Richmond Mutual Bancorporation, Inc. (RMBI) | Investment Case

1. Company Snapshot

1.a. Company Description

Richmond Mutual Bancorporation, Inc.operates as a holding company for First Bank Richmond that provides various banking services.The company accepts various deposits, including savings deposit accounts, money market accounts NOW and demand accounts, and certificates of deposit.

It also offers a range of lending products, such as multi-family and commercial real estate loans, commercial and industrial loans, construction and development loans, residential real estate loans, and consumer loans.In addition, the company engages in the lease financing business; and provision of fee-based financial services comprising trust and estate administration, investment management, retirement plan administration, and private banking services.It operates through 12 full service and one limited-service banking offices with seven full-service and one limited-service offices located in Indiana; five offices situated in Ohio; one full-service banking office and four other branch offices are located in Richmond, Indiana; two other offices in Cambridge City, Centerville, Richmond, and Shelbyville, Indiana; two offices in Sidney and Ohio; two offices in Piqua and one office in Troy, Ohio; and a loan production office in Columbus, Ohio.

Richmond Mutual Bancorporation, Inc.was founded in 1887 and is headquartered in Richmond, Indiana.

Show Full description

1.b. Last Insights on RMBI

Recent negative drivers behind Richmond Mutual Bancorporation's performance include declining net interest margin due to rising deposit costs, which has pressured earnings growth. Additionally, the company's net interest income has been weak, contributing to an underwhelming financial performance. Furthermore, the bank's return on equity (ROE) has been low, and its price-to-book value multiple suggests overvaluation. The company's dividend yield has decreased to 3.8% due to a 30% share price increase, making it less attractive to long-term investors.

1.c. Company Highlights

Last Price	13.63
Change Percentage	-2.78%
Open	13.98
Previous Close	14.02
Market Cap ( Millions)	133
Volume	12750
Year High	15.24
Year Low	11.37
M A 50	13.61
M A 200	13.6

FCF Yield	11.84%
Dividend Yield	4.40%
ROE	6.53%
Debt / Equity	0.00%
Net Debt / EBIDTA	-157.82%
Price To Book	0.52
Price Earnings Ratio	12.4
Price To FCF	8.44
Price To sales	1.49
EV / EBITDA	8.45

2. Transcript Summary

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3. NewsRoom

Halper Sadeh LLC Encourages GIFI, MOVE, RMBI, CDTX Shareholders to Contact the Firm to Discuss Their Rights

Nov -28

Source: prnewswire.com

RICHMOND MUTUAL BANCORPORATION, INC. ANNOUNCES QUARTERLY DIVIDEND

Nov -19

Source: prnewswire.com

Farmers Bancorp Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of The Farmers Bancorp, Frankfort, Indiana - FABP

Nov -16

Source: businesswire.com

RMBI Stock Alert: Halper Sadeh LLC is Investigating Whether the Merger of Richmond Mutual Bancorporation, Inc. is Fair to Shareholders

Nov -13

Source: businesswire.com

RICHMOND MUTUAL AND THE FARMERS BANCORP ANNOUNCE TRANSFORMATIONAL STRATEGIC MERGER

Nov -12

Source: prnewswire.com

RICHMOND MUTUAL BANCORPORATION, INC. ANNOUNCES 2025 THIRD QUARTER FINANCIAL RESULTS

Oct -23

Source: prnewswire.com

RICHMOND MUTUAL BANCORPORATION, INC. ANNOUNCES QUARTERLY DIVIDEND

Aug -20

Source: prnewswire.com

Richmond Mutual Bancorporation: Interesting Yield Is Still Not Enough To Offset Potential Lower Rates Ahead

Aug -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

Richmond Mutual Bancorporation's growth is driven by increasing demand for digital banking services, expansion of credit card offerings, and strategic investments in fintech partnerships, enabling the company to capitalize on the growing need for convenient and accessible financial services.

7. Detailed Products

Personal Banking

Richmond Mutual Bancorporation, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including commercial loans, lines of credit, cash management, and merchant services, to support businesses of all sizes.

Wealth Management

Richmond Mutual Bancorporation, Inc. offers wealth management services, including investment management, retirement planning, and estate planning, to help individuals and families achieve their financial goals.

Mortgage Lending

The company provides mortgage lending services, including fixed-rate and adjustable-rate mortgages, refinancing, and home equity loans, to help individuals and families achieve homeownership.

Insurance Services

Richmond Mutual Bancorporation, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance, to help individuals and families protect their financial well-being.

8. Richmond Mutual Bancorporation, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Richmond Mutual Bancorporation, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Richmond Mutual Bancorporation, Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative banking services.

Bargaining Power Of Suppliers

Richmond Mutual Bancorporation, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the banking industry, Richmond Mutual Bancorporation, Inc. faces a moderate threat from new entrants, particularly from fintech companies.

Intensity Of Rivalry

Richmond Mutual Bancorporation, Inc. operates in a highly competitive industry, with many established players and a high level of rivalry among banks.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	66.78%
Debt Cost	6.99%
Equity Weight	33.22%
Equity Cost	6.99%
WACC	6.99%
Leverage	201.00%

11. Quality Control: Richmond Mutual Bancorporation, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

United Bancshares

A-Score: 7.5/10

Value: 8.3

Growth: 4.3

Quality: 7.8

Yield: 6.0

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

Richmond Mutual Bancorporation

A-Score: 7.2/10

Value: 7.6

Growth: 8.1

Quality: 5.1

Yield: 8.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

Univest Financial

A-Score: 6.3/10

Value: 7.2

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Trustmark

A-Score: 6.2/10

Value: 6.3

Growth: 4.8

Quality: 5.9

Yield: 5.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

First US Bancshares

A-Score: 5.1/10

Value: 6.9

Growth: 5.3

Quality: 4.2

Yield: 4.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

Codorus Valley

A-Score: 5.1/10

Value: 7.1

Growth: 6.0

Quality: 7.4

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.90%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.99%

Richmond Mutual Bancorporation, Inc. - US76525P1003

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RMBI

1.c. Company Highlights

Average Growth

Average Yield

Stable Momentum

Fairly Valued

Higher Growth

Average Quality

Lower Quality

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Personal Banking

Business Banking

Wealth Management

Mortgage Lending

Insurance Services

8. Richmond Mutual Bancorporation, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Richmond Mutual Bancorporation, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.63$

Current Price

13.63$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA