Richmond Mutual Bancorporation(US:RMBI) Prnewswire·2026-01-22 22:00Core Viewpoint - Richmond Mutual Bancorporation, Inc. reported a net income of $3.4 million for Q4 2025, reflecting a decrease from Q3 2025 but a significant increase compared to Q4 2024, driven by higher net interest income and impacted by acquisition-related expenses from the merger with Farmers Bancorp [1][2][3][4]. Financial Performance - Net income for Q4 2025 was $3.4 million, or $0.35 diluted earnings per share, down from $3.6 million, or $0.36 diluted earnings per share in Q3 2025, but up from $2.5 million, or $0.24 diluted earnings per share in Q4 2024 [1]. - For the year ended December 31, 2025, net income totaled $11.6 million, or $1.17 per diluted share, compared to $9.4 million, or $0.92 per diluted share in 2024 [3]. - The increase in net income for Q4 2025 compared to Q4 2024 was primarily due to higher net interest income from an expanded net interest margin [2]. Merger Details - The company entered into a merger agreement with Farmers Bancorp on November 11, 2025, with the merger expected to be completed in Q2 2026, subject to regulatory and shareholder approvals [4][5]. - Under the merger terms, Farmers Bancorp shareholders will receive 3.40 shares of Richmond Mutual common stock for each share of Farmers Bancorp, valuing the transaction at approximately $82 million [5]. Income Statement Highlights - Net interest income before provision for credit losses increased by $239,000, or 2.1%, to $11.5 million in Q4 2025 compared to Q3 2025, and increased by $1.7 million, or 16.9%, from Q4 2024 [9]. - The annualized net interest margin improved to 3.11% in Q4 2025, up from 3.07% in Q3 2025 and 2.70% in Q4 2024 [10][19]. Balance Sheet Summary - Total assets were $1.5 billion as of December 31, 2025, with loans and leases totaling $1.2 billion [12][24]. - Nonperforming loans and leases increased to $17.4 million, or 1.46% of total loans and leases, compared to $6.8 million, or 0.58%, a year earlier [26]. - Stockholders' equity rose to $145.8 million, a 9.7% increase from the previous year, driven by net income and improved fair values in the investment portfolio [33]. Noninterest Income and Expenses - Noninterest income increased by $224,000, or 17.2%, to $1.5 million in Q4 2025 compared to Q3 2025, largely due to higher loan servicing fees [21]. - Total noninterest expense rose by $454,000, or 5.6%, to $8.5 million in Q4 2025, influenced by nonrecurring acquisition-related costs [22]. Credit Losses and Provisions - A provision for credit losses of $409,000 was recorded in Q4 2025, up from $269,000 in Q3 2025 and $196,000 in Q4 2024 [20]. - Net charge-offs for Q4 2025 were $369,000, compared to $317,000 in Q3 2025 and $286,000 in Q4 2024 [20].