Richmond Mutual Bancorporation Reports 41.5% Increase in Net Income for Q1 2026

Richmond Mutual Bancorporation, Inc. reported a net income of $2.8 million for the first quarter of 2026, reflecting a 41.5% increase from $2.0 million in the same period of 2025. This growth was driven by a rise in net interest income, which increased by $1.2 million to $11.4 million, and a boost in non-interest income, which rose by $136,000 to $1.3 million. The diluted earnings per share for the quarter were $0.28, compared to $0.20 in the prior year. The company’s total assets decreased slightly to $1.5 billion, down from $1.5 billion at the end of 2025, primarily due to a reduction in investment securities.

The company experienced a decrease in total loans and leases, which fell by $2.7 million to $1.2 billion, attributed to declines in residential mortgages and consumer loans. However, there were increases in commercial and industrial loans, as well as construction and development loans. Nonaccrual loans rose to $15.9 million, up from $13.2 million, largely due to a single multi-family loan that became past due. The allowance for credit losses increased to $16.7 million, representing 1.41% of total loans and leases, compared to 1.38% at the end of 2025.

Richmond Mutual Bancorporation is in the process of merging with The Farmers Bancorp, a transaction expected to be completed by the end of the second quarter of 2026, pending shareholder approvals. Under the merger agreement, Farmers Bancorp shareholders will receive 3.40 shares of Richmond Mutual common stock for each share they hold. This merger is anticipated to enhance the company’s market presence and operational efficiency, with the combined entity continuing to operate under the Richmond Mutual Bancorporation name.

In terms of operational metrics, the company reported a total deposit decrease of $8.5 million to $1.1 billion, with a notable decline in retail time deposits. The company’s capital position remains strong, with stockholders’ equity totaling $144.9 million, and a total risk-based capital ratio of 14.62%, exceeding regulatory requirements. The company continues to focus on its strategic growth markets in Ohio and Indiana, which are expected to drive future loan growth, particularly in commercial real estate lending.

Looking ahead, Richmond Mutual Bancorporation remains cautious amid economic uncertainties, including inflation and potential recession risks. Management is actively monitoring credit quality and adjusting strategies to maintain a strong financial position while navigating the evolving market landscape.