Farmers & Merchants Bancorp (FMAO) 2025 earnings surge with higher margins

Rhea-AI Filing Summary

Farmers & Merchants Bancorp, Inc. reported stronger results for the 2025 fourth quarter and full year, with both earnings and profitability metrics improving. Fourth-quarter net income rose to $9.8 million, or $0.71 per share, up from $8.4 million, or $0.61 per share, a year earlier. For 2025, net income increased 28.4% to $33.3 million, or $2.43 per share, compared to $25.9 million, or $1.90 per share.

Net interest income after provision for credit losses grew to $102.2 million for 2025, up 19.3%, supported by a higher net interest margin of 3.28% versus 2.72% in 2024. Total loans, net grew 5.9% to $2.71 billion, deposits increased 1.6% to $2.73 billion, and total assets reached $3.43 billion.

Credit quality remained solid with net charge-offs to average loans at 0.03% for 2025, though nonperforming loans rose to 0.42% of total loans from 0.12%. Capital strengthened, as stockholders’ equity increased 10.6% to $370.9 million and the Tier 1 leverage ratio improved to 8.81%. The company raised its annual dividend for the 31st consecutive year, with 2025 cash dividends of $0.90 per share and a lower payout ratio of 36.67%.

Positive

• Strong earnings growth and record levels: 2025 net income increased 28.4% to $33.3 million, or $2.43 per share, with the fourth quarter delivering a quarterly record $9.8 million in net income and record earnings per share.
• Margin expansion and improved efficiency: Net interest margin rose to 3.28% from 2.72% in 2024, while the 2025 efficiency ratio improved to 63.12% from 67.54%, indicating better revenue-to-cost performance.
• Capital and book value strengthening: Stockholders’ equity grew 10.6% to $370.9 million, tangible book value per share increased 15.0% to $20.40, and the Tier 1 leverage ratio improved to 8.81%, enhancing the bank’s capital position.
• Consistent dividend growth with lower payout: Cash dividends rose to $0.90 per share for 2025, marking the 31st consecutive annual increase, while the dividend payout ratio declined to 36.67% from 46.07%, leaving more earnings retained.

Negative

• Rising nonperforming loans: Nonperforming loans increased to $11.3 million, or 0.42% of total loans at December 31, 2025, compared to $3.1 million, or 0.12%, a year earlier, indicating higher problem loan levels despite overall strong credit metrics.

Insights

Banking sector equity analyst

Strong 2025 earnings growth, margin expansion, and capital build, with some uptick in nonperforming loans.

Farmers & Merchants Bancorp, Inc. delivered robust earnings in 2025, with net income up 28.4% to $33.3 million and EPS at $2.43. Net interest income after credit losses rose 19.3% to $102.2 million, supported by a higher net interest margin of 3.28% versus 2.72% in 2024.

Balance sheet growth was measured: total loans, net increased 5.9% to $2.71 billion, deposits rose 1.6% to $2.73 billion, and total assets reached $3.43 billion. Capital levels improved, with stockholders’ equity up 10.6% to $370.9 million and a Tier 1 leverage ratio of 8.81%, providing a solid buffer.

Asset quality indicators remain generally favorable, with net charge-offs to average loans at 0.03% for 2025, but nonperforming loans increased to 0.42% of total loans from 0.12%. The company extended its dividend growth streak to 31 years, paying $0.90 per share with a reduced payout ratio of 36.67%. Future filings may elaborate on how the higher level of nonperforming loans evolves relative to the otherwise strong profitability and capital trends.

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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) February 12, 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 February 12, 2026, Farmers & Merchants Bancorp, Inc. issued a press release (the “Release”) announcing its earnings for the three and twelve months ended December 31, 2025. 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 February 12, 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: February 12, 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

2025 Fourth-Quarter and Full-Year Financial Results

ARCHBOLD, OHIO, February 12, 2026, 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 31st 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 agreement 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 Credit    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
(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																				Twelve Months Ended
		December  31, 2025				September  30, 2025				June  30, 2025				March  31, 2025				December  31, 2024				December  31, 2025				December  31, 2024
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 20,00,000 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  30, 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
(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

SELECT FINANCIAL DATA (continued)

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			$		5,151			$		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	%

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

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

		For the Twelve Months Ended												For the Twelve Months Ended
		December 31, 2025												December 31, 2024
		Average Balance				Interest/ Dividends				Annualized Yield/Rate				Average Balance				Interest/ Dividends				Annualized Yield/Rate
Interest Earning Assets:
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 (continued)

(in thousands of dollars, except percentages)

		For the Three Months Ended																								For the Three Months Ended
		December 31, 2025																								December 31, 2024
		As Reported							Excluding Accretion/Amortization									Difference								As Reported							Excluding Accretion/Amortization									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	%
Fed 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	%
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 Twelve Months Ended																								For the Twelve Months Ended
		December 31, 2025																								December 31, 2024
		As Reported							Excluding Accretion/Amortization									Difference								As Reported							Excluding Accretion/Amortization									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	%
Fed 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	%
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

FAQ

How did Farmers & Merchants Bancorp, Inc. (FMAO) perform financially in 2025?

Farmers & Merchants Bancorp, Inc. delivered significantly stronger 2025 results, with net income rising 28.4% to $33.3 million, or $2.43 per share. Higher net interest income, improved net interest margin, and disciplined expense control supported better profitability versus 2024.

What were Farmers & Merchants Bancorp, Inc.’s key fourth-quarter 2025 results?

In fourth-quarter 2025, FMAO generated net income of $9.8 million, or $0.71 per share, up from $8.4 million, or $0.61, a year earlier. Net interest income before provision reached $27.8 million, and the net interest margin improved to 3.46%.

How did loans and deposits change for FMAO in 2025?

At December 31, 2025, total loans, net increased 5.9% year-over-year to $2.71 billion, while deposits grew 1.6% to $2.73 billion. This reflects measured balance sheet growth, particularly in commercial and real estate categories, while maintaining a strong funding base.

What is the asset quality profile of Farmers & Merchants Bancorp, Inc.?

Asset quality remained generally solid in 2025, with net charge-offs to average loans at 0.03%. However, nonperforming loans rose to $11.3 million, or 0.42% of total loans, compared to $3.1 million, or 0.12%, at December 31, 2024.

How strong is FMAO’s capital position and book value?

FMAO’s capital strengthened in 2025, as total stockholders’ equity increased 10.6% to $370.9 million, or $26.98 per share. Tangible stockholders’ equity rose to $280.5 million, and tangible book value per share climbed to $20.40, alongside a Tier 1 leverage ratio of 8.81%.

What dividends did Farmers & Merchants Bancorp, Inc. pay in 2025?

For 2025, FMAO declared cash dividends totaling $0.90 per share, up 2.0% from 2024, including a fourth-quarter dividend equivalent to $0.92 annualized. This marked the 31st consecutive year of increasing the regular annual cash dividend.

How did net interest margin and funding costs trend for FMAO in 2025?

In 2025, FMAO’s net interest margin improved to 3.28% from 2.72% in 2024, reflecting better spread performance. The cost of interest-bearing liabilities declined to 2.80%, compared to 3.12% in the prior year, supporting stronger net interest income.

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