Richmond Mutual Bancorporation, Inc., parent company of First Bank Richmond, reported diluted earnings per share of $0.22 for the second quarter of 2026, a 15.38% decline from $0.26 in the same period last year. Despite the drop in profitability, the company’s sales grew by 15.33% year-over-year to $13.654 million, up from $11.839 million in Q2 2025. The divergence between rising top-line growth and falling bottom-line results was primarily driven by $1.9 million in non-recurring merger-related expenses associated with the acquisition of The Farmers Bancorp.

The financial results reflect operations through June 30, 2026, immediately prior to the completion of the merger with Farmers Bancorp on July 1, 2026. Consequently, Farmers Bancorp’s operating results will first be included in the company’s financial statements for the quarter ending September 30, 2026. The combined entity continues to operate as Richmond Mutual Bancorporation, Inc., with the combined bank operating under the name First Bank Midwest.

Net interest income increased by $628,000, or 5.5%, to $12.1 million for the three months ended June 30, 2026, compared to $11.4 million in the first quarter. This growth was fueled by an expansion in the annualized net interest margin to 3.22%, up from 3.10% in the prior quarter and 2.93% in the second quarter of 2025. The margin improvement reflected a higher average yield on loans and leases, which rose to 6.55%, and continued improvement in funding costs. Interest expense on deposits decreased by 7.7% year-over-year as the average rate paid on interest-bearing deposits fell to 2.82% from 3.14%.

Noninterest expense rose significantly to $10.2 million, up $1.5 million or 16.8% from the first quarter, largely due to the $1.9 million in professional fees and transaction-related costs linked to the merger. Excluding these one-time items, core operational expenses remained stable. Noninterest income grew by 21.7% to $1.6 million, driven by increased wealth management income and the absence of net losses on securities sales that had impacted the prior year period.

Credit quality metrics showed some pressure, with nonperforming loans and leases totaling $21.8 million, or 1.78% of total loans, compared to 1.48% at the end of the first quarter. The increase was primarily due to two multi-family loans placed on nonaccrual status. The allowance for credit losses stood at $17.0 million, providing coverage of 77.9% of nonperforming loans, down from 94.6% at the end of the previous year. Net charge-offs were $557,000, or an annualized 0.18% of average loans.

What the Numbers Show

The divergence between rising sales and falling earnings highlights the significant impact of integration costs on short-term profitability. While the core banking engine performed well—evidenced by a 12 basis point expansion in net interest margin and a 15.33% increase in sales—the $1.9 million in merger expenses effectively erased much of this operational gain. Investors should note that these costs are non-recurring; however, the rise in nonperforming loans to 1.78% warrants monitoring as the bank integrates the new portfolio. The stability of deposit levels at $1.1 billion suggests no immediate liquidity stress despite the transition.