#United States #Richmond #Richmond Mutual #RMBI #First Bank Midwest

Richmond Mutual Bancorporation Reports 2026 Third Quarter Financial Results

RICHMOND, Ind. (October 30, 2026) - Richmond Mutual Bancorporation, Inc., listed on NASDAQ under the symbol RMBI and based in Richmond, Indiana, has announced its financial performance for the third quarter of 2026. The company, known as the parent of First Bank Midwest, has reported a net income of $1.7 million, which translates to a diluted earnings per share of $0.11. This compares unfavorably to a net income of $2.2 million ($0.22 per share) in the previous quarter, and $3.6 million ($0.36 per share) for the same quarter a year ago.

The notable decrease in net income from the second quarter of 2026 and the same quarter of 2025 is primarily attributed to an increase in provisions for credit losses and elevated noninterest expenses. The provision for credit losses surged to $6.1 million for the third quarter, up from $823,000 in the prior quarter and $269,000 in the third quarter of 2025. This increase was necessary to replenish the allowance following $6.1 million worth of net charge-offs recorded during the quarter. Notably, there was a partial charge-off of $4.5 million on a nonaccruing commercial real estate loan, which was subsequently classified as other real estate owned, alongside an $803,000 charge-off related to a commercial and industrial loan. The company also saw a rise in non-performing loans during this period.

Moreover, the company's noninterest expense included $3.0 million in nonrecurring merger-related costs associated with the acquisition of Farmers Bancorp. Conversely, this was somewhat offset by a preliminary gain recognized from the acquisition, amounting to $1.6 million.

Year-to-Date Performance

For the nine months ending September 30, 2026, Richmond Mutual Bancorporation recorded a net income of $6.8 million or $0.56 per diluted share, a decline from $8.2 million ($0.82 per share) reported during the same period in 2025.

On July 1, 2026, the company successfully merged with Farmers Bancorp, aligned with their previously announced merger agreement. Following the merger, First Bank Midwest emerged as a combined institution operating under the Richmond Mutual Bancorporation umbrella. The headquarters remains located in Richmond, Indiana, while the merged bank operates from Frankfort, Indiana.

Highlights of Third Quarter Performance

Richmond's net interest income witnessed remarkable growth, climbing by 89.2% to $22.8 million during the third quarter compared to $12.1 million from the previous quarter. Year-on-year, net interest income increased by 102.3% from $11.3 million recorded in the corresponding quarter of 2025. The annualized net interest margin also improved, reaching 3.68%, up from 3.22% from the prior quarter and 3.07% from the same quarter last year.

The additional highlights from the quarter include:

• - Noninterest income escalated to $4.6 million, a $3.0 million increase from $1.6 million in the previous quarter and an increase of $3.3 million from $1.3 million compared to the third quarter of 2025.
• - Noninterest expenses surged to $20.0 million, which is an increase of 9.8 million from the previous quarter and up $11.9 million from last year’s comparable period.
• - The company’s assets reached a total of $2.60 billion by September 30, 2026, a notable increase from $1.55 billion at the end of the previous quarter and $1.53 billion at the end of 2025.
• - Loans and leases, net of the allowance for credit losses, increased substantially to $2.00 billion, up from $1.21 billion in June 2026.
• - Non-performing loans totaled $32.2 million, which represents 1.59% of total loans, a slight reduction compared to 1.78% in June 2026.
• - The bank acknowledged an allowance for credit losses of $25.4 million, or 1.25% of total loans, which is an increase from $17.0 million earlier.

Future Outlook

Garry Kleer, Chairman and CEO, stated, “Our third-quarter results reflect the significant impact of our merger with Farmers Bancorp which has broadened our financial foundation and enhanced net interest income. While we faced challenges related to credit losses and increased noninterest expenses, our priority remains the successful integration of our operations and maximizing the benefits of this strategic merger.”

As Richmond Mutual Bancorporation navigates its future, it is poised to enhance its services for customers while bolstering its market presence. Investors and stakeholders can look forward to updates as the company plans to integrate its operations comprehensively following the merger.

About Richmond Mutual Bancorporation, Inc.

Richmond Mutual Bancorporation, Inc. is a holding company for First Bank Midwest, providing a range of traditional banking and trust services to local communities across Indiana and parts of Ohio. The company continues to focus on creating value for its stakeholders while adapting to the financial landscape's evolving challenges.