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Farmers & Merchants Bancorp, Inc. Reports 2026 Third-Quarter and Year-to-Date Financial Results

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

ARCHBOLD, Ohio, Oct. 22, 2026 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2026 third quarter and year-to-date ended September 30, 2026, on a consolidated basis.

2026 Third-Quarter Financial and Operating Highlights
(at September 30, 2026, and on a year-over-year basis unless noted)

  • 94 consecutive quarters of profitability
  • Net income increased 30.3% to $11.5 million, or $0.84 per basic and diluted share
  • Strong profitability drives ROAA to 1.29%, compared to 1.05%
  • Net charge-offs to average loans of 0.00%
  • Tier 1 leverage ratio was 9.14%
  • Cost of interest-bearing liabilities improved to 2.59%, from 2.83%
  • Net interest margin increased by 17 basis points to 3.57%
  • Efficiency ratio improved to 58.09%, compared to 63.11%
  • Third quarter regular dividend per share increased 5.5% to $0.96 annualized
  • Company declared an additional $0.01 per share special dividend, bringing total third-quarter payment to $0.250 per share

Lars B. Eller, President and Chief Executive Officer, stated, “2026 is shaping up to be a historic year of profitability and growth with year-to-date earnings per share increasing 39.8% to $2.39. Throughout the 2026 nine-month period, our team has worked hard to expand our net interest margin, control operating expenses, grow our balance sheet, and maintain excellent asset quality. We are encouraged by the progress we have made across these key priorities and believe we are well positioned to sustain our positive momentum through the remainder of 2026 and into 2027.”

Income Statement
Net income for the quarter ended September 30, 2026, was $11.5 million, compared to $8.9 million for the same period last year. Net income per basic and diluted share for the 2026 third quarter was $0.84, compared to $0.64 for the same period last year. Net income for the nine months ended September 30, 2026, was $32.9 million, compared to $23.5 million for the same period last year. Net income per basic and diluted share for the 2026 nine months was $2.39, compared to $1.71 for the same period last year.

Mr. Eller continued: “We believe F&M is well positioned to navigate a higher interest rate environment and capitalize on opportunities to further expand our net interest margin. With loan repricing opportunities extending through 2028, we believe we have a favorable backdrop to support interest income growth in the coming quarters and years. Combined with our disciplined approach to deposit pricing and funding costs, we remain optimistic about our ability to maintain the significant improvement in net interest margin achieved over the past year.”

Deposits
At September 30, 2026, total deposits were $2.96 billion, an increase of 7.7%, or $210.6 million from September 30, 2025. For the three months ended September 30, 2026, F&M’s cost of interest-bearing liabilities was 2.59%, compared to 2.83% in the same period last year.

Loan Portfolio and Asset Quality
Total loans, net at September 30, 2026, increased 3.0%, or by $79.0 million to $2.74 billion, compared to $2.66 billion at September 30, 2025. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and consumer real estate loans, partially offset by lower commercial real estate, consumer, and agricultural real estate loans.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans continue to normalize on a year-over-year basis and were $6.2 million, or 0.23% of total loans at September 30, 2026, compared to $7.4 million, or 0.27% of total loans at June 30, 2026, and $5.2 million, or 0.19% of total loans at September 30, 2025.

F&M maintains a well-balanced, diverse, and high performing CRE portfolio. CRE loans represented 48.2% of the Company’s total loan portfolio at September 30, 2026. F&M’s CRE portfolio included the following categories at September 30, 2026 (*):

CRE Category

 Dollar
Balance		 Percent of
CRE
Portfolio		 Percent of
Total Loan
Portfolio
       
Multi-family $248,851 18.8% 9.1%
Retail  241,155 18.3% 8.8%
Industrial  211,320 16.0% 7.7%
Hotels  176,727 13.4% 6.5%
Office  125,283 9.5% 4.6%
Gas Stations  83,361 6.3% 3.0%
Food Service  53,045 4.0% 1.9%
Development  35,527 2.7% 1.3%
Auto Dealers  26,163 2.0% 1.0%
Senior Living  17,205 1.3% 0.6%
Other  102,384 7.7% 3.7%
Total CRE $1,321,021 100.0% 48.2%

         * Numbers have been rounded; totals may not foot due to rounding; and dollar amounts in thousands.

At September 30, 2026, the Company’s total allowance for credit losses to total loans was 1.08%, compared to 1.07% at September 30, 2025.  

Mr. Eller concluded, “Our relationship-based banking model and local decision-making continue to differentiate F&M across our Ohio, Indiana, and Michigan markets. We maintain a healthy lending pipeline, reflecting continued opportunities to support businesses and consumers throughout our communities. Our local market knowledge and disciplined underwriting practices allow us to remain selective in pursuing new business while maintaining strong asset quality. We believe this balanced approach to profitable growth, combined with our continued focus on operational efficiency and shareholder returns, positions F&M to build upon our strong financial performance.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 6.9% to $386.9 million, or $28.12 per share at September 30, 2026, from $361.8 million, or $26.31 per share at September 30, 2025. The Company had a Tier 1 leverage ratio of 9.14% at September 30, 2026, compared to 8.74% at September 30, 2025.

Tangible stockholders’ equity increased to $297.5 million at September 30, 2026, compared to $271.0 million at September 30, 2025. On a per share basis, tangible stockholders’ equity at September 30, 2026, was $21.62 per share, compared to $19.71 per share at September 30, 2025. Tangible stockholders’ equity and tangible book value per share are non-GAAP financial measures; see “Use of Non-GAAP Financial Measures.”

F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 32 consecutive years. For the nine months ended September 30, 2026, the Company declared cash dividends of $0.71 per share, representing a 6.0% increase over the same period last year. For the nine months ended September 30, 2026, the dividend payout ratio was 29.34% compared to 38.64% for the same period last year.

As part of F&M’s disciplined approach to capital management, the Company has continued to actively repurchase shares of F&M common stock. These repurchases are intended, in part, to help offset dilution associated with equity-based management compensation while supporting F&M’s broader objective of managing capital in a manner that enhances long-term shareholder value.

Mr. Eller concluded, “One of the most rewarding aspects of our continued financial success is the ability to share that success with our shareholders. Our 32nd consecutive annual dividend increase, and third quarter special dividend, are testaments to the strength of our franchise, the consistency of our financial performance, and our disciplined approach to capital management. We believe the combination of profitable growth, a strong balance sheet, and consistent capital returns positions F&M to create meaningful long-term value for our shareholders.”

About Farmers & Merchants Bancorp, Inc.
Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is a financial holding company headquartered in Archbold, Ohio, and the parent company of The Farmers & Merchants State Bank.

About Farmers & Merchants State Bank:
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking, and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben, and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Use of Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures, including tangible stockholders’ equity and tangible book value per share. Management believes these measures facilitate period-to-period comparisons of the Company’s performance and provide useful supplemental information to investors; however, they should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Basis of Presentation
The financial information in this release is preliminary, based on management’s current expectations, and is subject to change pending completion of customary quarterly closing processes and review. Unless otherwise indicated, all figures are presented on a consolidated basis and comparisons are to the same period of the prior year. Averages may be annualized. Totals may not foot due to rounding.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” “project,” “target,” “goal,” “will,” “would,” and similar expressions. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, deposit flows and pricing, liquidity and access to wholesale funding, interest rate and asset-liability management, credit quality (including commercial real estate exposures), collateral values, inflation and macroeconomic conditions, changes in laws and regulations (including capital and liquidity requirements and the implementation of “Basel III Endgame”), FDIC assessments, stress testing and supervisory expectations, cybersecurity and third-party/vendor risks, competition and technological change, geopolitical events, severe weather and natural disasters, agricultural sector conditions, the accuracy of CECL estimates and other accounting judgments, capital and dividend restrictions, and other risks described in F&M’s filings with the SEC. F&M undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(Unaudited) (in thousands of dollars, except per share data)
     
 Three Months Ended Nine Months Ended
 September 30,
2026		 June 30,
2026		 March 31,
2026		 December 31,
2025		 September 30,
2025		 September 30,
2026		 September 30,
2025
Interest Income             
Loans, including fees$42,061  $40,839  $39,827  $40,999  $41,013  $122,727  $117,615 
Debt securities:             
U.S. Treasury and government agencies 3,057   2,712   2,305   2,259   2,224   8,074   6,552 
Municipalities and corporate bonds 346   347   349   362   366   1,042   1,117 
Dividends 207   239   245   250   309   691   958 
Federal funds sold and other 1,321   1,510   572   696   572   3,403   2,736 
Total interest income 46,992   45,647   43,298   44,566   44,484   135,937   128,978 
Interest Expense             
Deposits 14,758   14,432   13,249   14,318   15,060   42,439   43,861 
Federal funds purchased and securities sold under agreements to repurchase 120   118   145   226   273   383   816 
Borrowed funds 1,694   1,894   2,176   1,966   1,966   5,764   6,927 
Subordinated notes 480   285   284   285   284   1,049   853 
Total interest expense 17,052   16,729   15,854   16,795   17,583   49,635   52,457 
Net Interest Income – Before Provision for Credit Losses 29,940   28,918   27,444   27,771   26,901   86,302   76,521 
Provision for (Recovery of) Credit Losses – Loans (104)  173   302   567   557   371   2,029 
Provision for (Recovery of) Credit Losses – Off Balance Sheet Exposures 479   148   6   (1)  (272)  633   (505)
Net Interest Income After Provision for Credit Losses 29,565   28,597   27,136   27,205   26,616   85,298   74,997 
Noninterest Income             
Customer service fees 380   544   483   337   370   1,407   1,081 
Other service charges and fees 1,331   1,301   1,283   1,311   1,349   3,915   3,679 
Interchange income 1,339   1,347   1,513   1,275   1,273   4,199   3,953 
Loan servicing income 686   846   838   814   674   2,370   2,065 
Net gain on sale of loans 399   683   575   306   444   1,657   985 
Increase in cash surrender value of bank owned life insurance 731   681   655   640   247   2,067   730 
Gain (loss) on sale of other assets owned 1   30   –   (2)  –   31   (39)
Loss on sale of available-for-sale securities –   –   (347)  –   –   (347)  – 
Total noninterest income 4,867   5,432   5,000   4,681   4,357   15,299   12,454 
Noninterest Expense             
Salaries and wages 8,594   8,381   8,267   8,037   8,108   25,242   23,553 
Employee benefits 2,458   2,338   2,379   2,386   2,273   7,175   6,942 
Net occupancy expense 1,081   931   1,169   1,052   1,104   3,181   3,378 
Furniture and equipment 1,685   1,594   1,566   1,352   1,532   4,845   4,224 
Data processing 840   778   994   964   1,109   2,612   2,723 
Franchise taxes 394   395   400   397   397   1,189   1,191 
ATM expense 576   561   576   676   665   1,713   1,917 
Advertising 906   363   472   666   674   1,741   1,533 
FDIC assessment 413   389   396   377   428   1,198   1,341 
Servicing rights amortization – net 349   328   523   637   586   1,200   947 
Loan expense 530   578   309   292   362   1,417   918 
Consulting fees 312   325   254   182   242   891   1,481 
Professional fees 447   425   500   352   516   1,372   1,577 
Intangible asset amortization 305   304   305   446   445   914   1,334 
Other general and administrative 1,328   1,574   1,691   1,237   1,298   4,593   4,700 
Total noninterest expense 20,218   19,264   19,801   19,053   19,739   59,283   57,759 
Income Before Income Taxes 14,214   14,765   12,335   12,833   11,234   41,314   29,692 
Income Taxes 2,676   2,968   2,757   3,040   2,380   8,401   6,176 
Net Income 11,538   11,797   9,578   9,793   8,854   32,913   23,516 
Other Comprehensive Income (Loss) (Net of Tax):             
Net unrealized gain (loss) on available-for-sale securities (5,915)  (545)  (2,420)  2,657   6,610   (8,880)  14,223 
Reclassification adjustment for realized loss on sale of available-for-sale securities –   –   347   –   –   347   – 
Net unrealized gain (loss) on available-for-sale securities (5,915)  (545)  (2,073)  2,657   6,610   (8,533)  14,223 
Tax expense (benefit) (1,242)  (115)  (435)  558   1,388   (1,792)  2,987 
Other comprehensive income (loss) (4,673)  (430)  (1,638)  2,099   5,222   (6,741)  11,236 
Comprehensive Income$6,865  $11,367  $7,940  $11,892  $14,076  $26,172  $34,752 
Basic Earnings Per Share$0.84  $0.86  $0.70  $0.71  $0.64  $2.39  $1.71 
Diluted Earnings Per Share$0.84  $0.86  $0.70  $0.71  $0.64  $2.39  $1.71 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)
 
 September 30,
2026		 June 30,
2026		 March 31,
2026		 December 31,
2025		 September 30,
2025
 (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
Assets         
Cash and due from banks$205,125  $155,879  $172,847  $97,249  $116,448 
Federal funds sold 686   511   623   469   582 
Total cash and cash equivalents 205,811   156,390   173,470   97,718   117,030 
          
Interest-bearing time deposits 518   518   1,253   1,498   1,498 
Securities – available-for-sale 455,977   441,254   429,623   422,072   422,773 
Other securities, at cost 10,681   10,681   12,672   13,032   11,509 
Loans held for sale 2,527   2,994   5,579   3,934   3,003 
Loans, net of allowance for credit losses 2,709,358   2,677,072   2,654,135   2,685,990   2,632,668 
Premises and equipment 29,590   30,334   31,534   31,864   32,321 
Goodwill 86,358   86,358   86,358   86,358   86,358 
Loan servicing rights 5,034   5,085   4,972   5,175   5,537 
Other real estate owned –   –   319     
Bank owned life insurance 48,751   48,021   45,407   47,410   35,602 
Other assets 44,450   43,411   40,247   39,331   42,453 
          
Total Assets$3,599,055  $3,502,118  $3,485,569  $3,434,382  $3,390,752 
          
Liabilities and Stockholders’ Equity         
Liabilities         
Deposits         
Noninterest-bearing$518,286  $506,119  $520,348  $527,327  $500,742 
Interest-bearing         
NOW accounts 952,573   898,902   910,723   876,151   920,099 
Savings 803,763   771,379   753,289   729,472   713,391 
Time 687,870   693,008   625,302   597,785   617,679 
Total deposits 2,962,492   2,869,408   2,809,662   2,730,735   2,751,911 
          
Federal funds purchased and securities         
sold under agreements to repurchase 15,168   14,771   14,762   37,718   22,718 
Federal Home Loan Bank (FHLB) advances 167,903   168,447   218,987   227,377   187,913 
Subordinated notes, net of unamortized issuance costs 35,000   34,991   34,962   34,933   34,904 
Dividend payable 3,399   3,130   3,128   3,125   3,091 
Accrued expenses and other liabilities 28,166   26,655   28,120   29,632   28,435 
Total liabilities 3,212,128   3,117,402   3,109,621   3,063,520   3,028,972 
          
Commitments and Contingencies         
          
Stockholders’ Equity         
Common stock – No par value; authorized 40,000,000 shares;         
issued 14,564,425 shares; outstanding 13,762,268 shares 9/30/26         
and 13,748,074 shares 12/31/25 134,761   135,510   135,270   135,531   135,170 
Treasury stock – 802,157 shares 9/30/26 and 816,351 shares 12/31/25 (11,651)  (10,293)  (10,403)  (10,636)  (10,584)
Retained earnings 282,446   273,455   264,607   257,855   251,181 
Accumulated other comprehensive loss (18,629)  (13,956)  (13,526)  (11,888)  (13,987)
Total stockholders’ equity 386,927   384,716   375,948   370,862   361,780 
          
Total Liabilities and Stockholders’ Equity$3,599,055  $3,502,118  $3,485,569  $3,434,382  $3,390,752 
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
                      
  For the Three Months Ended For the Nine Months Ended
Selected financial data September 30,
2026		 June 30,
2026		 March 31,
2026		 December 31,
2025		 September 30,
2025		 September 30,
2026		 September 30,
2025
Return on average assets  1.29%  1.34%  1.14%  1.14%  1.05%  1.25%  0.94%
Return on average equity  11.76%  12.37%  10.31%  10.55%  9.83%  11.45%  8.99%
Yield on earning assets  5.61%  5.48%  5.38%  5.55%  5.62%  5.50%  5.42%
Cost of interest-bearing liabilities  2.59%  2.56%  2.54%  2.69%  2.83%  2.56%  2.84%
Net interest spread  3.02%  2.92%  2.84%  2.86%  2.79%  2.94%  2.58%
Net interest margin  3.57%  3.48%  3.42%  3.46%  3.40%  3.50%  3.22%
Efficiency ratio  58.09%  56.08%  60.08%  58.38%  63.11%  58.15%  64.87%
Dividend payout ratio  29.45%  26.53%  32.62%  31.90%  34.90%  29.34%  38.64%
Tangible book value per share $21.62  $21.41  $20.76  $20.40  $19.71       
Tier 1 leverage ratio  9.14%  8.99%  9.02%  8.81%  8.74%      
Average shares outstanding  13,779,936   13,773,387   13,754,684   13,749,420   13,733,858   13,769,428   13,720,168 
                      
Loans September 30,
2026		 June 30,
2026		 March 31,
2026		 December 31,
2025		 September 30,
2025		      
(Dollar amounts in thousands)                     
Commercial real estate $1,321,021  $1,308,600  $1,315,549  $1,355,571  $1,355,166       
Agricultural real estate  210,321   208,223   215,846   217,034   222,145       
Consumer real estate  548,913   533,438   534,987   526,439   522,416       
Commercial and industrial  343,720   337,487   309,046   314,405   296,084       
Agricultural  245,639   244,611   228,730   218,050   179,361       
Consumer  47,251   50,953   55,576   58,838   60,469       
Other  22,089   22,574   22,564   23,133   24,086       
Less: Net deferred loan fees, costs and other (1)  (1,635)  (1,419)  (1,436)  (1,511)  (1,452)      
Total loans, net $2,737,319  $2,704,467  $2,680,862  $2,711,959  $2,658,275       
                      
                      
Asset quality data September 30,
2026		 June 30,
2026		 March 31,
2026		 December 31,
2025		 September 30,
2025		      
(Dollar amounts in thousands)                     
Nonaccrual loans $6,219  $7,383  $11,070  $11,256  $5,155       
90 day past due and accruing $–  $–  $–  $–  $–       
Nonperforming loans $6,219  $7,383  $11,070  $11,256  $5,155       
Other real estate owned $–  $–  $319  $–  $–       
Nonperforming assets $6,219  $7,383  $11,389  $11,256  $5,155       
                      
                      
Allowance for credit losses – loans $27,802  $27,941  $27,830  $27,688  $27,475       
Allowance for credit losses – off balance sheet credit exposures  1,668   1,189   1,041   1,035   1,037       
Total allowance for credit losses $29,470  $29,130  $28,871  $28,723  $28,512       
Total allowance for credit losses/total loans  1.08%  1.08%  1.08%  1.06%  1.07%      
Net charge-offs:                     
Quarter-to-date $35  $62  $160  $354  $59       
Year-to-date $257  $222  $160  $734  $380       
Net charge-offs to average loans                     
Quarter-to-date  0.00%  0.00%  0.01%  0.01%  0.00%      
Year-to-date  0.01%  0.01%  0.01%  0.03%  0.01%      
Nonperforming loans/total loans  0.23%  0.27%  0.42%  0.42%  0.19%      
Allowance for credit losses/nonperforming loans  447.05%  378.45%  251.40%  245.98%  532.98%      
NPA coverage ratio  447.05%  378.45%  244.36%  245.98%  532.98%      
                      
(1) Excludes carrying value adjustments of ($159) thousand as of September 30, 2026, $546 thousand as of June 30, 2026, $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025 and $1.9 million as of September 30, 2025 related to interest rate swaps associated with fixed rate loans.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
            
 For the Three Months Ended For the Three Months Ended
 September 30, 2026 September 30, 2025
Interest Earning Assets:Average
Balance		 Interest/
Dividends		 Annualized
Yield/Rate		 Average
Balance		 Interest/
Dividends		 Annualized
Yield/Rate
Loans$2,726,585 $42,061 6.18% $2,649,409 $41,013 6.19%
Taxable investment securities 473,448  3,545 3.00%  445,088  2,827 2.54%
Tax-exempt investment securities 12,202  65 2.70%  16,066  72 2.27%
Fed funds sold & other 145,409  1,321 3.63%  56,131  572 4.08%
Total Interest Earning Assets 3,357,644 $46,992 5.61%  3,166,694 $44,484 5.62%
            
Nonearning Assets 191,469      182,320    
            
Total Assets$3,549,113     $3,349,014    
            
Interest-Bearing Liabilities:           
NOW accounts and savings deposits$1,730,869 $9,749 2.25% $1,620,026 $9,966 2.46%
Time deposits 684,990  5,009 2.93%  609,844  5,094 3.34%
Other borrowed money 168,106  1,694 4.03%  188,123  1,966 4.18%
Fed funds purchased & securities           
sold under agreement to repurchase 14,835  120 3.24%  27,274  273 4.00%
Subordinated notes 34,997  480 5.49%  34,885  284 3.26%
Total Interest-Bearing Liabilities$2,633,797 $17,052 2.59% $2,480,152 $17,583 2.83%
            
Noninterest-Bearing Liabilities 526,148      511,468    
            
Stockholders’ Equity$389,168     $357,394    
            
Net Interest Income and Interest Rate Spread  $29,940 3.02%   $26,901 2.79%
            
Net Interest Margin    3.57%     3.40%
            
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts
            
            
 For the Nine Months Ended For the Nine Months Ended
 September 30, 2026 September 30, 2025
Interest Earning Assets:Average
Balance		 Interest/
Dividends		 Annualized
Yield/Rate		 Average
Balance		 Interest/
Dividends		 Annualized
Yield/Rate
Loans$2,705,821 $122,727 6.06% $2,615,332 $117,615 6.00%
Taxable investment securities 456,789  9,606 2.80%  454,288  8,403 2.47%
Tax-exempt investment securities 12,729  201 2.67%  17,025  224 2.22%
Fed funds sold & other 127,828  3,403 3.55%  87,106  2,736 4.19%
Total Interest Earning Assets 3,303,167 $135,937 5.50%  3,173,751 $128,978 5.42%
            
Nonearning Assets 192,543      174,982    
            
Total Assets$3,495,710     $3,348,733    
            
Interest-Bearing Liabilities:           
NOW accounts and savings deposits$1,688,457 $27,678 2.19% $1,557,564 $28,009 2.40%
Time deposits 651,283  14,761 3.02%  621,126  15,852 3.40%
Other borrowed money 190,338  5,764 4.04%  220,820  6,927 4.18%
Fed funds purchased & securities           
sold under agreement to repurchase 15,646  383 3.26%  27,352  816 3.98%
Subordinated notes 34,971  1,049 4.00%  34,856  853 3.26%
Total Interest-Bearing Liabilities$2,580,695 $49,635 2.56% $2,461,718 $52,457 2.84%
            
Noninterest-Bearing Liabilities 532,079      538,665    
            
Stockholders’ Equity$382,936     $348,350    
            
Net Interest Income and Interest Rate Spread  $86,302 2.94%   $76,521 2.58%
            
Net Interest Margin    3.50%     3.22%
            
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
                  
 For the Three Months Ended September 30, 2026 For the Three Months Ended September 30, 2025
 As Reported Excluding Acc/AmortDifference As Reported Excluding Acc/AmortDifference
 $Yield $Yield $Yield $Yield $Yield $Yield
Interest Earning Assets:                 
Loans$42,0616.18% $42,0546.18% $70.00% $41,0136.19% $40,3596.09% $6540.10%
Taxable investment securities 3,5453.00%  3,5453.00%  –0.00%  2,8272.54%  2,8272.54%  –0.00%
Tax-exempt investment securities 652.70%  652.70%  –0.00%  722.27%  722.27%  –0.00%
Fed funds sold & other 1,3213.63%  1,3213.63%  –0.00%  5724.08%  5724.08%  –0.00%
Total Interest Earning Assets 46,9925.61%  46,9855.60%  70.01%  44,4845.62%  43,8305.54%  6540.08%
                  
Interest-Bearing Liabilities:                 
NOW accounts and savings deposits$9,7492.25% $9,7492.25% $–0.00% $9,9662.46% $9,9662.46% $–0.00%
Time deposits 5,0092.93%  5,0092.93%  –0.00%  5,0943.34%  5,0943.34%  –0.00%
Other borrowed money 1,6944.03%  1,6914.02%  30.01%  1,9664.18%  1,9634.17%  30.01%
Federal funds purchased and                 
securities sold under agreement to                 
repurchase 1203.24%  1203.24%  –0.00%  2734.00%  2734.00%  –0.00%
Subordinated notes 4805.49%  4805.49%  –0.00%  2843.26%  2843.26%  –0.00%
Total Interest-Bearing Liabilities 17,0522.59%  17,0492.59%  30.00%  17,5832.83%  17,5802.84%  3-0.01%
                  
Interest/Dividend income/yield 46,9925.61%  46,9855.60%  70.01%  44,4845.62%  43,8305.54%  6540.08%
Interest Expense / yield 17,0522.59%  17,0492.59%  30.00%  17,5832.83%  17,5802.84%  3-0.01%
Net Interest Spread 29,9403.02%  29,9363.01%  40.01%  26,9012.79%  26,2502.70%  6510.09%
Net Interest Margin 3.57%  3.57%  0.00%  3.40%  3.32%  0.08%
                  
                  
 For the Nine Months Ended September 30, 2026 For the Nine Months Ended September 30, 2025
 As Reported Excluding Acc/AmortDifference As Reported Excluding Acc/AmortDifference
 $Yield $Yield $Yield $Yield $Yield $Yield
Interest Earning Assets:                 
Loans$122,7276.06% $122,1106.03% $6170.03% $117,6156.00% $115,7555.90% $1,8600.10%
Taxable investment securities 9,6062.80%  9,6062.80%  –0.00%  8,4032.47%  8,4032.47%  –0.00%
Tax-exempt investment securities 2012.67%  2012.67%  –0.00%  2242.22%  2242.22%  –0.00%
Fed funds sold & other 3,4033.55%  3,4033.55%  –0.00%  2,7364.19%  2,7364.19%  –0.00%
Total Interest Earning Assets 135,9375.50%  135,3205.47%  6170.03%  128,9785.42%  127,1185.34%  1,8600.08%
                  
Interest-Bearing Liabilities:                 
NOW accounts and savings deposits$27,6782.19% $27,6782.19% $–0.00% $28,0092.40% $28,0092.40% $–0.00%
Time deposits 14,7613.02%  14,7613.02%  –0.00%  15,8523.40%  15,8523.40%  –0.00%
Other borrowed money 5,7644.04%  5,7544.03%  100.01%  6,9274.18%  6,9174.18%  100.00%
Federal funds purchased and                 
securities sold under agreement to                 
repurchase 3833.26%  3833.26%  –0.00%  8163.98%  8163.98%  –0.00%
Subordinated notes 1,0494.00%  1,0494.00%  –0.00%  8533.26%  8533.26%  –0.00%
Total Interest-Bearing Liabilities 49,6352.56%  49,6252.56%  100.00%  52,4572.84%  52,4472.84%  100.00%
                  
Interest/Dividend income/yield 135,9375.50%  135,3205.47%  6170.03%  128,9785.42%  127,1185.34%  1,8600.08%
Interest Expense / yield 49,6352.56%  49,6252.56%  100.00%  52,4572.84%  52,4472.84%  100.00%
Net Interest Spread 86,3022.94%  85,6952.91%  6070.03%  76,5212.58%  74,6712.50%  1,8500.08%
Net Interest Margin 3.50%  3.47%  0.03%  3.22%  3.14%  0.08%

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF TANGIBLE COMMON EQUITY
(in thousands of dollars)
        
  For the Three Months Ended
Reconciliation of Common Stockholders’ Equity to Tangible Common Equity September 30,
2026		 June 30,
2026		 March 31,
2026		 December 31,
2025		 September 30,
2025
Stockholders’ Equity $386,927 $384,716 $375,948 $370,862 $361,780
Less Goodwill and Other Intangibles  89,433  89,738  90,043  90,347  90,792
Tangible Common Equity $297,494 $294,978 $285,905 $280,515 $270,988
           
Average Stockholders’ Equity $389,168 $382,584 $376,923 $368,235 $357,394
Less average Goodwill and Other Intangibles  89,633  89,933  90,234  90,629  91,076
Average Tangible Common Equity $299,535 $292,651 $286,689 $277,606 $266,318

Company Contact:Investor and Media Contact:
Lars B. Eller
President and Chief Executive Officer
Farmers & Merchants Bancorp, Inc.
(419) 446-2501
leller@fm.bank		Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
andrew@smberger.com

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