BofA update shows where active managers are putting money
Richmond Mutual Bancorporation, Inc. (NASDAQ:RMBI), a $127 million market cap financial institution currently trading at $13.37, disclosed in a recent SEC filing that it has entered into change-in-control agreements with two of its top executives. According to InvestingPro analysis, the company maintains a FAIR financial health score and offers a notable 4.51% dividend yield. The agreements, effective as of Sunday, May 22, 2025, involve Paul Witte, President and Chief Operating Officer of First Bank (NASDAQ:FRBA) Richmond, and Bradley Glover, Chief Financial Officer of both the Company and the Bank.
These agreements have an initial term set to expire on December 31, 2026, with automatic one-year extensions unless a non-renewal notice is given. Notably, if a change in control occurs and less than a year remains in the term, the term will extend to the one-year anniversary post-change. The company’s stability is reflected in its moderate P/E ratio of 14.9 and consistent profitability over the last twelve months.
The executives are entitled to severance benefits if their employment is terminated without cause or for good reason within 12 months after a change in control. These benefits include a lump-sum payment equal to twice the executive’s base amount, up to 24 months of continued insurance coverage or a lump-sum payment equivalent to the insurance cost, subject to certain conditions. The agreements also stipulate that these benefits are contingent upon the executives not revoking a general release of claims.
Additionally, any severance payments that qualify as "parachute payments" under Section 280G of the Internal Revenue Code will be reduced to avoid non-deductibility penalties for the Company and the Bank.
The full details of these agreements are outlined in Exhibits 10.1 and 10.2 attached to the Form 8-K filed with the SEC. The information provided is based on the press release statement. InvestingPro data reveals management has been actively buying back shares, with additional insights available to subscribers. The stock currently trades slightly above its Fair Value, suggesting careful consideration for potential investors.
In other recent news, Richmond Mutual Bancorporation announced the upcoming retirement of Dean Weinert, President of Mutual Federal, a division of First Bank Richmond and a wholly owned subsidiary of the company. Weinert plans to retire effective April 11, 2025, a decision he communicated to the company on February 28, 2025. The company expressed gratitude for Weinert’s contributions and leadership during his tenure. Richmond Mutual Bancorporation has not yet named a successor for Weinert. This announcement is part of the company’s normal corporate governance processes, and there were no indications of disagreements or issues leading to his departure. The news was disclosed in accordance with SEC regulations requiring public companies to report significant management changes. Investors and stakeholders are likely to be attentive to the company’s next steps in the leadership transition as the retirement date approaches.
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