Richmond Mutual Bancorporation, Inc. (RMBI): History, Ownership, Mission, How It Works & Makes Money

Richmond Mutual Bancorporation, Inc. (RMBI) is quietly delivering a strong financial performance in a tough market, but do you defintely understand what's driving their momentum? With total assets holding steady at $1.5 billion and Q3 2025 diluted EPS jumping to $0.37, the company is showing real operating resilience, especially with the net interest margin expanding to 3.07%. That 20.4% earnings growth over the last year is impressive, but the real question for your portfolio is how their recent $82 million merger with The Farmers Bancorp will reshape their future earnings power and risk profile.

Richmond Mutual Bancorporation, Inc. (RMBI) History

You're looking for the bedrock of Richmond Mutual Bancorporation, Inc. (RMBI), and honestly, you have to look past the 2019 NASDAQ listing to the late 19th century. The company's story is a classic American financial evolution: starting as a local, mutual savings institution and transforming into a publicly traded, regional bank holding company. The biggest shift was the 2019 conversion, which gave the institution the capital to really grow, but the recent $82 million merger announcement in late 2025 is the real game-changer for scale.

Given Company's Founding Timeline

Year established

The bank's predecessor, First Bank Richmond, was originally established in 1887 as an Indiana state-chartered mutual savings and loan association.

Original location

Richmond, Indiana, which remains the administrative headquarters for the holding company, Richmond Mutual Bancorporation, Inc.

Founding team members

While the original 1887 founders are part of a mutual history, the executive team that led the 2019 public conversion-the founding of the current RMBI entity-is the key. That team was anchored by Garry D. Kleer, who serves as Chairman, President, and Chief Executive Officer. He's been with the bank since 1994, bringing over 40 years of banking experience to the modern company.

Initial capital/funding

The current Richmond Mutual Bancorporation, Inc. was capitalized through its reorganization and public stock offering in July 2019. The company sold 13,026,625 shares of common stock at $10.00 per share, generating gross offering proceeds of approximately $130.3 million. Here's the quick math: that capital infusion was the fuel for the next phase of growth.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by a few major, strategic pivots. The first was the decision to expand beyond the immediate Richmond, Indiana, area, which happened with the 2007 acquisition of Mutual Federal Savings Bank. That move laid the groundwork for a broader regional footprint, which is defintely important for a community bank.

The most transformative moment was the 2019 full conversion from a mutual holding company to a fully public stock company. This move, called a second-step conversion, unlocked a massive amount of capital-that $130.3 million-which is what you need to fund technology upgrades, higher lending limits, and future acquisitions. This strategic shift provided the financial firepower to compete more aggressively.

Now, the announced merger with The Farmers Bancorp in November 2025 is the latest, most significant leap. This all-stock transaction, valued at approximately $82 million, will create a combined entity with $2.6 billion in assets and a network of 24 branches across Indiana and Ohio. It's a clear move to gain scale, improve trading liquidity, and deliver significant earnings per share (EPS) accretion, building on the $3.6 million in net income RMBI reported for the third quarter of 2025.

• Capital Infusion: The 2019 IPO provided the capital to move from a local mutual to a regional stock bank.
• Strategic Scale: The 2025 merger decision immediately vaults the company into the $2.6 billion asset class, which is a key competitive tier.
• Leadership Continuity: The management team, led by Garry Kleer, has consistently driven the evolution from a small mutual to a publicly traded, growth-focused entity.

If you want to understand the guiding principles behind these decisions, you should read Mission Statement, Vision, & Core Values of Richmond Mutual Bancorporation, Inc. (RMBI).

Richmond Mutual Bancorporation, Inc. (RMBI) Ownership Structure

Richmond Mutual Bancorporation, Inc. is controlled by a mix of institutional investors, internal stakeholders, and the general public, a structure that is currently evolving due to a major strategic merger announced in November 2025. This ownership mix means that while large funds hold significant sway, the collective retail and insider interest remains a powerful force in the company's governance.

You need to know who is in the driver's seat, especially since the company is in a period of transformation, so let's break down the current shareholder landscape and the new leadership team steering the combined entity.

Given Company's Current Status

Richmond Mutual Bancorporation, Inc. is a publicly traded company, listed on the NASDAQ Capital Market under the ticker symbol RMBI. As of November 2025, the company operates as the holding company for First Bank Richmond, an Indiana state-chartered commercial bank. The company's market capitalization sits at approximately $126.37 million, based on roughly 9.66 million shares outstanding.

The most significant recent development is the definitive agreement, announced in November 2025, to acquire Farmers Bancorp in an all-stock transaction valued at approximately $85.1 million. This merger is set to create a premier community bank with approximately $2.6 billion in assets, fundamentally reshaping the ownership percentages and management structure once it closes in early 2026.

Given Company's Ownership Breakdown

The company's decision-making power is distributed across three main groups. Institutional investors hold the largest single block, but the combined power of insiders and retail investors is substantial. This is the pre-merger breakdown, which is the current reality as of November 2025, with institutional and insider figures reflecting recent 2025 filings.

For context, the largest institutional holders as of the third quarter of 2025 include Vanguard Group Inc., holding about 6.01% of shares, and BlackRock, Inc., with approximately 4.08%. That's a lot of skin in the game for the big passive managers.

Given Company's Leadership

The organization is currently led by a seasoned team, but the announced merger with Farmers Bancorp in November 2025 dictates a new, combined leadership structure that will take effect upon closing. This new team is designed to manage the expanded $2.6 billion asset base.

• Garry D. Kleer: Will serve as Chief Executive Officer and Chairman of the combined company, bringing his long tenure and deep knowledge from his current role as RMBI's CEO.
• Chris D. Cook: Will take the role of President of the combined holding company and President and CEO of the combined bank, moving over from his CEO position at Farmers Bancorp.
• Bradley M. Glover: Continues as Chief Financial Officer (CFO) for both the combined holding company and the bank, ensuring continuity in financial oversight.
• Board of Directors: The new board will consist of 11 directors, with six coming from Richmond Mutual Bancorporation and five from Farmers Bancorp, a defintely balanced approach to governance.

The goal here is clear: blend the best of both teams to manage the new scale and deliver on the projected 35% earnings per share (EPS) accretion for Richmond Mutual shareholders.

Richmond Mutual Bancorporation, Inc. (RMBI) Mission and Values

Richmond Mutual Bancorporation, Inc.'s core purpose transcends simple profit, centering on a deep-seated commitment to community banking, which is the foundation of its operating subsidiary, First Bank Richmond. This focus on local engagement and client success is the cultural DNA that drives its financial strategy, even as the company expands its scale.

You need to know what a bank stands for beyond its balance sheet; the mission and values explain why its assets reached approximately $1.5 billion as of June 30, 2025, and why it's growing through strategic moves like the merger with The Farmers Bancorp to create a $2.6 billion asset institution. [cite: 3, 10 in previous search]

Richmond Mutual Bancorporation, Inc.'s Core Purpose

The holding company's philosophy is an extension of its bank's long-term commitment to its local markets, which is what community banking (a key strength) is all about. The bank's mission and core values dictate everything from loan decisions to its digital investment strategy.

Official mission statement

The formal mission statement for its operating entity, First Bank Richmond, is clear and community-centric. This is the guiding principle for every branch and delivery channel, ensuring a consistent, high-quality experience for you, the customer.

• To be the best community bank in every community we serve and through every delivery channel we offer.

This isn't just a plaque on the wall; it's a mandate to deliver superior service locally. If you're looking for an example of this commitment in action, look at the quarterly cash dividend, which was declared at $0.15 per share on November 19, 2025, reflecting a commitment to shareholder value.

Vision statement

The vision is less a single sentence and more a commitment to being a trusted, full-service financial partner. They defintely believe in helping their clients achieve financial independence, not just process transactions.

• Be a trusted financial partner, driving success for all stakeholders.
• Empower customers to achieve financial independence, prosper, and pursue their dreams.
• Maintain a strong balance sheet; the equity to assets ratio stood at a solid 8.78% as of June 30, 2025. [cite: 10 in previous search]

The core values translate this vision into daily actions, focusing on safety, service, and making banking easy. This is the operational framework that allows them to report strong results, like the third quarter 2025 net income of $3.6 million. [cite: 5 in previous search]

• Commit to safety and soundness.
• Provide accurate, prompt, and courteous service.
• Help clients and associates build and achieve goals.

To dive deeper into who is investing in this community-focused model and why, you should check out Exploring Richmond Mutual Bancorporation, Inc. (RMBI) Investor Profile: Who's Buying and Why?

Richmond Mutual Bancorporation, Inc. slogan/tagline

The bank's most prominent tagline captures the relational aspect of their community focus, moving beyond the transactional nature of banking to a partnership model. It's a simple call-to-action that sums up their collaborative approach.

• Let's do great things together.

Richmond Mutual Bancorporation, Inc. (RMBI) How It Works

Richmond Mutual Bancorporation, Inc. (RMBI) operates as a bank holding company, generating its primary revenue stream by taking customer deposits through its subsidiary, First Bank Richmond, and then lending those funds back out at a higher interest rate-a process known as net interest income generation.

The company maintains a community-oriented financial institution model, focusing on traditional banking and trust services for individuals and small to mid-sized businesses across its footprint in East Central Indiana and Western Ohio. For the third quarter of 2025, this core model delivered a net income of $3.6 million, driven by an improved annualized net interest margin of 3.07%.

Richmond Mutual Bancorporation's Product/Service Portfolio

The product suite is built around core community banking needs, offering a blend of deposit, lending, and specialized financial services to both retail and commercial clients.

Richmond Mutual Bancorporation's Operational Framework

RMBI's operational value creation centers on localized decision-making and efficient asset deployment, which is critical for a community bank. The parent company, RMBI, acts as the capital and strategic umbrella for First Bank Richmond, which handles all customer-facing operations.

• Deposit Gathering: The bank relies on its network of eight branches in Indiana and five branches and one loan production office in Ohio to attract and retain sticky, low-cost deposits, which totaled $1.1 billion as of September 30, 2025.
• Lending Focus: The primary value driver is the loan portfolio, which stood at approximately $1.2 billion (net of allowance for credit losses) in Q3 2025, with growth concentrated in multi-family, commercial mortgage, and commercial and industrial loans.
• Risk Management: Management maintains a conservative approach, indicated by a strong capital position and a manageable allowance for credit losses of $16.4 million, or 1.37% of total loans, as of Q3 2025.
• Digital Integration: The strategy includes modernizing operations through increased spending on data processing and software upgrades to support the branch network. Breaking Down Richmond Mutual Bancorporation, Inc. (RMBI) Financial Health: Key Insights for Investors

This model is simple: acquire funds cheaply, lend them out profitably, and manage the credit risk defintely well.

Richmond Mutual Bancorporation's Strategic Advantages

The company's competitive edge stems from its deep community ties, sound financial metrics, and a timely, aggressive strategic move to gain scale in a fragmented market.

• Transformational Merger: The announced November 2025 merger with The Farmers Bancorp is a game-changer, creating a premier $2.6 billion asset community bank with 24 branches across key markets in Indiana and Ohio.
• Enhanced Scale and Reach: This combination is set to unlock higher lending limits, broaden the product offerings, and improve trading liquidity, positioning the combined entity for substantial earnings per share (EPS) accretion, estimated at approximately 35% on a run-rate basis.
• Strong Capital Position: The bank's regulatory capital buffers are robust; its Tier 1 capital to total assets ratio was 10.75% as of June 30, 2025, well above regulatory minimums, providing a solid foundation for growth and risk absorption.
• Improved Profitability: Proactive balance sheet management has led to an expanded net interest margin, which improved to 3.07% in Q3 2025, suggesting a better ability to capitalize on the current interest rate environment compared to peers.

Richmond Mutual Bancorporation, Inc. (RMBI) How It Makes Money

Richmond Mutual Bancorporation, Inc. (RMBI), the holding company for First Bank Richmond, primarily makes money the way most community banks do: by borrowing money cheaply (deposits) and lending it out at a higher rate (loans), which is called net interest income. The company supplements this core business with noninterest revenue from fees and services, but honestly, the interest spread is what drives the engine.

Richmond Mutual Bancorporation, Inc.'s Revenue Breakdown

As of the third quarter of 2025, RMBI's revenue model shows a strong reliance on its core lending activities, a trend that has been amplified by the current interest rate environment. Here's the quick math on the $12.6 million in total revenue for Q3 2025.

Net Interest Income, which was $11.3 million for the third quarter of 2025, is up 19.7% year-over-year. Noninterest Income, at $1.3 million, is a smaller but still important piece, though it saw a slight year-over-year decline mainly due to lower loan sales and security gains.

Business Economics

The profitability of a bank like Richmond Mutual Bancorporation hinges on its Net Interest Margin (NIM), which is the difference between the interest earned on assets (like loans) and the interest paid on liabilities (like deposits). This is the key metric to watch.

• Net Interest Margin Expansion: The annualized NIM improved to 3.07% in Q3 2025, up from 2.60% in the same quarter last year. This means the bank is earning more on its assets relative to its funding costs, which is a direct driver of the 19.7% growth in Net Interest Income.
• Loan Portfolio Focus: The primary assets driving interest income are loans and leases, which stood steady at $1.2 billion as of September 30, 2025. The bank has seen growth particularly in commercial mortgage and multi-family loans, signaling a strategic focus on business and property lending in its core markets like Columbus, Ohio, and Indianapolis, Indiana.
• Funding Costs Control: The bank's ability to manage the cost of its deposits is defintely critical. Noninterest-bearing deposits-the cheapest form of funding-totaled $110.8 million as of Q3 2025, or 9.9% of total deposits. Keeping this percentage stable helps offset the rising cost of interest-bearing accounts.
• Noninterest Income Diversification: While volatile due to lower loan sales, the noninterest segment does include recurring revenue streams like fees from servicing loans and wealth management services, which are important for business diversification.

For a deeper dive into the bank's long-term strategy, you should review their Mission Statement, Vision, & Core Values of Richmond Mutual Bancorporation, Inc. (RMBI).

Richmond Mutual Bancorporation, Inc.'s Financial Performance

The company's financial health is strong, driven by the expanding NIM and controlled expenses. The results for the first nine months of 2025 show clear momentum, giving you a solid basis for evaluating its sustainability.

• Net Income and EPS: For the third quarter of 2025, net income was $3.6 million, or $0.37 diluted earnings per share (EPS). This is a significant jump, representing a 54% increase in diluted EPS from the third quarter of 2024. Year-to-date (9 months ending Q3 2025), net income reached $8.17 million, an 18.3% increase over the same period in 2024.
• Asset Quality: While overall asset quality remains satisfactory, nonperforming loans and leases increased to $10.8 million as of September 30, 2025, representing 0.90% of total loans and leases. This is an increase from the previous quarter, a near-term risk to monitor, though the bank's allowance for credit losses is $16.4 million, or 1.37% of total loans.
• Capital Strength: The balance sheet is well-capitalized. Total assets are stable at $1.5 billion, and stockholders' equity increased to $140.0 million. The equity to assets ratio is 9.18%, and all regulatory capital ratios are substantially above the 'well-capitalized' thresholds.
• Dividend Policy: The company continues to return value to shareholders, declaring a quarterly cash dividend of $0.15 per share on November 19, 2025.

Richmond Mutual Bancorporation, Inc. (RMBI) Market Position & Future Outlook

Richmond Mutual Bancorporation, Inc. (RMBI) is on a clear path to significant scale-up, driven by a definitive merger agreement that will nearly double its asset base and expand its regional footprint. This strategic move positions the company for enhanced competitiveness, shifting its standing from a smaller community bank to a premier regional player with $2.6 billion in pro forma assets.

Competitive Landscape

In the regional banking sector, Richmond Mutual Bancorporation competes with larger, more diversified institutions and smaller, highly localized community banks. The company's competitive advantage lies in its deep community roots and a focus on traditional, high-touch banking services, which is now being paired with the scale needed to invest in technology and offer higher lending limits.

Note: The Market Share % is a relative calculation based on the market capitalization of this peer group (RMBI: $136.16 million; Northpointe Bancshares: $560.84 million; Citizens & Northern Corp.: $347.13 million) as of November 2025, not total industry market share.

Opportunities & Challenges

The near-term outlook is dominated by the integration of the merger, which is both the biggest opportunity and the most immediate risk. Honestly, if the integration isn't defintely seamless, customer and employee disruption could slow the projected benefits.

Industry Position

Richmond Mutual Bancorporation is strategically positioned as a growing regional bank, transitioning from a smaller community-focused institution to a mid-sized player capable of greater operational efficiency. The merger is the game-changer here.

• The company's net profit margin of 23.7% in late 2025 demonstrates strong operating resilience compared to the prior year.
• Its Price-to-Earnings (P/E) ratio of 12.1x is favorable against a peer average of 26.8x, suggesting a relative valuation advantage.
• The annualized dividend of $0.60 per share, representing a 4.57% yield, makes it an attractive income stock compared to many peers.
• The combined company will have higher lending limits and a broader product offering, enabling it to better serve small and mid-sized enterprises across its expanded footprint in Indiana and Ohio.

To understand the foundation of this growth, you should review the Mission Statement, Vision, & Core Values of Richmond Mutual Bancorporation, Inc. (RMBI).