RMBI

Richmond Mutual is a ~$1.53B-asset state commercial bank whose earnings have recovered convincingly: FY2025 net income of $11.6M is up 23.5% YoY and diluted EPS of $1.17 is up 27.2%, clawing back the 2023–2024 trough ($9.49M then $9.38M) toward the 2022 peak of $13.0M. Equity grew 9.7% to $146M against only 1.4% asset growth, and cash jumped 52% to $33.1M — a balance sheet that is building capital rather than stretching for growth. Capital return is a genuine strength: the bank paid $5.84M in dividends (~3.7% yield on the current $15.16 price) and repurchased $5.63M of stock, together returning nearly all of net income to shareholders while shares outstanding held flat.

The problem is quality and price meeting in the middle. ROE is only 7.9% — sub-par for a bank and a sign the franchise earns a thin spread on its capital. At $15.16 the stock trades at 13.0x FY EPS and roughly 1.09x the ~$13.90 book value per share ($146M / 10.5M shares); that is a fair, not cheap, multiple for a single-digit-ROE community lender. You are paying up for improvement that has only just materialized.