#USA #Community Bank #Richmond Mutual #Richmond, Indiana #Farmers Bancorp

Richmond Mutual and Farmers Bancorp: A New Era in Community Banking

On November 12, 2025, Richmond Mutual Bancorporation, Inc., the holding company for First Bank Richmond, and Farmers Bancorp of Frankfort, Indiana, announced a definitive agreement to merge in a transformative move for both organizations. This strategic merger is valued at around $82 million, effectively creating a community bank with assets totaling approximately $2.6 billion and an extensive network of 24 branches across Central and East Central Indiana and Western and Central Ohio.

Benefits of the Merger

This merger represents a significant opportunity for Richmond Mutual and Farmers Bancorp to unlock greater potential. The combined entity will enhance service offerings and create a larger financial institution capable of higher lending limits. This not only benefits the customers of both banks but also strengthens the commitment to the communities they serve.

Garry Kleer, Chairman, President, and Chief Executive Officer of Richmond Mutual, remarked, “This combination marks the beginning of a strong and promising future for our newly unified organization. We are bringing together two well-established community banks, both dedicated to delivering exceptional client experiences and helping individuals and businesses achieve their financial goals.”

In addition to customer benefits, the merger is expected to improve trading liquidity for both companies and provide an increase in dividends for Farmers Bancorp shareholders. The financial structuring anticipates an accretion of approximately 35% in earnings per share (EPS) for Richmond Mutual post-merger.

Transaction Framework

Under the terms of the merger, Farmers Bancorp shareholders will receive 3.40 shares of Richmond Mutual stock for each outstanding share they own. Following the merger, Richmond Mutual shareholders will hold about 62% of the combined company, while Farmers Bancorp shareholders will hold approximately 38%. Importantly, this transaction is expected to be tax-free for Farmers Bancorp shareholders.

The merger has been unanimously approved by the Boards of Directors of both banks, highlighting a strong alignment in corporate culture and mission. Both institutions share a deep commitment to community banking, further solidified by their combined leadership and governance framework.

Leadership and Governance Structure

The governance structure of the new entity will feature a Board of Directors composed of 11 members, with six from Richmond Mutual and five from Farmers Bancorp. Garry D. Kleer will assume the role of Chief Executive Officer of the combined firm, ensuring continuity in leadership. Chris D. Cook from Farmers Bancorp will serve as President.

The leadership team also includes experienced executives from both banks, ensuring that the new organization benefits from a wealth of expertise in financial services. This strong management team is poised to drive the company towards long-term success.

Future Implications

As both banks prepare to merge, they expect to close the transaction in early Q2 of 2026, pending necessary regulatory and shareholder approvals. Both institutions have already entered into voting agreements to support the merger, signaling a clear commitment to the new strategic direction.

The merger not only signifies expansion but also reinforces the importance of community-oriented banking, a value both banks hold dear. With the combined resources, enhanced product offerings, and technological investments, Richmond Mutual and Farmers Bancorp aim to better serve their customers and communities.

“Together, we will have the resources to compete more effectively, expand our product offerings, and invest in technology innovation,” said Cook, underscoring the shared vision moving forward.

Conclusion

In conclusion, the merger between Richmond Mutual Bancorporation and Farmers Bancorp symbolizes a strategic alignment aimed at enhancing community banking services for customers across Indiana and Ohio. As these two institutions join forces, they will continue to prioritize their commitment to their customers, employees, and communities while paving a pathway for future growth and success. With this unification, both entities are not only preserving their legacy but also advancing their goals in a competitive financial landscape.