Farmers & Merchants Bancorp, Inc. Reports 2025 Fourth-Quarter and Full-Year Financial Results

Rhea-AI Summary

Farmers & Merchants Bancorp (Nasdaq: FMAO) reported record 2025 results with net income up 28.4% to $33.3M and quarterly net income of $9.8M (Q4). Total loans rose 5.9% to $2.71B, total assets to $3.43B, and stockholders' equity to a record $370.9M at December 31, 2025.

Key operating improvements include a 62 bp increase in net interest margin to 3.46%, tangible book value up 15% to $20.40 per share, and a 31st consecutive annual dividend increase.

Positive

• Net income +28.4% to $33.3M for 2025
• Tangible book value +15.0% to $20.40 per share
• Total loans +5.9% to $2.71B
• Stockholders' equity +10.6% to $370.9M
• Net interest margin improved +62 bps to 3.46%

Negative

• Nonperforming loans increased to $11.3M (0.42% of loans)
• Allowance to total loans decreased to 1.02%
• Commercial real estate concentration at 50.0% of loan portfolio
• Deposit growth muted at +1.6% to $2.73B

News Market Reaction – FMAO

+7.64%

2 alerts

+7.64% Session close to close

$407.41M Market Cap

0.6x Rel. Volume

In the Feb 13 session, FMAO gained 7.64%, reflecting a notable positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +7.6% in the session following this news. A strong positive reaction aligns with FMA...

Analysis

The stock moved +7.6% in the session following this news. A strong positive reaction aligns with FMAO’s pattern of rewarding solid earnings, where prior reports averaged moves of about 1.38%. The 2025 Q4 and full-year release highlighted record net income, higher net interest margin at 3.46%, and improved efficiency. Investors would also weigh balance-sheet strength and the newly authorized repurchase of up to 650,000 shares in 2026 against any concerns such as higher nonperforming loans at 0.42% of total loans.

Key Figures

Q4 2025 net income: $9.8 million Q4 2025 EPS: $0.71 2025 net income: $33.3 million +5 more

8 metrics

Q4 2025 net income $9.8 million 2025 fourth quarter, up 16.8% year-over-year

Q4 2025 EPS $0.71 2025 fourth quarter basic and diluted EPS

2025 net income $33.3 million Full-year 2025, up 28.4% year-over-year

Return on average assets 0.99% Full-year 2025 vs 0.78% prior year

Net interest margin 3.46% 2025 full-year, up 62 bps year-over-year

Efficiency ratio 58.38% Q4 2025 vs 59.82% prior year

Total loans, net $2.71 billion At December 31, 2025; up 5.9% from $2.56 billion

2025 dividends per share $0.90 Full-year 2025 cash dividends, up 2.0% year-over-year

Previous Earnings Reports

5 past events · Latest: Oct 27 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Oct 27	Q3 2025 earnings	Positive	-2.5%	Strong Q3 2025 results with higher net income, NIM, and loan growth.
Jul 28	Q2 2025 earnings	Positive	+1.3%	Q2 2025 net income up 35.7% with higher margin and loan growth.
Apr 28	Q1 2025 earnings	Positive	+8.0%	Q1 2025 net income up 29.7% and efficiency ratio improved.
Feb 12	2024 FY & Q4	Positive	+1.3%	Strong 2024 Q4 and full-year results with improved margin and efficiency.
Oct 30	Q3 2024 earnings	Positive	-1.3%	Q3 2024 net income up 36.4% and record assets and deposits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have generally been positive fundamentals with mostly positive, but occasionally mixed, next-day price reactions.

Recent Company History

Across the last five earnings reports through February 12, 2025, FMAO consistently delivered strong growth in net income, net interest margin, and efficiency while maintaining solid asset quality. Deposits and assets trended higher, and dividends were raised annually. Price reactions were mixed: some earnings dates saw gains, others modest declines, despite broadly positive fundamentals. The current 2025 fourth-quarter and full-year report extends this pattern of record profitability, higher margins, and growing capital, reinforcing the multi-year trend highlighted in prior quarterly and full-year updates.

Key Terms

tier 1 leverage ratio, net interest margin, efficiency ratio, nonperforming loans, +4 more

8 terms

tier 1 leverage ratio financial

"Tier 1 leverage ratio was 8.81%"

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

net interest margin financial

"Net interest margin increased by 62 basis points year-over-year to 3.46%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

"Efficiency ratio improved to 58.38%, compared to 59.82%"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

nonperforming loans financial

"Nonperforming loans were $11.3 million, or 0.42% of total loans"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

allowance for credit losses financial

"allowance for credit losses to total loans was 1.03% at December 31, 2025"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

tangible book value financial

"Tangible book value increased 15.0% to $20.40 per share"

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

View in glossary

dividend payout ratio financial

"For the twelve months ended December 31, 2025, the dividend payout ratio was 36.67%"

The dividend payout ratio is the share of a company’s net profit that is returned to shareholders as cash dividends rather than kept for reinvestment. Investors use it to judge whether dividend payments are likely sustainable and how the company balances rewarding owners with funding growth; a high ratio is like handing most of your paycheck to friends now, while a low ratio is like saving more for future expenses and opportunities.

commercial real estate financial

"F&M maintains a well-balanced, diverse and high performing CRE portfolio."

Commercial real estate is property used to run businesses or earn rental income—examples include office buildings, shopping centers, warehouses and apartment complexes leased to tenants. Investors care because these properties generate regular cash flow through rent and can change value with the economy, interest rates and local demand, so owning them is like owning a small business that depends on customers, location and ongoing costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ARCHBOLD, Ohio, Feb. 12, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 fourth quarter and twelve months ended December 31, 2025, on a consolidated basis.

2025 Fourth-Quarter Financial and Operating Highlights
(at December 31, 2025, and on a year-over-year basis unless noted)

• 91 consecutive quarters of profitability
• Net income increased 16.8% to a quarterly record of $9.8 million, or $0.71 per basic and diluted share
• Net charge-offs to average loans of 0.01%
• Tier 1 leverage ratio was 8.81%
• Cost of interest-bearing liabilities improved to 2.69%, from 3.01%
• Net interest margin increased by 62 basis points year-over-year to 3.46%
• Efficiency ratio improved to 58.38%, compared to 59.82%
• Fourth quarter dividend per share increased 4.0% to $0.92 annualized, reflecting two dividend increases in 2025 and the 31^st consecutive annual increase in the Company’s regular dividend payment

2025 Full-Year Financial and Operating Highlights
(at December 31, 2025, and on a year-over-year basis unless noted)

• Net income increased 28.4% to $33.3 million, or $2.43 per basic and diluted share
• Return on average assets was 0.99%, compared to 0.78%
• Total loans, net increased 5.9% to $2.71 billion, from $2.56 billion at December 31, 2024
• Loans over 30 days past due to total loans averaged 0.26% for 2025, compared to 0.46% for 2024
• Total assets increased 2.1% to $3.43 billion
• Deposits increased 1.6% to $2.73 billion
• Cost of interest-bearing liabilities improved to 2.80%, from 3.12%
• Stockholders’ equity increased 10.6% to a record $370.9 million
• Tangible book value increased 15.0% to $20.40 per share
• Net interest income after provision for credit losses increased 19.3% to $102.2 million

Lars B. Eller, President and Chief Executive Officer, stated, “I am proud to report that F&M ended 2025 with record quarterly earnings per share, record stockholders’ equity, and record total assets, highlighting F&M’s operating strength and financial consistency. Our performance throughout the year and in the fourth quarter reflects sustained organic growth and the continued expansion of our local market presence across Ohio, Indiana, and Michigan. These results demonstrate the effectiveness of our relationship-driven approach and our ongoing investments in people and capabilities. Most importantly, this record performance would not be possible without the dedication and professionalism of our team, whose commitment continues to differentiate F&M.”

Income Statement
Net income for the 2025 fourth quarter ended December 31, 2025, was $9.8 million, compared to $8.4 million for the same period last year. Net income per basic and diluted share for the 2025 fourth quarter was $0.71, compared to $0.61 for the same period last year. Net income for the twelve months ended December 31, 2025, was $33.3 million, compared to $25.9 million for the same period last year. Net income per basic and diluted share for the 2025 twelve months was $2.43, compared to $1.90 for the same period last year.

Mr. Eller commented, “Profitability has returned to levels not seen since the period of extraordinary industry support during the COVID era, this time driven entirely by core operating performance, prudent balance sheet management, and sustainable growth across our markets. These results underscore the earnings power of our business and provide confidence in our ability to deliver attractive, consistent returns. Based on our current momentum and operating fundamentals, we believe F&M is well positioned to sustain elevated levels of profitability throughout 2026.”

Deposits
At December 31, 2025, total deposits were $2.73 billion, an increase of 1.6% from December 31, 2024. For the 2025 twelve months ended December 31, 2025, F&M’s cost of interest-bearing liabilities was 2.80%, compared to 3.12% in the prior year.

Loan Portfolio and Asset Quality
“Throughout 2025, we made targeted investments to strengthen F&M’s operating capabilities and support both current performance and future growth, while maintaining disciplined expense management. We enhanced our leadership team, expanded local decision-making authority across our markets, and established a new office in Troy, Michigan to support growth in a strategically important region. Together, these actions improve execution, enhance scalability, and enable us to grow profitably while remaining closely connected to the communities we serve,” continued Mr. Eller.

Total loans, net at December 31, 2025, increased 5.9%, or by $152.9 million to $2.71 billion, compared to $2.56 billion at December 31, 2024. The year-over-year increase was driven primarily by higher commercial real estate, agricultural real estate, consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower consumer loans.  

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $11.3 million, or 0.42% of total loans at December 31, 2025, compared to $3.1 million, or 0.12% of total loans at December 31, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 50.0% of the Company’s total loan portfolio at December 31, 2025. F&M’s CRE portfolio included the following categories at December 31, 2025 ^(*):

CRE Category		Dollar Balance				Percent of CRE Portfolio		Percent of Total Loan Portfolio
Industrial		$	265,009			19.6%		9.8%
Multi-family			237,902			17.5%		8.8%
Retail			234,754			17.3%		8.7%
Hotels			163,855			12.1%		6.0%
Office			136,564			10.1%		5.0%
Gas Stations			78,701			5.8%		2.9%
Food Service			51,561			3.8%		1.9%
Development			40,705			3.0%		1.5%
Auto Dealers			28,490			2.1%		1.0%
Senior Living			21,787			1.6%		0.8%
Other			96,243			7.1%		3.6%
Total CRE		$	1,355,571			100.0%		50.0%

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

At December 31, 2025, the Company’s total allowance to total loans was 1.02%, compared to 1.07% at December 31, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.03% at December 31, 2025, compared to 1.08% at December 31, 2024.

Mr. Eller concluded, “F&M enters 2026 from a position of strength, supported by a sound balance sheet, a scalable operating model, and a culture focused on long-term value creation. As we look ahead, we are approaching growth intentionally, allocating capital thoughtfully, investing in our business, and expanding within our markets in line with our strategic priorities. During the fall, we began developing a new three-year strategic plan that will establish a clear roadmap for the Company’s next phase of progress. Anchored in our community-banking heritage and informed by the opportunities across Ohio, Indiana, and Michigan, this plan is designed to drive sustainable performance and create enduring value for shareholders. I am excited about the opportunities in 2026 and confident in F&M’s long-term growth potential.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 10.6% to $370.9 million, or $26.98 per share at December 31, 2025, from $335.2 million, or $24.47 per share at December 31, 2024. The Company had a Tier 1 leverage ratio of 8.81% at December 31, 2025, compared to 8.12% at December 31, 2024.

Tangible stockholders’ equity increased to $280.5 million at December 31, 2025, compared to $243.1 million at December 31, 2024. On a per share basis, tangible stockholders’ equity at December 31, 2025, was $20.40 per share, compared to $17.74 per share at December 31, 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 December 31, 2025, the Company declared cash dividends of $0.23 per share, representing a 4.0% increase over the same period last year.

For the twelve months ended December 31, 2025, the Company declared cash dividends of $0.90 per share, representing a 2.0% increase over the same period last year. For the twelve months ended December 31, 2025, the dividend payout ratio was 36.67% compared to 46.07% 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																				Twelve Months Ended
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Interest Income
Loans, including fees	$	40,999			$	41,013			$	39,530			$	37,072			$	36,663			$	158,614			$	145,329
Debt securities:
U.S. Treasury and government agencies		2,259				2,224				2,231				2,097				1,882				8,811				5,542
Municipalities		362				366				369				382				384				1,479				1,554
Dividends		250				309				311				338				367				1,208				1,361
Federal funds sold		-				-				-				-				24				-				45
Other		696				572				1,051				1,113				2,531				3,432				9,741
Total interest income		44,566				44,484				43,492				41,002				41,851				173,544				163,572
Interest Expense
Deposits		14,318				15,060				14,813				13,988				15,749				58,179				64,463
Federal funds purchased and securities sold under agreements to repurchase		226				273				272				271				274				1,042				1,111
Borrowed funds		1,966				1,966				2,411				2,550				2,713				8,893				10,948
Subordinated notes		285				284				285				284				285				1,138				1,138
Total interest expense		16,795				17,583				17,781				17,093				19,021				69,252				77,660
Net Interest Income - Before Provision for Credit Losses		27,771				26,901				25,711				23,909				22,830				104,292				85,912
Provision for Credit Losses - Loans		567				557				661				811				346				2,596				944
Provision for (Recovery of) Credit Losses - Off Balance Sheet Exposures		(1	)			(272	)			27				(260	)			(120	)			(506	)			(671	)
Net Interest Income After Provision for Credit Losses		27,205				26,616				25,023				23,358				22,604				102,202				85,639
Noninterest Income
Customer service fees		337				370				330				381				237				1,418				1,324
Other service charges and fees		1,311				1,349				1,206				1,124				1,176				4,990				4,473
Interchange income		1,275				1,273				1,259				1,421				1,322				5,228				5,396
Loan servicing income		814				674				629				762				771				2,879				2,533
Net gain on sale of loans		306				444				257				284				223				1,291				859
Increase in cash surrender value of bank owned life insurance		640				247				239				244				248				1,370				965
Net gain (loss) on sale of other assets owned		(2	)			-				15				(54	)			22				(41	)			71
Total noninterest income		4,681				4,357				3,935				4,162				3,999				17,135				15,621
Noninterest Expense
Salaries and wages		8,037				8,108				7,567				7,878				7,020				31,590				30,168
Employee benefits		2,386				2,273				2,265				2,404				2,148				9,328				8,543
Net occupancy expense		1,052				1,104				1,075				1,199				1,072				4,430				4,152
Furniture and equipment		1,352				1,532				1,414				1,278				1,032				5,576				5,264
Data processing		964				1,109				1,057				557				160				3,687				1,447
Franchise taxes		397				397				397				397				312				1,588				1,542
ATM expense		676				665				761				491				328				2,593				1,670
Advertising		666				674				356				503				498				2,199				2,144
FDIC assessment		377				428				448				465				505				1,718				2,108
Servicing rights amortization - net		637				586				234				127				244				1,584				818
Loan expense		292				362				328				228				236				1,210				960
Consulting fees		182				242				494				745				242				1,663				877
Professional fees		352				516				502				559				368				1,929				1,793
Intangible asset amortization		446				445				444				445				446				1,780				1,780
Other general and administrative		1,237				1,298				1,918				1,484				1,465				5,937				5,421
Total noninterest expense		19,053				19,739				19,260				18,760				16,076				76,812				68,687
Income Before Income Taxes		12,833				11,234				9,698				8,760				10,527				42,525				32,573
Income Taxes		3,040				2,380				1,988				1,808				2,146				9,216				6,635
Net Income		9,793				8,854				7,710				6,952				8,381				33,309				25,938
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		2,657				6,610				1,149				6,464				(7,403	)			16,880				4,797
Reclassification adjustment for realized (gain) loss on sale of available-for-sale securities		-				-				-				-				-				-				-
Net unrealized gain (loss) on available-for-sale securities		2,657				6,610				1,149				6,464				(7,403	)			16,880				4,797
Tax expense (benefit)		558				1,388				241				1,358				(1,554	)			3,545				1,008
Other comprehensive income (loss)		2,099				5,222				908				5,106				(5,849	)			13,335				3,789
Comprehensive Income	$	11,892			$	14,076			$	8,618			$	12,058			$	2,532			$	46,644			$	29,727
Basic Earnings Per Share	$	0.71			$	0.64			$	0.56			$	0.51			$	0.61			$	2.43			$	1.90
Diluted Earnings Per Share	$	0.71			$	0.64			$	0.56			$	0.51			$	0.61			$	2.43			$	1.90
Dividends Declared	$	0.23000			$	0.22750			$	0.22125			$	0.22125			$	0.22125			$	0.90000			$	0.88250

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)
			December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
							(Unaudited)				(Unaudited)				(Unaudited)
Assets
	Cash and due from banks		$	97,249			$	116,448			$	87,596			$	172,612			$	174,855
	Federal funds sold			469				582				635				425				1,496
	Total cash and cash equivalents			97,718				117,030				88,231				173,037				176,351
	Interest-bearing time deposits			1,498				1,498				1,992				1,992				2,482
	Securities - available-for-sale			422,072				422,773				431,102				438,568				426,556
	Other securities, at cost			13,032				11,509				13,994				14,062				14,400
	Loans held for sale			3,934				3,003				6,359				2,331				2,996
	Loans, net of allowance for credit losses			2,685,990				2,632,668				2,599,917				2,555,552				2,536,043
	Premises and equipment			31,864				32,321				32,885				33,163				33,828
	Goodwill			86,358				86,358				86,358				86,358				86,358
	Loan servicing rights			5,175				5,537				5,810				5,805				5,656
	Bank owned life insurance			47,410				35,602				35,355				35,116				34,872
	Other assets			39,331				42,453				43,760				42,802				45,181
Total Assets			$	3,434,382			$	3,390,752			$	3,345,763			$	3,388,786			$	3,364,723
	Liabilities and Stockholders' Equity
Liabilities
	Deposits
	Noninterest-bearing		$	527,327			$	500,742			$	497,804			$	502,318			$	516,904
	Interest-bearing
	NOW accounts			876,151				920,099				899,602				874,881				850,462
	Savings			729,472				713,391				691,468				696,635				671,818
	Time			597,785				617,679				621,455				626,450				647,581
	Total deposits			2,730,735				2,751,911				2,710,329				2,700,284				2,686,765
	Federal funds purchased and securities
	sold under agreements to repurchase			37,718				22,718				27,562				27,258				27,218
	Federal Home Loan Bank (FHLB) advances			227,377				187,913				188,445				245,474				246,056
	Subordinated notes, net of unamortized issuance costs			34,933				34,904				34,875				34,846				34,818
	Dividend payable			3,125				3,091				3,000				2,997				2,996
	Accrued expenses and other liabilities			29,632				28,435				30,760				33,326				31,659
	Total liabilities			3,063,520				3,028,972				2,994,971				3,044,185				3,029,512
Commitments and Contingencies
Stockholders' Equity
	Common stock - No par value authorized 40,000,000 shares 12/31/25
	and 20,000,000 shares 12/31/24; issued 14,564,425 shares
	12/31/25 and 12/31/24; outstanding 13,748,074 shares 12/31/25
	and 13,699,536 shares 12/31/24			135,531				135,170				135,805				135,407				135,565
	Treasury stock - 816,351 shares 12/31/25 and 864,889 shares 12/31/24			(10,636	)			(10,584	)			(10,674	)			(10,768	)			(10,985	)
	Retained earnings			257,855				251,181				244,870				240,079				235,854
	Accumulated other comprehensive loss			(11,888	)			(13,987	)			(19,209	)			(20,117	)			(25,223	)
	Total stockholders' equity			370,862				361,780				350,792				344,601				335,211
Total Liabilities and Stockholders' Equity			$	3,434,382			$	3,390,752			$	3,345,763			$	3,388,786			$	3,364,723

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
		For the Three Months Ended																				For the Twelve Months Ended
Selected financial data		December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Return on average assets			1.14	%			1.05	%			0.92	%			0.85	%			0.99	%			0.99	%			0.78	%
Return on average equity			10.55	%			9.83	%			8.88	%			8.31	%			10.00	%			9.43	%			7.98	%
Yield on earning assets			5.55	%			5.62	%			5.45	%			5.19	%			5.20	%			5.45	%			5.17	%
Cost of interest-bearing liabilities			2.69	%			2.83	%			2.83	%			2.76	%			3.01	%			2.80	%			3.12	%
Net interest spread			2.86	%			2.79	%			2.62	%			2.43	%			2.19	%			2.65	%			2.05	%
Net interest margin			3.46	%			3.40	%			3.22	%			3.03	%			2.84	%			3.28	%			2.72	%
Efficiency ratio			58.38	%			63.11	%			64.93	%			66.79	%			59.82	%			63.12	%			67.54	%
Dividend payout ratio			31.90	%			34.90	%			38.91	%			43.10	%			35.75	%			36.67	%			46.07	%
Tangible book value per share		$	20.40			$	19.71			$	18.91			$	18.44			$	17.74
Tier 1 leverage ratio			8.81	%			8.74	%			8.50	%			8.44	%			8.12	%
Average shares outstanding			13,749,420				13,733,858				13,720,339				13,706,003				13,699,869				13,727,541				13,679,955
Loans		December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
(Dollar amounts in thousands)
Commercial real estate		$	1,355,571			$	1,355,166			$	1,345,953			$	1,325,698			$	1,310,811
Agricultural real estate			217,034				222,145				221,004				215,898				216,401
Consumer real estate			526,439				522,416				523,781				523,383				520,114
Commercial and industrial			314,405				296,084				293,826				278,254				275,152
Agricultural			218,050				179,361				157,870				153,607				152,080
Consumer			58,838				60,469				59,348				60,115				63,009
Other			23,133				24,086				24,653				24,985				24,978
Less: Net deferred loan fees, costs and other(1)			(1,511	)			(1,452	)			(1,488	)			(1,748	)			(1,750	)
Total loans, net		$	2,711,959			$	2,658,275			$	2,624,947			$	2,580,192			$	2,560,795
Asset quality data		December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
(Dollar amounts in thousands)
Nonaccrual loans		$	11,256			$	5,155			$	3,745			$	4,494			$	3,124
90 day past due and accruing		$	-			$	-			$	-			$	-			$	-
Nonperforming loans		$	11,256			$	5,155			$	3,745			$	4,494			$	3,124
Other real estate owned		$	-			$	-			$	-			$	-			$	-
Nonperforming assets		$	11,256			$	5,155			$	3,745			$	4,494			$	3,124
Allowance for credit losses - loans		$	27,688			$	27,475			$	26,977			$	26,352			$	25,826
Allowance for credit losses - off balance sheet credit exposures			1,035				1,037				1,308				1,281				1,541
Total allowance for credit losses		$	28,723			$	28,512			$	28,285			$	27,633			$	27,367
Total allowance for credit losses/total loans			1.02	%			1.07	%			1.08	%			1.07	%			1.07	%
Adjusted credit losses with accretable yield/total loans			1.03	%			1.06	%			1.07	%			1.08	%			1.08	%
Net charge-offs:
Quarter-to-date		$	354			$	59			$	36			$	285			$	4
Year-to-date		$	734			$	380			$	321			$	285			$	142
Net charge-offs to average loans
Quarter-to-date			0.01	%			0.00	%			0.00	%			0.01	%			0.00	%
Year-to-date			0.03	%			0.01	%			0.01	%			0.01	%			0.01	%
Nonperforming loans/total loans			0.42	%			0.19	%			0.14	%			0.17	%			0.12	%
Allowance for credit losses/nonperforming loans			245.98	%			532.98	%			720.35	%			586.38	%			826.70	%
NPA coverage ratio			245.98	%			532.98	%			720.35	%			586.38	%			826.70	%
(1)Excludes carrying value adjustments of $1.7 million as of December 31, 2025, $1.9 million as of September 30, 2025, $1.9 million as of June 30, 2025, $1.7 million as of March 31, 2025 and $1.1 million as of December 31, 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
		December 31, 2025									December 31, 2024
Interest Earning Assets:		Average Balance			Interest/Dividends			Annualized Yield/Rate			Average Balance			Interest/Dividends			Annualized Yield/Rate
Loans		$	2,682,900		$	40,999		6.11	%		$	2,543,628		$	36,663		5.77	%
Taxable investment securities			439,705			2,799		2.55	%			450,648			2,554		2.27	%
Tax-exempt investment securities			14,809			72		2.46	%			18,571			79		2.15	%
Fed funds sold & other			74,851			696		3.72	%			209,307			2,555		4.88	%
Total Interest Earning Assets			3,212,265		$	44,566		5.55	%			3,222,154		$	41,851		5.20	%
Nonearning Assets			197,226									174,172
Total Assets		$	3,409,491								$	3,396,326
Interest-Bearing Liabilities:
NOW accounts and savings deposits		$	1,642,731		$	9,305		2.27	%		$	1,548,638		$	9,459		2.44	%
Time deposits			609,541			5,013		3.29	%			666,896			6,290		3.77	%
Other borrowed money			188,448			1,966		4.17	%			255,490			2,713		4.25	%
Fed funds purchased & securities
sold under agreement to repurchase			22,997			226		3.93	%			27,341			274		4.01	%
Subordinated notes			34,914			285		3.27	%			34,799			285		3.28	%
Total Interest-Bearing Liabilities		$	2,498,631		$	16,795		2.69	%		$	2,533,164		$	19,021		3.01	%
Noninterest-Bearing Liabilities			542,625									527,751
Stockholders' Equity		$	368,235								$	335,411
Net Interest Income and Interest Rate Spread					$	27,771		2.86	%					$	22,830		2.19	%
Net Interest Margin								3.46	%								2.84	%
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 Twelve Months Ended									For the Twelve Months Ended
		December 31, 2025									December 31, 2024
Interest Earning Assets:		Average Balance			Interest/Dividends			Annualized Yield/Rate			Average Balance			Interest/Dividends			Annualized Yield/Rate
Loans		$	2,632,363		$	158,614		6.03	%		$	2,557,213		$	145,329		5.68	%
Taxable investment securities			450,636			11,202		2.49	%			410,764			8,129		1.98	%
Tax-exempt investment securities			16,473			296		2.27	%			20,154			328		2.06	%
Fed funds sold & other			84,017			3,432		4.08	%			176,307			9,786		5.55	%
Total Interest Earning Assets			3,183,489		$	173,544		5.45	%			3,164,438		$	163,572		5.17	%
Nonearning Assets			180,558									164,464
Total Assets		$	3,364,047								$	3,328,902
Interest-Bearing Liabilities:
NOW accounts and savings deposits		$	1,579,552		$	37,314		2.36	%		$	1,502,365		$	39,750		2.65	%
Time deposits			618,230			20,865		3.37	%			663,320			24,713		3.73	%
Other borrowed money			212,720			8,893		4.18	%			262,094			10,948		4.18	%
Fed funds purchased & securities
sold under agreement to repurchase			26,263			1,042		3.97	%			27,750			1,111		4.00	%
Subordinated notes			34,871			1,138		3.26	%			34,755			1,138		3.27	%
Total Interest-Bearing Liabilities		$	2,471,636		$	69,252		2.80	%		$	2,490,284		$	77,660		3.12	%
Noninterest-Bearing Liabilities			539,111									513,588
Stockholders' Equity		$	353,300								$	325,030
Net Interest Income and Interest Rate Spread					$	104,292		2.65	%					$	85,912		2.05	%
Net Interest Margin								3.28	%								2.72	%
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 December 31, 2025															For the Three Months Ended December 31, 2024
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$			Yield
Interest Earning Assets:
Loans	$	40,999	6.11	%		$	40,428	6.03	%		$	571	0.08	%		$	36,663	5.77	%		$	36,039	5.67	%		$	624		0.10	%
Taxable investment securities		2,799	2.55	%			2,799	2.55	%			-	0.00	%			2,554	2.27	%			2,554	2.27	%			-		0.00	%
Tax-exempt investment securities		72	2.46	%			72	2.46	%			-	0.00	%			79	2.15	%			79	2.15	%			-		0.00	%
Fed funds sold & other		696	3.72	%			696	3.72	%			-	0.00	%			2,555	4.88	%			2,555	4.88	%			-		0.00	%
Total Interest Earning Assets		44,566	5.55	%			43,995	5.48	%			571	0.07	%			41,851	5.20	%			41,227	5.12	%			624		0.08	%
Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	9,305	2.27	%		$	9,305	2.27	%		$	-	0.00	%		$	9,459	2.44	%		$	9,459	2.44	%		$	-		0.00	%
Time deposits		5,013	3.29	%			5,013	3.29	%			-	0.00	%			6,290	3.77	%			6,290	3.77	%			-		0.00	%
Other borrowed money		1,966	4.17	%			1,963	4.17	%			3	0.00	%			2,713	4.25	%			2,710	4.24	%			3		0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		226	3.93	%			226	3.93	%			-	0.00	%			274	4.01	%			274	4.01	%			-		0.00	%
Subordinated notes		285	3.27	%			285	3.27	%			-	0.00	%			285	3.28	%			285	3.28	%			-		0.00	%
Total Interest-Bearing Liabilities		16,795	2.69	%			16,792	2.69	%			3	0.00	%			19,021	3.01	%			19,018	3.00	%			3		0.01	%
Interest/Dividend income/yield		44,566	5.55	%			43,995	5.48	%			571	0.07	%			41,851	5.20	%			41,227	5.12	%			624		0.08	%
Interest Expense / yield		16,795	2.69	%			16,792	2.69	%			3	0.00	%			19,021	3.01	%			19,018	3.00	%			3		0.01	%
Net Interest Spread		27,771	2.86	%			27,203	2.79	%			568	0.07	%			22,830	2.19	%			22,209	2.12	%			621		0.07	%
Net Interest Margin			3.46	%				3.39	%				0.07	%				2.84	%				2.76	%					0.08	%
	For the Twelve Months Ended December 31, 2025															For the Twelve Months Ended December 31, 2024
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$			Yield
Interest Earning Assets:
Loans	$	158,614	6.03	%		$	156,183	5.94	%		$	2,431	0.09	%		$	145,329	5.68	%		$	142,627	5.58	%		$	2,702		0.10	%
Taxable investment securities		11,202	2.49	%			11,202	2.49	%			-	0.00	%			8,129	1.98	%			8,129	1.98	%			-		0.00	%
Tax-exempt investment securities		296	2.27	%			296	2.27	%			-	0.00	%			328	2.06	%			328	2.06	%			-		0.00	%
Fed funds sold & other		3,432	4.08	%			3,432	4.08	%			-	0.00	%			9,786	5.55	%			9,786	5.55	%			-		0.00	%
Total Interest Earning Assets		173,544	5.45	%			171,113	5.38	%			2,431	0.07	%			163,572	5.17	%			160,870	5.09	%			2,702		0.08	%
Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	37,314	2.36	%		$	37,314	2.36	%		$	-	0.00	%		$	39,750	2.65	%		$	39,750	2.65	%		$	-		0.00	%
Time deposits		20,865	3.37	%			20,865	3.37	%			-	0.00	%			24,713	3.73	%			24,713	3.73	%			-		0.00	%
Other borrowed money		8,893	4.18	%			8,880	4.17	%			13	0.01	%			10,948	4.18	%			10,964	4.18	%			(16	)	0.00	%
Federal funds purchased and
securities sold under agreement to
repurchase		1,042	3.97	%			1,042	3.97	%			-	0.00	%			1,111	4.00	%			1,111	4.00	%			-		0.00	%
Subordinated notes		1,138	3.26	%			1,138	3.26	%			-	0.00	%			1,138	3.27	%			1,138	3.27	%			-		0.00	%
Total Interest-Bearing Liabilities		69,252	2.80	%			69,239	2.80	%			13	0.00	%			77,660	3.12	%			77,676	3.12	%			(16	)	0.00	%
Interest/Dividend income/yield		173,544	5.45	%			171,113	5.38	%			2,431	0.07	%			163,572	5.17	%			160,870	5.09	%			2,702		0.08	%
Interest Expense / yield		69,252	2.80	%			69,239	2.80	%			13	0.00	%			77,660	3.12	%			77,676	3.12	%			(16	)	0.00	%
Net Interest Spread		104,292	2.65	%			101,874	2.58	%			2,418	0.07	%			85,912	2.05	%			83,194	1.97	%			2,718		0.08	%
Net Interest Margin			3.28	%				3.20	%				0.08	%				2.72	%				2.63	%					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

FAQ

What were Farmers & Merchants Bancorp (FMAO) net income results for 2025?

Net income for 2025 was $33.3 million, a 28.4% increase year-over-year. According to the company, quarterly net income in Q4 2025 was $9.8 million, a record for the quarter.

How did FMAO's loan portfolio change by December 31, 2025?

Total loans increased 5.9% to $2.71 billion at year-end 2025. According to the company, growth was driven by commercial real estate, agricultural real estate, and commercial and industrial loans.

What happened to Farmers & Merchants Bancorp's net interest margin in Q4 2025?

Net interest margin rose by 62 basis points to 3.46% year-over-year in Q4 2025. According to the company, margin expansion reflected improved funding costs and higher yielding loan balances.

Did FMAO change its dividend policy in 2025?

FMAO increased its annual cash dividend for the 31st consecutive year, declaring $0.23 per share in Q4 2025. According to the company, full-year dividends totaled $0.90 per share for 2025.

How material is Farmers & Merchants Bancorp's CRE exposure at year-end 2025 (FMAO)?

Commercial real estate represented 50.0% of the loan portfolio at December 31, 2025. According to the company, CRE categories include industrial, multi-family, retail, hotels, and office segments.

What asset quality trends did FMAO report for 2025 and Q4 (Nasdaq: FMAO)?

Nonperforming loans rose to $11.3M (0.42% of loans) and allowance to loans fell to 1.02% at year-end 2025. According to the company, management continues close portfolio monitoring and emphasis on credit quality.