Exploring Richmond Mutual Bancorporation, Inc. (RMBI) Investor Profile: Who’s Buying and Why?

You're looking at Richmond Mutual Bancorporation, Inc. (RMBI) and trying to figure out if the smart money is still betting on this regional bank, especially with the market's recent volatility. Honestly, the investor profile is defintely getting more complex, moving far beyond just local retail buyers. The big question is: are institutional investors buying for the $0.15 quarterly dividend (a roughly 4.6% annualized yield), or are they positioning for the major strategic shift? We saw Richmond Mutual Bancorporation, Inc. report Q3 2025 net income of $3.6 million and diluted earnings per share (EPS) of $0.36, which is solid, but the real action is in the ownership shifts.

Institutional ownership sits around 26.5%, holding over 2.7 million shares, and their recent trading tells a story of divergence: BlackRock, Inc., for example, boosted its stake by over 8.5% in the third quarter. But what does that mean when the company just announced a transformational merger with The Farmers Bancorp, creating a new entity with $2.6 billion in total assets? Are these buyers chasing the stability of the $1.5 billion in assets Richmond Mutual Bancorporation, Inc. reported pre-merger, or is this a pure arbitrage play on the new, larger community bank? We'll break down which firms are buying, who's selling, and what their moves imply about the bank's future credit risk, like the $6.38 million in nonaccrual loans, so you can make a truly informed decision.

Who Invests in Richmond Mutual Bancorporation, Inc. (RMBI) and Why?

You're looking at Richmond Mutual Bancorporation, Inc. (RMBI) and trying to figure out if the smart money is moving in, and honestly, the ownership structure tells a clear story: this is a stock for income-focused institutions and value investors looking for stability plus a growth kicker. The core appeal is a healthy dividend yield paired with a community bank model that is showing strong earnings momentum right now.

The investor base is a mix of large institutional players, company insiders, and a significant retail component, which is typical for a smaller bank stock. What's defintely interesting is the high conviction from the institutional side, especially the passive managers who are anchoring the stock for the long haul.

Key Investor Types and Their Holdings

The ownership breakdown for Richmond Mutual Bancorporation, Inc. is a study in stability, though you see some active funds making big moves. As of the most recent filings, institutional investors and hedge funds own roughly 26.52% of the company's common stock. This block is crucial because it represents a large, relatively stable base of capital.

The largest asset managers in the world hold positions, which points to the stock's inclusion in various index funds and diversified portfolios. For example, Vanguard Group Inc. held 580,543 shares as of September 30, 2025, and BlackRock Inc. held 394,220 shares. These are passive, long-term investors. On the other side, company insiders-executives and directors-maintain a high ownership stake of around 21.18%, which signals strong alignment between management and shareholder interests.

Here's the quick math on the major institutional players and their Q3 2025 holdings:

Value estimates are based on reported institutional holdings and stock price data closest to the reporting date.

Investment Motivations: Yield, Value, and M&A

Investors are drawn to Richmond Mutual Bancorporation, Inc. for three main reasons: a compelling dividend, strong value metrics, and the potential upside from strategic growth. Simply put, they are getting paid to wait for growth.

• High Dividend Yield: The company's annualized dividend of $0.60 per share translates to a dividend yield of about 4.57% at recent prices. This is a significant income stream, especially for a regional bank. The quarterly payout of $0.15 is sustainable, with a healthy payout ratio of 56.60% of earnings.
• Growth Prospects: The bank is expanding its net interest margin (NIM), which hit 3.07% in Q3 2025, up from 2.93% in the prior quarter, a strong sign of profitability improvement. Net income for Q3 2025 was $3.6 million, with diluted earnings per share (EPS) of $0.37, showing a robust 54% year-over-year increase.
• Value and Stability: The stock trades with a low beta of 0.41, meaning it's less volatile than the broader market. Its Price-to-Earnings (P/E) ratio of 12.1x is favorable compared to its peer average of 26.8x, suggesting a value play. Plus, the Tier 1 capital to assets ratio of 10.85% as of September 30, 2025, shows a well-capitalized bank.

Investment Strategies in Play

The strategies used by investors reflect these motivations, spanning from passive income generation to aggressive accumulation ahead of a strategic shift. You see a clear focus on the long-term story here.

• Value and Income Investing: This is the dominant strategy for most holders. They target the dividend yield and the bank's strong balance sheet, which includes a book value per share of $12.48 as of Q1 2025. The goal is consistent income and capital preservation, which is what a community bank is designed to deliver.
• Long-Term Holding: The large positions held by index funds like Vanguard and BlackRock are essentially permanent capital, reflecting a passive, long-term view of the stock as a stable component of the US banking sector.
• Active Accumulation: Some hedge funds are actively increasing their stakes, likely anticipating the benefits of scale. Geode Capital Management LLC, for instance, raised its position by 101.6% in Q2 2025, and Arrowstreet Capital Limited Partnership increased its stake by a massive 381.0% in the same quarter. This accumulation suggests a belief that the stock is undervalued, especially in light of the announced merger with The Farmers Bancorp on November 12, 2025, which will nearly double the bank's assets to $2.6 billion.

If you want to dig deeper into the foundation of this investment case, you should check out the full corporate history and mission: Richmond Mutual Bancorporation, Inc. (RMBI): History, Ownership, Mission, How It Works & Makes Money. It helps frame why this community bank has such a loyal investor base.

Institutional Ownership and Major Shareholders of Richmond Mutual Bancorporation, Inc. (RMBI)

If you're looking at Richmond Mutual Bancorporation, Inc. (RMBI), you need to know who the major players are and what they've been doing. Institutional investors-the big money managers like BlackRock, Inc. and The Vanguard Group, Inc.-hold a significant stake, currently accounting for about 23.18% of the total shares outstanding as of November 2025. That's a sizable chunk, and their movements defintely influence the stock's trajectory.

The total institutional shares held stand at over 2.43 million, which tells you that while RMBI is a community bank, it's on the radar of some of the largest asset managers in the world. Their investment decisions are often a signal of confidence in the company's long-term strategy, especially in the regional banking sector.

• Know who owns the stock to understand the market's conviction.

Top Institutional Investors and Their Q3 2025 Positions

When we look at the most recent 13F filings, which disclose the holdings of institutional investment managers with over $100 million in assets under management, the list is a who's who of passive and active funds. The Vanguard Group, Inc. and BlackRock, Inc. lead the pack, which is typical for companies of this size, as they manage massive index funds that track the entire market.

Here's the quick math on the top three holders based on their September 30, 2025, filings:

To be fair, the total value of these holdings, around $32 million, is relatively small in the context of their multi-trillion-dollar portfolios, but it still represents a significant commitment to RMBI's market capitalization of approximately $126.85 million as of November 2025.

Recent Shifts: Who's Buying and Who's Trimming?

The real story isn't just who holds the shares, but how their conviction is changing. In the third quarter of 2025, we saw a mixed bag of activity, which suggests a healthy debate among institutional analysts about RMBI's near-term prospects.

BlackRock, Inc. was a buyer, increasing its stake by 8.517%, adding 30,942 shares to its position. This is a strong vote of confidence. However, The Vanguard Group, Inc. reduced its position by 8.792%, selling 55,964 shares, while Geode Capital Management, LLC also trimmed its holding by 6.146%. Overall, the quarter saw more positions increase (181,763 shares added) than decrease (140,658 shares sold), indicating net institutional accumulation. This net buying suggests that a majority of institutional investors see a positive risk/reward profile right now.

• BlackRock, Inc. is buying; Vanguard is trimming.

The Impact of Institutional Interest: Merger and Dividend Strategy

Large institutional investors play a critical role; they provide liquidity and their sheer buying power can stabilize or boost the stock price. More importantly, their presence validates the company's strategic direction. For RMBI, the recent activity is clearly tied to two major catalysts.

First, the announcement on November 12, 2025, of a transformational strategic merger with The Farmers Bancorp is the biggest driver. This deal is set to create a premier community bank with $2.6 billion in total assets, significantly expanding RMBI's footprint across Indiana and Ohio. Institutional investors are buying into the growth story and the potential for increased scale and operational efficiencies (synergies) that a larger entity brings.

Second, the consistent return of capital is a draw. The declaration of a quarterly cash dividend of $0.15 per share on November 19, 2025, reinforces the company's commitment to shareholder value, a key metric for many institutional funds, especially those focused on income. This recent action, paired with a favorable analyst Hold rating and a $14.00 price target, maps out a clear opportunity for investors seeking stability and yield in the regional bank space. You can review the strategic alignment in Mission Statement, Vision, & Core Values of Richmond Mutual Bancorporation, Inc. (RMBI).

What this estimate hides is the execution risk of the merger, but the institutional capital flowing in suggests they believe management can pull it off.

Key Investors and Their Impact on Richmond Mutual Bancorporation, Inc. (RMBI)

You want to know who is buying Richmond Mutual Bancorporation, Inc. (RMBI) stock and why; the short answer is that passive index funds are the biggest holders, but the recent all-stock merger announcement is what's driving all the real action right now. Institutional investors collectively own about 26.5% of the stock as of late 2025, which gives them significant sway, especially when it comes to major corporate moves like the recent acquisition.

The investor profile is defintely dominated by the big-name asset managers who track market indices (passive investing). These firms aren't making a directional bet on the bank; they own it because it's part of the Russell 2000 or other small-cap benchmarks. Still, their sheer size means their quarterly moves can influence the stock price.

The Anchor Holders: Passive Giants and Their Stakes

The largest shareholders are the usual suspects: Vanguard Group Inc. and BlackRock, Inc., through their various index and exchange-traded funds (ETFs). These two firms alone account for a massive chunk of the institutional ownership, making them the silent anchors of the stock. BlackRock's position, for example, is a strong signal of inclusion in key indices.

Here's the quick math on the top institutional holders, based on their September 30, 2025, 13F filings:

The fact that the top four holders are all major index and quantitative managers tells you this is a stock primarily owned for its structure, not its story.

Recent Moves: Buying on Merger News and Strategic Exits

The recent trading activity shows a split, but the overall trend points to new money getting in, likely in anticipation of the November 2025 merger. For example, BlackRock, Inc. boosted its stake by over 8.5% in the third quarter of 2025. We also saw significant new positions being established.

• Segall Bryant & Hamill LLC acquired a new stake valued at $1,222,000 in Q3 2025.
• Arrowstreet Capital Limited Partnership increased its position by a massive 381.0% in Q2 2025.
• Gamco Investors INC. ET AL also bought a new position in Q2 2025, valued at $971,000.

On the flip side, not everyone is a buyer. AllianceBernstein L.P. significantly reduced its position by over 63% in May 2025, dropping its ownership below the 5% threshold that triggers major disclosure. This kind of large-scale selling indicates a strategic exit before the merger was announced, or a shift in their small-cap banking allocation. You need to watch these big, active sales closely.

Investor Influence: The Merger Catalyst

The most important factor influencing Richmond Mutual Bancorporation, Inc.'s stock and future is the announced all-stock merger with The Farmers Bancorp on November 12, 2025. This is where shareholder influence really matters, because the deal requires both shareholder and regulatory approvals.

The transaction is valued at approximately $82 million, based on Richmond Mutual Bancorporation, Inc.'s closing price of $13.15 on November 10, 2025. The structure is key: existing Richmond Mutual Bancorporation, Inc. shareholders are expected to own about 62% of the combined company, while The Farmers Bancorp shareholders will own approximately 38%. This means the institutional holders of Richmond Mutual Bancorporation, Inc. are essentially voting on a deal that will see them maintain majority control of a much larger, $2.6 billion asset community bank.

The influence of the major institutional holders, though often passive, becomes active here. Their votes are crucial to ratify the deal and realize the expected dividend per share accretion of approximately 27.5% for The Farmers Bancorp shareholders, which is a strong incentive for that side of the table. For a deeper dive into the bank's operational history and structure that led to this point, you can review Richmond Mutual Bancorporation, Inc. (RMBI): History, Ownership, Mission, How It Works & Makes Money.

Your next step should be to monitor the proxy filings for any activist investor opposition, but with the boards' unanimous approval, the institutional backing seems solid for now.

Market Impact and Investor Sentiment

You're looking at Richmond Mutual Bancorporation, Inc. (RMBI) and wondering who's buying and why, especially with all the recent action. The core takeaway is this: institutional sentiment is currently mixed, showing caution on valuation, but the recent strategic merger and strong earnings have injected a significant dose of future-oriented optimism into the stock.

The institutional ownership sits at approximately 23.18% as of November 2025, which is a solid base, but the recent trading activity shows a subtle shift. For instance, Bridgeway Capital Management LLC reduced its position by a substantial -54.8%, holding only 11,300 shares valued at $161K by mid-November 2025. This selling, alongside divestitures from other large holders like Vanguard Group Inc., suggests some major players are taking profits or re-evaluating RMBI's valuation premium.

Here's the quick math on the ownership split:

• Institutional Ownership: 23.18%
• Insiders Ownership: 21.18%

Recent Market Reactions to Key Investor Moves

The biggest market driver by far is the transformational, all-stock merger agreement with The Farmers Bancorp, announced on November 12, 2025. This deal, valued at approximately $82 million based on RMBI's closing price of $13.15 on November 10, 2025, fundamentally changes the investor profile. It creates a premier community bank with $2.6 billion in assets and 24 branches. This is a clear move for scale and higher lending limits, which investors generally like.

The reaction is positive because the merger is expected to generate approximately 35% EPS accretion (an increase in Earnings Per Share) for existing Richmond Mutual Bancorporation, Inc. shareholders once cost savings are fully realized. Plus, the company declared a cash dividend of $0.15 per share on November 19, 2025, which is a direct, tangible return for income-focused investors. That's a defintely good sign for investor confidence.

What this estimate hides, though, is the immediate ownership change: existing RMBI shareholders will own about 62% of the combined company, with Farmers Bancorp shareholders taking the other 38%. That's a significant dilution event, but the market appears to be focusing on the long-term earnings boost.

Analyst Perspectives on Investor Impact and Future Outlook

Analysts are generally constructive, but they're also realists about the current valuation. The company's fundamentals are strong: net profit margins grew to 23.7% in the last year, up from 20.9% the year prior, and annual earnings growth was a notable 20.4%. The third quarter of 2025 was robust, with Net Income hitting $3.60 million, a significant jump from $2.47 million in Q3 2024.

However, the valuation picture is mixed. RMBI's Price-to-Earnings (P/E) Ratio is 12.1x. That's a discount compared to the peer average of 26.8x, but it's still above the broader US Banks industry average of 11.2x. More critically, the stock price of $13.38 (as of October 2025) trades at a premium of roughly 45% over the estimated Discounted Cash Flow (DCF) fair value of $9.24.

The analyst consensus is that the merger provides the necessary scale to justify a higher multiple over time, but the current price already bakes in a lot of that future growth. The key investors buying now are likely M&A arbitrage funds or long-term institutional holders betting on the successful integration of the two banks, which you can read more about here: Richmond Mutual Bancorporation, Inc. (RMBI): History, Ownership, Mission, How It Works & Makes Money.

Here is a snapshot of the recent financial performance driving the positive outlook:

The action for you is clear: monitor the integration progress and the combined company's first post-merger earnings report in 2026. If the promised 35% EPS accretion starts to materialize, the current valuation premium will look much more reasonable.