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Richmond Mutual Bancorporation's 2025 Financial Results

Richmond Mutual Bancorporation, Inc., the parent company of First Bank Richmond, has recently published its impressive financial results for the fourth quarter and the fiscal year ending December 31, 2025. This report highlights net income figures and significant growth driven mainly by increased net interest income.

Financial Highlights

In Q4 of 2025, Richmond Mutual reported a net income of $3.4 million, translating to $0.35 per diluted share. Although this was a slight decrease of 2.8% from the previous quarter, it marked an impressive increase of 45.8% compared to the same quarter a year prior, where net income was only $2.5 million.

The company's performance throughout the year was equally robust, with total net income for the full year reaching $11.6 million (or $1.17 per diluted share), compared to $9.4 million ($0.92 per share) in the previous fiscal year. This growth is attributed primarily to an expanded net interest margin, resulting from improved asset yields and lower funding costs.

Despite these successes, the company did encounter challenges, particularly related to acquisition expenses. Around $467,000 was incurred in pre-tax expenses linked to the merger with Farmers Bancorp, which impacted earnings per share by approximately $0.04 for the quarter.

Merger Plans with Farmers Bancorp

On November 11, 2025, Richmond Mutual entered a merger agreement with Farmers Bancorp, based in Frankfort, Indiana. Upon completion, this transaction will enhance the company’s scale and market presence. Following the merger, Farmers Bank will be integrated into First Bank Richmond, solidifying a stronger entity poised to serve customers more effectively.

This strategic move has been endorsed by both companies' Boards of Directors and is expected to be finalized by the second quarter of 2026, pending regulatory and shareholder approvals.

Operational Performance

Richmond Mutual's total assets stood at $1.5 billion as of December 31, 2025. Loans and leases accounted for $1.2 billion, remaining stable since 2024. Nonperforming loans increased to $17.4 million, constituting 1.46% of total loans, a rise attributed to a single high-value commercial real estate loan.

In terms of deposits, Richmond Mutual maintained a total of $1.1 billion. A segment of these deposits included noninterest-bearing deposits, which accounted for approximately 9% of the total, showing some fluctuations due to economic factors. Still, overall growth in retail time deposits presented a strong foundation for ongoing stability.

President’s Insights

Garry Kleer, Chairman, and CEO, attributed the company’s robust results to diligent financial management and the resolution of ongoing challenges. He emphasized the importance of the upcoming merger with Farmers Bancorp as a pivotal venture that will provide both market expansion and improved operational efficiencies.

“Throughout 2025, we focused greatly on enhancing our banking franchises and increasing profitability. With the merger on the horizon, our vision will be expanded as we aim to serve a broader customer base while retaining our commitment to community banking,” stated Mr. Kleer.

Looking Ahead

As Richmond Mutual prepares for the merger and continues its operations, the executive team remains optimistic. They foresee significant enhancements to customer service and operational capabilities post-merger while remaining vigilant in monitoring credit risks in an increasingly volatile economic climate. Richmond Mutual Bancorporation remains poised for future growth as it adapts to shifting market conditions and focuses on strategic initiatives.

The completion of this merger will not only boost Richmond Mutual's footprint but also fortify its financial health, promising a bright future for the institution and its stakeholders.

For more detailed financials and future updates, stakeholders can access Richmond Mutual’s official communication channels.