Earnings surge 53% at Farmers & Merchants Bancorp (FMAO)

Rhea-AI Filing Summary

Farmers & Merchants Bancorp, Inc. reported record second-quarter 2026 results, with net income of $11.8 million, or $0.86 per share, up 53.0% from $7.7 million a year earlier. First-half 2026 net income was $21.4 million, compared with $14.7 million in the prior-year period.

Profitability strengthened as return on average assets reached 1.34% and return on average equity was 12.37%. Net interest margin rose by 26 basis points year over year to 3.48%, while the efficiency ratio improved to 56.08% from 64.93%.

At June 30, 2026, deposits were $2.87 billion, up 5.9% year over year, and total loans, net were $2.70 billion, up 3.0%. Asset quality remained solid, with nonperforming loans at 0.27% of total loans and net charge-offs to average loans at 0.00% for the quarter. Stockholders’ equity increased 9.7% to $384.7 million, tangible book value per share rose to $21.41, and the company declared cash dividends of $0.46 per share for the first half, a 4.0% increase.

Positive

• Record quarterly profitability with net income of $11.8 million, up 53.0% year over year, as ROAA improved to 1.34% and net interest margin expanded to 3.48%.
• Balance sheet expansion with deposits up 5.9% to $2.87 billion and loans up 3.0% to $2.70 billion, while quarterly net charge-offs to average loans were 0.00% and the allowance for credit losses remained 1.08% of total loans.

Negative

• None.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 net income: $11.8 million First-half 2026 net income: $21.4 million Q2 2026 earnings per share: $0.86 +5 more

8 metrics

Q2 2026 net income $11.8 million Three months ended June 30, 2026; increased 53.0% from the prior-year quarter.

First-half 2026 net income $21.4 million Six months ended June 30, 2026; up from $14.7 million a year earlier.

Q2 2026 earnings per share $0.86 Basic and diluted EPS for the quarter ended June 30, 2026; up from $0.56.

Total deposits $2.87 billion At June 30, 2026; increased 5.9% or $159.1 million from June 30, 2025.

Total loans, net $2.70 billion At June 30, 2026; up 3.0% or $79.5 million year over year.

Tier 1 leverage ratio 8.99% Regulatory capital ratio at June 30, 2026; compared with 8.50% a year earlier.

Dividend payout ratio 29.27% For the six months ended June 30, 2026; compared with 40.90% a year earlier.

Nonperforming loans ratio 0.27% Nonperforming loans as a percentage of total loans at June 30, 2026.

Key Terms

net interest margin, efficiency ratio, tangible book value per share, Tier 1 leverage ratio, +2 more

6 terms

net interest margin financial

"Net interest margin increased by 26 basis points to 3.48%"

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 56.08%, compared to 64.93%"

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.

tangible book value per share financial

"tangible book value per share at June 30, 2026, was $21.41 per share"

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

Tier 1 leverage ratio financial

"The Company had a Tier 1 leverage ratio of 8.99% at June 30, 2026"

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 ... were $7.4 million, or 0.27% 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

"total allowance for credit losses to total loans was 1.08%"

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.

Earnings Snapshot

Q2 2026 net income: $11.8 million

Three and six months ended June 30, 2026

Q2 2026 net income $11.8 million up 53.0% year over year

Q2 2026 earnings per share $0.86 up from $0.56 a year earlier

First-half 2026 net income $21.4 million up from $14.7 million a year earlier

Return on average assets (Q2 2026) 1.34% up from 0.92% in the prior-year quarter

Net interest margin (Q2 2026) 3.48% increased by 26 basis points year over year

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Available on EDGAR 07/27/2026 - 04:46 PM Accepted by SEC EDGAR 07/27/2026 - 04:45 PM Learn about SEC filing dates

FAQ

What were Farmers & Merchants Bancorp (FMAO) earnings for Q2 2026?

Farmers & Merchants Bancorp reported Q2 2026 net income of $11.8 million, or $0.86 per share, compared with $7.7 million, or $0.56 per share, in Q2 2025, representing a 53.0% year-over-year increase in net income.

How did profitability ratios for FMAO change in Q2 2026?

In Q2 2026, FMAO’s return on average assets rose to 1.34% from 0.92%, and return on average equity increased to 12.37% from 8.88%. The efficiency ratio improved to 56.08%, compared with 64.93% in the prior-year quarter.

How did loans and deposits at Farmers & Merchants Bancorp (FMAO) trend year over year?

At June 30, 2026, FMAO’s total deposits were $2.87 billion, a 5.9% increase from June 30, 2025. Total loans, net were $2.70 billion, up 3.0% year over year, driven by growth in consumer real estate, commercial and industrial, and agricultural loans.

What was FMAO’s asset quality profile as of June 30, 2026?

Nonperforming loans were $7.4 million, or 0.27% of total loans, at June 30, 2026, compared with 0.42% at March 31, 2026 and 0.14% a year earlier. Quarterly net charge-offs to average loans were 0.00%, and the total allowance for credit losses was 1.08% of loans.

What capital and dividend metrics did Farmers & Merchants Bancorp (FMAO) report?

Total stockholders’ equity rose 9.7% to $384.7 million, or $27.92 per share, at June 30, 2026. The Tier 1 leverage ratio was 8.99%, and cash dividends declared for the first half totaled $0.46 per share, up 4.0% year over year.

How did FMAO’s net interest margin and funding costs perform in Q2 2026?

Net interest margin increased to 3.48% in Q2 2026, up 26 basis points from 3.22% a year earlier. The cost of interest-bearing liabilities improved to 2.56%, compared with 2.83% in the prior-year quarter, supporting the company’s stronger net interest income.

0000792966false00007929662026-07-272026-07-27

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 27, 2026

Farmers & Merchants Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

Ohio	001-38084	34-1469491
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

307 North Defiance Street, Archbold, Ohio	43502
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number, including Area Code (419) 446-2501

N/A

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Each Exchange
Common Stock, No Par Value	FMAO	NASDAQ Capital Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17-CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02. Results of Operation and Financial Condition

On July 27, 2026, Farmers & Merchants Bancorp, Inc. issued a press release (the “Release”) announcing its earnings for the three and six months ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99 and is incorporated by reference herein.

ITEM 9.01. Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number	Exhibit
99	Company Press Release dated July 27, 2026

104 The Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto authorized.

	FARMERS & MERCHANTS BANCORP, INC.
		(Registrant)
Dated: July 27, 2026		/s/ Lars B. Eller
		Lars B. Eller
		President and Chief Executive Officer
		/s/ Barbara J. Britenriker
		Barbara J. Britenriker
		Executive Vice President and Chief Financial Officer

Exhibit 99

Post Office Box 216 307 North Defiance Street Archbold, Ohio 43502 NEWS RELEASE

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

Farmers & Merchants Bancorp, Inc. Reports

2026 Second-Quarter and Year-to-Date Financial Results

ARCHBOLD, OHIO, July 27, 2026, 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 agreement 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 Credit    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
Net gain (loss) on sale    of other assets owned			30				-				(2	)			-				15				30				(39	)
Net 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
(continued)

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (continued)

(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
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
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  30, 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
(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

SELECT FINANCIAL DATA (continued)

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			$		5,151			$		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	%

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
		Average Balance				Interest/ Dividends				Annualized Yield/Rate				Average Balance				Interest/ Dividends				Annualized Yield/Rate
Interest Earning Assets:
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

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

		For the Six Months Ended												For the Six Months Ended
		June 30, 2026												June 30, 2025
		Average Balance				Interest/ Dividends				Annualized Yield/Rate				Average Balance				Interest/ Dividends				Annualized Yield/Rate
Interest Earning Assets:
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 (continued)

(in thousands of dollars, except percentages)

		For the Three Months Ended																								For the Three Months Ended
		June 30, 2026																								June 30, 2025
		As Reported							Excluding Accretion/Amortization									Difference								As Reported							Excluding Accretion/Amortization									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	%
Fed 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	%
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 (continued)

(in thousands of dollars, except percentages)

		For the Six Months Ended																								For the Six Months Ended
		June 30, 2026																								June 30, 2025
		As Reported							Excluding Accretion/Amortization									Difference								As Reported							Excluding Accretion/Amortization									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	%
Fed 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	%
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

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

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