Richmond Mutual Bancorporation, Inc.RMBI
Richmond Mutual Bancorporation, Inc. Income Taxes Disclosure
Income Tax
Pretax income from continuing operations is as follows:
| Year Ended | |||||
| December 31, 2025 | |||||
| Domestic | $ | 13,653 | |||
| Foreign | — | ||||
| Total | $ | 13,653 | |||
Income tax expense from continuing operations are as follows:
| 2025 | 2024 | ||||||||||
| Income tax expense (benefit) | |||||||||||
| Currently payable | |||||||||||
| Federal | $ | 2,178 | $ | 1,328 | |||||||
State(1) | 12 | — | |||||||||
| Deferred | |||||||||||
| Federal | (215) | 250 | |||||||||
State(1) | 101 | (92) | |||||||||
| Total income tax expense | $ | 2,076 | $ | 1,486 | |||||||
(1) State taxes in Indiana make up the majority (greater than 50%) of the State taxes, net of federal benefit for 2025.
A cumulative deferred tax asset is included in other assets. The components of the asset are as follows:
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Allowance for credit losses | $ | 3,880 | $ | 3,816 | |||||||
| Net operating loss carryforward | 204 | 254 | |||||||||
| Nonaccrual interest | 29 | 28 | |||||||||
| Investment basis | 4 | 4 | |||||||||
| Deferred compensation | 805 | 684 | |||||||||
| Stock compensation | 327 | 431 | |||||||||
| ESOP | 364 | 328 | |||||||||
| Unrealized loss on securities available for sale | 9,186 | 12,176 | |||||||||
| Charitable contributions | — | 4 | |||||||||
| Other | 300 | 255 | |||||||||
| Total assets | 15,099 | 17,980 | |||||||||
| Liabilities | |||||||||||
| FHLB stock dividend | 164 | 166 | |||||||||
| Fixed assets | 108 | 1 | |||||||||
| Mortgage-servicing rights | 435 | 455 | |||||||||
| Prepaid assets | 475 | 507 | |||||||||
| Other | 33 | 92 | |||||||||
| Total liabilities | 1,215 | 1,221 | |||||||||
| Net deferred tax asset | $ | 13,884 | $ | 16,759 | |||||||
Effective tax rates differ from the federal statutory rate of 21% for the year ended December 31, 2025 due to the following, in accordance with ASU 2023-09 (See Note 2 for additional details on ASU 2023-09 adoption):
| 2025 | |||||||||||
| Amount | Percent | ||||||||||
| Income before income taxes | $ | 13,653 | |||||||||
| Federal statutory income tax | 2,867 | 21.0 | % | ||||||||
State taxes, net of federal benefit(1) | 111 | 0.8 | % | ||||||||
| Tax credits: | |||||||||||
| Low-income housing tax credit (net of amortization) | (30) | (0.2) | % | ||||||||
| Nontaxable or nondeductible items: | |||||||||||
| Tax-exempt interest | (637) | (4.7) | % | ||||||||
| ESOP | 1 | — | % | ||||||||
| Cash surrender value - life insurance | (20) | (0.1) | % | ||||||||
| Small insurance captive premiums | (165) | (1.2) | % | ||||||||
| Stock compensation | (54) | (0.4) | % | ||||||||
| Other | 3 | — | % | ||||||||
| Income tax expense and effective tax rate | $ | 2,076 | 15.2 | % | |||||||
(1) State taxes in Indiana make up the majority (greater than 50%) of the State taxes, net of federal benefit for 2025.
Effective tax rates differ from the federal statutory rate of 21% for the year ended December 31, 2024 due to the following, prior to the adoption of ASU 2023-09:
| Reconciliation of federal statutory to actual tax expense | 2024 | ||||
| Federal statutory income tax at 21% | $ | 2,281 | |||
| Tax-exempt interest | (672) | ||||
| Effect of state income taxes | (92) | ||||
| ESOP | (92) | ||||
| Cash surrender value - life insurance | (19) | ||||
| Low income housing tax credit | (30) | ||||
| Small insurance captive premiums | (183) | ||||
| Stock compensation | 11 | ||||
| Carryforward attribute expiration | 407 | ||||
| Other | (125) | ||||
| Actual tax expense | $ | 1,486 | |||
Income taxes paid (net of refunds) is as follows:
| Year Ended | |||||
| December 31, 2025 | |||||
| Cash paid for taxes (net of refund received) - Federal | $ | 1,338 | |||
| Cash paid for taxes (net of refund received) - State | — | ||||
| Other | 2 | ||||
| Total | $ | 1,340 | |||
There were no individual state or local jurisdictions with taxes paid that equaled or exceeded 5% of total income taxes paid in 2025.
As of December 31, 2025, the Company had no federal charitable contribution carryforwards. During 2025, the Company utilized a carryforward of approximately $20,000 from December 31, 2024, to offset its federal taxable income. As of December 31, 2025, the Company had state net operating loss carryforwards of $4.4 million, which will begin to expire in 2041.
At December 31, 2025 and 2024, the Company determined that it is more likely than not that the deferred tax assets will be realized, largely based on available tax planning strategies and its projections of future taxable income. Therefore, no valuation reserve was recorded at December 31, 2025 and 2024. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning the evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies and assessments of current and future economic and business conditions. Positive evidence includes current positive earnings trends and the probability that taxable income will be generated in future periods, while negative evidence includes any cumulative losses in the current year and prior two years and general business and economic trends. Failure to achieve sufficient projected taxable income might affect the ultimate realization of the net deferred tax assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 30, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 2020 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.