Stock Analysis & Valuation Richmond Mutual Bancorporation, Inc. (RMBI)

• Previous Close: $14.03
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	11.00	-22
Intrinsic value (DCF)	10.09	-28
Graham-Dodd Method	9.35	-33
Graham Formula	23.93	71

Strategic Investment Analysis

Company Overview

Richmond Mutual Bancorporation, Inc. (NASDAQ: RMBI) is a regional banking holding company operating through its subsidiary, First Bank Richmond, with a strong presence in Indiana and Ohio. Founded in 1887, the company provides a comprehensive suite of banking services, including deposit accounts (savings, money market, NOW, demand, and CDs) and lending solutions (commercial real estate, C&I, construction, residential mortgages, and consumer loans). Additionally, RMBI offers fee-based financial services such as trust and estate administration, investment management, and retirement planning. With 12 full-service branches and one limited-service office, RMBI serves local communities with a focus on personalized banking. The bank’s conservative risk profile and steady Midwest footprint position it as a stable player in the regional banking sector. Its $138M market cap reflects a niche but resilient business model, supported by diversified revenue streams and a long-standing customer base.

Investment Summary

Richmond Mutual Bancorporation (RMBI) presents a low-beta (0.415) investment opportunity, appealing to risk-averse investors seeking exposure to regional banking. The company’s $43.2M revenue and $9.4M net income (EPS: $0.92) reflect steady profitability, though its modest market cap ($138M) limits scalability. Strengths include a diversified loan portfolio and strong deposit base, but high total debt ($265M) raises leverage concerns. The 6.2% dividend yield (annualized $0.57/share) is attractive, but investors should monitor interest rate sensitivity and regional economic risks. RMBI’s conservative approach may lag in growth but offers stability in volatile markets.

Competitive Analysis

RMBI competes in the crowded Midwest regional banking sector, where scale and digital capabilities are increasingly critical. Its competitive advantage lies in deep community ties and a multi-decade reputation, allowing for sticky customer relationships. However, the bank’s small footprint (12 branches) limits geographic diversification compared to larger peers. RMBI’s loan portfolio is well-diversified (CRE, C&I, residential), reducing concentration risk, but its reliance on traditional brick-and-mortar banking could hinder efficiency gains seen in tech-forward competitors. The bank’s low beta suggests resilience but may also reflect slower growth. Fee-based services (trust, wealth management) provide non-interest income, though these segments are less scalable than those of national players. RMBI’s challenge is balancing localized service—a differentiator—with the need to invest in digital transformation to retain younger demographics.

Major Competitors

• Simmons First National Corporation (SFNC): SFNC operates across multiple states with a larger scale ($2.4B market cap) and broader product suite, including payment processing. Its digital investments outpace RMBI’s, but RMBI’s localized focus may foster stronger customer loyalty in its niche markets.
• Hope Bancorp, Inc. (HOPE): HOPE specializes in commercial lending with a strong West Coast presence. Its higher net interest margins contrast with RMBI’s Midwest focus, but RMBI’s lower-cost deposit base provides stability in rate cycles.
• First Financial Bancorp (FFBC): FFBC overlaps with RMBI in Ohio and Indiana but boasts a larger footprint ($2.1B market cap) and more advanced small-business banking solutions. RMBI’s leaner operations may allow for better cost control.
• Seacoast Banking Corporation of Florida (SBCF): SBCF’s Florida-centric growth markets offer higher demographic tailwinds than RMBI’s Midwest base, but RMBI’s lower-risk loan portfolio may appeal to conservative investors.