Richmond Mutual Bancorporation, Inc. Announces Q1 2026 Financial Results and Merger Update

Key Financial Highlights for Q1 2026

• Net Income: \$2.8 million, or \$0.28 diluted earnings per share.
• Comparison:
  • Q4 2025: \$3.4 million, or \$0.35 per share
  • Q1 2025: \$2.0 million, or \$0.20 per share
• Quarter-over-Quarter Change: Decrease in net income and EPS from Q4 2025, primarily due to:
  • Higher provision for credit losses
  • Slight decline in net interest income (due to two fewer calendar days)
  • Lower noninterest income
  • Higher noninterest expense
• Year-over-Year Change: Increase in net income and EPS from Q1 2025, driven by:
  • Higher net interest income from an expanded net interest margin (higher asset yields and lower funding costs)
  • Increase in noninterest income
  • Partially offset by higher noninterest expense
• Book Value and Equity:
  • Stockholders’ equity at March 31, 2026: \$144.9 million (down from \$145.8 million at December 31, 2025)
  • Equity to assets ratio: 9.54%
  • Book value per share and tangible book value per share: \$13.80 (down from \$13.88 at year-end)
• Capital Ratios:
  • Bank’s Tier 1 capital to total assets: 11.10% at March 31, 2026
  • Common equity tier 1 capital (to risk weighted assets): 13.37%
  • Tier 1 leverage (core) capital (to adjusted tangible assets): 11.10%
• Asset Quality:
  • Non-performing assets to total assets: 1.16% (up from 0.59% at year-end)
  • Allowance for credit losses to non-performing loans and leases: 95.02%
• Net Interest Margin: 3.10% (up from 2.79% in Q1 2025)

Proposed Merger with The Farmers Bancorp

Richmond Mutual Bancorporation, Inc. continues to pursue its previously announced merger with The Farmers Bancorp. A registration statement on Form S-4 was declared effective by the SEC on April 3, 2026, and the joint proxy statement/prospectus has been mailed to shareholders. Shareholder votes are pending for both companies regarding the merger and issuance of new Richmond Mutual stock as part of the transaction.

The company emphasizes that statements about the proposed merger are forward-looking and subject to substantial risk, including the possibility that the merger may not be completed on the anticipated terms or timeline, or at all. Key risks include regulatory approvals, shareholder votes, integration challenges, and external economic or market factors.

Other Important Factors and Risks

• Macroeconomic Risks: The company faces risks from adverse economic conditions, inflation, potential recession, changing interest rates, labor shortages, and policy changes.
• Banking Sector Risks: Negative developments or failures at other banks may affect investor and depositor sentiment.
• Competitive Pressures: Increased competition and repricing among depository institutions could affect the company’s market position.
• Technology and Cybersecurity: The company is exposed to risks from rapid technological change, advancements in AI, digital platforms, and cybersecurity threats.
• Geopolitical and Climate Risks: International conflict, climate change, severe weather, and health crises could impact the business.
• Forward-Looking Statements: Actual results may differ materially from those expressed or implied by forward-looking statements, due to factors detailed in the company’s SEC filings.

Performance Ratios (Q1 2026)

• Return on average assets: 0.69%
• Return on average equity: 7.51%
• Operating expense to average total assets: 68.50%
• Average equity to average assets: 9.81%

Investor Action Points

• Shareholders should closely monitor the status of the proposed merger with The Farmers Bancorp, as it could significantly affect Richmond Mutual’s strategic direction, financial profile, and share value.
• The increase in non-performing assets and provision for credit losses, alongside a lower book value per share, may weigh on investor sentiment in the near term.
• Continued improvement in net interest margin and year-over-year earnings growth may support the share price, but the decrease compared to the previous quarter and higher risk levels should be noted.
• Investors are encouraged to review the full joint proxy statement/prospectus and related filings available at www.sec.gov and the company’s investor relations website for further details on the merger and financials.

Price Sensitive Information

• Merger Update: The pending merger with The Farmers Bancorp is a potentially price-moving event, as it could create significant synergies and affect long-term growth. However, risks around the completion of the merger remain.
• Rising Non-Performing Assets: The sharp increase in non-performing assets to 1.16% may raise concerns about asset quality and future credit costs.
• Book Value Decrease: Both book value and tangible book value per share have declined from year-end, which may influence valuation metrics and market perception.
• Provision for Credit Losses: The increase in provisions could indicate management’s concern about loan portfolio performance amid a more uncertain macroeconomic backdrop.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should review the full SEC filings and consult with a qualified financial advisor before making any investment decisions. The information herein is based on the company’s official filings and press release and may be subject to change or updates. Forward-looking statements are inherently subject to risks and uncertainties. Actual results may differ materially from those stated or implied. Richmond Mutual Bancorporation, Inc. undertakes no obligation to update forward-looking statements except as required by law.

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