Executive Summary

EPS stepped up with margin-led earnings: Q3 2025 diluted EPS was $0.36 (table), while the headline release text cited $0.37; both represent strong growth vs $0.26 in Q2 2025 and $0.24 in Q3 2024, driven by a wider net interest margin (NIM 3.07% vs 2.93% in Q2 and 2.60% YoY) .
Core spread dynamics improved: asset yields remained elevated while funding costs were stable-to-lower, lifting net interest income 5.0% QoQ and 19.7% YoY (to $11.3M), with interest expense down slightly QoQ and YoY .
Credit mixed but manageable: provision fell to $269K (from $745K in Q2) and net charge-offs moderated, but nonperforming loans rose to 0.90% of loans vs 0.68% in Q2; ACL coverage of NPLs declined to 152% from 201% .
Capital and funding stable: equity/assets 9.18%, Tier 1 leverage 10.85%; deposits up YTD with a slight reduction in brokered mix vs year-end .
Near-term catalysts: dividend maintained at $0.15 on Nov 19, 2025, and a transformational all‑stock merger with The Farmers Bancorp (valued ~$82M; 3.40x exchange ratio) announced Nov 12, 2025, with management indicating ~35% run‑rate EPS accretion post cost saves .

What Went Well and What Went Wrong

What Went Well
- NIM expansion and revenue growth: NIM increased to 3.07% (2.93% in Q2; 2.60% YoY), supporting a 5.0% QoQ and 19.7% YoY increase in net interest income to $11.3M .
- Expense discipline and efficiency: noninterest expense declined slightly QoQ; efficiency ratio improved to 64.18% from 68.50% in Q2 and 74.51% YoY .
- Management tone and focus: “improved net interest margin and careful management of expenses,” with an emphasis on steady execution in a still-uncertain macro environment (CEO) .
What Went Wrong
- Asset quality pressure: NPLs increased to $10.8M (0.90% of loans) vs $8.1M (0.68%) in Q2; ACL/NPL coverage fell to 152% from 201% .
- Reliance on wholesale funding remains notable: brokered time deposits at $248.3M (22.2% of deposits), and FHLB borrowings at $254.0M, though deposit mix trends modestly improved vs year-end .
- Fee income softness YoY: noninterest income was $1.30M, down 2.0% YoY on lower gains on loan/lease sales; card fees also dipped QoQ .

Financial Results

Income statement highlights and margins (oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Interest income ($)	$20,261	$20,868	$21,346	$21,813
Net interest income ($)	$9,433	$10,258	$10,759	$11,295
Noninterest income ($)	$1,325	$1,162	$1,080	$1,298
Provision for (reversal of) credit losses ($)	$(99)	$731	$745	$269
Diluted EPS ($)	$0.24	$0.20	$0.26	$0.36
Net interest margin (%)	2.60%	2.79%	2.93%	3.07%
ROA (annualized, %)	0.66%	0.52%	0.69%	0.95%
Efficiency ratio (%)	74.51%	73.31%	68.50%	64.18%
Consensus EPS (S&P Global)	n/a*	n/a*	n/a*	n/a*

Balance sheet and funding (period-end; oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total assets ($)	$1,492,550	$1,522,792	$1,507,759	$1,525,565
Loans & leases, net ($)	$1,140,969	$1,175,833	$1,167,850	$1,178,232
Total deposits ($)	$1,089,094	$1,105,662	$1,096,389	$1,118,258
Brokered time deposits ($)	$279,587	$264,787	$239,471	$248,250
Noninterest‑bearing demand ($)	$98,522	$103,353	$106,216	$110,815
FHLB borrowings ($)	$252,000	$274,000	$267,000	$254,000
Stockholders’ equity ($)	$140,027	$130,932	$132,322	$140,035
Tier 1 leverage (bank, %)	10.73%	10.68%	10.75%	10.85%

Asset quality and capital KPIs (oldest → newest)

KPI	Q3 2024	Q1 2025	Q2 2025	Q3 2025
NPLs/Loans (%)	0.58%	0.59%	0.68%	0.90%
NPAs/Assets (%)	0.45%	0.46%	0.54%	0.71%
ACL/Loans (%)	1.36%	1.35%	1.37%	1.37%
ACL/NPLs (%)	235.89%	229.90%	201.14%	151.64%
Net charge‑offs/Avg loans (ann., %)	0.15%	0.13%	0.21%	0.11%
Equity/Assets (%)	9.38%	8.60%	8.78%	9.18%

Loan portfolio mix (point-in-time comparison)

Category ($)	Q3 2024	Q3 2025
Commercial mortgage	$348,473	$420,680
Commercial & industrial	$126,591	$138,333
Construction & development	$140,761	$67,446
Multi‑family	$183,778	$216,982
Residential mortgage	$172,873	$166,594
Direct financing leases	$147,057	$146,413
Home equity	$15,236	$18,816
Consumer	$22,608	$19,914
Total loans & leases	$1,157,377	$1,195,178

Note: RMBI does not present a single “Revenue” line; we compare net interest income and noninterest income in lieu of total revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company financial guidance (revenue/margins/OpEx/etc.)	Q4 2025+	None provided	None provided	n/a
Dividend per share	Next payable 12/18/2025	$0.15 (8/20/2025) [ir link on 8/20/2025 page cited by index]	$0.15 (declared 11/19/2025)	Maintained
Capital ratios (qualitative)	Ongoing	“Well in excess” of requirements	Tier 1 leverage 10.85% (bank)	—

The company did not issue quantitative forward guidance in the Q3 press release or 8‑K .

Earnings Call Themes & Trends

No earnings call transcript was posted in our document set; themes below reflect management commentary across Q1–Q3 2025 press releases.

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q3 2025)	Trend
Net interest margin and spread	NIM improved to 2.79% in Q1 and 2.93% in Q2 on favorable repricing post late‑2024 Fed cuts; asset yields steady/up while deposit costs eased .	NIM rose to 3.07% as asset yields stayed elevated and interest‑bearing liability costs edged lower .	Improving
Deposit mix/competition	Mix shift to time deposits; competitive CD pricing; brokered TDs decreased vs YE by Q2 .	Deposits +2.2% YTD; brokered TDs 22.2% of deposits; uninsured deposits ~23.5% .	Stable to slightly improving mix; uninsured stable
Credit quality	Provision up in Q1/Q2 on commercial growth; NPLs 0.59%→0.68% .	Provision down to $269K; NPLs up to 0.90%; NCOs moderated QoQ .	Mixed: higher NPLs but lower provision/NCOs
Operating efficiency	One‑time core contract cost in Q1; expected savings; Q2 expenses down QoQ .	Expenses down slightly QoQ; efficiency ratio improved to 64.18% .	Improving
Capital and shareholder returns	Active repurchases in Q1/Q2; equity/assets ~8.6–8.8% .	Equity/assets 9.18%; dividend maintained at $0.15 .	Improving capital, steady dividend
Strategic actions	—	Announced all‑stock merger with The Farmers Bancorp; $82M value; 3.40x exchange; ~35% run‑rate EPS accretion targeted post cost saves .	Positive strategic catalyst

Management Commentary

“Net income and earnings per share both grew, thanks to an improved net interest margin and careful management of expenses… we stay focused on… thoughtful decisions that build long‑term value for our shareholders.” — Garry Kleer, Chairman, President & CEO .
Context on spread drivers: “stable interest rate environment… modest declines in the cost of interest‑bearing deposits and borrowings… yields on earning assets remained steady or adjusted upward… improvement in net interest margin to 3.07%” .
Credit posture: provision decrease driven by “updated macroeconomic assumptions, refreshed credit metrics, and refined loss driver data” with “continued improvements in delinquency and charge‑off trends” .

Q&A Highlights

No earnings call transcript was available in our document set; management’s disclosures were contained in the 8‑K and press release for Q3 2025 .

Estimates Context

S&P Global consensus for Q3 2025 EPS and revenue was not available in our dataset; accordingly, we cannot assess beat/miss vs Wall Street for this quarter.*
Management’s headline cited diluted EPS of $0.37, while the detailed financial table reports $0.36; we attribute this to rounding/share count differences between narrative and table presentations .

*Values retrieved from S&P Global.

Key Takeaways for Investors

Margin-led operating leverage is the story: NIM at 3.07% with improving efficiency (64.18% vs 68.50% in Q2) supports EPS momentum into Q4 absent adverse rate shocks .
Watch asset quality trajectory: NPLs/loans moved to 0.90% (from 0.68%), pressuring ACL/NPL coverage to 152%; a key variable for 2026 capital and earnings if trends persist .
Funding remains a swing factor: brokered TDs at 22.2% and uninsured deposits at 23.5% are manageable but keep sensitivity to competitive pricing and confidence; further reduction would be a positive catalyst .
Capital and returns are solid: equity/assets 9.18%, Tier 1 leverage 10.85%, dividend maintained at $0.15; room to support growth and integration .
Strategic upside from announced FABP merger: $82M all‑stock deal with targeted ~35% EPS accretion post cost saves offers scale, product breadth, and potential multiple expansion if execution is clean .
Near‑term narrative: margin durability, expense discipline, and credit containment are likely stock drivers; merger updates and regulatory milestones are additional catalysts.

Appendix: Notable Disclosures and Data Points

Effective tax rate: 15.2% in Q3 (vs 12.8% in Q2; 13.0% YoY) .
Noninterest expense details: salaries/benefits down QoQ on lower equity comp; legal/professional fees up; data processing up modestly .
Deposit cost: average paid on interest‑bearing deposits 3.14% (flat QoQ, down from 3.33% YoY) .
Borrowings: average FHLB rate 4.16% (down 8 bps QoQ), average balance ~$265.8M .

Sources: Q3 2025 8‑K and press release (Oct 23, 2025); Q2 2025 8‑K (Jul 23, 2025); Q1 2025 8‑K (Apr 24, 2025); Dividend PR (Nov 19, 2025); Merger PR (Nov 12, 2025) .

Richmond Mutual Bancorporation, Inc. (RMBI)·Q3 2025 Earnings Summary