MERGER BETWEEN RICHMOND MUTUAL BANCORPORATION, INC. AND THE FARMERS BANCORP, FRANKFORT, INDIANA RECEIVES SHAREHOLDER APPROVAL

Richmond Mutual Bancorporation, Inc. (NASDAQ: RMBI) has secured shareholder approval for its planned merger with The Farmers Bancorp, based in Frankfort, Indiana. The approvals were granted during special meetings held on May 26 and May 27, 2026, respectively. The transaction, which is valued at an undisclosed amount, is anticipated to be finalized by the end of the second quarter of 2026. Upon completion, shareholders of Farmers Bancorp will receive 3.40 shares of Richmond Mutual common stock for each share they hold.

Richmond Mutual Bancorporation operates as the holding company for First Bank Richmond, a community-focused financial institution with a presence in multiple locations across Indiana and Ohio. Established in Richmond, Indiana, the bank offers a range of traditional financial services, including personal and commercial banking, as well as trust services. The merger with Farmers Bancorp, which has been serving the Clinton County area since 1876, is expected to enhance Richmond Mutual's market presence and operational scale. Farmers Bancorp operates The Farmers Bank, a full-service financial institution with several branches and a loan production office, providing a comprehensive suite of banking services to its customers.

The strategic rationale behind this merger lies in the complementary strengths of both institutions. By combining resources, Richmond Mutual aims to leverage Farmers Bancorp's established customer base and local market knowledge, while expanding its footprint in Indiana. The merger is also expected to create operational efficiencies and enhance service offerings, positioning the combined entity to better compete in the evolving banking landscape. Furthermore, the transaction is designed to qualify as a tax-free exchange for Farmers Bancorp’s shareholders, adding to its appeal.

The broader market implications of this merger reflect a continuing trend of consolidation within the banking sector, particularly among community banks. As financial institutions seek to enhance their competitive edge and adapt to regulatory changes, mergers and acquisitions are becoming an increasingly common strategy. This transaction underscores the importance of scale and operational efficiency in a market characterized by narrow margins and heightened competition. The successful integration of Richmond Mutual and Farmers Bancorp may serve as a model for future mergers in the sector, potentially influencing similar transactions in the coming years.

As the merger progresses toward completion, stakeholders will be closely monitoring the integration process and its impact on market dynamics. The combined entity, which will operate under the name "First Bank Midwest," is expected to maintain its administrative headquarters in Richmond, Indiana, while Farmers Bancorp's headquarters in Frankfort will continue to serve as a key operational hub. The successful execution of this merger could pave the way for further consolidation in the community banking space, as institutions strive to enhance their service capabilities and financial performance in an increasingly competitive environment.