Richmond Mutual Bancorporation, Inc. reported net income of $1.7 million, or diluted earnings per share of $0.11, for the third quarter of 2026. This figure represents a decrease from the $2.2 million, or $0.22 per share, reported in the second quarter of 2026, and the $3.6 million, or $0.36 per share, reported in the third quarter of 2025. The company attributes the decline in earnings to a higher provision for credit losses and increased noninterest expense.
The provision for credit losses totaled $6.1 million during the third quarter of 2026, a significant increase from $823,000 in the prior quarter and $269,000 in the same period last year. The company notes that this increase was necessary to replenish the allowance for credit losses following $6.1 million in net charge-offs. These charge-offs included a partial charge-off of $4.5 million on a nonaccruing commercial real estate loan, which was transferred to other real estate owned, and an $803,000 charge-off on a commercial and industrial loan.
Noninterest expense for the quarter was $20.0 million, an increase of $9.8 million from the prior quarter and $11.9 million from the same period in 2025. This increase was driven by the completion of the merger with Farmers Bancorp on July 1, 2026. The company recorded $3.0 million in nonrecurring merger-related expenses during the quarter. These costs were partially offset by a preliminary bargain purchase gain of $1.6 million recognized on the acquisition of Farmers Bancorp.
Despite the lower net income, the merger significantly expanded the company's balance sheet. Net interest income increased by $10.8 million, or 89.2%, to $22.8 million for the quarter ended September 30, 2026. Annualized net interest margin was 3.68% for the current quarter. Total assets reached $2.60 billion at September 30, 2026, while loans and leases totaled $2.00 billion. Deposits increased to $2.09 billion, with noninterest-bearing deposits comprising 16.9% of the total.
Stockholders' equity totaled $228.9 million at September 30, 2026, resulting in an equity to assets ratio of 8.81%. Book value per share was reported at $13.66 at the end of the quarter. The Bank's Tier 1 leverage ratio was 9.99% at September 30, 2026, well above the 8.0% Community Bank Leverage Ratio requirement. The combined company continues to operate as Richmond Mutual Bancorporation, Inc., with the bank operating under the name First Bank Midwest.
