Richmond Mutual Bancorporation, Inc. and Farmers Bancorp have entered into a definitive all‑stock merger agreement valued at approximately $82 million. Under the terms, each share of Farmers Bancorp will be exchanged for 3.40 shares of Richmond Mutual common stock, based on Richmond Mutual’s closing price of $13.15 on November 10, 2025. The combined entity will trade under the ticker RMBI and is projected to close in early Q2 2026 after regulatory and shareholder approvals.
The merger expands the combined bank’s footprint into Indiana and Ohio, adding Farmers Bancorp’s 12 branches and loan portfolio to Richmond Mutual’s existing network. The new $2.6 billion asset community bank will operate 24 branches, giving it a larger scale to invest in technology, lift lending limits, and enhance the customer experience. By pooling resources, the bank can compete more effectively with larger regional peers and pursue a unified brand strategy that leverages shared culture and community‑banking values.
Financially, the deal is expected to generate a 35% earnings‑per‑share accretion for Richmond Mutual shareholders and a 27.5% dividend‑per‑share accretion for Farmers Bancorp shareholders. The EPS boost stems from cost synergies, higher loan‑to‑deposit ratios, and a more diversified loan mix that reduces credit risk. Dividend accretion reflects Farmers Bancorp’s higher dividend yield and the combined bank’s ability to maintain a stable earnings base while allocating more cash to shareholders.
Leadership of the combined bank will be led by Garry Kleer, Chairman, President, and CEO of Richmond Mutual, with Chris Cook, former President of Farmers Bancorp, serving as President of the combined company and CEO of the combined bank. The board will comprise directors from both institutions, ensuring continuity of governance and strategic oversight.
The transaction is contingent on regulatory clearance and shareholder approval from both companies. Richmond Mutual shareholders will own about 62% of the combined entity, while Farmers Bancorp shareholders will hold roughly 38%. The expected closing in early Q2 2026 aligns with the regulatory review timeline for community‑bank mergers of this size.
The merger reflects a broader trend of consolidation in the regional banking sector, where institutions seek scale to fund technology upgrades, expand product offerings, and improve operational efficiency. By creating a larger, more diversified community bank, Richmond Mutual and Farmers Bancorp position themselves to better serve customers in a competitive environment while delivering enhanced value to shareholders.
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