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

News Provided by GlobeNewswire2026-07-27

ARCHBOLD, Ohio, July 27, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2026 second quarter and year-to-date ended June 30, 2026, on a consolidated basis.

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

93 consecutive quarters of profitability
Net income increased 53.0% to a quarterly record of $11.8 million, or $0.86 per basic and diluted share
Strong profitability drives ROAA to 1.34%, compared to 0.92%
Net charge-offs to average loans of 0.00%
Tier 1 leverage ratio was 8.99%
Cost of interest-bearing liabilities improved to 2.56%, from 2.83%
Net interest margin increased by 26 basis points to 3.48%
Efficiency ratio improved to 56.08%, compared to 64.93%
Second quarter dividend per share increased 4.0% to $0.92 annualized

Lars B. Eller, President and Chief Executive Officer, stated, “I am proud to report the second quarter of 2026 was the most profitable quarter in our 129-year history. Our record performance builds upon the strong start we established in the first quarter and demonstrates the meaningful operating leverage across our business. With growing earnings momentum, a solid balance sheet and continued investments in our people, technology, and markets, we believe F&M is well positioned to deliver sustained profitable growth and long-term value for our shareholders.”

Income Statement
Net income for the quarter ended June 30, 2026, was $11.8 million, compared to $7.7 million for the same period last year. Net income per basic and diluted share for the 2026 second quarter was $0.86, compared to $0.56 for the same period last year. Net income for the 2026 first half ended June 30, 2026, was $21.4 million, compared to $14.7 million for the same period last year. Net income per basic and diluted share for the 2026 first half was $1.55, compared to $1.07 for the same period last year.

“Second quarter 2026, net income increased 53% year-over-year and 23% sequentially, reflecting continued net interest margin expansion, strong levels of noninterest income, disciplined expense management, and effective balance sheet execution. Record levels of net income drove a significant expansion in our return on average assets at June 30, 2026, to 1.34%, the highest quarterly level in 23 quarters. We achieved these levels of profitability, while maintaining excellent credit quality, underscoring the strength and consistency of our core banking franchise,” continued Mr. Eller.

Deposits
At June 30, 2026, total deposits were $2.87 billion, an increase of 5.9%, or $159.1 million from June 30, 2025. For the three months ended June 30, 2026, F&M’s cost of interest-bearing liabilities was 2.56%, compared to 2.83% in the same period last year.

Mr. Eller continued: “We continue to see favorable business and economic trends across our Ohio, Indiana, and Michigan markets, supporting higher year-over-year levels of both loans and deposits. We believe this growth reflects the value customers place on our relationship-based approach, local decision-making and ability to deliver responsive, tailored financial solutions. Our deposit growth was also accompanied by improved funding costs, with the cost of interest-bearing liabilities declining 27 basis points from the prior-year period. Together, these trends demonstrate the strength of our local franchise and our continued ability to attract, retain, and deepen high-quality customer relationships across the communities we serve.”

Loan Portfolio and Asset Quality

Total loans, net at June 30, 2026, increased 3.0%, or by $79.5 million to $2.70 billion, compared to $2.62 billion at June 30, 2025. The year-over-year increase was driven primarily by higher consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower commercial real estate, agricultural real estate, and consumer 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 quarter-over-quarter basis and were $7.4 million, or 0.27% of total loans at June 30, 2026, compared to $11.1 million, or 0.42% of total loans at March 31, 2026, and $3.7 million, or 0.14% of total loans at June 30, 2025.

F&M maintains a well-balanced, diverse, and high performing CRE portfolio. CRE loans represented 48.4% of the Company’s total loan portfolio at June 30, 2026. F&M’s CRE portfolio included the following categories at June 30, 2026 ^(*):

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

Multi-family	$	241,662	18.5%	8.9%
Retail		233,404	17.8%	8.6%
Industrial		216,907	16.6%	8.0%
Hotels		165,848	12.7%	6.1%
Office		134,215	10.3%	5.0%
Gas Stations		77,758	5.9%	2.9%
Food Service		50,067	3.8%	1.9%
Development		37,698	2.9%	1.4%
Auto Dealers		25,347	1.9%	0.9%
Senior Living		20,843	1.6%	0.8%
Other		104,851	8.0%	3.9%
Total CRE	$	1,308,600	100.0%	48.4%

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

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

Mr. Eller concluded, “Our record second-quarter and year-to-date profitability demonstrate the strength of the platform we have built and the progress we are making across F&M. As we execute our new three-year strategic plan, we remain focused on building upon this momentum, while preserving the relationship-based service, local decision-making and tailored financial solutions that distinguish F&M across our markets. We believe this combination positions us to achieve the next level of profitable growth and create increasing long-term value for our customers, communities, and shareholders.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 9.7% to $384.7 million, or $27.92 per share at June 30, 2026, from $350.8 million, or $25.56 per share at June 30, 2025. The Company had a Tier 1 leverage ratio of 8.99% at June 30, 2026, compared to 8.50% at June 30, 2025.

Tangible stockholders’ equity increased to $295.0 million at June 30, 2026, compared to $259.6 million at June 30, 2025. On a per share basis, tangible stockholders’ equity at June 30, 2026, was $21.41 per share, compared to $18.91 per share at June 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 31 consecutive years. For the six months ended June 30, 2026, the Company declared cash dividends of $0.46 per share, representing a 4.0% increase over the same period last year. For the six months ended June 30, 2026, the dividend payout ratio was 29.27% compared to 40.90% 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 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														Six Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025		June 30, 2026			June 30, 2025
Interest Income
Loans, including fees	$	40,839		$	39,827		$	40,999		$	41,013		$	39,530	$	80,666		$	76,602
Debt securities:
U.S. Treasury and government agencies		2,712			2,305			2,259			2,224			2,231		5,017			4,328
Municipalities		347			349			362			366			369		696			751
Dividends		239			245			250			309			311		484			649
Federal funds sold and other		1,510			572			696			572			1,051		2,082			2,164
Total interest income		45,647			43,298			44,566			44,484			43,492		88,945			84,494
Interest Expense
Deposits		14,432			13,249			14,318			15,060			14,813		27,681			28,801
Federal funds purchased and securities sold under agreements to repurchase		118			145			226			273			272		263			543
Borrowed funds		1,894			2,176			1,966			1,966			2,411		4,070			4,961
Subordinated notes		285			284			285			284			285		569			569
Total interest expense		16,729			15,854			16,795			17,583			17,781		32,583			34,874
Net Interest Income - Before Provision for Credit Losses		28,918			27,444			27,771			26,901			25,711		56,362			49,620
Provision for Credit Losses - Loans		173			302			567			557			661		475			1,472
Provision for (Recovery of) Credit Losses - Off Balance Sheet Exposures		148			6			(1	)		(272	)		27		154			(233	)
Net Interest Income After Provision for Credit Losses		28,597			27,136			27,205			26,616			25,023		55,733			48,381
Noninterest Income
Customer service fees		544			483			337			370			330		1,027			711
Other service charges and fees		1,301			1,283			1,311			1,349			1,206		2,584			2,330
Interchange income		1,347			1,513			1,275			1,273			1,259		2,860			2,680
Loan servicing income		846			838			814			674			629		1,684			1,391
Net gain on sale of loans		683			575			306			444			257		1,258			541
Increase in cash surrender value of bank owned life insurance		681			655			640			247			239		1,336			483
Gain (loss) on sale of other assets owned		30			-			(2	)		-			15		30			(39	)
Loss on sale of available-for-sale securities		-			(347	)		-			-			-		(347	)		-
Total noninterest income		5,432			5,000			4,681			4,357			3,935		10,432			8,097
Noninterest Expense
Salaries and wages		8,381			8,267			8,037			8,108			7,567		16,648			15,445
Employee benefits		2,338			2,379			2,386			2,273			2,265		4,717			4,669
Net occupancy expense		931			1,169			1,052			1,104			1,075		2,100			2,274
Furniture and equipment		1,594			1,566			1,352			1,532			1,414		3,160			2,692
Data processing		778			994			964			1,109			1,057		1,772			1,614
Franchise taxes		395			400			397			397			397		795			794
ATM expense		561			576			676			665			761		1,137			1,252
Advertising		363			472			666			674			356		835			859
FDIC assessment		389			396			377			428			448		785			913
Servicing rights amortization - net		328			523			637			586			234		851			361
Loan expense		578			309			292			362			328		887			556
Consulting fees		325			254			182			242			494		579			1,239
Professional fees		425			500			352			516			502		925			1,061
Intangible asset amortization		304			305			446			445			444		609			889
Other general and administrative		1,574			1,691			1,237			1,298			1,918		3,265			3,402
Total noninterest expense		19,264			19,801			19,053			19,739			19,260		39,065			38,020
Income Before Income Taxes		14,765			12,335			12,833			11,234			9,698		27,100			18,458
Income Taxes		2,968			2,757			3,040			2,380			1,988		5,725			3,796
Net Income		11,797			9,578			9,793			8,854			7,710		21,375			14,662
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		(545	)		(2,420	)		2,657			6,610			1,149		(2,965	)		7,613
Reclassification adjustment for realized loss on sale of available-for-sale securities		-			347			-			-			-		347			-
Net unrealized gain (loss) on available-for-sale securities		(545	)		(2,073	)		2,657			6,610			1,149		(2,618	)		7,613
Tax expense (benefit)		(115	)		(435	)		558			1,388			241		(550	)		1,599
Other comprehensive income (loss)		(430	)		(1,638	)		2,099			5,222			908		(2,068	)		6,014
Comprehensive Income	$	11,367		$	7,940		$	11,892		$	14,076		$	8,618	$	19,307		$	20,676
Basic Earnings Per Share	$	0.86		$	0.70		$	0.71		$	0.64		$	0.56	$	1.55		$	1.07
Diluted Earnings Per Share	$	0.86		$	0.70		$	0.71		$	0.64		$	0.56	$	1.55		$	1.07
Dividends Declared	$	0.23000		$	0.23000		$	0.23000		$	0.22750		$	0.22125	$	0.46000		$	0.44250

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

	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	155,879		$	172,847		$	97,249		$	116,448		$	87,596
Federal funds sold		511			623			469			582			635
Total cash and cash equivalents		156,390			173,470			97,718			117,030			88,231

Interest-bearing time deposits		518			1,253			1,498			1,498			1,992
Securities - available-for-sale		441,254			429,623			422,072			422,773			431,102
Other securities, at cost		10,681			12,672			13,032			11,509			13,994
Loans held for sale		2,994			5,579			3,934			3,003			6,359
Loans, net of allowance for credit losses		2,677,072			2,654,135			2,685,990			2,632,668			2,599,917
Premises and equipment		30,334			31,534			31,864			32,321			32,885
Goodwill		86,358			86,358			86,358			86,358			86,358
Loan servicing rights		5,085			4,972			5,175			5,537			5,810
Other real estate owned		-			319
Bank owned life insurance		48,021			45,407			47,410			35,602			35,355
Other assets		43,411			40,247			39,331			42,453			43,760

Total Assets	$	3,502,118		$	3,485,569		$	3,434,382		$	3,390,752		$	3,345,763

Liabilities and Stockholders ' Equity
Liabilities
Deposits
Noninterest-bearing	$	506,119		$	520,348		$	527,327		$	500,742		$	497,804
Interest-bearing
NOW accounts		898,902			910,723			876,151			920,099			899,602
Savings		771,379			753,289			729,472			713,391			691,468
Time		693,008			625,302			597,785			617,679			621,455
Total deposits		2,869,408			2,809,662			2,730,735			2,751,911			2,710,329

Federal funds purchased and securities
sold under agreements to repurchase		14,771			14,762			37,718			22,718			27,562
Federal Home Loan Bank (FHLB) advances		168,447			218,987			227,377			187,913			188,445
Subordinated notes, net of unamortized issuance costs		34,991			34,962			34,933			34,904			34,875
Dividend payable		3,130			3,128			3,125			3,091			3,000
Accrued expenses and other liabilities		26,655			28,120			29,632			28,435			30,760
Total liabilities		3,117,402			3,109,621			3,063,520			3,028,972			2,994,971

Commitments and Contingencies

Stockholders ' Equity
Common stock - No par value; authorized 40,000,000 shares;
issued 14,564,425 shares; outstanding 13,779,385 shares 6/30/26
and 13,748,074 shares 12/31/25		135,510			135,270			135,531			135,170			135,805
Treasury stock - 785,040 shares 6/30/26 and 816,351 shares 12/31/25		(10,293	)		(10,403	)		(10,636	)		(10,584	)		(10,674	)
Retained earnings		273,455			264,607			257,855			251,181			244,870
Accumulated other comprehensive loss		(13,956	)		(13,526	)		(11,888	)		(13,987	)		(19,209	)
Total stockholders ' equity		384,716			375,948			370,862			361,780			350,792

Total Liabilities and Stockholders ' Equity	$	3,502,118		$	3,485,569		$	3,434,382		$	3,390,752		$	3,345,763

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

	For the Three Months Ended															For the Six Months Ended
Selected financial data	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
Return on average assets		1.34	%		1.14	%		1.14	%		1.05	%		0.92	%		1.24	%		0.88	%
Return on average equity		12.37	%		10.31	%		10.55	%		9.83	%		8.88	%		11.29	%		8.55	%
Yield on earning assets		5.48	%		5.38	%		5.55	%		5.62	%		5.45	%		5.44	%		5.32	%
Cost of interest-bearing liabilities		2.56	%		2.54	%		2.69	%		2.83	%		2.83	%		2.55	%		2.84	%
Net interest spread		2.92	%		2.84	%		2.86	%		2.79	%		2.62	%		2.89	%		2.48	%
Net interest margin		3.48	%		3.42	%		3.46	%		3.40	%		3.22	%		3.45	%		3.13	%
Efficiency ratio		56.08	%		60.08	%		58.38	%		63.11	%		64.93	%		58.18	%		65.84	%
Dividend payout ratio		26.53	%		32.62	%		31.90	%		34.90	%		38.91	%		29.27	%		40.90	%
Tangible book value per share	$	21.41		$	20.76		$	20.40		$	19.71		$	18.91
Tier 1 leverage ratio		8.99	%		9.02	%		8.81	%		8.74	%		8.50	%
Average shares outstanding		13,773,387			13,754,684			13,749,420			13,733,858			13,720,339			13,764,087			13,713,211

Loans	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
(Dollar amounts in thousands)
Commercial real estate	$	1,308,600		$	1,315,549		$	1,355,571		$	1,355,166		$	1,345,953
Agricultural real estate		208,223			215,846			217,034			222,145			221,004
Consumer real estate		533,438			534,987			526,439			522,416			523,781
Commercial and industrial		337,487			309,046			314,405			296,084			293,826
Agricultural		244,611			228,730			218,050			179,361			157,870
Consumer		50,953			55,576			58,838			60,469			59,348
Other		22,574			22,564			23,133			24,086			24,653
Less: Net deferred loan fees, costs and other⁽¹⁾		(1,419	)		(1,436	)		(1,511	)		(1,452	)		(1,488	)
Total loans, net	$	2,704,467		$	2,680,862		$	2,711,959		$	2,658,275		$	2,624,947


Asset quality data	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
(Dollar amounts in thousands)
Nonaccrual loans	$	7,383		$	11,070		$	11,256		$	5,155		$	3,745
90 day past due and accruing	$	-		$	-		$	-		$	-		$	-
Nonperforming loans	$	7,383		$	11,070		$	11,256		$	5,155		$	3,745
Other real estate owned	$	-		$	319		$	-		$	-		$	-
Nonperforming assets	$	7,383		$	11,389		$	11,256		$	5,155		$	3,745


Allowance for credit losses - loans	$	27,941		$	27,830		$	27,688		$	27,475		$	26,977
Allowance for credit losses - off balance sheet credit exposures		1,189			1,041			1,035			1,037			1,308
Total allowance for credit losses	$	29,130		$	28,871		$	28,723		$	28,512		$	28,285
Total allowance for credit losses/total loans		1.08	%		1.08	%		1.06	%		1.07	%		1.08	%
Net charge-offs:
Quarter-to-date	$	62		$	160		$	354		$	59		$	36
Year-to-date	$	222		$	160		$	734		$	380		$	321
Net charge-offs to average loans
Quarter-to-date		0.00	%		0.01	%		0.01	%		0.00	%		0.00	%
Year-to-date		0.01	%		0.01	%		0.03	%		0.01	%		0.01	%
Nonperforming loans/total loans		0.27	%		0.42	%		0.42	%		0.19	%		0.14	%
Allowance for credit losses/nonperforming loans		378.45	%		251.40	%		245.98	%		532.98	%		720.35	%
NPA coverage ratio		378.45	%		244.36	%		245.98	%		532.98	%		720.35	%

⁽¹⁾Excludes carrying value adjustments of $546 thousand as of June 30, 2026, $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025, $1.9 million as of September 30, 2025 and $1.9 million as of June 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
	June 30, 2026						June 30, 2025
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,690,938	$	40,839	6.07	%	$	2,617,278	$	39,530	6.04	%
Taxable investment securities		458,152		3,231	2.82	%		459,298		2,837	2.47	%
Tax-exempt investment securities		12,746		67	2.66	%		16,682		74	2.25	%
Fed funds sold & other		170,491		1,510	3.54	%		99,964		1,051	4.21	%
Total Interest Earning Assets		3,332,327	$	45,647	5.48	%		3,193,222	$	43,492	5.45	%

Nonearning Assets		193,132						175,969

Total Assets	$	3,525,459					$	3,369,191

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	1,708,669	$	9,398	2.20	%	$	1,599,067	$	9,479	2.37	%
Time deposits		666,485		5,034	3.02	%		626,036		5,334	3.41	%
Other borrowed money		187,035		1,894	4.05	%		228,708		2,411	4.22	%
Fed funds purchased & securities
sold under agreement to repurchase		14,818		118	3.19	%		27,301		272	3.99	%
Subordinated notes		34,972		285	3.26	%		34,856		285	3.27	%
Total Interest-Bearing Liabilities	$	2,611,979	$	16,729	2.56	%	$	2,515,968	$	17,781	2.83	%

Noninterest-Bearing Liabilities		530,896						505,129

Stockholders ' Equity	$	382,584					$	348,094

Net Interest Income and Interest Rate Spread			$	28,918	2.92	%			$	25,711	2.62	%

Net Interest Margin					3.48	%					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


	For the Six Months Ended						For the Six Months Ended
	June 30, 2026						June 30, 2025
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,695,268	$	80,666	5.99	%	$	2,598,011	$	76,602	5.90	%
Taxable investment securities		448,472		6,061	2.70	%		458,903		5,576	2.43	%
Tax-exempt investment securities		12,988		136	2.65	%		17,501		152	2.20	%
Fed funds sold & other		118,892		2,082	3.50	%		102,851		2,164	4.21	%
Total Interest Earning Assets		3,275,620	$	88,945	5.44	%		3,177,266	$	84,494	5.32	%

Nonearning Assets		192,946						171,324

Total Assets	$	3,468,566					$	3,348,590

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	1,667,233	$	17,929	2.15	%	$	1,524,965	$	18,043	2.37	%
Time deposits		634,430		9,752	3.07	%		626,767		10,758	3.43	%
Other borrowed money		201,463		4,070	4.04	%		237,185		4,961	4.18	%
Fed funds purchased & securities
sold under agreement to repurchase		16,051		263	3.28	%		27,391		543	3.96	%
Subordinated notes		34,958		569	3.26	%		34,842		569	3.27	%
Total Interest-Bearing Liabilities	$	2,554,135	$	32,583	2.55	%	$	2,451,150	$	34,874	2.84	%

Noninterest-Bearing Liabilities		534,662						553,686

Stockholders ' Equity	$	379,769					$	343,754

Net Interest Income and Interest Rate Spread			$	56,362	2.89	%			$	49,620	2.48	%

Net Interest Margin					3.45	%					3.13	%

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, 2026												For the Three Months Ended June 30, 2025
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$		Yield
Interest Earning Assets:
Loans	$	40,839	6.07	%	$	40,609	6.04	%	$	230	0.03	%	$	39,530	6.04	%	$	38,928	5.95	%	$	602	0.09	%
Taxable investment securities		3,231	2.82	%		3,231	2.82	%		-	0.00	%		2,837	2.47	%		2,837	2.47	%		-	0.00	%
Tax-exempt investment securities		67	2.66	%		67	2.66	%		-	0.00	%		74	2.25	%		74	2.25	%		-	0.00	%
Fed funds sold & other		1,510	3.54	%		1,510	3.54	%		-	0.00	%		1,051	4.21	%		1,051	4.21	%		-	0.00	%
Total Interest Earning Assets		45,647	5.48	%		45,417	5.46	%		230	0.02	%		43,492	5.45	%		42,890	5.38	%		602	0.07	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	9,398	2.20	%	$	9,398	2.20	%	$	-	0.00	%	$	9,479	2.37	%	$	9,479	2.37	%	$	-	0.00	%
Time deposits		5,034	3.02	%		5,034	3.02	%		-	0.00	%		5,334	3.41	%		5,334	3.41	%		-	0.00	%
Other borrowed money		1,894	4.05	%		1,890	4.04	%		4	0.01	%		2,411	4.22	%		2,407	4.21	%		4	0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		118	3.19	%		118	3.19	%		-	0.00	%		272	3.99	%		272	3.99	%		-	0.00	%
Subordinated notes		285	3.26	%		285	3.26	%		-	0.00	%		285	3.27	%		285	3.27	%		-	0.00	%
Total Interest-Bearing Liabilities		16,729	2.56	%		16,725	2.56	%		4	0.00	%		17,781	2.83	%		17,777	2.83	%		4	0.00	%

Interest/Dividend income/yield		45,647	5.48	%		45,417	5.46	%		230	0.02	%		43,492	5.45	%		42,890	5.38	%		602	0.07	%
Interest Expense / yield		16,729	2.56	%		16,725	2.56	%		4	0.00	%		17,781	2.83	%		17,777	2.83	%		4	0.00	%
Net Interest Spread		28,918	2.92	%		28,692	2.90	%		226	0.02	%		25,711	2.62	%		25,113	2.55	%		598	0.07	%
Net Interest Margin			3.48	%			3.45	%			0.03	%			3.22	%			3.15	%			0.07	%


	For the Six Months Ended June 30, 2026												For the Six Months Ended June 30, 2025
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$		Yield
Interest Earning Assets:
Loans	$	80,666	5.99	%	$	80,056	5.95	%	$	610	0.04	%	$	76,602	5.90	%	$	75,396	5.80	%	$	1,206	0.10	%
Taxable investment securities		6,061	2.70	%		6,061	2.70	%		-	0.00	%		5,576	2.43	%		5,576	2.43	%		-	0.00	%
Tax-exempt investment securities		136	2.65	%		136	2.65	%		-	0.00	%		152	2.20	%		152	2.20	%		-	0.00	%
Fed funds sold & other		2,082	3.50	%		2,082	3.50	%		-	0.00	%		2,164	4.21	%		2,164	4.21	%		-	0.00	%
Total Interest Earning Assets		88,945	5.44	%		88,335	5.40	%		610	0.04	%		84,494	5.32	%		83,288	5.25	%		1,206	0.07	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	17,929	2.15	%	$	17,929	2.15	%	$	-	0.00	%	$	18,043	2.37	%	$	18,043	2.37	%	$	-	0.00	%
Time deposits		9,752	3.07	%		9,752	3.07	%		-	0.00	%		10,758	3.43	%		10,758	3.43	%		-	0.00	%
Other borrowed money		4,070	4.04	%		4,063	4.03	%		7	0.01	%		4,961	4.18	%		4,954	4.18	%		7	0.00	%
Federal funds purchased and
securities sold under agreement to
repurchase		263	3.28	%		263	3.28	%		-	0.00	%		543	3.96	%		543	3.96	%		-	0.00	%
Subordinated notes		569	3.26	%		569	3.26	%		-	0.00	%		569	3.27	%		569	3.27	%		-	0.00	%
Total Interest-Bearing Liabilities		32,583	2.55	%		32,576	2.55	%		7	0.00	%		34,874	2.84	%		34,867	2.85	%		7	-0.01	%

Interest/Dividend income/yield		88,945	5.44	%		88,335	5.40	%		610	0.04	%		84,494	5.32	%		83,288	5.25	%		1,206	0.07	%
Interest Expense / yield		32,583	2.55	%		32,576	2.55	%		7	0.00	%		34,874	2.84	%		34,867	2.85	%		7	-0.01	%
Net Interest Spread		56,362	2.89	%		55,759	2.85	%		603	0.04	%		49,620	2.48	%		48,421	2.40	%		1,199	0.08	%
Net Interest Margin			3.45	%			3.41	%			0.04	%			3.13	%			3.05	%			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	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Stockholders ' Equity	$	384,716	$	375,948	$	370,862	$	361,780	$	350,792
Less Goodwill and Other Intangibles		89,738		90,043		90,347		90,792		91,237
Tangible Common Equity	$	294,978	$	285,905	$	280,515	$	270,988	$	259,555

Average Stockholders ' Equity	$	382,584	$	376,923	$	368,235	$	357,394	$	348,094
Less average Goodwill and Other Intangibles		89,933		90,234		90,629		91,076		91,516
Average Tangible Common Equity	$	292,651	$	286,689	$	277,606	$	266,318	$	256,578

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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