Richmond Mutual Finalizes Merger, Creating a New Midwest Banking Powerhouse

RICHMOND, IN – July 01, 2026 – In a move that redraws the community banking map in the Midwest, Richmond Mutual Bancorporation, Inc. (NASDAQ: RMBI) today announced the successful completion of its merger with The Farmers Bancorp of Frankfort, Indiana. The deal creates a combined financial institution with approximately $2.6 billion in assets, poised to expand its influence across Indiana and Ohio under the new banner of First Bank Midwest.

The all-stock transaction, valued at approximately $85 million when announced, marks a significant consolidation in the regional banking sector. Effective today, each share of Farmers common stock was converted into the right to receive 3.40 shares of Richmond common stock. This strategic combination is not merely about scale; it’s a calculated fusion of two institutions with deep roots in community service, aiming to build a more resilient and competitive bank for the future.

A Strategic Play for Regional Strength

The merger is the culmination of a vision to create a more formidable regional player by combining complementary strengths. Leadership from both banks have emphasized a shared ethos centered on community-focused banking, a sentiment echoed by Garry D. Kleer, Chairman and CEO of the newly expanded Richmond Mutual.

"Today marks an important milestone for our organization, bringing together two institutions with strong community banking traditions, complementary markets, and a shared commitment to serving our customers," Kleer stated. "We look forward to building on the strengths of both organizations, creating additional opportunities for our employees, and delivering long-term value for our shareholders and the communities we serve."

The financial architecture of the deal is designed to deliver that value. Projections released during the merger process anticipated a significant 35% earnings per share (EPS) accretion for Richmond Mutual shareholders once cost savings are fully realized. For former Farmers Bancorp shareholders, who now own approximately 38% of the combined company, the deal promised a 27.5% increase in dividend per share, based on pre-merger dividend rates.

This enhanced financial muscle is critical. By increasing its scale, First Bank Midwest is better positioned to absorb rising regulatory burdens and invest in the technology and cybersecurity infrastructure that modern banking demands. Furthermore, a larger capital base enables the bank to underwrite larger commercial loans, making it a more attractive partner for growing businesses throughout its expanded service area.

Forging 'First Bank Midwest'

While the holding company will retain the Richmond Mutual Bancorporation name and its "RMBI" ticker on Nasdaq, the public-facing identity will be unified. All 24 branches of the combined entity will now operate as First Bank Midwest, a name deliberately chosen to resonate with the agricultural and community heritage of both Indiana and Ohio.

The new entity’s footprint now stretches across Central and East Central Indiana—with locations in towns like Fishers, Noblesville, Lebanon, and Tipton—and pushes into key Western and Central Ohio markets, including Columbus, Sidney, Piqua, and Troy. This expanded network represents a significant increase in market presence for the Richmond-based institution.

In a move that signals respect for the partnership, the operational leadership structure has been strategically divided. The holding company's administrative headquarters will remain in Richmond, Indiana. However, the administrative headquarters for the combined bank, First Bank Midwest, will be located in Frankfort, Indiana, the former home of The Farmers Bancorp. This decision acknowledges the operational expertise and legacy of the Farmers team and is a tangible symbol of the "merger of equals" spirit that leadership has promoted.

The Human Element: Integrating Cultures and Customers

Beyond the balance sheets and branch maps lies the complex task of integrating people and processes. Christopher D. Cook, President of Richmond and the new President and CEO of First Bank Midwest, has placed this challenge at the forefront of the post-merger agenda.

"While today marks the successful completion of the merger, our focus is squarely on the future," Cook said. "We are committed to ensuring a seamless transition for our customers, supporting our employees as we come together as one team, and building on the strong relationships that have been the foundation of both organizations."

For customers, the transition is being handled methodically to minimize disruption. While the new name is effective immediately, the bank has assured customers they can continue using their existing checks from both legacy banks for the time being. A full system and account conversion is scheduled for November 9, 2026, and the bank is actively communicating with customers to ensure a smooth switchover.

Internally, the focus is on creating a unified corporate culture from two distinct, albeit similar, organizations. Leadership’s promise of "additional opportunities for our employees" speaks to a strategy of leveraging the combined talent pool rather than simply seeking redundancies. Successfully blending these teams will be paramount to realizing the full potential of the merger and maintaining the high-touch customer service that defined both banks.

Consolidation as a Survival Strategy

The RMBI-Farmers merger is not happening in a vacuum. It is a prime example of a powerful trend sweeping the American banking landscape: consolidation. In recent weeks alone, similar mergers have been announced among community banks in Michigan, Wisconsin, and Oklahoma, as smaller institutions band together to compete against national giants and navigate a complex economic environment.

This drive to consolidate is fueled by the relentless pressure to scale. The combined First Bank Midwest will be better equipped to spread the high fixed costs of compliance, digital banking platforms, and cybersecurity across a larger asset base. This efficiency is key to maintaining profitability and continuing to serve local communities effectively.

Investors have responded favorably to Richmond Mutual’s strategic direction. The company’s stock (RMBI) has gained over 15% year-to-date, reflecting market confidence in the merger's rationale. Financial analysis suggests the stock is trading at a low P/E ratio relative to its near-term earnings growth, indicating potential value. With a strong foundation and a clear strategy for growth, the newly formed First Bank Midwest is positioned not just to survive, but to thrive by demonstrating that in community banking, there is still strength in numbers.