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

Written by Customer Service on October 27, 2025. Posted in Earnings Releases And Operating Results.

ARCHBOLD, Ohio, Oct. 27, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 third quarter and year-to-date ended September 30, 2025 on a consolidated basis.

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

90 consecutive quarters of profitability
Net income increased 35.9% to $8.9 million, or $0.64 per basic and diluted share
Net interest margin increased 69 basis points year-over-year to 3.40%
Total loans, net increased by $123.0 million, or 4.9% to $2.66 billion
Total deposits increased by $67.1 million, or 2.5% to $2.75 billion
Efficiency ratio improved to 63.11%, compared to 67.98%
Asset quality remains at historically strong levels with nonperforming loans of only $5.2 million
Net charge-offs to average loans of 0.00%
Tier 1 leverage ratio was 8.74%
Opened second full-service office in the State of Michigan in Troy
Promoted Curtis Metz to Market President for Northern Indiana
Declared the 31^st consecutive annual increase in the Company’s regular dividend payment

Lars B. Eller, President and Chief Executive Officer, stated, “The continued progress we are making to leverage recent investments, drive growth, and expand profitability is encouraging. Strong financial performance and sustained operating momentum during the 2025 third quarter produced one of the most profitable quarters in our 128-year history. Our results reflect the strength of F&M’s diversified business model and our longstanding commitment to create lasting value for our communities, customers, employees and shareholders. I am also proud of our recent dividend increase, marking the 31^st consecutive annual increase in F&M’s dividend.”

Income Statement
Net income for the 2025 third quarter ended September 30, 2025, was $8.9 million, compared to $6.5 million for the same period last year. Net income per basic and diluted share for the 2025 third quarter was $0.64, compared to $0.48 for the same period last year. Net income for the nine months ended September 30, 2025, was $23.5 million, compared to $17.6 million for the same period last year. Net income per basic and diluted share for the 2025 nine months was $1.71, compared to $1.28 for the same period last year.

Deposits
At September 30, 2025, total deposits were $2.75 billion, an increase of 2.5% from September 30, 2024. The Company’s cost of interest-bearing liabilities was 2.83% for the quarter ended September 30, 2025, compared to 3.21% for the quarter ended September 30, 2024.

Mr. Eller commented, “We remain focused on growing core deposits by expanding our relationship-based banking solutions across our Ohio, Indiana, and Michigan markets. These efforts have supported year-over-year deposit growth, while we continue to actively manage our cost of funds. I am encouraged that our cost of interest-bearing liabilities improved 32 basis points to 2.84% for the nine months ended September 30, 2025, reflecting our disciplined approach to deposit pricing and balance sheet management.”

Loan Portfolio and Asset Quality
“We are experiencing stable demand for loans, supported by the success of our recently opened offices, the addition of new team members, and the advantages of our community-oriented banking model. This includes the opening of our newest office in Troy, Michigan during the third quarter, which is the second full-service location in the state. We also continue to add experienced market presidents throughout our footprint to maintain our local decision-making and during the quarter we promoted Curtis Metz to Market President for Northern Indiana. As F&M grows, we are committed to prioritizing asset quality. Net charge-offs to average loans have remained below 0.03% for 18 consecutive quarters, underscoring the strength and growing sophistication of our credit culture and risk management capabilities,” continued Mr. Eller.

Total loans, net at September 30, 2025, increased 4.9%, or by $123.0 million to $2.66 billion, compared to $2.54 billion at September 30, 2024. The year-over-year increase was driven primarily by higher commercial real estate, agricultural real estate, commercial and industrial, and agricultural loans, partially offset primarily by lower consumer real estate and consumer loans. Compared to December 31, 2024, total loans, net at September 30, 2025, increased by 3.8% or $97.5 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $5.2 million, or 0.19% of total loans at September 30, 2025, compared to $2.9 million, or 0.11% of total loans at September 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 51.0% of the Company’s total loan portfolio at September 30, 2025. F&M’s CRE portfolio included the following categories at September 30, 2025 ^(*):

CRE Category	Dollar Balance		Percent of CRE Portfolio	Percent of Total Loan Portfolio

Industrial	$	277,274	20.5%	10.4%
Multi-family		238,311	17.6%	9.0%
Retail		207,301	15.3%	7.8%
Hotels		173,411	12.8%	6.5%
Office		142,111	10.5%	5.4%
Gas Stations		77,013	5.7%	2.9%
Food Service		52,695	3.9%	2.0%
Senior Living		30,672	2.2%	1.2%
Development		29,392	2.2%	1.1%
Auto Dealers		27,644	2.0%	1.0%
Other		99,342	7.3%	3.7%
Total CRE	$	1,355,166	100.0%	51.0%

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

At September 30, 2025, the Company’s total allowance to total loans was 1.07%, compared to 1.07% at September 30, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.06% at September 30, 2025, compared to 1.10% at September 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 profitably. This fall, we will begin developing a new three-year strategic plan that will define our growth priorities and guide our next phase of success. The plan will leverage the solid foundation we have established and the community-banking values that continue to distinguish F&M across our Ohio, Indiana, and Michigan markets. We believe these initiatives will enable the Company to capitalize on opportunities within our footprint, enhance shareholder value, and further strengthen our role as a trusted financial partner to the communities we proudly serve. I look forward to updating our shareholders on our new strategic priorities.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 7.9% to $361.8 million, or $26.31 per share at September 30, 2025, from $335.4 million, or $24.48 per share at September 30, 2024. The Company had a Tier 1 leverage ratio of 8.74% at September 30, 2025, compared to 8.04% at September 30, 2024.

Tangible stockholders’ equity increased to $271.0 million at September 30, 2025, compared to $242.8 million at September 30, 2024. On a per share basis, tangible stockholders’ equity at September 30, 2025, was $19.71 per share, compared to $17.72 per share at September 30, 2024. 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 31 consecutive years. For the quarter ended September 30, 2025, the Company declared cash dividends of $0.2275 per share, representing a 2.8% increase over the same period last year.

For the nine months ended September 30, 2025, the Company declared cash dividends of $0.67 per share, representing a 1.3% increase over the same period last year. For the nine months ended September 30, 2025, the dividend payout ratio was 38.64% compared to 50.99% for the same period last year.

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 the efficiency ratio, 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. Definitions of these measures and reconciliations to the most directly comparable GAAP measures are provided in the accompanying tables.

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, 2025			June 30, 2025		March 31, 2025			December 31, 2024			September 30, 2024			September 30, 2025			September 30, 2024
Interest Income
Loans, including fees	$	41,013		$	39,530	$	37,072		$	36,663		$	36,873		$	117,615		$	108,666
Debt securities:
U.S. Treasury and government agencies		2,224			2,231		2,097			1,882			1,467			6,552			3,660
Municipalities		366			369		382			384			387			1,117			1,170
Dividends		309			311		338			367			334			958			994
Federal funds sold		–			–		–			24			7			–			21
Other		572			1,051		1,113			2,531			2,833			2,736			7,210
Total interest income		44,484			43,492		41,002			41,851			41,901			128,978			121,721
Interest Expense
Deposits		15,060			14,813		13,988			15,749			16,947			43,861			48,714
Federal funds purchased and securities sold under agreements to repurchase		273			272		271			274			277			816			837
Borrowed funds		1,966			2,411		2,550			2,713			2,804			6,927			8,235
Subordinated notes		284			285		284			285			284			853			853
Total interest expense		17,583			17,781		17,093			19,021			20,312			52,457			58,639
Net Interest Income – Before Provision for Credit Losses		26,901			25,711		23,909			22,830			21,589			76,521			63,082
Provision for Credit Losses – Loans		557			661		811			346			282			2,029			598
Provision for (Recovery of) Credit Losses – Off Balance Sheet Exposures		(272	)		27		(260	)		(120	)		(267	)		(505	)		(551	)
Net Interest Income After Provision for Credit Losses		26,616			25,023		23,358			22,604			21,574			74,997			63,035
Noninterest Income
Customer service fees		370			330		381			237			300			1,081			1,087
Other service charges and fees		1,349			1,206		1,124			1,176			1,155			3,679			3,297
Interchange income		1,273			1,259		1,421			1,322			1,315			3,953			4,074
Loan servicing income		674			629		762			771			710			2,065			1,762
Net gain on sale of loans		444			257		284			223			215			985			636
Increase in cash surrender value of bank owned life insurance		247			239		244			248			265			730			717
Net gain (loss) on sale of other assets owned		–			15		(54	)		22			–			(39	)		49
Total noninterest income		4,357			3,935		4,162			3,999			3,960			12,454			11,622
Noninterest Expense
Salaries and wages		8,108			7,567		7,878			7,020			7,713			23,553			23,148
Employee benefits		2,273			2,265		2,404			2,148			2,112			6,942			6,395
Net occupancy expense		1,104			1,075		1,199			1,072			1,054			3,378			3,080
Furniture and equipment		1,532			1,414		1,278			1,032			1,472			4,224			4,232
Data processing		1,109			1,057		557			160			339			2,723			1,287
Franchise taxes		397			397		397			312			410			1,191			1,230
ATM expense		665			761		491			328			472			1,917			1,342
Advertising		674			356		503			498			597			1,533			1,646
FDIC assessment		428			448		465			505			516			1,341			1,603
Servicing rights amortization – net		586			234		127			244			219			947			574
Loan expense		362			328		228			236			244			918			724
Consulting fees		242			494		745			242			251			1,481			635
Professional fees		516			502		559			368			453			1,577			1,425
Intangible asset amortization		445			444		445			446			445			1,334			1,334
Other general and administrative		1,298			1,918		1,484			1,465			1,128			4,700			3,956
Total noninterest expense		19,739			19,260		18,760			16,076			17,425			57,759			52,611
Income Before Income Taxes		11,234			9,698		8,760			10,527			8,109			29,692			22,046
Income Taxes		2,380			1,988		1,808			2,146			1,593			6,176			4,489
Net Income		8,854			7,710		6,952			8,381			6,516			23,516			17,557
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		6,610			1,149		6,464			(7,403	)		11,664			14,223			12,200
Reclassification adjustment for realized (gain) loss on sale of available-for-sale securities		–			–		–			–			–			–			–
Net unrealized gain (loss) on available-for-sale securities		6,610			1,149		6,464			(7,403	)		11,664			14,223			12,200
Tax expense (benefit)		1,388			241		1,358			(1,554	)		2,449			2,987			2,562
Other comprehensive income (loss)		5,222			908		5,106			(5,849	)		9,215			11,236			9,638
Comprehensive Income	$	14,076		$	8,618	$	12,058		$	2,532		$	15,731		$	34,752		$	27,195
Basic Earnings Per Share	$	0.64		$	0.56	$	0.51		$	0.61		$	0.48		$	1.71		$	1.28
Diluted Earnings Per Share	$	0.64		$	0.56	$	0.51		$	0.61		$	0.48		$	1.71		$	1.28
Dividends Declared	$	0.22750		$	0.22125	$	0.22125		$	0.22125		$	0.22125		$	0.67000		$	0.66125


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

		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
		(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Assets
Cash and due from banks		$	116,448		$	87,596		$	172,612		$	174,855		$	244,572
Federal funds sold			582			635			425			1,496			932
	Total cash and cash equivalents		117,030			88,231			173,037			176,351			245,504

Interest-bearing time deposits			1,498			1,992			1,992			2,482			2,727
Securities – available-for-sale			422,773			431,102			438,568			426,556			404,881
Other securities, at cost			11,509			13,994			14,062			14,400			15,028
Loans held for sale			3,003			6,359			2,331			2,996			1,706
Loans, net of allowance for credit losses			2,632,668			2,599,917			2,555,552			2,536,043			2,512,852
Premises and equipment			32,321			32,885			33,163			33,828			33,779
Construction in progress			–			–			–			–			35
Goodwill			86,358			86,358			86,358			86,358			86,358
Loan servicing rights			5,537			5,810			5,805			5,656			5,644
Bank owned life insurance			35,602			35,355			35,116			34,872			34,624
Other assets			42,453			43,760			42,802			45,181			46,047

Total Assets		$	3,390,752		$	3,345,763		$	3,388,786		$	3,364,723		$	3,389,185

	Liabilities and Stockholders’ Equity
Liabilities
Deposits
	Noninterest-bearing	$	500,742		$	497,804		$	502,318		$	516,904		$	481,444
	Interest-bearing
	NOW accounts		920,099			899,602			874,881			850,462			865,617
	Savings		713,391			691,468			696,635			671,818			661,565
	Time		617,679			621,455			626,450			647,581			676,187
	Total deposits		2,751,911			2,710,329			2,700,284			2,686,765			2,684,813

Federal funds purchased and securities
sold under agreements to repurchase			22,718			27,562			27,258			27,218			27,292
Federal Home Loan Bank (FHLB) advances			187,913			188,445			245,474			246,056			263,081
Subordinated notes, net of unamortized issuance costs			34,904			34,875			34,846			34,818			34,789
Dividend payable			3,091			3,000			2,997			2,996			2,998
Accrued expenses and other liabilities			28,435			30,760			33,326			31,659			40,832
	Total liabilities		3,028,972			2,994,971			3,044,185			3,029,512			3,053,805

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value authorized 40,000,000 shares 9/30/25
and 20,000,000 shares 12/31/24; issued 14,564,425 shares
9/30/25 and 12/31/24; outstanding 13,749,827 shares 9/30/25
and 13,699,536 shares 12/31/24			135,170			135,805			135,407			135,565			135,193
Treasury stock – 814,598 shares 9/30/25 and 864,889 shares 12/31/24			(10,584	)		(10,674	)		(10,768	)		(10,985	)		(10,904	)
Retained earnings			251,181			244,870			240,079			235,854			230,465
Accumulated other comprehensive loss			(13,987	)		(19,209	)		(20,117	)		(25,223	)		(19,374	)
	Total stockholders’ equity		361,780			350,792			344,601			335,211			335,380

Total Liabilities and Stockholders’ Equity		$	3,390,752		$	3,345,763		$	3,388,786		$	3,364,723		$	3,389,185


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

	For the Three Months Ended															For the Nine Months Ended
Selected financial data	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			September 30, 2025			September 30, 2024
Return on average assets		1.05	%		0.92	%		0.85	%		0.99	%		0.78	%		0.94	%		0.71	%
Return on average equity		9.83	%		8.88	%		8.31	%		10.00	%		7.93	%		8.99	%		7.28	%
Yield on earning assets		5.62	%		5.45	%		5.19	%		5.20	%		5.27	%		5.42	%		5.17	%
Cost of interest bearing liabilities		2.83	%		2.83	%		2.76	%		3.01	%		3.21	%		2.84	%		3.16	%
Net interest spread		2.79	%		2.62	%		2.43	%		2.19	%		2.06	%		2.58	%		2.01	%
Net interest margin		3.40	%		3.22	%		3.03	%		2.84	%		2.71	%		3.22	%		2.68	%
Efficiency ratio		63.11	%		64.93	%		66.79	%		59.82	%		67.98	%		64.87	%		70.36	%
Dividend payout ratio		34.90	%		38.91	%		43.10	%		35.75	%		45.99	%		38.64	%		50.99	%
Tangible book value per share	$	19.71		$	18.91		$	18.44		$	17.74		$	17.72
Tier 1 leverage ratio		8.74	%		8.50	%		8.44	%		8.12	%		8.04	%
Average shares outstanding		13,733,858			13,720,339			13,706,003			13,699,869			13,687,119			13,720,168			13,679,955

Loans	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
(Dollar amounts in thousands)
Commercial real estate	$	1,355,166		$	1,345,953		$	1,325,698		$	1,310,811		$	1,301,160
Agricultural real estate		222,145			221,004			215,898			216,401			220,328
Consumer real estate		522,416			523,781			523,383			520,114			524,055
Commercial and industrial		296,084			293,826			278,254			275,152			260,732
Agricultural		179,361			157,870			153,607			152,080			137,252
Consumer		60,469			59,348			60,115			63,009			67,394
Other		24,086			24,653			24,985			24,978			25,916
Less: Net deferred loan fees, costs and other⁽¹⁾		(1,452	)		(1,488	)		(1,748	)		(1,750	)		(1,546	)
Total loans, net	$	2,658,275		$	2,624,947		$	2,580,192		$	2,560,795		$	2,535,291


Asset quality data	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
(Dollar amounts in thousands)
Nonaccrual loans	$	5,155		$	3,745		$	4,494		$	3,124		$	2,898
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	5,155		$	3,745		$	4,494		$	3,124		$	2,898
Other real estate owned	$	–		$	–		$	–		$	–		$	–
Nonperforming assets	$	5,155		$	3,745		$	4,494		$	3,124		$	2,898


Allowance for credit losses – loans	$	27,475		$	26,977		$	26,352		$	25,826		$	25,484
Allowance for credit losses – off balance sheet credit exposures		1,037			1,308			1,281			1,541			1,661
Total allowance for credit losses	$	28,512		$	28,285		$	27,633		$	27,367		$	27,145
Total allowance for credit losses/total loans		1.07	%		1.08	%		1.07	%		1.07	%		1.07	%
Adjusted credit losses with accretable yield/total loans		1.06	%		1.07	%		1.08	%		1.08	%		1.10	%
Net charge-offs:
Quarter-to-date	$	59		$	36		$	285		$	4		$	68
Year-to-date	$	380		$	321		$	285		$	142		$	138
Net charge-offs to average loans
Quarter-to-date		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%
Year-to-date		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Nonperforming loans/total loans		0.19	%		0.14	%		0.17	%		0.12	%		0.11	%
Allowance for credit losses/nonperforming loans		532.98	%		720.35	%		586.38	%		826.70	%		879.37	%
NPA coverage ratio		532.98	%		720.35	%		586.38	%		826.70	%		879.37	%

⁽¹⁾Excludes carrying value adjustments of $1.9 million as of September 30, 2025, $1.9 million as of June 30, 2025, $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024 and $3.0 million as of September 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
	September 30, 2025						September 30, 2024
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,649,409	$	41,013	6.19	%	$	2,551,899	$	36,873	5.78	%
Taxable investment securities		445,088		2,827	2.54	%		415,943		2,107	2.03	%
Tax-exempt investment securities		16,066		72	2.27	%		19,661		81	2.09	%
Fed funds sold & other		56,131		572	4.08	%		197,258		2,840	5.76	%
Total Interest Earning Assets		3,166,694	$	44,484	5.62	%		3,184,761	$	41,901	5.27	%

Nonearning Assets		182,320						168,055

Total Assets	$	3,349,014					$	3,352,816

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	1,620,026	$	9,966	2.46	%	$	1,538,387	$	10,691	2.78	%
Time deposits		609,844		5,094	3.34	%		667,224		6,256	3.75	%
Other borrowed money		188,123		1,966	4.18	%		264,539		2,804	4.24	%
Fed funds purchased & securities
sold under agreement to repurchase		27,274		273	4.00	%		27,481		277	4.03	%
Subordinated notes		34,885		284	3.26	%		34,769		284	3.27	%
Total Interest-Bearing Liabilities	$	2,480,152	$	17,583	2.83	%	$	2,532,400	$	20,312	3.21	%

Noninterest-Bearing Liabilities		511,468						491,851

Stockholders’ Equity	$	357,394					$	328,565

Net Interest Income and Interest Rate Spread			$	26,901	2.79	%			$	21,589	2.06	%

Net Interest Margin					3.40	%					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 Nine Months Ended						For the Nine Months Ended
	September 30, 2025						September 30, 2024
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,615,332	$	117,615	6.00	%	$	2,561,774	$	108,666	5.66	%
Taxable investment securities		454,288		8,403	2.47	%		397,466		5,575	1.87	%
Tax-exempt investment securities		17,025		224	2.22	%		20,684		249	2.03	%
Fed funds sold & other		87,106		2,736	4.19	%		165,227		7,231	5.84	%
Total Interest Earning Assets		3,173,751	$	128,978	5.42	%		3,145,151	$	121,721	5.17	%

Nonearning Assets		174,982						161,113

Total Assets	$	3,348,733					$	3,306,264

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	1,557,564	$	28,009	2.40	%	$	1,487,809	$	30,291	2.71	%
Time deposits		621,126		15,852	3.40	%		662,129		18,423	3.71	%
Other borrowed money		220,820		6,927	4.18	%		264,310		8,235	4.15	%
Fed funds purchased & securities
sold under agreement to repurchase		27,352		816	3.98	%		27,887		837	4.00	%
Subordinated notes		34,856		853	3.26	%		34,741		853	3.27	%
Total Interest-Bearing Liabilities	$	2,461,718	$	52,457	2.84	%	$	2,476,876	$	58,639	3.16	%

Noninterest-Bearing Liabilities		538,665						507,843

Stockholders’ Equity	$	348,350					$	321,545

Net Interest Income and Interest Rate Spread			$	76,521	2.58	%			$	63,082	2.01	%

Net Interest Margin					3.22	%					2.68	%

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, 2025												For the Three Months Ended September 30, 2024
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	41,013	6.19	%	$	40,359	6.09	%	$	654	0.10	%	$	36,873	5.78	%	$	36,149	5.67	%	$	724		0.11	%
Taxable investment securities		2,827	2.54	%		2,827	2.54	%		–	0.00	%		2,107	2.03	%		2,107	2.03	%		–		0.00	%
Tax-exempt investment securities		72	2.27	%		72	2.27	%		–	0.00	%		81	2.09	%		81	2.09	%		–		0.00	%
Fed funds sold & other		572	4.08	%		572	4.08	%		–	0.00	%		2,840	5.76	%		2,840	5.76	%		–		0.00	%
Total Interest Earning Assets		44,484	5.62	%		43,830	5.54	%		654	0.08	%		41,901	5.27	%		41,177	5.17	%		724		0.10	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	9,966	2.46	%	$	9,966	2.46	%	$	–	0.00	%	$	10,691	2.78	%	$	10,691	2.78	%	$	–		0.00	%
Time deposits		5,094	3.34	%		5,094	3.34	%		–	0.00	%		6,256	3.75	%		6,256	3.75	%		–		0.00	%
Other borrowed money		1,966	4.18	%		1,963	4.17	%		3	0.01	%		2,804	4.24	%		2,800	4.23	%		4		0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		273	4.00	%		273	4.00	%		–	0.00	%		277	4.03	%		277	4.03	%		–		0.00	%
Subordinated notes		284	3.26	%		284	3.26	%		–	0.00	%		284	3.27	%		284	3.27	%		–		0.00	%
Total Interest-Bearing Liabilities		17,583	2.83	%		17,580	2.84	%		3	-0.01	%		20,312	3.21	%		20,308	3.21	%		4		0.00	%

Interest/Dividend income/yield		44,484	5.62	%		43,830	5.54	%		654	0.08	%		41,901	5.27	%		41,177	5.17	%		724		0.10	%
Interest Expense / yield		17,583	2.83	%		17,580	2.84	%		3	-0.01	%		20,312	3.21	%		20,308	3.21	%		4		0.00	%
Net Interest Spread		26,901	2.79	%		26,250	2.70	%		651	0.09	%		21,589	2.06	%		20,869	1.96	%		720		0.10	%
Net Interest Margin			3.40	%			3.32	%			0.08	%			2.71	%			2.62	%				0.09	%


	For the Nine Months Ended September 30, 2025												For the Nine Months Ended September 30, 2024
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	117,615	6.00	%	$	115,755	5.90	%	$	1,860	0.10	%	$	108,666	5.66	%	$	106,588	5.55	%	$	2,078		0.11	%
Taxable investment securities		8,403	2.47	%		8,403	2.47	%		–	0.00	%		5,575	1.87	%		5,575	1.87	%		–		0.00	%
Tax-exempt investment securities		224	2.22	%		224	2.22	%		–	0.00	%		249	2.03	%		249	2.03	%		–		0.00	%
Fed funds sold & other		2,736	4.19	%		2,736	4.19	%		–	0.00	%		7,231	5.84	%		7,231	5.84	%		–		0.00	%
Total Interest Earning Assets		128,978	5.42	%		127,118	5.34	%		1,860	0.08	%		121,721	5.17	%		119,643	5.08	%		2,078		0.09	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	28,009	2.40	%	$	28,009	2.40	%	$	–	0.00	%	$	30,291	2.71	%	$	30,291	2.71	%	$	–		0.00	%
Time deposits		15,852	3.40	%		15,852	3.40	%		–	0.00	%		18,423	3.71	%		18,423	3.71	%		–		0.00	%
Other borrowed money		6,927	4.18	%		6,917	4.18	%		10	0.00	%		8,235	4.15	%		8,254	4.16	%		(19	)	-0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		816	3.98	%		816	3.98	%		–	0.00	%		837	4.00	%		837	4.00	%		–		0.00	%
Subordinated notes		853	3.26	%		853	3.26	%		–	0.00	%		853	3.27	%		853	3.27	%		–		0.00	%
Total Interest-Bearing Liabilities		52,457	2.84	%		52,447	2.84	%		10	0.00	%		58,639	3.16	%		58,658	3.16	%		(19	)	0.00	%

Interest/Dividend income/yield		128,978	5.42	%		127,118	5.34	%		1,860	0.08	%		121,721	5.17	%		119,643	5.08	%		2,078		0.09	%
Interest Expense / yield		52,457	2.84	%		52,447	2.84	%		10	0.00	%		58,639	3.16	%		58,658	3.16	%		(19	)	0.00	%
Net Interest Spread		76,521	2.58	%		74,671	2.50	%		1,850	0.08	%		63,082	2.01	%		60,985	1.92	%		2,097		0.09	%
Net Interest Margin			3.22	%			3.14	%			0.08	%			2.68	%			2.59	%				0.09	%

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

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

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