RMBI · Richmond Mutual Bancorporation, Inc.

Richmond Mutual Bancorporation reported Q1 2026 net income of $2.8 million, or $0.28 diluted EPS, reflecting a decline from $3.4 million in Q4 2025 primarily due to a higher provision for credit losses of $693,000 versus $409,000, alongside a slight drop in net interest income to $11.4 million from $11.5 million, attributed to two fewer calendar days and lower noninterest income and higher expenses. Year-over-year, earnings improved from $2.0 million, driven by net interest income growth of 11.6% to $11.4 million and an expanded annualized net interest margin of 3.10% from 2.79%, reflecting higher asset yields and lower funding costs amid a stable rate environment with the Fed target at 3.50%-3.75%. Noninterest income fell 14.7% quarter-over-quarter due to lower servicing fees and card income from seasonal factors, though up 11.7% YoY. Balance sheet remained stable with $1.5 billion assets, $1.2 billion loans, and $1.1 billion deposits; nonperforming loans edged up to 1.48%, prompting close monitoring, while capital stayed strong at 9.54% equity to assets and 11.10% Tier 1 for the bank. CEO Garry Kleer highlighted solid YoY EPS growth of 41%, disciplined credit management, and low charge-offs. A key strategic development is the proposed merger with Farmers Bancorp, announced November 11, 2025, with all regulatory approvals secured. Farmers shareholders will receive 3.40 RMBI shares per share, owning ~38% post-merger, with closing eyed for Q2 2026 pending votes on May 26-27. Management anticipates earnings variability during integration but normalization as synergies realize, enhancing scale and market presence while preserving community focus.