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

(Neutral)
(Positive)

Richmond Mutual Bancorporation (NASDAQ:RMBI) and The Farmers Bancorp (OTCPK:FABP) received shareholder approvals for their planned merger. All required bank regulatory approvals are in place.

Farmers Bancorp shareholders will receive a fixed 3.40 RMBI shares per FABP share in an expected tax-free exchange, with closing targeted around the end of Q2 2026.

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Positive

  • Both Richmond Mutual and Farmers Bancorp shareholders approved the merger agreements
  • All required bank regulatory approvals for the merger have been obtained
  • Farmers Bancorp shareholders to receive 3.40 shares of RMBI for each FABP share
  • Exchange ratio is fixed and expected to qualify as a tax-free exchange
  • Combined company will continue trading on Nasdaq Capital Market under ticker RMBI

Negative

  • Merger closing remains subject to satisfaction of customary closing conditions

News Market Reaction – RMBI

+0.76%
+0.76% Session close to close

In the May 28 session, RMBI gained 0.76%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms that both Richmond Mutual and Farmers Bancorp shareholders have approved ...
Analysis

This announcement confirms that both Richmond Mutual and Farmers Bancorp shareholders have approved their planned all-stock merger, following earlier regulatory clearances. The deal preserves a fixed 3.40-for-1 exchange ratio and targets completion around the end of Q2 2026. Investors may track subsequent filings and earnings reports to see how management prepares for integration and whether pro forma financial goals discussed in prior disclosures remain on track.

Key Figures

Exchange ratio: 3.40 shares Farmers meeting date: May 26, 2026 Richmond meeting date: May 27, 2026 +1 more
4 metrics
Exchange ratio 3.40 shares RMBI shares per Farmers Bancorp share upon merger completion
Farmers meeting date May 26, 2026 Date Farmers Bancorp shareholders approved the merger agreement
Richmond meeting date May 27, 2026 Date Richmond Mutual shareholders approved merger and share issuance
Expected closing End of Q2 2026 Targeted completion timing for the merger, subject to closing conditions

Previous Acquisition Reports

1 past event · Latest: Nov 12 (Positive)
Same Type Pattern 1 events
Date Event Sentiment 24h Move Catalyst
Nov 12 Merger announcement Positive -2.7% Announced all-stock strategic merger with Farmers Bancorp and pro forma benefits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Prior merger announcement news was framed positively but saw a negative 2.73% price reaction, suggesting the stock has previously traded down on this acquisition theme.

Recent Company History

Over the past six months, Richmond Mutual reported solid results, including Q4 2025 net income $3.4M and FY 2025 net income $11.6M, followed by Q1 2026 net income $2.8M and a recurring $0.15 quarterly dividend. The November 2025 announcement of the all-stock merger with Farmers Bancorp, valuing the partner at about $82M, outlined a combined $2.6B asset bank. Today’s shareholder approvals advance that same transaction toward an expected closing around the end of Q2 2026.

Key Terms

merger agreement, exchange ratio, tax-free exchange, Nasdaq Capital Market
4 terms
merger agreement regulatory
"Farmers Bancorp's shareholders approved the merger agreement and related transactions..."
A merger agreement is a binding contract that lays out the exact terms for two companies to combine, including the price, what each side will deliver, and the conditions that must be met before the deal is completed. Investors care because it sets the timetable, payouts and risks — like a blueprint or prenup that shows whether the deal is likely to close, how ownership will change, and what could cancel or alter the payout they expect.
exchange ratio financial
"The exchange ratio is fixed, and the transaction is expected to qualify..."
The exchange ratio is the number used to decide how many shares of one company you get for each share you own in another company during a merger or acquisition. It’s like a recipe that tells you how to swap shares fairly, ensuring both companies’ values are balanced. This ratio matters because it determines how ownership divides between the companies' shareholders.
tax-free exchange financial
"The exchange ratio is fixed, and the transaction is expected to qualify as a tax-free exchange..."
An arrangement where an investor swaps one asset for another under specific tax rules and delays or eliminates immediate capital gains taxes that would normally arise from a sale. It matters because deferring those taxes keeps more money working in investments—think of trading in an old car for a new model without paying a sales tax bill today—allowing for larger purchases or smoother portfolio upgrades and potentially better long-term returns.
Nasdaq Capital Market financial
"The combined company will continue to trade on the Nasdaq Capital Market under the ticker symbol..."
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RICHMOND, Ind., May 27, 2026 /PRNewswire/ -- Richmond Mutual Bancorporation, Inc. (NASDAQ: RMBI) ("Richmond Mutual") and The Farmers Bancorp, Frankfort, Indiana (OTCPK: FABP) ("Farmers Bancorp") today jointly announced that they each received the necessary shareholder approval for the consummation of their planned merger. Farmers Bancorp's shareholders approved the merger agreement and related transactions at its special meeting of shareholders held on May 26, 2026. Richmond Mutual's shareholders approved the merger agreement and the issuance of its shares in the transaction at its annual meeting of shareholders held on May 27, 2026. Richmond Mutual previously announced the receipt of all required bank regulatory approvals for the merger of Richmond Mutual and Farmers Bancorp, as well as the merger of Farmers Bancorp's bank subsidiary, The Farmers Bank, into Richmond Mutual's bank subsidiary, First Bank Richmond. The transaction is expected to be completed on or around the end of the second quarter of 2026, subject to satisfaction of customary closing conditions.

Upon completion of the merger, Farmers Bancorp shareholders will be entitled to receive 3.40 shares of Richmond Mutual common stock for each share of Farmers Bancorp common stock they own. The exchange ratio is fixed, and the transaction is expected to qualify as a tax-free exchange for Farmers Bancorp's shareholders.

The combined company will continue to trade on the Nasdaq Capital Market under the ticker symbol "RMBI." The holding company will operate under the name "Richmond Mutual Bancorporation, Inc.," and the combined bank will operate under the new name "First Bank Midwest." The administrative headquarters of the combined company will be located in Richmond, Indiana, and the administrative headquarters of the combined bank will be located in Frankfort, Indiana.

About Richmond Mutual Bancorporation, Inc.

Richmond Mutual Bancorporation, Inc., headquartered in Richmond, Indiana, is the holding company for First Bank Richmond, a community-oriented financial institution offering traditional financial and trust services within its local communities through its eight locations in Richmond, Centerville, Cambridge City and Shelbyville, Indiana, its six locations in Columbus, Sidney, Piqua and Troy, Ohio.

About The Farmers Bancorp, Frankfort, Indiana

The Farmers Bancorp, Frankfort, Indiana operates as the financial holding company for The Farmers Bank. Founded in 1876, The Farmers Bank is a full-service financial institution based in Clinton County, Indiana. In addition to its main office at 9 East Clinton Street, Frankfort, Indiana, the Bank operates a loan production office in Carmel and branches in Fishers, Frankfort, Kirklin, Lebanon, Michigantown, Mulberry, Noblesville, Rossville, Sheridan, Tipton and Westfield.

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Statements about the expected timing, completion, and effects of the proposed merger, as well as all other statements in this communication other than historical facts, constitute forward-looking statements. When used in this communication and in other documents filed with or furnished to the SEC, in press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, words or phrases such as "may," "believe," "will," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," "potential," "expect," "intend," "forecast," "outlook," or similar expressions are intended to identify forward-looking statements.

Investors and security holders are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made. These statements may relate to future financial performance, strategic plans and objectives, revenue or earnings projections, or other financial matters. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. For a discussion of factors that could cause actual results to differ materially, please refer to the joint proxy statement/prospectus filed by Richmond Mutual with the Securities and Exchange Commission in connection with the proposed merger. Additional factors can be found in Richmond Mutual's Annual Report on Form 10-K for the year ended December 31, 2025, and in other documents Richmond Mutual files with the SEC, all of which are available on the SEC's website at www.sec.gov.

Neither Richmond Mutual nor Farmers Bancorp undertakes any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Cision View original content:https://www.prnewswire.com/news-releases/merger-between-richmond-mutual-bancorporation-inc-and-the-farmers-bancorp-frankfort-indiana-receives-shareholder-approval-302783617.html

SOURCE Richmond Mutual Bancorporation, Inc.

FAQ

What did Richmond Mutual Bancorporation (NASDAQ:RMBI) announce about its merger with The Farmers Bancorp (OTCPK:FABP)?

Richmond Mutual Bancorporation announced that shareholders of both companies approved their planned merger. According to Richmond Mutual, all required bank regulatory approvals have been received, and closing is expected around the end of the second quarter of 2026, subject to customary closing conditions.

When is the Richmond Mutual (RMBI) and Farmers Bancorp (FABP) merger expected to close?

The merger is expected to be completed on or around the end of the second quarter of 2026. According to Richmond Mutual, this timing depends on the satisfaction of customary closing conditions that remain outstanding before the transaction can be finalized.

What will Farmers Bancorp (FABP) shareholders receive in the Richmond Mutual (RMBI) merger?

Farmers Bancorp shareholders will be entitled to receive 3.40 shares of Richmond Mutual common stock for each FABP share. According to Richmond Mutual, the exchange ratio is fixed and the transaction is expected to qualify as a tax-free exchange for Farmers Bancorp shareholders.

What will be the name and ticker of the combined bank after the RMBI–FABP merger?

After completion, the holding company will be named Richmond Mutual Bancorporation and continue trading on Nasdaq as RMBI. According to Richmond Mutual, the combined bank will operate under the new name First Bank Midwest while keeping the RMBI ticker for the holding company.

Where will the combined Richmond Mutual and Farmers Bancorp organization be headquartered after the merger?

The combined company’s administrative headquarters will be located in Richmond, Indiana. According to Richmond Mutual, the administrative headquarters of the combined bank, First Bank Midwest, will be located in Frankfort, Indiana, reflecting the legacy bases of both institutions post-merger.

How does the fixed 3.40-for-1 exchange ratio affect Farmers Bancorp (FABP) shareholders?

FABP shareholders know they will receive 3.40 RMBI shares for each FABP share, regardless of price changes. According to Richmond Mutual, this fixed exchange ratio structure and expected tax-free status provide clarity and potential tax advantages to Farmers Bancorp investors at closing.