Richmond, Indiana – October 31, 2026 -- Richmond Mutual Bancorporation (NASDAQ: RMBI) reported third-quarter 2026 net income of $1.7 million, or $0.11 per diluted share, down from $3.6 million, or $0.36, a year earlier. A $6.1 million credit-loss provision and $3.0 million of nonrecurring merger costs outweighed a near-doubling of net interest income after the Farmers Bancorp acquisition.

Second-quarter net income was $2.2 million, or $0.22 per share. For the nine months ended September 30, net income fell to $6.8 million, or $0.56 per share, from $8.2 million, or $0.82, in the same period of 2025.

Credit provision jumps from $823,000 to $6.1 million on large charge-offs

The provision compares with $823,000 in the second quarter and $269,000 a year earlier. The company needed to replenish its allowance after $6.1 million of net charge-offs. These included a partial $4.5 million charge-off on a nonaccruing commercial real estate loan, now in other real estate owned, and an $803,000 charge-off on a commercial and industrial loan.

Non-performing loans and leases rose to $32.2 million, or 1.59% of total loans, from $21.8 million, or 1.78%, at June 30. The allowance for credit losses stood at $25.4 million, or 1.25% of loans, versus $17.0 million, or 1.39%, at mid-year.

Net interest income climbs 89.2% to $22.8 million as margin widens to 3.68%

Net interest income rose $10.8 million from the second quarter and $11.6 million, or 102.3%, from the third quarter of 2025. Annualized net interest margin reached 3.68%, up from 3.22% in the prior quarter and 3.07% a year ago. The company cited higher yields on acquired loans, lower funding costs and more noninterest-bearing demand deposits.

Interest income climbed $16.7 million year over year to $38.6 million. Average interest-earning assets grew by $1.02 billion, and the average yield rose to 6.20% from 5.93%. Loan interest income increased $14.6 million to $34.3 million, with a 6.79% average yield.

Noninterest income rose to $4.6 million from $1.6 million in the second quarter. Noninterest expense increased $9.8 million sequentially to $20.0 million, including the $3.0 million of merger costs. A preliminary bargain purchase gain of $1.6 million on the Farmers Bancorp deal partly offset these items.

Balance sheet expands to $2.60 billion in assets after July 1 merger close

The merger closed July 1, 2026, and The Farmers Bank was merged into First Bank Richmond. The combined bank operates as First Bank Midwest and is headquartered in Frankfort, Indiana. The holding company's administrative headquarters remains in Richmond.

Total assets reached $2.60 billion at September 30, from $1.55 billion at June 30. Net loans and leases grew to $2.00 billion from $1.21 billion. Deposits rose to $2.09 billion from $1.15 billion, and noninterest-bearing deposits reached $351.4 million, or 16.9% of the total, versus 8.7% at mid-year.

Book value per share slips to $13.66 as equity reaches $228.9 million

Stockholders' equity rose to $228.9 million from $148.3 million at June 30, for an equity-to-assets ratio of 8.81%. Book value per share fell to $13.66 from $14.11 at mid-year and $13.88 at year-end 2025.

Effective September 30, the bank elected to report regulatory capital under the Community Bank Leverage Ratio framework. Its Tier 1 leverage ratio of 9.99% compares with the 8.0% CBLR threshold. Qualifying banks above that level are deemed to meet capital requirements and no longer calculate risk-based capital ratios for regulatory reporting.

Chairman and CEO Garry Kleer said the company's "focus remains on successfully integrating the two organizations."