RICHMOND MUTUAL BANCORPORATION, INC. ANNOUNCES 2026 THIRD QUARTER FINANCIAL RESULTS

RICHMOND, Ind., Oct. 30, 2026 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc., a Maryland corporation (the "Company") (NASDAQ: RMBI), parent company of First Bank Midwest, today reported net income of $1.7 million, or diluted earnings per share of $0.11, for the third quarter of 2026. This compares to net income of $2.2 million, or $0.22 diluted earnings per share, for the second quarter of 2026, and net income of $3.6 million, or diluted earnings per share of $0.36, for the third quarter of 2025.

The decrease in net income from the second quarter of 2026 and the third quarter of 2025 was primarily due to higher provision for credit losses, as well as noninterest expense. The provision for credit losses totaled $6.1 million during the third quarter of 2026, compared to $823,000 in the prior quarter and $269,000 in the third quarter of 2025. The increase in provision was primarily due to the need to replenish and increase the allowance for credit losses following $6.1 million of net charge-offs during the quarter, including a partial charge-off of $4.5 million on a nonaccruing commercial real estate loan, which was transferred to other real estate owned during the current quarter, and an $803,000 charge-off on a commercial and industrial loan, as well as an increase in non-performing loans. In addition, noninterest expense during the quarter included $3.0 million of nonrecurring merger-related expenses associated with the acquisition of Farmers Bancorp. These items were partially offset by a preliminary bargain purchase gain recognized on the Company's acquisition of Farmers Bancorp of $1.6 million.

Net income for the nine months ended September 30, 2026 was $6.8 million, or $0.56 diluted earnings per share, compared to net income of $8.2 million, or $0.82 diluted earnings per share, for the same period in 2025.

On July 1, 2026, the Company completed its previously announced merger with Farmers Bancorp pursuant to the Agreement and Plan of Merger dated November 11, 2025. Immediately thereafter, The Farmers Bank merged with and into First Bank Richmond. The combined company continues to operate as Richmond Mutual Bancorporation, Inc., while the combined bank is operating under the name First Bank Midwest. The combined company continues to trade on the Nasdaq Capital Market under the ticker symbol "RMBI." The administrative headquarters of the holding company remains in Richmond, Indiana, while the combined bank is headquartered in Frankfort, Indiana.

The financial results presented in this earnings release reflect the Company's operations following the completion of the merger on July 1, 2026. Accordingly, the Company's financial results for the quarter ended September 30, 2026, include the operating results of the combined company. Financial results for periods prior to July 1, 2026, reflect the operations of Richmond Mutual Bancorporation, Inc., on a standalone basis, and do not include the operations of Farmers Bancorp.

Message from the Chairman and CEO

Garry Kleer, Chairman and Chief Executive Officer, commented, "Our third quarter results reflected the impact of our merger with Farmers Bancorp, which significantly expanded our balance sheet and increased net interest income compared to both the prior quarter and the third quarter of last year. Earnings were impacted by a higher provision for credit losses and increased noninterest expense. As we move forward, our focus remains on successfully integrating the two organizations, realizing the strategic benefits of the combination and continuing to serve our customers and communities."

Third Quarter Performance Highlights

- Net interest income increased by $10.8 million, or 89.2%, to $22.8 million for the three months ended September 30, 2026, from $12.1 million for the quarter ended June 30, 2026. Net interest income increased by $11.6 million, or 102.3%, from $11.3 million for the comparable quarter in 2025.

- Annualized net interest margin was 3.68% for the current quarter, compared to 3.22% in the prior quarter and 3.07% for the comparable quarter in 2025.

- A provision for credit losses of $6.1 million was recorded for the quarter ended September 30, 2026, compared to $823,000 and $269,000 for the quarters ended June 30, 2026 and September 30, 2025, respectively.

- Noninterest income increased $3.0 million to $4.6 million for the three months ended September 30, 2026, compared to $1.6 million for the quarter ended June 30, 2026, and increased $3.3 million from $1.3 million for the comparable quarter in 2025.

- Noninterest expense increased $9.8 million to $20.0 million for the three months ended September 30, 2026, which included $3.0 million in nonrecurring merger-related expenses, compared to $10.2 million for the quarter ended June 30, 2026, and increased $11.9 million from $8.1 million for the comparable quarter in 2025.

- Assets totaled $2.60 billion at September 30, 2026, compared to $1.55 billion at June 30, 2026 and $1.53 billion at December 31, 2025.

- Loans and leases, net of allowance for credit losses, totaled $2.00 billion at September 30, 2026, compared to $1.21 billion at June 30, 2026, and $1.18 billion at December 31, 2025.

- Non-performing loans and leases totaled $32.2 million, or 1.59% of total loans and leases, at September 30, 2026, compared to $21.8 million, or 1.78%, at June 30, 2026, and $17.4 million, or 1.46%, at December 31, 2025.

- The allowance for credit losses totaled $25.4 million, or 1.25% of total loans and leases outstanding, at September 30, 2026, compared to $17.0 million, or 1.39%, at June 30, 2026, and $16.5 million, or 1.38%, at December 31, 2025.

- Deposits totaled $2.09 billion at September 30, 2026 compared to $1.15 billion at June 30, 2026, and $1.11 billion at December 31, 2025. At September 30, 2026, noninterest-bearing deposits totaled $351.4 million, or 16.9% of total deposits, compared to $100.1 million, or 8.7% of total deposits at June 30, 2026, and $100.1 million, or 9.0% of total deposits at December 31, 2025.

- Stockholders' equity totaled $228.9 million at September 30, 2026, compared to $148.3 million at June 30, 2026, and $145.8 million at December 31, 2025. The Company's equity to assets ratio was 8.81% at September 30, 2026.

- Book value per share was $13.66 at September 30, 2026, compared to $14.11 at June 30, 2026 and $13.88 per share at December 31, 2025.

- The Bank's Tier 1 leverage ratio was 9.99% at September 30, 2026, well in excess of the 8.0% CBLR requirement.

- Effective September 30, 2026, the Bank elected to begin reporting its regulatory capital status through the Community Bank Leverage Ratio framework. Under the CBLR framework, qualifying institutions that maintain a leverage ratio of greater than 8.0% are deemed to satisfy applicable regulatory capital requirements and are no longer required to calculate risk-based capital ratios for regulatory reporting purposes.

Income Statement Summary

Net Interest Income. Net interest income before the provision for credit losses increased $11.6 million to $22.8 million in the third quarter of 2026, compared to $11.3 million in the third quarter of 2025. The increase was primarily attributable to the merger with Farmers Bancorp, which significantly expanded the Company's interest-earning assets and interest-bearing liabilities. The acquisition also impacted net interest income through the accretion and amortization of fair value adjustments recorded in connection with the transaction.

Annualized net interest margin was 3.68% for the third quarter of 2026, compared to 3.07% for the third quarter of 2025. The increase primarily reflected higher yields and average balances of interest-earning assets resulting from the loan portfolio acquired in the merger, as well as lower average funding costs and a higher volume of noninterest-bearing demand deposits.

Interest Income. Interest income increased $16.7 million to $38.6 million during the quarter ended September 30, 2026, compared to $21.8 million during the quarter ended September 30, 2025. The increase was primarily due to a $1.02 billion increase in the average balance of interest-earning assets, mainly as a result of the merger with Farmers Bancorp. The average yield on interest-earning assets was 6.20%, compared to 5.93% in the third quarter of 2025.

Interest income on loans and leases increased $14.6 million to $34.3 million for the quarter ended September 30, 2026, compared to $19.7 million in the third quarter of 2025. This increase was primarily due to an $831.9 million increase in the average balance of loans and leases, mainly reflecting loans acquired in the merger with Farmers Bancorp. The average yield earned on loans and leases was 6.79% as compared to 6.63% in the same quarter a year ago.

Interest income on investment securities, excluding FHLB stock, increased $1.3 million to $2.9 million during the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025, due to a $110.5 million increase in the average balance of securities and a 66 basis point increase in the average yield to 3.25%. The increases were primarily due to securities acquired in the acquisition and the subsequent repositioning of the securities portfolio. Dividends on FHLB stock increased $203,000 to $517,000 during the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025, primarily due to a $7.1 million increase in the average balance of FHLB stock held.

Interest income on cash and cash equivalents increased $623,000 to $826,000 during the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025. The increase from the third quarter of 2025 was primarily due to increased cash balances maintained following the merger with Farmers Bancorp.

Interest Expense. Interest expense increased $5.2 million to $15.