Richmond Mutual, the holding company of First Bank Richmond, and The Farmers Bancorp, the holding company of The Farmers Bank, announced that they have entered into a definitive merger agreement valued at approximately $82 million. Under the agreement, Farmers Bancorp will merge with and into Richmond Mutual in an all-stock transaction valued at $44.71 per share of Farmers Bancorp common stock, based on Richmond Mutual’s closing share price of $13.15 on November 10, 2025.
The transaction will create a premier $2.6 billion asset community bank with a 24-branch network spanning Central and East Central Indiana, as well as Western and Central Ohio. The combined company will offer higher lending limits, enhanced technology investments, and broader product offerings to serve customers and communities better. Both banks emphasized their cultural alignment and shared commitment to employees, customers, and local markets.
Upon closing, existing Richmond Mutual shareholders will own approximately 62% of the combined company, while Farmers Bancorp shareholders will own roughly 38%. The merger is structured to be tax-free for Farmers Bancorp shareholders. On a run-rate basis, using annualized results for the three months ended September 30, 2025, the merger is projected to deliver approximately 35% EPS accretion for Richmond Mutual shareholders and 27.5% dividend per share accretion for Farmers Bancorp shareholders once anticipated cost savings are realized.
The combined company will continue trading on the Nasdaq Capital Market under the ticker symbol “RMBI” and will operate under the name Richmond Mutual Bancorporation, Inc. The merged bank will operate under a new name, jointly determined prior to closing. The administrative headquarters will remain in Richmond, Indiana, with the combined bank’s administrative offices located in Frankfort, Indiana.
The merger will bring together an 11-member board composed of six Richmond Mutual directors and five from Farmers Bancorp. Richmond Mutual’s Chair, President, and CEO, Garry D. Kleer, will continue to serve as Chair and Chief Executive Officer of the combined company. And Farmers Bancorp’s President and CEO, Chris D. Cook, will serve as President of the combined company and as President and CEO of the combined bank. Barbara A. Cutillo, Chair of Farmers Bancorp, will become Vice Chair of the combined company.
The executive leadership team will also include Bradley M. Glover as Chief Financial Officer, Carroll Ann Valentino as Chief Operations Officer, Paul J. Witte as Indiana Market President, William A. Daily Jr. as Ohio Market President, and Chad L. Kozuch as Chief Risk Officer.
The merger, unanimously approved by the boards of directors of both companies, is expected to close in early Q2 2026, subject to regulatory and shareholder approvals, as well as other customary conditions. Directors of both companies have agreed to vote their shares in favor of the merger.
Advisors/support: Janney Montgomery Scott served as financial advisor to Farmers Bancorp and provided a fairness opinion to its board. Amundson Davis LLC served as its legal counsel. Keefe, Bruyette & Woods, A Stifel Company, acted as financial advisor to Richmond Mutual and delivered a fairness opinion to its board, with Silver, Freedman, Taff & Tiernan LLP serving as legal counsel.
KEY QUOTES:
“This combination marks the beginning of a strong and promising future for our newly unified organization. We are bringing together two well-established community banks, both dedicated to delivering exceptional client experiences and helping individuals and businesses achieve their financial goals. By joining forces, we gain the scale to offer higher lending limits, invest in technology, and deliver an even better experience for our customers. Our shared culture and commitment to community banking make this a natural fit. I look forward to working with Chris Cook and our combined team to drive growth and create long-term value for our shareholders.”
Garry Kleer, Chairman, President and Chief Executive Officer, Richmond Mutual Bancorporation
“Together, Richmond Mutual and Farmers Bancorp will have the resources to compete more effectively, expand our product offerings, and invest in technology & innovation. This partnership enhances opportunities for our employees and deepens our ability to serve customers and communities. We are excited about the future and confident this combination will deliver meaningful benefits for all stakeholders.”
Christopher D. Cook, President and Chief Executive Officer, The Farmers Bancorp
