarter of 2024 due to higher transaction volume. Income tax expense increased $56,000 during the three months ended December 31, 2025, compared to the quarter ended September 30, 2025, and increased $241,000 compared to the quarter ended December 31, 2024. The effective tax rate for the fourth quarter of 2025 was 17.0%, compared to 15.2% in the third quarter of 2025 and 15.7% in the fourth quarter a year ago. Balance Sheet Summary Total assets increased $20.9 million, or 1.4%, to $1.5 billion at December 31, 2025, as compared to December 31, 2024. The increase was primarily the result of a $17.9 million, or 1.5%, increase in loans and leases, net of allowance for credit losses, to $1.2 billion, and an $11.4 million, or 52.3%, increase in cash and cash equivalents to $33.1 million, partially offset by a $7.0 million, or 2.7%, decrease in investment securities to $254.7 million at December 31, 2025. The increase in loans and leases was attributable to an increase in commercial mortgage, multi-family, and commercial and industrial loans of $42.6 million, $23.0 million and $16.1 million, respectively. These increases were partially offset by a $60.9 million decrease in construction and development loans, reflecting the completion of prior projects. Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases 90 days or more past due, totaled $17.4 million, or 1.46% of total loans and leases, at December 31, 2025, up from $6.8 million, or 0.58%, at December 31, 2024. Nonaccrual loans and leases totaled $13.2 million at December 31, 2025, compared to $5.1 million at December 31, 2024. The increase was primarily due to one commercial real estate loan of $6.7 million, which had a loan-to-value ratio of approximately 32.2%. Accruing loans and leases past due 90 days or more totaled $4.2 million at December 31, 2025, up from $1.7 million at December 31, 2024. This increase was largely due to one multi-family loan of $2.4 million, which was current as of December 31, 2025. The allowance for credit losses on loans and leases increased $675,000, or 4.3%, to $16.5 million at December 31, 2025, from $15.8 million at December 31, 2024. At December 31, 2025, the allowance for credit losses on loans and leases totaled 1.38% of total loans and leases outstanding, compared to 1.34% at December 31, 2024. Net charge-offs during 2025 were $1.7 million, compared to net charge-offs of $1.5 million during 2024. Management regularly evaluates credit exposure across its loan portfolio and within its geographic markets. As of December 31, 2025, the Company's credit risk assessment incorporated ongoing inflationary pressures, capital market volatility, and geopolitical risks. Portfolio stress testing and credit metric monitoring are conducted on an ongoing basis, and management believes the allowance for credit losses remains adequate based on current conditions. Investment securities decreased $7.0 million, or 2.7%, to $254.7 million at December 31, 2025, compared to $261.7 million at December 31, 2024. The decrease was primarily due to $6.8 million in securities sales and $19.3 million in maturities and principal repayments, partially offset by a $14.2 million upward mark-to-market adjustment on the available-for-sale investment portfolio as market rates of interest declined during the period. The proceeds from sales, maturities, and principal repayments were redeployed to support loan growth, consistent with the Company's strategy to prioritize higher-yielding assets in a moderating interest rate environment. While these portfolio shifts contributed to a decline in average balances and interest income from investment securities, they supported overall growth in net interest income and an improved net interest margin for the quarter. Total deposits increased $21.0 million, or 1.9%, to $1.1 billion at December 31, 2025, compared to December 31, 2024. The increase in deposits from December 31, 2024 primarily was due to increases in retail (non-brokered) time deposits of $26.0 million, savings and money market accounts of $18.0 million, and interest-bearing demand deposits of $8.6 million, partially offset by decreases in brokered time deposits of $21.6 million and noninterest-bearing demand deposits of $10.0 million. Brokered time deposits totaled $235.9 million, or 21.2% of total deposits, at December 31, 2025, compared to $257.6 million, or 23.5% of total deposits at December 31, 2024. Noninterest-bearing demand deposits totaled $100.1 million at December 31, 2025, compared to $110.1 million at December 31, 2024, and were 9.0% of total deposits at December 31, 2025. As of December 31, 2025, approximately $268.2 million of our deposit portfolio, or 24.1% 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. Stockholders' equity totaled $145.8 million at December 31, 2025, an increase of $12.9 million, or 9.7%, from December 31, 2024. The increase in stockholders' equity primarily was the result of net income of $11.6 million and an $11.2 million decrease in accumulated other comprehensive loss as a result of improved fair values in the Company's available-for-sale investment portfolio, resulting from a reduction in market rates of interest, partially offset by the payment of $5.8 million in dividends to Company stockholders and the repurchase of $5.6 million of Company common stock. About Richmond Mutual Bancorporation, Inc. 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. FORWARD-LOOKING STATEMENTS: 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. 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. 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: adverse economic conditions in the Company's local market areas or other markets where the Company has lending relationships; employment levels, labor shortages, and the effects of persistent inflation, recessionary pressures, or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect the Company's revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment; legislative changes; changes in policies by regulatory agencies; 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 credit losses on loans and leases; the Company's ability to access cost-effective funding, including maintaining the confidence of depositors; fluctuations in real estate values and both residential and commercial real estate market conditions; competitive pressures among depository institutions, including repricing and competitors' pricing initiatives, and their impact on the Company's market position, loan, and deposit products; changes in management's business strategies, including expectations regarding key growth initiatives and strategic priorities; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking platforms, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information technology systems or third-party service providers, including disruptions, breaches, or attacks; geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, South America, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest, and other external events on the Company's business; and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission that are available on our website at www.firstbankrichmond.com and on the SEC's website at www.sec.gov. Further, statements about the potential effects of the Company's proposed merger with Farmers Bancorp on the Company's business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond the Company's control, including the following: events, changes, or circumstances that could give rise to the right of either party to terminate the merger agreement; the possibility that the merger may not be completed on the anticipated terms, within the expected timeframe, or at all; failure to obtain required regulatory or shareholder approvals, or the imposition of conditions that could adversely affect the combined company or expected benefits; challenges in meeting expectations regarding the timing, completion, accounting, and tax treatment of the merger; the potential that anticipated cost savings, synergies, or revenue enhancements may not be realized or may take longer to achieve; higher-than-expected transaction costs or unexpected events; dilution from the issuance of additional Company shares in connection with the merger; potential litigation or other legal proceedings related to the merger; restrictions during pendency of the transaction that may limit business opportunities or strategic initiatives; the ability to successfully integrate operations, systems, personnel, and technologies post-merger; disruption to customer, employee, or vendor relationships, including key community relationships; diversion of management's attention from ongoing operations and strategic initiatives; lower-than-expected revenues or profitability following the merger; changes in credit, capital markets, or economic, political, or regulatory conditions; and competition from banks and other financial service providers; as well as other factors detailed in the Company's filings with the SEC. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and expressly disclaims 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 except as required by law. Financial Highlights (unaudited) The following table summarizes information relating to the Company's loan and lease portfolio at the dates indicated: The following table summarizes information relating to the Company's deposits at the dates indicated: 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. Additional Information About the Merger and Where to Find It This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval with respect to the proposed transaction. In connection with the proposed merger, a registration statement on Form S-4 will be filed with the SEC that will include a joint proxy statement of the Company and Farmers Bancorp and a prospectus of the Company, which will be distributed to the shareholders of the Company and Farmers Bancorp in connection with their votes on the merger of Farmers Bancorp with and into the Company and the issuance of Company common stock in the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE JOINT PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the registration statement on Form S-4 and the related proxy statement/prospectus, when filed, as well as other documents filed with the SEC by the Company through the web site maintained by the SEC at www.sec.gov. These documents, when available, also can be obtained free of charge by accessing the Company's website at www.firstbankrichmond.com under the tab "Investor Relations" and then under "SEC Filings." Alternatively, these documents, when filed with the SEC by the Company, can be obtained free of charge by (1) writing Richmond Mutual at 31 North 9th Street, Richmond, Indiana 47374, Attn: Bradley Glover or by calling (765) 962-2581. Participants in the Solicitation The Company, Farmers Bancorp and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of the Company and Farmers Bancorp in connection with the proposed transaction. Information about the Company's directors and executive officers is included in the proxy statement for its 2025 annual meeting of the Company's shareholders, which was filed with the SEC on April 16, 2025. Information about Farmer Bancorp's participants and additional information regarding the interests of these participants will be included in the joint proxy statement/prospectus regarding the proposed transaction when it becomes available. Free copies of this document may be obtained as described above. View original content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2025-fourth-quarter-and-fiscal-year-end-financial-results-302668555.html

RICHMOND, Ind., Oct. 23, 2025 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ: RMBI), parent company of First Bank Richmond (the "Bank"), today announced net income of $3.6 million, or $0.37 diluted earnings per share, for the third quarter of 2025. This is compared to net income of $2.6 million, or $0.26 diluted earnings per share, for the second quarter of 2025, and net income of $2.5 million, or $0.24 diluted earnings per share, for the third quarter of 2024. The results represent a 42% increase in diluted earnings per share compared to the prior quarter, and 54% increase compared to the third quarter of 2024. The growth in net income and diluted earnings per share for the third quarter of 2025 was primarily driven by higher net interest income resulting from an expanded net interest margin. President's Comments Garry Kleer, Chairman, President, and Chief Executive Officer, commented, "We're pleased with our third quarter results, which reflect the strength of our core banking model and the hard work of our team. Net income and earnings per share both grew, thanks to an improved net interest margin and careful management of expenses. While the economic environment continues to be uncertain, with interest rate pressures and inflationary challenges, we stay focused on what we can control: taking care of our customers, supporting our communities, and making thoughtful decisions that build long-term value for our shareholders. That steady approach has guided us for generations, and it will continue to guide us going forward." Third Quarter Performance Highlights : Assets totaled $1.5 billion at September 30, 2025, June 30, 2025, and December 31, 2024. Loans and leases, net of allowance for credit losses, totaled $1.2 billion at September 30, 2025, June 30, 2025, and December 31, 2024. Nonperforming loans and leases totaled $10.8 million, or 0.90% of total loans and leases, at September 30, 2025, compared to $8.1 million, or 0.68% of total loans and leases, at June 30, 2025, and $6.8 million, or 0.58% of total loans and leases, at December 31, 2024. The allowance for credit losses totaled $16.4 million, or 1.37% of total loans and leases outstanding, at September 30, 2025, compared to $16.2 million, or 1.37% of total loans and leases outstanding, at June 30, 2025, and $15.8 million, or 1.34% of total loans and leases outstanding, at December 31, 2024. A provision for credit losses of $269,000 was recorded in the quarter ended September 30, 2025, compared to a provision for credit losses of $745,000 in the quarter ended June 30, 2025, and a reversal of credit losses of $99,000 in the quarter ended September 30, 2024. Deposits totaled $1.1 billion at September 30, 2025, June 30, 2025, and December 31, 2024. At September 30, 2025, noninterest-bearing deposits totaled $110.8 million or 9.9% of total deposits, compared to $106.2 million or 9.7% of total deposits at June 30, 2025, and $110.1 million or 10.1% of total deposits at December 31, 2024. Stockholders' equity totaled $140.0 million at September 30, 2025, compared to $132.3 million at June 30, 2025 and $132.9 million at December 31, 2024. The Company's equity to assets ratio was 9.18% at September 30, 2025. Book value per share and tangible book value per share were $13.43 at September 30, 2025, compared to $12.74 per share at June 30, 2025 and $12.29 per share at December 31, 2024. Net interest income increased $536,000, or 5.0%, to $11.3 million for the three months ended September 30, 2025, compared to $10.8 million for the June 30, 2025 quarter, and increased $1.9 million, or 19.7%, from $9.4 million for the comparable quarter in 2024. Annualized net interest margin was 3.07% for the current quarter, compared to 2.93% in the preceding quarter and 2.60% for the comparable quarter in 2024. The Bank's Tier 1 capital to total assets was 10.85%, well in excess of regulatory requirements at September 30, 2025. Income Statement Summary Net interest income before the provision for credit losses increased $536,000, or 5.0%, to $11.3 million in the third quarter of 2025, compared to $10.8 million in the second quarter of 2025, and increased $1.9 million, or 19.7%, from $9.4 million in the third quarter of 2024. The increase from the second quarter of 2025 was due to a 13 basis point increase in the average interest rate spread and a $6.1 million increase in average net earning assets. Compared to the third quarter of 2024, the increase in net interest income was due to a 49 basis point increase in the average interest rate spread and an $8.2 million increase in average net earning assets. Following the peak of the federal funds rate in mid-2023, the Federal Open Market Committee maintained the target range at 5.25% to 5.50% through much of 2025, creating a stable interest rate environment. This contributed to modest declines in the cost of interest-bearing deposits and borrowings, particularly for instruments with shorter durations or frequent repricing, while yields on earning assets remained steady or continued to adjust upward. This favorable repricing environment supported a wider net interest spread and an improvement in net interest margin to 3.07% in the third quarter of 2025, compared to 2.93% in the prior quarter and 2.60% a year earlier. Interest income increased $467,000, or 2.2%, to $21.8 million during the quarter ended September 30, 2025, compared to $21.3 million during the quarter ended June 30, 2025, and increased $1.6 million, or 7.7%, compared to $20.3 million during the quarter ended September 30, 2024. Interest income on loans and leases increased $493,000, or 2.6%, to $19.7 million for the quarter ended September 30, 2025 compared to $19.2 million in the second quarter of 2025, due to a 12 basis point increase in the average yield earned on loans and leases to 6.63%, and an $8.5 million increase in the average balance of loans and leases. Compared to the third quarter of 2024, interest income on loans and leases increased $1.6 million, or 8.9%, due to a $33.2 million increase in the average balance of loans and leases and a 36 basis point increase in the average yield earned. These increases were the result of new loans and leases being originated at higher rates and variable rate loans adjusting upward due to the overall higher interest rate environment. Interest income on investment securities, excluding FHLB stock, increased $9,000, or 0.6%, to $1.6 million during the quarter ended September 30, 2025, compared to the quarter ended June 30, 2025, and decreased $80,000, or 4.7%, from the comparable quarter in 2024. The increase compared to the second quarter of 2025 was due to a three basis point increase in the average yield earned, partially offset by a $1.9 million decrease in the average balance of investment securities. The decrease compared to the third quarter of 2024 was due to a $21.0 million decrease in the average balance of investment securities due to proceeds from maturities and paydowns of investment securities being used to fund loan growth, partially offset by an eight basis point increase in the average yield earned on investment securities. Dividends on FHLB stock increased $5,000, or 1.6%, to $314,000 during the quarter ended September 30, 2025 compared to the quarter ended June 30, 2025, due to a 14 basis point increase in the average yield on FHLB stock, and increased $12,000, or 4.0%, compared to the quarter ended September 30, 2024, due to a 34 basis point increase in the average yield on FHLB stock. Interest income on cash and cash equivalents decreased $39,000, or 16.2%, to $203,000 during the quarter ended September 30, 2025, compared to the quarter ended June 30, 2025, and increased $15,000, or 8.1%, compared to the quarter ended September 30, 2024. The decrease from the second quarter of 2025 was primarily due to a 15 basis point decrease in the average yield, as well as a $3.2 million decrease in the average balance of cash and cash equivalents. Compared to the third quarter of 2024, the increase in interest income was due to a $5.1 million increase in the average balance, partially offset by an 87 basis point decrease in the average yield. Interest expense decreased $68,000, or 0.6%, to $10.5 million for the quarter ended September 30, 2025 compared to the quarter ended June 30, 2025, and decreased $310,000, or 2.9%, compared to the quarter ended September 30, 2024. Interest expense on deposits decreased $55,000, or 0.7%, to $7.8 million for the quarter ended September 30, 2025, compared to the previous quarter and decreased $574,000, or 6.9%, from the comparable quarter in 2024. The decrease from the previous quarter was primarily due to a $6.4 million decrease in the average balance of interest-bearing deposits. The decrease from the comparable quarter in 2024 was due to a 19 basis point decrease in the average rate paid on interest-bearing deposits and an $11.9 million decrease in the average balance. The average rate paid on interest-bearing deposits was 3.14% for both the quarter ended September 30, 2025 and June 30, 2025, compared to 3.33% for the quarter ended September 30, 2024. Interest expense on FHLB borrowings decreased $14,000, or 0.5%, to $2.8 million for the third quarter of 2025 compared to the previous quarter, and increased $264,000, or 10.6%, from the comparable quarter in 2024. The decrease from the previous quarter was primarily due to an eight basis point decrease in the average rate paid on FHLB borrowings, which was partially offset by a $3.8 million increase in the average balance. The increase from the comparable quarter in 2024 was primarily due to $21.0 million increase in the average balance and an eight basis point increase in the average rate paid on FHLB borrowings. The average balance of FHLB borrowings totaled $265.8 million during the quarter ended September 30, 2025, compared to $262.1 million and $244.8 million for the quarters ended June 30, 2025 and September 30, 2024, respectively. The average rate paid on FHLB borrowings was 4.16% for the quarter ended September 30, 2025, compared to 4.24% for the quarter ended June 30, 2025, and 4.08% for the third quarter of 2024. Annualized net interest margin increased to 3.07% for the third quarter of 2025, compared to 2.93% for the second quarter of 2025 and 2.60% for the third quarter of 2024. The increase for the third quarter of 2025 compared to the second quarter of 2025 was primarily due to increases in the average yield on interest-earning assets, while the rate paid on interest-bearing liabilities decreased slightly. The increase compared to the third quarter of 2024 was similarly attributable to improved asset yields, particularly on loans and leases. The Company continued to benefit from a favorable asset repricing environment, as the Federal Reserve maintained the target range for the federal funds rate through most of 2025, which helped keep funding costs steady while earning asset yields remained elevated. A provision for credit losses of $269,000 was recorded in the third quarter of 2025, compared to $745,000 in the second quarter of 2025 and a reversal of $99,000 in the third quarter of 2024. The decrease in the provision primarily reflected updated macroeconomic assumptions, refreshed credit metrics, and refined loss driver data, which improved the precision of our allowance calculation. Portfolio performance remained stable, with continued improvements in delinquency and charge-off trends across key loan segments. Net charge-offs for the third quarter of 2025 were $317,000, compared to $626,000 in the second quarter of 2025 and $464,000 in the third quarter of 2024. Noninterest income increased $218,000, or 20.2%, to $1.3 million for the quarter ended September 30, 2025 compared to the quarter ended June 30, 2025, and decreased $27,000, or 2.0%, from the comparable quarter in 2024. The increase from the second quarter of 2025 primarily resulted from net losses on sales of securities totaling $157,000 in the prior quarter, while no securities were sold during the third quarter of 2025. This increase was partially offset by a $20,000, or 5.8%, decrease in card fee income to $316,000. Compared to the third quarter of 2024, the decline in noninterest income was largely attributable to a $117,000 decrease in net gains on loan and lease sales, partially offset by higher loan and lease servicing fees and other income. Net gains on loan and lease sales totaled $94,000 for the third quarter of 2025, a decrease of $117,000, or 55.3% from the third quarter of 2024. This decrease was primarily due to reduced mortgage banking activity. Loan and lease servicing fees increased $42,000, or 34.3%, due to increased fees received from the payoff of serviced loans. Other income increased $50,000, or 14.2%, to $404,000, primarily as a result of increased wealth management income. Total noninterest expense decreased $27,000, or 0.3%, to $8.1 million for the three months ended September 30, 2025, compared to the second quarter of 2025, and increased $67,000, or 0.8%, compared to the same period in 2024. Salaries and employee benefits decreased $267,000, or 5.6%, to $4.5 million for the quarter ended September 30, 2025, compared to the second quarter of 2025, and decreased $80,000 compared to the quarter ended September 30, 2024. These decreases were primarily due to reduced equity compensation expenses. Other expenses increased $115,000, or 13.0%, in the third quarter of 2025 compared to the prior quarter, and increased $85,000, or 9.2%, compared to the same quarter of 2024. Legal and professional fees increased $93,000, or 20.7%, from the second quarter of 2025 and $77,000, or 16.7%, from the third quarter of 2024. Deposit insurance expense decreased $74,000, or 19.5%, for the quarter ended September 30, 2025, compared to the same quarter of 2024, primarily due to shifts in the Bank's asset and deposit mix and related assessments. Data processing fees increased $30,000, or 3.2%, to $955,000 for the quarter ended September 30, 2025 compared to the prior quarter, and increased $61,000, or 6.8%, compared to the same quarter of 2024. Income tax expense increased $263,000 during the three months ended September 30, 2025 compared to the quarter ended June 30, 2025, and increased $276,000 compared to the quarter ended September 30, 2024. The effective tax rate for the third quarter of 2025 was 15.2%, compared to 12.8% in the second quarter of 2025 and 13.0% in the third quarter a year ago. Balance Sheet Summary Total assets increased $20.7 million, or 1.4%, to $1.5 billion at September 30, 2025 as compared to December 31, 2024. The increase was primarily the result of a $19.4 million, or 1.7%, increase in loans and leases, net of allowance for credit losses, to $1.2 billion, and a $12.5 million, or 57.5%, increase in cash and cash equivalents to $34.3 million, partially offset by an $8.5 million, or 3.2%, decrease in investment securities to $253.2 million at September 30, 2025. The increase in loans and leases was attributable to an increase in commercial mortgage, multi-family, and commercial and industrial loans of $49.0 million, $31.1 million and $12.0 million, respectively. These increases were partially offset by a $65.1 million decrease in construction and development loans, reflecting the completion of prior projects. Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases more than 90 days past due, totaled $10.8 million, or 0.90% of total loans and leases, at September 30, 2025, compared to $6.8 million, or 0.58%, at December 31, 2024. Nonaccrual loans and leases totaled $6.4 million at September 30, 2025, compared to $5.1 million at December 31, 2024. The increase in nonaccrual loans and leases was primarily due to one commercial real estate loan of $704,000. At September 30, 2025, this loan had a loan to value ratio of 79.1%, and was largely guaranteed by the U.S. Small Business Administration. Accruing loans past due more than 90 days totaled $4.4 million at September 30, 2025, compared to $1.7 million at December 31, 2024. The increase in accruing loans past due more than 90 days primarily was due to one multi-family loan of $2.4 million, which was not past due at December 31, 2024. The allowance for credit losses on loans and leases increased $574,000, or 3.6%, to $16.4 million at September 30, 2025, from $15.8 million at December 31, 2024. At September 30, 2025, the allowance for credit losses on loans and leases totaled 1.37% of total loans and leases outstanding, compared to 1.34% at December 31, 2024. Net charge-offs during the first nine months of 2025 were $1.3 million, compared to net charge-offs of $1.2 million during the comparable period of 2024. Management regularly evaluates credit exposure across its loan portfolio and within its geographic markets. As of September 30, 2025, the Company's credit risk assessment incorporated ongoing inflationary pressures, capital market volatility, and geopolitical risks. Portfolio stress testing and credit metric monitoring are conducted on an ongoing basis, and management believes the allowance for credit losses remains adequate based on current conditions. Investment securities decreased $8.5 million, or 3.2%, to $253.2 million at September 30, 2025, compared to $261.7 million at December 31, 2024. The decrease was primarily due to $6.8 million in securities sales and $14.8 million in maturities and principal repayments, partially offset by a $9.7 million upward mark-to-market adjustment on the available-for-sale investment portfolio. The proceeds received from sales, maturities, and principal repayments were redeployed to support loan growth consistent with the Company's strategy to prioritize higher-yielding assets in a moderating interest rate environment. While the shift contributed to a decline in average balances and interest income from investment securities, it supported overall improvement in net interest income and margin during the period. Total deposits increased $24.3 million, or 2.2%, to $1.1 billion at September 30, 2025, compared to December 31, 2024. The increase in deposits from December 31, 2024 primarily was due to increases in retail (non-brokered) time deposits of $16.2 million, interest-bearing demand deposits of $10.4 million, and savings and money market accounts of $6.4 million, partially offset by a decrease in brokered time deposits of $9.3 million. Brokered time deposits totaled $248.3 million, or 22.2% of total deposits, at September 30, 2025, compared to $257.6 million, or 23.5% of total deposits at December 31, 2024. Noninterest-bearing demand deposits totaled $110.8 million at September 30, 2025 compared to $110.1 million at December 31, 2024, and totaled 9.9% of total deposits at September 30, 2025. As of September 30, 2025, approximately $262.3 million of our deposit portfolio, or 23.5% 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. Stockholders' equity totaled $140.0 million at September 30, 2025, an increase of $7.2 million, or 5.4%, from December 31, 2024. The increase in stockholders' equity primarily was the result of net income of $8.2 million and a $7.7 million decrease in accumulated other comprehensive loss as a result of improved fair values in the Company's available-for-sale investment portfolio, resulting from a reduction in market rates of interest, partially offset by the payment of $4.4 million in dividends to Company stockholders and the repurchase of $5.6 million of Company common stock. About Richmond Mutual Bancorporation, Inc. 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. FORWARD-LOOKING STATEMENTS: 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. 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. 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: adverse economic conditions in our local market areas or other markets where we have lending relationships; employment levels, labor shortages, and the effects of persistent inflation, recessionary pressures, or slowing economic growth; changes in interest rate levels and the duration of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative changes; changes in policies by regulatory agencies; 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 credit losses on loans and leases; the Company's ability to access cost-effective funding, including maintaining the confidence of depositors; fluctuations in real estate values and both residential and commercial real estate market conditions; competitive pressures among depository institutions, including repricing and competitors' pricing initiatives, and their impact on our market position, loan, and deposit products; changes in management's business strategies, including expectations regarding key growth initiatives and strategic priorities; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information technology systems or third-party service providers, including disruptions, breaches, or attacks; 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; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest, and other external events on our business; and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission - that are available on our website at www.firstbankrichmond.com and on the SEC's website at www.sec.gov. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. 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. Financial Highlights (unaudited) The following table summarizes information relating to our loan and lease portfolio at the dates indicated: The following table summarizes information relating to our deposits at the dates indicated: 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. View original content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2025-third-quarter-financial-results-302593239.html

RICHMOND, Ind., July 23, 2025 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ: RMBI), parent company of First Bank Richmond (the "Bank"), today announced net income of $2.6 million, or $0.26 diluted earnings per share, for the second quarter of 2025, compared to net income of $2.0 million, or $0.20 diluted earnings per share, for the first quarter of 2025, and net income of $2.1 million, or $0.20 diluted earnings per share, for the second quarter of 2024. This represents a 30% increase in diluted earnings per share in the second quarter of 2025 compared to both the first quarter of 2025 and the second quarter of 2024. The increase in net income and diluted earnings per share for the second quarter of 2025 was primarily driven by higher net interest income resulting from an expanded net interest margin, as well as lower noninterest expense compared to the prior quarters. In addition, the reduction in average diluted shares outstanding from share repurchases contributed to the increase in earnings per share. President's Comments Garry Kleer, Chairman, President, and Chief Executive Officer, commented, "Our second quarter results reflect the strength of our core banking model, built on strong relationships, sound credit practices, and a steady approach to growth. We saw improvement in our net interest margin and maintained solid credit quality, all while keeping a close eye on expenses. While the broader economic outlook remains uncertain with inflation, rate pressures, and global tensions, we're staying focused on what we can control: taking care of our customers, supporting our communities, and making disciplined decisions that support long-term value for our shareholders. That's what has guided us for generations, and it will continue to do so." Second Quarter Performance Highlights: Assets totaled $1.5 billion at June 30, 2025, March 31, 2025, and December 31, 2024. Loans and leases, net of allowance for credit losses, totaled $1.2 billion at June 30, 2025, March 31, 2025, and December 31, 2024. Nonperforming loans and leases totaled $8.1 million, or 0.68% of total loans and leases, at June 30, 2025, compared to $7.0 million, or 0.59% of total loans and leases, at March 31, 2025, and $6.8 million, or 0.58% of total loans and leases, at December 31, 2024. The allowance for credit losses totaled $16.2 million, or 1.37% of total loans and leases outstanding, at June 30, 2025, compared to $16.1 million, or 1.35% of total loans and leases outstanding, at March 31, 2025, and $15.8 million, or 1.34% of total loans and leases outstanding, at December 31, 2024. A provision for credit losses of $745,000 was recorded in the quarter ended June 30, 2025, compared to $731,000 and $270,000 in the quarters ended March 31, 2025 and June 30, 2024, respectively. Deposits totaled $1.1 billion at June 30, 2025, March 31, 2025, and December 31, 2024. At June 30, 2025, noninterest-bearing deposits totaled $106.2 million or 9.7% of total deposits, compared to $103.4 million or 9.3% of total deposits at March 31, 2025, and $110.1 million or 10.1% of total deposits at December 31, 2024. Stockholders' equity totaled $132.3 million at June 30, 2025, compared to $130.9 million at March 31, 2025 and $132.9 million at December 31, 2024. The Company's equity to assets ratio was 8.78% at June 30, 2025. Book value per share and tangible book value per share were $12.74 at June 30, 2025, compared to $12.48 per share at March 31, 2025 and $12.29 per share at December 31, 2024. Net interest income increased $501,000, or 4.9%, to $10.8 million for the three months ended June 30, 2025, compared to $10.3 million for the prior quarter, and increased $1.2 million, or 12.4%, from $9.6 million for the comparable quarter in 2024. Annualized net interest margin was 2.93% for the current quarter, compared to 2.79% in the preceding quarter and 2.64% for the comparable quarter in 2024. The Company repurchased 101,127 shares of common stock at an average price of $13.46 per share during the quarter ended June 30, 2025. The Bank's Tier 1 capital to total assets was 10.75%, well in excess of regulatory requirements at June 30, 2025. Income Statement Summary Net interest income before the provision for credit losses increased $501,000, or 4.9%, to $10.8 million in the second quarter of 2025, compared to $10.3 million in the first quarter of 2025, and increased $1.2 million, or 12.4%, from $9.6 million in the second quarter of 2024. The increase from the first quarter of 2025 was due to a 13 basis point increase in the average interest rate spread and a $3.6 million increase in average net earning assets. Compared to the second quarter of 2024, the increase in net interest income 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. From September 18, 2024 through the end of 2024, the Federal Open Market Committee reduced the target range for the federal funds rate by a total of 100 basis points to a range of 4.25% to 4.50%, where it remained at June 30, 2025. These rate cuts contributed to a modest decline in the cost of interest-bearing deposits and borrowings, particularly those with shorter durations or more frequent repricing, while yields on earning assets remained relatively stable or continued to adjust upward. This beneficial repricing environment supported the widening of the Company's net interest spread and the improvement in net interest margin to 2.93% in the second quarter of 2025, compared to 2.79% in the prior quarter and 2.64% a year earlier. Interest income increased $478,000, or 2.3%, to $21.3 million during the quarter ended June 30, 2025, compared to $20.9 million during the quarter ended March 31, 2025, and increased $1.3 million, or 6.3%, compared to $20.1 million during the quarter ended June 30, 2024. Interest income on loans and leases increased $409,000, or 2.2%, to $19.2 million for the quarter ended June 30, 2025 compared to $18.8 million in the first quarter of 2025, due to a 15 basis point increase in the average yield earned on loans and leases to 6.51%, partially offset by a $2.6 million decrease in the average balance of loans and leases. Compared to the second quarter of 2024, interest income on loans and leases increased $1.4 million, or 7.7% due to a $28.6 million increase in the average balance of loans and leases and a 31 basis point increase in the average yield earned as new loans and leases were originated at higher rates and variable rate loans adjusted upward due to the overall higher interest rate environment. Interest income on investment securities, excluding FHLB stock, decreased $41,000, or 2.5%, to $1.6 million during the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025, and decreased $123,000, or 7.1%, from the comparable quarter in 2024. The decrease compared to the first quarter of 2025 was due to a $10.4 million decrease in the average balance of investment securities, partially offset by a four basis point increase in the average yield earned. The decrease compared to the second quarter of 2024 was due to a $21.4 million decrease in the average balance of investment securities due to proceeds from maturities and paydowns of investment securities during 2024 being used to fund loan growth, partially offset by a two basis point increase in the average yield earned on investment securities. Dividends on FHLB stock decreased $2,000, or 0.6%, to $309,000 during the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025, due to a six basis point decrease in the average yield on FHLB stock, and decreased $13,000, or 4.0%, compared to the quarter ended June 30, 2024, due to a 37 basis point decrease in the average yield on FHLB stock. Interest income on cash and cash equivalents increased $112,000, or 85.6%, to $243,000 during the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025, and increased $25,000, or 11.5%, compared to the quarter ended June 30, 2024. The increase from the first quarter of 2025 was primarily due to a 31 basis point increase in the average yield, as well as a $10.0 million increase in the average balance of cash and cash equivalents. Compared to the second quarter of 2024, the increase in interest income was due to a $7.7 million increase in the average balance, partially offset by a 127 basis point decrease in the average yield. Interest expense decreased $23,000, or 0.2%, to $10.6 million for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025, and increased $77,000, or 0.7%, compared to the quarter ended June 30, 2024. Interest expense on deposits decreased $32,000, or 0.4%, to $7.8 million for the quarter ended June 30, 2025, compared to the previous quarter and decreased $189,000, or 2.4%, from the comparable quarter in 2024. The decrease from the previous quarter was primarily due to a three basis point decrease in the average rate paid on interest-bearing deposits, partially offset by a $6.1 million increase in the average balance. The decrease from the comparable quarter in 2024 was due 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 3.17% and 3.23% for the quarters ended March 31, 2025 and June 30, 2024, respectively. Interest expense on FHLB borrowings increased $9,000, or 0.3%, to $2.8 million for the second quarter of 2025, compared to the previous quarter, and increased $267,000, or 10.6%, from the comparable quarter in 2024. The modest increase from the previous quarter was primarily due to a 21 basis point increase in the average rate paid on FHLB borrowings, which was partially offset by a $12.6 million decrease in the average balance. The increase from the comparable quarter in 2024 was primarily due to a 35 basis point increase in the average rate paid on FHLB borrowings. The average balance of FHLB borrowings totaled $262.1 million during the quarter ended June 30, 2025, compared to $274.7 million and $257.9 million for the quarters ended March 31, 2025 and June 30, 2024, respectively. The average rate paid on FHLB borrowings was 4.24% for the quarter ended June 30, 2025, 4.03% for the quarter ended March 31, 2025, and 3.89% for the second quarter of 2024. Annualized net interest margin increased to 2.93% for the second quarter of 2025, compared to 2.79% for the first quarter of 2025 and 2.64% for the second quarter of 2024. The increase for the second quarter of 2025 compared to the first quarter of 2025 was primarily due to increases in the average yield on interest-earning assets, which rose faster than the rate paid on interest-bearing liabilities. The increase compared to the second quarter of 2024 was similarly attributable to improved asset yields, particularly on loans and leases, outpacing the modest rise in funding costs. The Company benefited from a more favorable asset repricing environment following the Federal Reserve's rate cuts in late 2024, which reduced funding costs while asset yields remained elevated. A provision for credit losses of $745,000 was recognized in the second quarter of 2025, compared to a provision of $731,000 for the quarter ended March 31, 2025, and $270,000 for the quarter ended June 30, 2024. The increase in the provision was primarily due to increased loan growth in our commercial loan portfolios, which carry a higher estimated loss rate, and higher charge-offs during the period. Net charge-offs during the second quarter of 2025 were $626,000, compared to net charge-offs of $395,000 during the first quarter of 2025 and net charge-offs of $450,000 in the second quarter of 2024. Noninterest income decreased $82,000, or 7.1%, to $1.1 million for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025, and decreased $32,000, or 2.9%, from the comparable quarter in 2024. The decrease in the second quarter of 2025 from the first quarter of 2025 primarily resulted from net losses on sales of securities totaling $157,000, compared to no securities sold in the prior quarter. This decrease was partially offset by increases in several recurring fee income categories. Card fee income increased $37,000, or 12.6%, to $336,000, primarily due to higher transaction volume and increased customer utilization of debit and credit card services. Loan and lease servicing fees increased $24,000, or 20.9%, to $136,000, due to increased fees received from the payoff of serviced loans. Service charges on deposit accounts also increased $14,000, or 4.7%, to $310,000, compared to the prior quarter, reflecting higher transaction activity and customer account volume. Compared to the second quarter of 2024, the decline in noninterest income was largely attributable to a $95,000 increase in net losses on sales of securities, partially offset by higher card fee income and other income. Card fee income increased $34,000, or 11.4%, due to continued growth in customer usage. Other income increased $13,000, or 3.8%, to $354,000, primarily as a result of higher wealth management income. Net gains on loan and lease sales also improved modestly, increasing $11,000, or 12.2%, compared to the same quarter in 2024. Total noninterest expense decreased $262,000, or 3.1%, to $8.1 million for the three months ended June 30, 2025, compared to the first quarter of 2025, and increased $58,000, or 0.7%, compared to the same period in 2024. Salaries and employee benefits increased $55,000, or 1.2%, to $4.8 million for the quarter ended June 30, 2025, compared to the first quarter of 2025, and increased $95,000 compared to the quarter ended June 30, 2024. These increases were primarily due to annual merit increases and higher staffing levels to support business growth. Other expenses decreased $205,000, or 18.8%, in the second quarter of 2025 compared to the prior quarter, and increased $14,000, or 1.6%, compared to the same quarter of 2024. The decrease in other expenses in the second quarter of 2025 from the first quarter of 2025 primarily was due to one-time expenses recognized in the prior quarter related to contract negotiations with the Bank's core systems provider. The newly executed agreement is expected to yield long-term cost savings. As part of the renewal, the Company reduced costs on existing services and added new technology tools aimed at improving operational efficiency and enhancing the customer experience, while reducing reliance on third-party vendors. Legal and professional fees decreased $83,000, or 15.7%, from the first quarter of 2025 and $33,000, or 6.9%, from the second quarter of 2024, reflecting lower external consulting and legal service costs. Deposit insurance expense decreased $35,000, or 10.3%, for the quarter ended June 30, 2025, compared to the first quarter of 2025, and decreased $76,000, or 20.0%, from the comparable quarter in 2024, primarily due to shifts in the Bank's asset and deposit mix and related assessments. Data processing fees increased $46,000, or 5.3%, to $926,000 for the quarter ended June 30, 2025 compared to the second quarter of 2024 primarily due to increased software implementation expenses. Income tax expense increased $34,000 during the three months ended June 30, 2025 compared to the quarter ended March 31, 2025, and increased $77,000 compared to the quarter ended June 30, 2024. The effective tax rate for the second quarter of 2025 was 12.8%, compared to 15.0% in the first quarter of 2025 and 12.9% in the second quarter a year ago. Balance Sheet Summary Total assets increased $2.9 million, or 0.2%, to $1.5 billion at June 30, 2025 as compared to 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, partially offset by a $9.4 million, or 3.6%, decrease in investment securities to $252.3 million at June 30, 2025. The increase in loans and leases was attributable to an increase in commercial mortgage, 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. Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases more than 90 days 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%, at December 31, 2024. Accruing loans past due more than 90 days totaled $2.5 million at June 30, 2025, compared to $1.7 million December 31, 2024. The allowance for credit losses on loans and leases increased $428,000, or 2.7%, to $16.2 million at June 30, 2025 from $15.8 million at 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, compared to 1.34% at December 31, 2024. Net charge-offs during the first half of 2025 were $1.0 million compared to net charge-offs of $774,000 during the comparable period of 2024. Management regularly evaluates credit exposure across its loan portfolio and within its geographic markets. As of June 30, 2025, the Company's credit risk assessment incorporated ongoing inflationary pressures, capital market volatility, and geopolitical risks. Portfolio stress testing and credit metric monitoring are conducted on an ongoing basis, and management believes the allowance for credit losses remains adequate based on current conditions. Investment securities decreased $9.4 million, or 3.6%, to $252.3 million at June 30, 2025, compared to $261.7 million at December 31, 2024. The decrease was primarily due to $6.8 million in securities sales and $8.9 million in maturities and principal repayments, with the proceeds redeployed to support loan growth consistent with the Company's strategy to prioritize higher-yielding assets in a moderating interest rate environment. While the shift contributed to a decline in average balances and interest income from investment securities, it supported overall improvement in net interest income and margin during the period. Total deposits increased $2.4 million, or 0.2%, to $1.1 billion at June 30, 2025, compared to December 31, 2024. The increase in deposits from December 31, 2024 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, partially offset by decreases in brokered time deposits of $18.1 million, and noninterest-bearing accounts of $3.9 million. Brokered time 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. Noninterest-bearing demand deposits totaled $106.2 million at June 30, 2025 compared to $110.1 million at December 31, 2024, and totaled 9.7% of total deposits at June 30, 2025. 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. 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 primarily was the result of 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 $2.4 million decrease in accumulated other comprehensive loss as a result of improved fair values in the Company's available-for-sale investment portfolio, resulting from a reduction in market rates of interest. During the quarter ended June 30, 2025, the Company repurchased a total of 101,127 shares of Company common stock at an average price of $13.46 per share. About Richmond Mutual Bancorporation, Inc. 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. FORWARD-LOOKING STATEMENTS: 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. 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. 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: adverse economic conditions in our local market areas or other markets where we have lending relationships; employment levels, labor shortages, and the effects of persistent inflation, recessionary pressures, or slowing economic growth; changes in interest rate levels and duration of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative changes; changes in policies by regulatory agencies; 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 credit losses on loans and leases; the Company's ability to access cost-effective funding, including maintaining the confidence of depositors; fluctuations in real estate values and both residential and commercial real estate market conditions; competitive pressures among depository institutions, including repricing and competitors' pricing initiatives, and their impact on our market position, loan, and deposit products; changes in management's business strategies, including expectations regarding key growth initiatives and strategic priorities; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information technology systems or third-party service providers, including disruptions, breaches, or attacks; 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; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest, and other external events on our business; and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission - that are available on our website at www.firstbankrichmond.com and on the SEC's website at www.sec.gov. The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. 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. Financial Highlights (unaudited) The following table summarizes information relating to our loan and lease portfolio at the dates indicated: The following table summarizes information relating to our deposits at the dates indicated: 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. View original content:https://www.prnewswire.com/news-releases/richmond-mutual-bancorporation-inc-announces-2025-second-quarter-financial-results-302512439.html SOURCE Richmond Mutual Bancorporation, Inc.