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

Higher earnings and a wider net interest margin accompanied increased dividends, while nonperforming loans rose year over year.

Rhea-AI Summary

Farmers & Merchants Bancorp (FMAO) reported third-quarter net income of $11.5 million, up 30.3% from a year earlier. Earnings per basic and diluted share rose to $0.84 from $0.64. For the nine months ended September 30, 2026, net income reached $32.9 million, versus $23.5 million, and earnings per share increased to $2.39 from $1.71.

Third-quarter net interest margin widened to 3.57% from 3.40%, while the efficiency ratio improved to 58.09% from 63.11%. Deposits grew 7.7% to $2.96 billion and net loans rose 3.0% to $2.74 billion year over year. Nonperforming loans were $6.2 million, above $5.2 million a year earlier but below $7.4 million at June 30, 2026. Commercial real estate represented 48.2% of total loans. The regular quarterly dividend increased 5.5%, and an additional $0.01 special dividend brought the total third-quarter payment to $0.250 per share.

19 points · 0 major

PositiveiHow this balance works

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0 major · 6 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net income increased 30.3% to $11.5 million; basic and diluted EPS rose to $0.84 from $0.64.
• Moderate pointThird-quarter net interest income before credit-loss provisions increased to $29.940 million from $26.901 million year over year.
• Moderate pointThird-quarter net interest margin expanded 17 basis points to 3.57% year over year.
• Moderate pointThird-quarter efficiency ratio improved to 58.09% from 63.11% a year earlier.
• Moderate pointDeposits increased 7.7% to $2.96 billion at September 30, 2026, year over year.
• Moderate pointNet loans increased 3.0% to $2.74 billion at September 30, 2026, year over year.
• Moderate pointThird-quarter noninterest income rose to $4.867 million from $4.357 million; nine-month income reached $15.299 million versus $12.454 million.
• Moderate pointNine-month loan credit-loss provision declined to $371,000 from $2.029 million a year earlier.
• Moderate pointStockholders’ equity increased 6.9% to $386.9 million; book value per share reached $28.12 versus $26.31 year over year.
• Moderate pointNon-GAAP tangible equity rose to $297.5 million from $271.0 million; tangible book value reached $21.62 versus $19.71 year over year.

9 minor points

• Minor pointNine-month net income rose to $32.9 million from $23.5 million; basic and diluted EPS increased to $2.39 from $1.71.
• Minor pointNine-month net interest income before credit-loss provisions rose to $86.302 million from $76.521 million year over year.
• Minor pointThird-quarter interest-bearing liability costs declined to 2.59% from 2.83% a year earlier.
• Minor pointThird-quarter return on average assets improved to 1.29% from 1.05% a year earlier.
• Minor pointThird-quarter loan credit-loss provision shifted to a $104,000 recovery from a $557,000 provision a year earlier.
• Minor pointTier 1 leverage ratio increased to 9.14% from 8.74% at September 30, 2025.
• Minor pointRegular quarterly dividend increased 5.5% to $0.96 annualized; a $0.01 special dividend brought payment to $0.250 per share.
• Minor pointNine-month declared dividends increased 6.0% to $0.71 per share, marking 32 consecutive annual dividend increases.
• Minor point. Forward-looking: it has not happened yet and may not happen.F&M expects loan repricing opportunities through 2028 to support interest income growth.

Negative

• Minor pointNonperforming loans reached $6.2 million, or 0.23%, versus $5.2 million, or 0.19%, a year earlier; down sequentially.
• Minor pointThird-quarter noninterest expense rose to $20.218 million from $19.739 million; nine-month expense reached $59.283 million versus $57.759 million.
• Minor pointOff-balance-sheet credit-loss provisions reached $479,000 for the quarter and $633,000 year-to-date, versus prior-year recoveries of $272,000 and $505,000.
• Minor pointThird-quarter other comprehensive loss was $4.673 million, versus $5.222 million income a year earlier.
• Minor pointNine-month other comprehensive loss was $6.741 million, versus $11.236 million income a year earlier.
• Minor pointNine-month available-for-sale securities sales generated a $347,000 loss, versus none a year earlier.

News Explained

The company describes ongoing repurchases as a partial counter to compensation-related dilution, while the quarter’s reported results remain preliminary.

Farmers & Merchants Bancorp reported third-quarter results as preliminary, subject to change pending completion of customary quarterly closing processes and review. The company also says it continues to repurchase common shares, with those repurchases intended in part to offset dilution associated with equity-based management compensation.

Key Figures

Third-quarter net income: $11.5 million vs. $8.9 million Third-quarter EPS: $0.84 vs. $0.64 per share Nine-month net income: $32.9 million vs. $23.5 million +5 more

Third-quarter net income

$11.5 million vs. $8.9 million

Quarter ended September 30, 2026, compared with the same period last year

Third-quarter EPS

$0.84 vs. $0.64 per share

Basic and diluted, compared with the same period last year

Nine-month net income

$32.9 million vs. $23.5 million

Nine months ended September 30, 2026, compared with the same period last year

Nine-month EPS

$2.39 vs. $1.71 per share

Basic and diluted, compared with the same period last year

Net interest margin

3.57%, increased 17 basis points

Year over year

Return on average assets

1.29% vs. 1.05%

Third quarter, compared with the same period last year

Nonperforming loans

0.23% of total loans vs. 0.19%

September 30, 2026, compared with September 30, 2025

Third-quarter dividend payment

$0.250 per share

Total payment including the special dividend

Previous Earnings Reports

5 past events · Latest: Jul 27

Same Type 5 events

1. Jul 27

   Q2 earnings

   24h Move

   +10.4%

   Q2 net income rose 53.0% year over year to $11.8 million, with $0.86 EPS.

2. Apr 22

   Q1 earnings

   24h Move

   -0.9%

   Q1 net income was $9.6 million, up 37.8% year over year, with $0.70 EPS.

3. Feb 12

   Q4 earnings

   24h Move

   +7.6%

   Full-year 2025 net income increased 28.4% to $33.3 million.

4. Oct 27

   Q3 earnings

   24h Move

   -2.5%

   Q3 2025 net income rose 35.9% to $8.9 million, or $0.64 per share.

5. Jul 28

   Q2 earnings

   24h Move

   +1.3%

   Q2 2025 net income increased 35.7% to $7.7 million, or $0.56 per share.

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

Key Terms

net interest margin, net charge-offs, tier 1 leverage ratio, nonperforming loans, +2 more

6 terms

net interest margin financial

"Net interest margin increased by 17 basis points to 3.57%"

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.

net charge-offs financial

"Net charge-offs to average loans of 0.00%"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

tier 1 leverage ratio financial

"Tier 1 leverage ratio was 9.14%"

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.

nonperforming loans financial

"Nonperforming loans continue to normalize on a year-over-year basis"

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.

dividend payout ratio financial

"the dividend payout ratio was 29.34% compared to 38.64%"

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.

gaap financial

"are non-GAAP financial measures"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	(Unaudited)				(Unaudited)				(Unaudited)								(Unaudited)
Assets
Cash and due from banks	$	205,125			$	155,879			$	172,847			$	97,249			$	116,448
Federal funds sold		686				511				623				469				582
Total cash and cash equivalents		205,811				156,390				173,470				97,718				117,030
Interest-bearing time deposits		518				518				1,253				1,498				1,498
Securities - available-for-sale		455,977				441,254				429,623				422,072				422,773
Other securities, at cost		10,681				10,681				12,672				13,032				11,509
Loans held for sale		2,527				2,994				5,579				3,934				3,003
Loans, net of allowance for credit losses		2,709,358				2,677,072				2,654,135				2,685,990				2,632,668
Premises and equipment		29,590				30,334				31,534				31,864				32,321
Goodwill		86,358				86,358				86,358				86,358				86,358
Loan servicing rights		5,034				5,085				4,972				5,175				5,537
Other real estate owned		-				-				319
Bank owned life insurance		48,751				48,021				45,407				47,410				35,602
Other assets		44,450				43,411				40,247				39,331				42,453
Total Assets	$	3,599,055			$	3,502,118			$	3,485,569			$	3,434,382			$	3,390,752
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	518,286			$	506,119			$	520,348			$	527,327			$	500,742
Interest-bearing
NOW accounts		952,573				898,902				910,723				876,151				920,099
Savings		803,763				771,379				753,289				729,472				713,391
Time		687,870				693,008				625,302				597,785				617,679
Total deposits		2,962,492				2,869,408				2,809,662				2,730,735				2,751,911
Federal funds purchased and securities
sold under agreements to repurchase		15,168				14,771				14,762				37,718				22,718
Federal Home Loan Bank (FHLB) advances		167,903				168,447				218,987				227,377				187,913
Subordinated notes, net of unamortized issuance costs		35,000				34,991				34,962				34,933				34,904
Dividend payable		3,399				3,130				3,128				3,125				3,091
Accrued expenses and other liabilities		28,166				26,655				28,120				29,632				28,435
Total liabilities		3,212,128				3,117,402				3,109,621				3,063,520				3,028,972
Commitments and Contingencies
Stockholders' Equity
Common stock - No par value; authorized 40,000,000 shares;
issued 14,564,425 shares; outstanding 13,762,268 shares 9/30/26
and 13,748,074 shares 12/31/25		134,761				135,510				135,270				135,531				135,170
Treasury stock - 802,157 shares 9/30/26 and 816,351 shares 12/31/25		(11,651	)			(10,293	)			(10,403	)			(10,636	)			(10,584	)
Retained earnings		282,446				273,455				264,607				257,855				251,181
Accumulated other comprehensive loss		(18,629	)			(13,956	)			(13,526	)			(11,888	)			(13,987	)
Total stockholders' equity		386,927				384,716				375,948				370,862				361,780
Total Liabilities and Stockholders' Equity	$	3,599,055			$	3,502,118			$	3,485,569			$	3,434,382			$	3,390,752

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
		For the Three Months Ended																				For the Nine Months Ended
Selected financial data		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				September 30, 2026				September 30, 2025
Return on average assets			1.29	%			1.34	%			1.14	%			1.14	%			1.05	%			1.25	%			0.94	%
Return on average equity			11.76	%			12.37	%			10.31	%			10.55	%			9.83	%			11.45	%			8.99	%
Yield on earning assets			5.61	%			5.48	%			5.38	%			5.55	%			5.62	%			5.50	%			5.42	%
Cost of interest-bearing liabilities			2.59	%			2.56	%			2.54	%			2.69	%			2.83	%			2.56	%			2.84	%
Net interest spread			3.02	%			2.92	%			2.84	%			2.86	%			2.79	%			2.94	%			2.58	%
Net interest margin			3.57	%			3.48	%			3.42	%			3.46	%			3.40	%			3.50	%			3.22	%
Efficiency ratio			58.09	%			56.08	%			60.08	%			58.38	%			63.11	%			58.15	%			64.87	%
Dividend payout ratio			29.45	%			26.53	%			32.62	%			31.90	%			34.90	%			29.34	%			38.64	%
Tangible book value per share		$	21.62			$	21.41			$	20.76			$	20.40			$	19.71
Tier 1 leverage ratio			9.14	%			8.99	%			9.02	%			8.81	%			8.74	%
Average shares outstanding			13,779,936				13,773,387				13,754,684				13,749,420				13,733,858				13,769,428				13,720,168
Loans		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
(Dollar amounts in thousands)
Commercial real estate		$	1,321,021			$	1,308,600			$	1,315,549			$	1,355,571			$	1,355,166
Agricultural real estate			210,321				208,223				215,846				217,034				222,145
Consumer real estate			548,913				533,438				534,987				526,439				522,416
Commercial and industrial			343,720				337,487				309,046				314,405				296,084
Agricultural			245,639				244,611				228,730				218,050				179,361
Consumer			47,251				50,953				55,576				58,838				60,469
Other			22,089				22,574				22,564				23,133				24,086
Less: Net deferred loan fees, costs and other (1)			(1,635	)			(1,419	)			(1,436	)			(1,511	)			(1,452	)
Total loans, net		$	2,737,319			$	2,704,467			$	2,680,862			$	2,711,959			$	2,658,275
Asset quality data		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
(Dollar amounts in thousands)
Nonaccrual loans		$	6,219			$	7,383			$	11,070			$	11,256			$	5,155
90 day past due and accruing		$	-			$	-			$	-			$	-			$	-
Nonperforming loans		$	6,219			$	7,383			$	11,070			$	11,256			$	5,155
Other real estate owned		$	-			$	-			$	319			$	-			$	-
Nonperforming assets		$	6,219			$	7,383			$	11,389			$	11,256			$	5,155
Allowance for credit losses - loans		$	27,802			$	27,941			$	27,830			$	27,688			$	27,475
Allowance for credit losses - off balance sheet credit exposures			1,668				1,189				1,041				1,035				1,037
Total allowance for credit losses		$	29,470			$	29,130			$	28,871			$	28,723			$	28,512
Total allowance for credit losses/total loans			1.08	%			1.08	%			1.08	%			1.06	%			1.07	%
Net charge-offs:
Quarter-to-date		$	35			$	62			$	160			$	354			$	59
Year-to-date		$	257			$	222			$	160			$	734			$	380
Net charge-offs to average loans
Quarter-to-date			0.00	%			0.00	%			0.01	%			0.01	%			0.00	%
Year-to-date			0.01	%			0.01	%			0.01	%			0.03	%			0.01	%
Nonperforming loans/total loans			0.23	%			0.27	%			0.42	%			0.42	%			0.19	%
Allowance for credit losses/nonperforming loans			447.05	%			378.45	%			251.40	%			245.98	%			532.98	%
NPA coverage ratio			447.05	%			378.45	%			244.36	%			245.98	%			532.98	%
(1) Excludes carrying value adjustments of ($159) thousand as of September 30, 2026, $546 thousand as of June 30, 2026, $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025 and $1.9 million as of September 30, 2025 related to interest rate swaps associated with fixed rate loans.

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

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
	For the Three Months Ended September 30, 2026															For the Three Months Ended September 30, 2025
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$		Yield
Interest Earning Assets:
Loans	$	42,061	6.18	%		$	42,054	6.18	%		$	7	0.00	%		$	41,013	6.19	%		$	40,359	6.09	%		$	654	0.10	%
Taxable investment securities		3,545	3.00	%			3,545	3.00	%			-	0.00	%			2,827	2.54	%			2,827	2.54	%			-	0.00	%
Tax-exempt investment securities		65	2.70	%			65	2.70	%			-	0.00	%			72	2.27	%			72	2.27	%			-	0.00	%
Fed funds sold & other		1,321	3.63	%			1,321	3.63	%			-	0.00	%			572	4.08	%			572	4.08	%			-	0.00	%
Total Interest Earning Assets		46,992	5.61	%			46,985	5.60	%			7	0.01	%			44,484	5.62	%			43,830	5.54	%			654	0.08	%
Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	9,749	2.25	%		$	9,749	2.25	%		$	-	0.00	%		$	9,966	2.46	%		$	9,966	2.46	%		$	-	0.00	%
Time deposits		5,009	2.93	%			5,009	2.93	%			-	0.00	%			5,094	3.34	%			5,094	3.34	%			-	0.00	%
Other borrowed money		1,694	4.03	%			1,691	4.02	%			3	0.01	%			1,966	4.18	%			1,963	4.17	%			3	0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		120	3.24	%			120	3.24	%			-	0.00	%			273	4.00	%			273	4.00	%			-	0.00	%
Subordinated notes		480	5.49	%			480	5.49	%			-	0.00	%			284	3.26	%			284	3.26	%			-	0.00	%
Total Interest-Bearing Liabilities		17,052	2.59	%			17,049	2.59	%			3	0.00	%			17,583	2.83	%			17,580	2.84	%			3	-0.01	%
Interest/Dividend income/yield		46,992	5.61	%			46,985	5.60	%			7	0.01	%			44,484	5.62	%			43,830	5.54	%			654	0.08	%
Interest Expense / yield		17,052	2.59	%			17,049	2.59	%			3	0.00	%			17,583	2.83	%			17,580	2.84	%			3	-0.01	%
Net Interest Spread		29,940	3.02	%			29,936	3.01	%			4	0.01	%			26,901	2.79	%			26,250	2.70	%			651	0.09	%
Net Interest Margin			3.57	%				3.57	%				0.00	%				3.40	%				3.32	%				0.08	%
	For the Nine Months Ended September 30, 2026															For the Nine Months Ended September 30, 2025
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$		Yield
Interest Earning Assets:
Loans	$	122,727	6.06	%		$	122,110	6.03	%		$	617	0.03	%		$	117,615	6.00	%		$	115,755	5.90	%		$	1,860	0.10	%
Taxable investment securities		9,606	2.80	%			9,606	2.80	%			-	0.00	%			8,403	2.47	%			8,403	2.47	%			-	0.00	%
Tax-exempt investment securities		201	2.67	%			201	2.67	%			-	0.00	%			224	2.22	%			224	2.22	%			-	0.00	%
Fed funds sold & other		3,403	3.55	%			3,403	3.55	%			-	0.00	%			2,736	4.19	%			2,736	4.19	%			-	0.00	%
Total Interest Earning Assets		135,937	5.50	%			135,320	5.47	%			617	0.03	%			128,978	5.42	%			127,118	5.34	%			1,860	0.08	%
Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	27,678	2.19	%		$	27,678	2.19	%		$	-	0.00	%		$	28,009	2.40	%		$	28,009	2.40	%		$	-	0.00	%
Time deposits		14,761	3.02	%			14,761	3.02	%			-	0.00	%			15,852	3.40	%			15,852	3.40	%			-	0.00	%
Other borrowed money		5,764	4.04	%			5,754	4.03	%			10	0.01	%			6,927	4.18	%			6,917	4.18	%			10	0.00	%
Federal funds purchased and
securities sold under agreement to
repurchase		383	3.26	%			383	3.26	%			-	0.00	%			816	3.98	%			816	3.98	%			-	0.00	%
Subordinated notes		1,049	4.00	%			1,049	4.00	%			-	0.00	%			853	3.26	%			853	3.26	%			-	0.00	%
Total Interest-Bearing Liabilities		49,635	2.56	%			49,625	2.56	%			10	0.00	%			52,457	2.84	%			52,447	2.84	%			10	0.00	%
Interest/Dividend income/yield		135,937	5.50	%			135,320	5.47	%			617	0.03	%			128,978	5.42	%			127,118	5.34	%			1,860	0.08	%
Interest Expense / yield		49,635	2.56	%			49,625	2.56	%			10	0.00	%			52,457	2.84	%			52,447	2.84	%			10	0.00	%
Net Interest Spread		86,302	2.94	%			85,695	2.91	%			607	0.03	%			76,521	2.58	%			74,671	2.50	%			1,850	0.08	%
Net Interest Margin			3.50	%				3.47	%				0.03	%				3.22	%				3.14	%				0.08	%

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

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Farmers & Merchants Bancorp’s third-quarter 2026 earnings?

Farmers & Merchants Bancorp earned $11.5 million, or $0.84 per basic and diluted share, in the quarter ended September 30, 2026. Net income increased 30.3% from a year earlier, when earnings were $8.9 million, or $0.64 per basic and diluted share.

How much was FMAO’s third-quarter 2026 dividend?

The total third-quarter dividend payment was $0.250 per share, including an additional $0.01 special dividend. The regular dividend increased 5.5% to $0.96 annualized.

What types of commercial real estate loans did FMAO hold at September 30, 2026?

FMAO’s largest commercial real estate categories were multi-family, at 18.8% of that portfolio, and retail, at 18.3%. Industrial properties represented 16.0%, hotels 13.4%, and offices 9.5%. The remaining categories included gas stations, food service, development, auto dealers, senior living and other properties.

What was FMAO’s third-quarter 2026 net charge-off ratio and credit-loss allowance?

Third-quarter net charge-offs to average loans were 0.00%. At September 30, 2026, the allowance for credit losses equaled 1.08% of total loans, compared with 1.07% at September 30, 2025.

Why is Farmers & Merchants Bancorp repurchasing shares?

F&M says its ongoing common-stock repurchases are intended partly to offset dilution from equity-based management compensation while supporting its broader capital-management objective of enhancing long-term shareholder value.