Richmond Mutual Bancorporation (RMBI) investor relations material

Executive summary

• Net income for Q2 2026 was $2.2 million (down 14.4% year-over-year), mainly due to $1.9 million in merger-related expenses and higher credit loss provisions; diluted EPS was $0.22.

• The merger with The Farmers Bancorp was completed on July 1, 2026, expanding presence in Indiana and creating a larger community banking franchise; Farmers Bancorp results will be included from Q3 2026 onward.

• As of June 30, 2026, total assets were $1.6 billion, loans and leases (net) $1.2 billion, deposits $1.1 billion, and stockholders' equity $148.3 million.

• Core operating performance improved, with growth in net interest income, net interest margin, solid loan growth, and a strong capital position.

Financial highlights

• Net interest income rose 12.2% year-over-year to $12.1 million; net interest margin improved to 3.22% from 2.93%.

• Noninterest income increased 46.3% year-over-year to $1.6 million, driven by higher wealth management fees and absence of prior-year securities losses.

• Noninterest expense rose 25.4% year-over-year to $10.2 million, mainly due to merger costs.

• Provision for credit losses was $823,000, up from $693,000 in Q1 2026 and $745,000 in Q2 2025.

• Book value and tangible book value per share were $14.11 at June 30, 2026.

Outlook and guidance

• Management expects continued volatility due to inflation, labor market uncertainty, and geopolitical risks.

• Management anticipates long-term benefits from the merger, focusing on seamless integration and leveraging expanded scale.

• Loan growth is focused in Columbus, Cincinnati/Dayton/Springfield, and Indianapolis, with these markets showing resilience.

• Future estimates for allowance for credit losses may fluctuate due to economic uncertainty.