Farmers & Merchants Bancorp, Inc. Reports 2025 Second-Quarter and Year-to-Date Financial Results

Written by Customer Service on July 28, 2025. Posted in Earnings Releases And Operating Results.

ARCHBOLD, Ohio, July 28, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 second quarter and year-to-date ended June 30, 2025.

2025 Second Quarter Financial and Operating Highlights
(at June 30, 2025 and on a year-over-year basis unless noted)

89 consecutive quarters of profitability
Net income increased 35.7% to $7.7 million, or $0.56 per basic and diluted share
Net interest margin expands for fourth consecutive quarter, up 51 basis points year-over-year to 3.22%
Total loans increased by $67.2 million, or 2.6% to $2.63 billion
Total assets increased by $23.1 million, or 0.7% to $3.35 billion
Total deposits increased by $69.2 million, or 2.6% to $2.71 billion
Efficiency ratio improved to 64.93%, compared to 69.03%
Asset quality remains at historically strong levels with nonperforming loans of only $3.7 million
Net charge-offs to average loans of 0.00%
Tier 1 leverage ratio was 8.50%

Lars B. Eller, President and Chief Executive Officer, stated, “Net income for the 2025 second quarter was one of the most profitable quarters and our second-strongest second quarter in F&M’s 128-year history. This performance was driven by strong levels of core profitability, continued growth in our net interest margin, and the successful execution of our multi-year strategic plan. Over the past 12 months, we have enhanced our product offerings, simplified account openings, and continued our focus on attracting and developing proven talent across our regions. The positive momentum we are experiencing today is a direct result of these efforts, as well as our team’s commitment to helping people in our communities live their best lives.”

Mr. Eller continued, “Total revenue growth, which is defined by net interest income plus noninterest income, grew by 18.2% year-over-year in the 2025 second quarter, compared to 16.7% in the 2025 first quarter. This growth continues to significantly outpace the rise in noninterest expenses, contributing to a more favorable efficiency ratio and ongoing improvements in core profitability.”

“Supporting this revenue momentum is the ongoing expansion of our net interest margin, which increased 51 basis points year-over-year and 19 basis points from the 2025 first quarter. Net interest margin is benefiting from higher asset yields as existing loans reprice and new originations are booked at more favorable rates. At the same time, our growing customer relationships and a more stable interest rate environment have improved our cost of funds.”

Income Statement
Net income for the 2025 second quarter ended June 30, 2025, was $7.7 million, compared to $5.7 million for the same period last year. Net income per basic and diluted share for the 2025 second quarter was $0.56, compared to $0.42 for the same period last year. Net income for the 2025 first half ended June 30, 2025, was $14.7 million, compared to $11.0 million for the same period last year. Net income per basic and diluted share for the 2025 first half was $1.07, compared to $0.81 for the same period last year.

Deposits
At June 30, 2025, total deposits were $2.71 billion, an increase of 2.6% from June 30, 2024. The Company’s cost of interest-bearing liabilities was 2.83% for the quarter ended June 30, 2025, compared to 3.18% for the quarter ended June 30, 2024.

Mr. Eller commented, “We ended the second quarter with $2.71 billion in deposits, reflecting the success of our efforts to expand relationship-based banking across the Ohio, Indiana, and Michigan markets. Building on recent product enhancements, we are also investing in new tools and capabilities to expand our marketing efforts and better communicate the value of F&M’s offerings.”

Loan Portfolio and Asset Quality
“Loan demand remains strong, with total loans, net increasing sequentially by $45.0 million, or at a 7.0% annualized rate. We are managing growth with disciplined pricing and remain focused on maintaining strong asset quality. Net charge offs to average loans have been under 0.03% for 17 consecutive quarters, demonstrating the growing sophistication of our credit cultural and risk management capabilities,” continued Mr. Eller.

Total loans, net at June 30, 2025, increased 2.6%, or by $67.2 million to $2.63 billion, compared to $2.56 billion at June 30, 2024. The year-over-year increase was driven primarily by higher commercial real estate, commercial and industrial, and agricultural loans, partially offset primarily by lower agricultural real estate, consumer real estate, and consumer loans. Compared to the quarter ended December 31, 2024, total loans, net at June 30, 2025, increased by 2.5% or $65.0 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $3.7 million, or 0.14% of total loans at June 30, 2025, compared to $2.5 million, or 0.10% of total loans at June 30, 2024, and $3.1 million, or 0.12% at December 31, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.2% of the Company’s total loan portfolio at June 30, 2025. F&M’s CRE portfolio included the following categories at June 30, 2025:

CRE Category	Dollar Balance		Percent of CRE Portfolio⁽^*)	Percent of Total Loan Portfolio⁽^*)

Industrial	$	281,599	20.9%	10.7%
Retail		213,309	15.8%	8.1%
Multi-family		213,029	15.8%	8.1%
Hotels		172,026	12.8%	6.5%
Office		139,844	10.4%	5.3%
Gas Stations		77,527	5.8%	3.0%
Food Service		52,205	3.9%	2.0%
Senior Living		31,088	2.3%	1.2%
Development		28,565	2.1%	1.1%
Auto Dealers		26,744	2.0%	1.0%
Other		110,017	8.2%	4.2%
Total CRE	$	1,345,953	100.0%	51.2%
* Numbers have been rounded

At June 30, 2025, the Company’s allowance for credit losses to nonperforming loans was 720.35%, compared to 1,016% at June 30, 2024, and up from 586.38% at March 31, 2025. The allowance to total loans was 1.08% at June 30, 2025, compared to 1.06% at June 30, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.07% at June 30, 2025, compared to 1.10% at June 30, 2024.

Mr. Eller concluded, “We continue to believe F&M is in a strong position because of the platform we have built and the strategies we are pursuing to grow our business profitability. We expect continued loan growth, stable asset quality, and further expansion in our net interest margin to support increasing levels of profitability in the back half of 2025. As a result, we continue to believe 2025 will be another good year for F&M.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 8.7% to $350.8 million, or $25.56 per share at June 30, 2025, from $322.7 million, or $23.59 per share at June 30, 2024. The Company had a Tier 1 leverage ratio of 8.50% at June 30, 2025, compared to 8.02% at June 30, 2024.

Tangible stockholders’ equity increased to $259.6 million at June 30, 2025, compared to $229.6 million at June 30, 2024. On a per share basis, tangible stockholders’ equity at June 30, 2025, was $18.91 per share, compared to $16.79 per share at June 30, 2024.

For the six months ended June 30, 2025, the Company declared cash dividends of $0.44250 per share, representing a 0.6% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the six months ended June 30, 2025, the dividend payout ratio was 40.90% compared to 53.89% for the same period last year.

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 Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

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 21B of the Securities Exchange Act of 1934, as amended. 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, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. 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														Six Months Ended
	June 30, 2025		March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024
Interest Income
Loans, including fees	$	39,530	$	37,072		$	36,663		$	36,873		$	36,593		$	76,602		$	71,793
Debt securities:
U.S. Treasury and government agencies		2,231		2,097			1,882			1,467			1,148			4,328			2,193
Municipalities		369		382			384			387			389			751			783
Dividends		311		338			367			334			327			649			660
Federal funds sold		–		–			24			7			7			–			14
Other		1,051		1,113			2,531			2,833			2,702			2,164			4,377
Total interest income		43,492		41,002			41,851			41,901			41,166			84,494			79,820
Interest Expense
Deposits		14,813		13,988			15,749			16,947			16,488			28,801			31,767
Federal funds purchased and securities sold under agreements to repurchase		272		271			274			277			276			543			560
Borrowed funds		2,411		2,550			2,713			2,804			2,742			4,961			5,431
Subordinated notes		285		284			285			284			285			569			569
Total interest expense		17,781		17,093			19,021			20,312			19,791			34,874			38,327
Net Interest Income – Before Provision for Credit Losses		25,711		23,909			22,830			21,589			21,375			49,620			41,493
Provision for Credit Losses – Loans		661		811			346			282			605			1,472			316
Provision for (Recovery of) Credit Losses – Off Balance Sheet Exposures		27		(260	)		(120	)		(267	)		(18	)		(233	)		(284	)
Net Interest Income After Provision for Credit Losses		25,023		23,358			22,604			21,574			20,788			48,381			41,461
Noninterest Income
Customer service fees		330		381			237			300			189			711			787
Other service charges and fees		1,206		1,124			1,176			1,155			1,085			2,330			2,142
Interchange income		1,259		1,421			1,322			1,315			1,330			2,680			2,759
Loan servicing income		629		762			771			710			513			1,391			1,052
Net gain on sale of loans		257		284			223			215			314			541			421
Increase in cash surrender value of bank owned life insurance		239		244			248			265			236			483			452
Net gain (loss) on sale of other assets owned		15		(54	)		22			–			49			(39	)		49
Total noninterest income		3,935		4,162			3,999			3,960			3,716			8,097			7,662
Noninterest Expense
Salaries and wages		7,567		7,878			7,020			7,713			7,589			15,445			15,435
Employee benefits		2,265		2,404			2,148			2,112			2,112			4,669			4,283
Net occupancy expense		1,075		1,199			1,072			1,054			999			2,274			2,026
Furniture and equipment		1,414		1,278			1,032			1,472			1,407			2,692			2,760
Data processing		1,057		557			160			339			448			1,614			948
Franchise taxes		397		397			312			410			265			794			820
ATM expense		761		491			328			472			397			1,252			870
Advertising		356		503			498			597			519			859			1,049
FDIC assessment		448		465			505			516			507			913			1,087
Servicing rights amortization – net		234		127			244			219			187			361			355
Loan expense		328		228			236			244			251			556			480
Consulting fees		494		745			242			251			198			1,239			384
Professional fees		502		559			368			453			527			1,061			972
Intangible asset amortization		444		445			446			445			444			889			889
Other general and administrative		1,918		1,484			1,465			1,128			1,495			3,402			2,828
Total noninterest expense		19,260		18,760			16,076			17,425			17,345			38,020			35,186
Income Before Income Taxes		9,698		8,760			10,527			8,109			7,159			18,458			13,937
Income Taxes		1,988		1,808			2,146			1,593			1,477			3,796			2,896
Net Income		7,710		6,952			8,381			6,516			5,682			14,662			11,041
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		1,149		6,464			(7,403	)		11,664			2,531			7,613			536
Reclassification adjustment for realized (gain) loss on sale of available-for-sale securities		–		–			–			–			–			–			–
Net unrealized gain (loss) on available-for-sale securities		1,149		6,464			(7,403	)		11,664			2,531			7,613			536
Tax expense (benefit)		241		1,358			(1,554	)		2,449			531			1,599			113
Other comprehensive income (loss)		908		5,106			(5,849	)		9,215			2,000			6,014			423
Comprehensive Income	$	8,618	$	12,058		$	2,532		$	15,731		$	7,682		$	20,676		$	11,464
Basic Earnings Per Share	$	0.56	$	0.51		$	0.61		$	0.48		$	0.42		$	1.07		$	0.81
Diluted Earnings Per Share	$	0.56	$	0.51		$	0.61		$	0.48		$	0.42		$	1.07		$	0.81
Dividends Declared	$	0.22125	$	0.22125		$	0.22125		$	0.22125		$	0.22000		$	0.44250		$	0.44000

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)

		June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
		(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
Assets
Cash and due from banks		$	87,596		$	172,612		$	174,855		$	244,572		$	191,785
Federal funds sold			635			425			1,496			932			1,283
Total cash and cash equivalents			88,231			173,037			176,351			245,504			193,068

Interest-bearing time deposits			1,992			1,992			2,482			2,727			3,221
Securities – available-for-sale			431,102			438,568			426,556			404,881			365,209
Other securities, at cost			13,994			14,062			14,400			15,028			14,721
Loans held for sale			6,359			2,331			2,996			1,706			1,628
Loans, net of allowance for credit losses			2,599,917			2,555,552			2,536,043			2,512,852			2,534,468
Premises and equipment			32,885			33,163			33,828			33,779			34,507
Construction in progress			–			–			–			35			38
Goodwill			86,358			86,358			86,358			86,358			86,358
Loan servicing rights			5,810			5,805			5,656			5,644			5,504
Bank owned life insurance			35,355			35,116			34,872			34,624			34,359
Other assets			43,760			42,802			45,181			46,047			49,552

Total Assets		$	3,345,763		$	3,388,786		$	3,364,723		$	3,389,185		$	3,322,633

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest-bearing		$	497,804		$	502,318		$	516,904		$	481,444		$	479,069
Interest-bearing
NOW accounts			899,602			874,881			850,462			865,617			821,145
Savings			691,468			696,635			671,818			661,565			673,284
Time			621,455			626,450			647,581			676,187			667,592
	Total deposits		2,710,329			2,700,284			2,686,765			2,684,813			2,641,090

Federal funds purchased and securities sold under agreements to repurchase			27,562			27,258			27,218			27,292			27,218
Federal Home Loan Bank (FHLB) advances			188,445			245,474			246,056			263,081			266,102
Subordinated notes, net of unamortized issuance costs			34,875			34,846			34,818			34,789			34,759
Dividend payable			3,000			2,997			2,996			2,998			2,975
Accrued expenses and other liabilities			30,760			33,326			31,659			40,832			27,825
	Total liabilities		2,994,971			3,044,185			3,029,512			3,053,805			2,999,969

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value authorized 40,000,000 shares at 6/30/25 and 20,000,000 shares at 12/31/24; issued 14,564,425 shares 6/30/25 and 12/31/24; outstanding 13,725,998 shares 6/30/25 and 13,699,536 shares 12/31/24			135,805			135,407			135,565			135,193			135,829
Treasury stock – 838,427 shares 6/30/25 and 864,889 shares 12/31/24			(10,674	)		(10,768	)		(10,985	)		(10,904	)		(11,006	)
Retained earnings			244,870			240,079			235,854			230,465			226,430
Accumulated other comprehensive loss			(19,209	)		(20,117	)		(25,223	)		(19,374	)		(28,589	)
	Total stockholders’ equity		350,792			344,601			335,211			335,380			322,664

Total Liabilities and Stockholders’ Equity		$	3,345,763		$	3,388,786		$	3,364,723		$	3,389,185		$	3,322,633

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA

	For the Three Months Ended															For the Six Months Ended
Selected financial data	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024
Return on average assets		0.92	%		0.85	%		0.99	%		0.78	%		0.69	%		0.88	%		0.67	%
Return on average equity		8.88	%		8.31	%		10.00	%		7.93	%		7.13	%		8.55	%		6.94	%
Yield on earning assets		5.45	%		5.19	%		5.20	%		5.27	%		5.22	%		5.32	%		5.11	%
Cost of interest bearing liabilities		2.83	%		2.76	%		3.01	%		3.21	%		3.18	%		2.84	%		3.12	%
Net interest spread		2.62	%		2.43	%		2.19	%		2.06	%		2.04	%		2.48	%		1.99	%
Net interest margin		3.22	%		3.03	%		2.84	%		2.71	%		2.71	%		3.13	%		2.66	%
Efficiency ratio		64.93	%		66.79	%		59.82	%		67.98	%		69.03	%		65.84	%		71.50	%
Dividend payout ratio		38.91	%		43.10	%		35.75	%		45.99	%		52.35	%		40.90	%		53.89	%
Tangible book value per share	$	18.91		$	18.44		$	17.74		$	17.72		$	16.79
Tier 1 leverage ratio		8.50	%		8.44	%		8.12	%		8.04	%		8.02	%
Average shares outstanding		13,720,339			13,706,003			13,699,869			13,687,119			13,681,501			13,713,211			13,676,333

Loans	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
(Dollar amounts in thousands)
Commercial real estate	$	1,345,953		$	1,325,698		$	1,310,811		$	1,301,160		$	1,303,598
Agricultural real estate		221,004			215,898			216,401			220,328			222,558
Consumer real estate		523,781			523,383			520,114			524,055			525,902
Commercial and industrial		293,826			278,254			275,152			260,732			268,426
Agricultural		157,870			153,607			152,080			137,252			142,909
Consumer		59,348			60,115			63,009			67,394			70,918
Other		24,653			24,985			24,978			25,916			26,449
Less: Net deferred loan fees, costs and other ⁽¹⁾		459			(36	)		(676	)		1,499			(1,022	)
Total loans, net	$	2,626,894		$	2,581,904		$	2,561,869		$	2,538,336		$	2,559,738


Asset quality data	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
(Dollar amounts in thousands)
Nonaccrual loans	$	3,745		$	4,494		$	3,124		$	2,898		$	2,487
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	3,745		$	4,494		$	3,124		$	2,898		$	2,487
Other real estate owned	$	–		$	–		$	–		$	–		$	–
Nonperforming assets	$	3,745		$	4,494		$	3,124		$	2,898		$	2,487


Allowance for credit losses – loans	$	26,977		$	26,352		$	25,826		$	25,484		$	25,270
Allowance for credit losses – off balance sheet credit exposures		1,308			1,281			1,541			1,661			1,928
Total allowance for credit losses	$	28,285		$	27,633		$	27,367		$	27,145		$	27,198
Total allowance for credit losses/total loans		1.08	%		1.07	%		1.07	%		1.07	%		1.06	%
Adjusted credit losses with accretable yield/total loans		1.07	%		1.08	%		1.08	%		1.10	%		1.10	%
Net charge-offs:
Quarter-to-date	$	36		$	285		$	4		$	68		$	15
Year-to-date	$	321		$	285		$	142		$	138		$	70
Net charge-offs to average loans
Quarter-to-date		0.00	%		0.01	%		0.00	%		0.00	%		0.00	%
Year-to-date		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%
Nonperforming loans/total loans		0.14	%		0.17	%		0.12	%		0.11	%		0.10	%
Allowance for credit losses/nonperforming loans		720.35	%		586.38	%		826.70	%		879.37	%		1016.08	%
NPA coverage ratio		720.35	%		586.38	%		826.70	%		879.37	%		1016.08	%

⁽¹⁾ Includes carrying value adjustments of $1.9 million as of June 30, 2025, $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, and $612 thousand as of June 30, 2024 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
	June 30, 2025							June 30, 2024
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate			Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,617,278	$	39,530		6.04	%	$	2,556,417	$	36,593		5.73	%
Taxable investment securities		459,298		2,837		2.47	%		391,439		1,782		1.82	%
Tax-exempt investment securities		16,682		74		2.25	%		20,907		82		1.99	%
Fed funds sold & other		99,964		1,051		4.21	%		187,682		2,709		5.77	%
Total Interest Earning Assets		3,193,222	$	43,492		5.45	%		3,156,445	$	41,166		5.22	%

Nonearning Assets		175,969							156,239

Total Assets	$	3,369,191						$	3,312,684

Interest Bearing Liabilities:
NOW accounts and savings deposits	$	1,599,067	$	9,479		2.37	%	$	1,492,831	$	10,193		2.73	%
Time deposits		626,036		5,334		3.41	%		668,583		6,295		3.77	%
Other borrowed money		228,708		2,411		4.22	%		265,229		2,742		4.14	%
Fed funds purchased & securities sold under agreement to repurchase		27,301		272		3.99	%		27,721		276		3.98	%
Subordinated notes		34,856		285		3.27	%		34,740		285		3.28	%
Total Interest Bearing Liabilities	$	2,515,968	$	17,781		2.83	%	$	2,489,104	$	19,791		3.18	%

Noninterest Bearing Liabilities		505,129							504,821

Stockholders’ Equity	$	348,094						$	318,759

Net Interest Income and Interest Rate Spread			$	25,711		2.62	%			$	21,375		2.04	%

Net Interest Margin						3.22	%						2.71	%

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 Six Months Ended							For the Six Months Ended
	June 30, 2025							June 30, 2024
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate			Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,598,011	$	76,602		5.90	%	$	2,566,765	$	71,793		5.60	%
Taxable investment securities		458,903		5,576		2.43	%		388,225		3,468		1.79	%
Tax-exempt investment securities		17,501		152		2.20	%		21,196		168		2.01	%
Fed funds sold & other		102,851		2,164		4.21	%		149,035		4,391		5.89	%
Total Interest Earning Assets		3,177,266	$	84,494		5.32	%		3,125,221	$	79,820		5.11	%

Nonearning Assets		171,324							157,510

Total Assets	$	3,348,590						$	3,282,731

Interest Bearing Liabilities:
NOW accounts and savings deposits	$	1,524,965	$	18,043		2.37	%	$	1,467,669	$	19,600		2.67	%
Time deposits		626,767		10,758		3.43	%		659,581		12,167		3.69	%
Other borrowed money		237,185		4,961		4.18	%		264,217		5,431		4.11	%
Fed funds purchased & securities sold under agreement to repurchase		27,391		543		3.96	%		28,089		560		3.99	%
Subordinated notes		34,842		569		3.27	%		34,726		569		3.28	%
Total Interest Bearing Liabilities	$	2,451,150	$	34,874		2.84	%	$	2,454,282	$	38,327		3.12	%

Noninterest Bearing Liabilities		553,686							510,453

Stockholders’ Equity	$	343,754						$	317,996

Net Interest Income and Interest Rate Spread			$	49,620		2.48	%			$	41,493		1.99	%

Net Interest Margin						3.13	%						2.66	%

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 June 30, 2025															For the Three Months Ended June 30, 2024
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$			Yield
Interest Earning Assets:
Loans	$	39,530		6.04	%	$	38,928		5.95	%	$	602		0.09	%	$	36,593		5.73	%	$	35,914		5.62	%	$	679			0.11	%
Taxable investment securities		2,837		2.47	%		2,837		2.47	%		–		0.00	%		1,782		1.82	%		1,782		1.82	%		–			0.00	%
Tax-exempt investment securities		74		2.25	%		74		2.25	%		–		0.00	%		82		1.99	%		82		1.99	%		–			0.00	%
Fed funds sold & other		1,051		4.21	%		1,051		4.21	%		–		0.00	%		2,709		5.77	%		2,709		5.77	%		–			0.00	%
Total Interest Earning Assets		43,492		5.45	%		42,890		5.38	%		602		0.07	%		41,166		5.22	%		40,487		5.13	%		679			0.09	%

Interest Bearing Liabilities:
NOW accounts and savings deposits	$	9,479		2.37	%	$	9,479		2.37	%	$	–		0.00	%	$	10,193		2.73	%	$	10,193		2.73	%	$	–			0.00	%
Time deposits		5,334		3.41	%		5,334		3.41	%		–		0.00	%		6,295		3.77	%		6,295		3.77	%		–			0.00	%
Other borrowed money		2,411		4.22	%		2,407		4.21	%		4		0.01	%		2,742		4.14	%		2,747		4.14	%		(5	)		0.00	%
Federal funds purchased and securities sold under agreement to repurchase		272		3.99	%		272		3.99	%		–		0.00	%		276		3.98	%		276		3.98	%		–			0.00	%
Subordinated notes		285		3.27	%		285		3.27	%		–		0.00	%		285		3.28	%		285		3.28	%		–			0.00	%
Total Interest Bearing Liabilities		17,781		2.83	%		17,777		2.83	%		4		0.00	%		19,791		3.18	%		19,796		3.18	%		(5	)		0.00	%

Interest/Dividend income/yield		43,492		5.45	%		42,890		5.38	%		602		0.07	%		41,166		5.22	%		40,487		5.13	%		679			0.09	%
Interest Expense / yield		17,781		2.83	%		17,777		2.83	%		4		0.00	%		19,791		3.18	%		19,796		3.18	%		(5	)		0.00	%
Net Interest Spread		25,711		2.62	%		25,113		2.55	%		598		0.07	%		21,375		2.04	%		20,691		1.95	%		684			0.09	%
Net Interest Margin				3.22	%				3.15	%				0.07	%				2.71	%				2.62	%					0.09	%

	For the Six Months Ended June 30, 2025															For the Six Months Ended June 30, 2024
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$			Yield
Interest Earning Assets:
Loans	$	76,602		5.90	%	$	75,396		5.80	%	$	1,206		0.10	%	$	71,793		5.60	%	$	70,439		5.49	%	$	1,354			0.11	%
Taxable investment securities		5,576		2.43	%		5,576		2.43	%		–		0.00	%		3,468		1.79	%		3,468		1.79	%		–			0.00	%
Tax-exempt investment securities		152		2.20	%		152		2.20	%		–		0.00	%		168		2.01	%		168		2.01	%		–			0.00	%
Fed funds sold & other		2,164		4.21	%		2,164		4.21	%		–		0.00	%		4,391		5.89	%		4,391		5.89	%		–			0.00	%
Total Interest Earning Assets		84,494		5.32	%		83,288		5.25	%		1,206		0.07	%		79,820		5.11	%		78,466		5.03	%		1,354			0.08	%

Interest Bearing Liabilities:
NOW accounts and savings deposits	$	18,043		2.37	%	$	18,043		2.37	%	$	–		0.00	%	$	19,600		2.67	%	$	19,600		2.67	%	$	–			0.00	%
Time deposits		10,758		3.43	%		10,758		3.43	%		–		0.00	%		12,167		3.69	%		12,167		3.69	%		–			0.00	%
Other borrowed money		4,961		4.18	%		4,954		4.18	%		7		0.00	%		5,431		4.11	%		5,454		4.13	%		(23	)		-0.02	%
Federal funds purchased and securities sold under agreement to repurchase		543		3.96	%		543		3.96	%		–		0.00	%		560		3.99	%		560		3.99	%		–			0.00	%
Subordinated notes		569		3.27	%		569		3.27	%		–		0.00	%		569		3.28	%		569		3.28	%		–			0.00	%
Total Interest Bearing Liabilities		34,874		2.84	%		34,867		2.85	%		7		-0.01	%		38,327		3.12	%		38,350		3.13	%		(23	)		-0.01	%

Interest/Dividend income/yield		84,494		5.32	%		83,288		5.25	%		1,206		0.07	%		79,820		5.11	%		78,466		5.03	%		1,354			0.08	%
Interest Expense / yield		34,874		2.84	%		34,867		2.85	%		7		-0.01	%		38,327		3.12	%		38,350		3.13	%		(23	)		-0.01	%
Net Interest Spread		49,620		2.48	%		48,421		2.40	%		1,199		0.08	%		41,493		1.99	%		40,116		1.90	%		1,377			0.09	%
Net Interest Margin				3.13	%				3.05	%				0.08	%				2.66	%				2.57	%					0.09	%

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

Farmers & Merchants Bancorp, Inc. Reports 2025 Second-Quarter and Year-to-Date Financial Results

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