Farmers & Merchants Bancorp, Inc. Reports 2025 Third-Quarter and Year-to-Date Financial Results

Rhea-AI Summary

Farmers & Merchants Bancorp (Nasdaq: FMAO) reported strong 2025 third-quarter results for the period ended September 30, 2025. Net income rose 35.9% to $8.9 million ($0.64 per share); year-to-date net income was $23.5 million ($1.71 per share). Net interest margin increased 69 basis points to 3.40%. Total loans, net grew $123.0 million to $2.66 billion and total deposits rose $67.1 million to $2.75 billion. Efficiency ratio improved to 63.11%. Asset quality remained strong with nonperforming loans $5.2 million (0.19%) and net charge-offs near 0.00%. Tier 1 leverage was 8.74%. The company opened a second Michigan office in Troy and declared its 31st consecutive annual dividend increase.

Positive

• Net income +35.9% YoY to $8.9 million in Q3 2025
• 31st consecutive annual dividend increase declared for 2025

Negative

• Nonperforming loans increased to $5.2 million (0.19%) from $2.9 million (0.11%) year-over-year
• CRE concentration remains high at 51.0% of total loans

Insights

Bank financial analyst

F&M delivered stronger profitability, improving margins, modest balance-sheet growth, and maintained high asset quality.

Net income rose to $8.9 million in the quarter and $23.5 million year-to-date, driven by a higher net interest margin of 3.40% and a reduction in the cost of interest-bearing liabilities to about 2.83%. Loan balances grew 4.9% year-over-year to $2.66 billion, while deposits increased 2.5% to $2.75 billion, showing the franchise is converting relationship activity into both interest income and stable funding.

Asset-quality metrics remain strong: nonperforming loans were only $5.2 million (0.19%) and net charge-offs were negligible at 0.00% for the quarter, with the allowance to loans at about 1.07%. These figures support capital retention and allowed the Company to raise its annual dividend for the 31st consecutive year.

Key dependencies and risks include concentration in commercial real estate, which constitutes 51.0% of loans (total CRE balance $1,355,166 in thousands) and modest year-over-year increase in nonperforming loans from prior periods. Continued margin strength depends on earning higher-yielding assets while keeping funding costs controlled; deterioration in CRE or localized economic stress could pressure credit metrics despite current low charge-offs.

Watch for: quarterly trends in net interest margin and cost of funds in the next Q4 2025 and through the upcoming three-year strategic plan rollout this fall; monitor nonperforming loans and allowance coverage if CRE exposure or charge-offs rise over the next 12 months. These items will materially influence capital deployment, dividend sustainability, and return-on-equity over the near term.

10/27/2025 - 09:05 AM

ARCHBOLD, Ohio, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 third quarter and year-to-date ended September 30, 2025 on a consolidated basis.

2025 Third Quarter Financial and Operating Highlights
(at September 30, 2025 and on a year-over-year basis unless noted)

• 90 consecutive quarters of profitability
• Net income increased 35.9% to $8.9 million, or $0.64 per basic and diluted share
• Net interest margin increased 69 basis points year-over-year to 3.40%
• Total loans, net increased by $123.0 million, or 4.9% to $2.66 billion
• Total deposits increased by $67.1 million, or 2.5% to $2.75 billion
• Efficiency ratio improved to 63.11%, compared to 67.98%
• Asset quality remains at historically strong levels with nonperforming loans of only $5.2 million
• Net charge-offs to average loans of 0.00%
• Tier 1 leverage ratio was 8.74%
• Opened second full-service office in the State of Michigan in Troy
• Promoted Curtis Metz to Market President for Northern Indiana
• Declared the 31^st consecutive annual increase in the Company’s regular dividend payment

Lars B. Eller, President and Chief Executive Officer, stated, “The continued progress we are making to leverage recent investments, drive growth, and expand profitability is encouraging. Strong financial performance and sustained operating momentum during the 2025 third quarter produced one of the most profitable quarters in our 128-year history. Our results reflect the strength of F&M’s diversified business model and our longstanding commitment to create lasting value for our communities, customers, employees and shareholders. I am also proud of our recent dividend increase, marking the 31^st consecutive annual increase in F&M’s dividend.”

Income Statement
Net income for the 2025 third quarter ended September 30, 2025, was $8.9 million, compared to $6.5 million for the same period last year. Net income per basic and diluted share for the 2025 third quarter was $0.64, compared to $0.48 for the same period last year. Net income for the nine months ended September 30, 2025, was $23.5 million, compared to $17.6 million for the same period last year. Net income per basic and diluted share for the 2025 nine months was $1.71, compared to $1.28 for the same period last year.

Deposits
At September 30, 2025, total deposits were $2.75 billion, an increase of 2.5% from September 30, 2024. The Company’s cost of interest-bearing liabilities was 2.83% for the quarter ended September 30, 2025, compared to 3.21% for the quarter ended September 30, 2024.

Mr. Eller commented, “We remain focused on growing core deposits by expanding our relationship-based banking solutions across our Ohio, Indiana, and Michigan markets. These efforts have supported year-over-year deposit growth, while we continue to actively manage our cost of funds. I am encouraged that our cost of interest-bearing liabilities improved 32 basis points to 2.84% for the nine months ended September 30, 2025, reflecting our disciplined approach to deposit pricing and balance sheet management.”

Loan Portfolio and Asset Quality
“We are experiencing stable demand for loans, supported by the success of our recently opened offices, the addition of new team members, and the advantages of our community-oriented banking model. This includes the opening of our newest office in Troy, Michigan during the third quarter, which is the second full-service location in the state. We also continue to add experienced market presidents throughout our footprint to maintain our local decision-making and during the quarter we promoted Curtis Metz to Market President for Northern Indiana. As F&M grows, we are committed to prioritizing asset quality. Net charge-offs to average loans have remained below 0.03% for 18 consecutive quarters, underscoring the strength and growing sophistication of our credit culture and risk management capabilities,” continued Mr. Eller.

Total loans, net at September 30, 2025, increased 4.9%, or by $123.0 million to $2.66 billion, compared to $2.54 billion at September 30, 2024. The year-over-year increase was driven primarily by higher commercial real estate, agricultural real estate, commercial and industrial, and agricultural loans, partially offset primarily by lower consumer real estate and consumer loans. Compared to December 31, 2024, total loans, net at September 30, 2025, increased by 3.8% or $97.5 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $5.2 million, or 0.19% of total loans at September 30, 2025, compared to $2.9 million, or 0.11% of total loans at September 30, 2024, and $3.1 million, or 0.12% at December 31, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.0% of the Company’s total loan portfolio at September 30, 2025. F&M’s CRE portfolio included the following categories at September 30, 2025 ^(*):

CRE Category		Dollar  Balance			Percent of CRE Portfolio		Percent of Total Loan Portfolio
Industrial		$	277,274		20.5%		10.4%
Multi-family			238,311		17.6%		9.0%
Retail			207,301		15.3%		7.8%
Hotels			173,411		12.8%		6.5%
Office			142,111		10.5%		5.4%
Gas Stations			77,013		5.7%		2.9%
Food Service			52,695		3.9%		2.0%
Senior Living			30,672		2.2%		1.2%
Development			29,392		2.2%		1.1%
Auto Dealers			27,644		2.0%		1.0%
Other			99,342		7.3%		3.7%
Total CRE		$	1,355,166		100.0%		51.0%

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

At September 30, 2025, the Company’s total allowance to total loans was 1.07%, compared to 1.07% at September 30, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.06% at September 30, 2025, compared to 1.10% at September 30, 2024.

Mr. Eller concluded, “We continue to believe F&M is in a strong position because of the platform we have built and the strategies we are pursuing to grow our business profitably. This fall, we will begin developing a new three-year strategic plan that will define our growth priorities and guide our next phase of success. The plan will leverage the solid foundation we have established and the community-banking values that continue to distinguish F&M across our Ohio, Indiana, and Michigan markets. We believe these initiatives will enable the Company to capitalize on opportunities within our footprint, enhance shareholder value, and further strengthen our role as a trusted financial partner to the communities we proudly serve. I look forward to updating our shareholders on our new strategic priorities.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 7.9% to $361.8 million, or $26.31 per share at September 30, 2025, from $335.4 million, or $24.48 per share at September 30, 2024. The Company had a Tier 1 leverage ratio of 8.74% at September 30, 2025, compared to 8.04% at September 30, 2024.

Tangible stockholders’ equity increased to $271.0 million at September 30, 2025, compared to $242.8 million at September 30, 2024. On a per share basis, tangible stockholders’ equity at September 30, 2025, was $19.71 per share, compared to $17.72 per share at September 30, 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 September 30, 2025, the Company declared cash dividends of $0.2275 per share, representing a 2.8% increase over the same period last year.  

For the nine months ended September 30, 2025, the Company declared cash dividends of $0.67 per share, representing a 1.3% increase over the same period last year. For the nine months ended September 30, 2025, the dividend payout ratio was 38.64% compared to 50.99% 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 the efficiency ratio, 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. Definitions of these measures and reconciliations to the most directly comparable GAAP measures are provided in the accompanying tables.

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, 2025				June 30, 2025			March 31, 2025				December 31, 2024				September 30, 2024				September 30, 2025				September 30, 2024
Interest Income
Loans, including fees	$	41,013			$	39,530		$	37,072			$	36,663			$	36,873			$	117,615			$	108,666
Debt securities:
U.S. Treasury and government agencies		2,224				2,231			2,097				1,882				1,467				6,552				3,660
Municipalities		366				369			382				384				387				1,117				1,170
Dividends		309				311			338				367				334				958				994
Federal funds sold		-				-			-				24				7				-				21
Other		572				1,051			1,113				2,531				2,833				2,736				7,210
Total interest income		44,484				43,492			41,002				41,851				41,901				128,978				121,721
Interest Expense
Deposits		15,060				14,813			13,988				15,749				16,947				43,861				48,714
Federal funds purchased and securities sold under agreements to repurchase		273				272			271				274				277				816				837
Borrowed funds		1,966				2,411			2,550				2,713				2,804				6,927				8,235
Subordinated notes		284				285			284				285				284				853				853
Total interest expense		17,583				17,781			17,093				19,021				20,312				52,457				58,639
Net Interest Income - Before Provision for Credit Losses		26,901				25,711			23,909				22,830				21,589				76,521				63,082
Provision for Credit Losses - Loans		557				661			811				346				282				2,029				598
Provision for (Recovery of) Credit Losses - Off Balance Sheet Exposures		(272	)			27			(260	)			(120	)			(267	)			(505	)			(551	)
Net Interest Income After Provision for Credit Losses		26,616				25,023			23,358				22,604				21,574				74,997				63,035
Noninterest Income
Customer service fees		370				330			381				237				300				1,081				1,087
Other service charges and fees		1,349				1,206			1,124				1,176				1,155				3,679				3,297
Interchange income		1,273				1,259			1,421				1,322				1,315				3,953				4,074
Loan servicing income		674				629			762				771				710				2,065				1,762
Net gain on sale of loans		444				257			284				223				215				985				636
Increase in cash surrender value of bank owned life insurance		247				239			244				248				265				730				717
Net gain (loss) on sale of other assets owned		-				15			(54	)			22				-				(39	)			49
Total noninterest income		4,357				3,935			4,162				3,999				3,960				12,454				11,622
Noninterest Expense
Salaries and wages		8,108				7,567			7,878				7,020				7,713				23,553				23,148
Employee benefits		2,273				2,265			2,404				2,148				2,112				6,942				6,395
Net occupancy expense		1,104				1,075			1,199				1,072				1,054				3,378				3,080
Furniture and equipment		1,532				1,414			1,278				1,032				1,472				4,224				4,232
Data processing		1,109				1,057			557				160				339				2,723				1,287
Franchise taxes		397				397			397				312				410				1,191				1,230
ATM expense		665				761			491				328				472				1,917				1,342
Advertising		674				356			503				498				597				1,533				1,646
FDIC assessment		428				448			465				505				516				1,341				1,603
Servicing rights amortization - net		586				234			127				244				219				947				574
Loan expense		362				328			228				236				244				918				724
Consulting fees		242				494			745				242				251				1,481				635
Professional fees		516				502			559				368				453				1,577				1,425
Intangible asset amortization		445				444			445				446				445				1,334				1,334
Other general and administrative		1,298				1,918			1,484				1,465				1,128				4,700				3,956
Total noninterest expense		19,739				19,260			18,760				16,076				17,425				57,759				52,611
Income Before Income Taxes		11,234				9,698			8,760				10,527				8,109				29,692				22,046
Income Taxes		2,380				1,988			1,808				2,146				1,593				6,176				4,489
Net Income		8,854				7,710			6,952				8,381				6,516				23,516				17,557
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		6,610				1,149			6,464				(7,403	)			11,664				14,223				12,200
Reclassification adjustment for realized (gain) loss on sale of available-for-sale securities		-				-			-				-				-				-				-
Net unrealized gain (loss) on available-for-sale securities		6,610				1,149			6,464				(7,403	)			11,664				14,223				12,200
Tax expense (benefit)		1,388				241			1,358				(1,554	)			2,449				2,987				2,562
Other comprehensive income (loss)		5,222				908			5,106				(5,849	)			9,215				11,236				9,638
Comprehensive Income	$	14,076			$	8,618		$	12,058			$	2,532			$	15,731			$	34,752			$	27,195
Basic Earnings Per Share	$	0.64			$	0.56		$	0.51			$	0.61			$	0.48			$	1.71			$	1.28
Diluted Earnings Per Share	$	0.64			$	0.56		$	0.51			$	0.61			$	0.48			$	1.71			$	1.28
Dividends Declared	$	0.22750			$	0.22125		$	0.22125			$	0.22125			$	0.22125			$	0.67000			$	0.66125

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)
			September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
			(Unaudited)				(Unaudited)				(Unaudited)								(Unaudited)
Assets
Cash and due from banks			$	116,448			$	87,596			$	172,612			$	174,855			$	244,572
Federal funds sold				582				635				425				1,496				932
	Total cash and cash equivalents			117,030				88,231				173,037				176,351				245,504
Interest-bearing time deposits				1,498				1,992				1,992				2,482				2,727
Securities - available-for-sale				422,773				431,102				438,568				426,556				404,881
Other securities, at cost				11,509				13,994				14,062				14,400				15,028
Loans held for sale				3,003				6,359				2,331				2,996				1,706
Loans, net of allowance for credit losses				2,632,668				2,599,917				2,555,552				2,536,043				2,512,852
Premises and equipment				32,321				32,885				33,163				33,828				33,779
Construction in progress				-				-				-				-				35
Goodwill				86,358				86,358				86,358				86,358				86,358
Loan servicing rights				5,537				5,810				5,805				5,656				5,644
Bank owned life insurance				35,602				35,355				35,116				34,872				34,624
Other assets				42,453				43,760				42,802				45,181				46,047
Total Assets			$	3,390,752			$	3,345,763			$	3,388,786			$	3,364,723			$	3,389,185
	Liabilities and Stockholders' Equity
Liabilities
Deposits
	Noninterest-bearing		$	500,742			$	497,804			$	502,318			$	516,904			$	481,444
	Interest-bearing
	NOW accounts			920,099				899,602				874,881				850,462				865,617
	Savings			713,391				691,468				696,635				671,818				661,565
	Time			617,679				621,455				626,450				647,581				676,187
	Total deposits			2,751,911				2,710,329				2,700,284				2,686,765				2,684,813
Federal funds purchased and securities
sold under agreements to repurchase				22,718				27,562				27,258				27,218				27,292
Federal Home Loan Bank (FHLB) advances				187,913				188,445				245,474				246,056				263,081
Subordinated notes, net of unamortized issuance costs				34,904				34,875				34,846				34,818				34,789
Dividend payable				3,091				3,000				2,997				2,996				2,998
Accrued expenses and other liabilities				28,435				30,760				33,326				31,659				40,832
	Total liabilities			3,028,972				2,994,971				3,044,185				3,029,512				3,053,805
Commitments and Contingencies
Stockholders' Equity
Common stock - No par value authorized 40,000,000 shares 9/30/25
and 20,000,000 shares 12/31/24; issued 14,564,425 shares
9/30/25 and 12/31/24; outstanding 13,749,827 shares 9/30/25
and 13,699,536 shares 12/31/24				135,170				135,805				135,407				135,565				135,193
Treasury stock - 814,598 shares 9/30/25 and 864,889 shares 12/31/24				(10,584	)			(10,674	)			(10,768	)			(10,985	)			(10,904	)
Retained earnings				251,181				244,870				240,079				235,854				230,465
Accumulated other comprehensive loss				(13,987	)			(19,209	)			(20,117	)			(25,223	)			(19,374	)
	Total stockholders' equity			361,780				350,792				344,601				335,211				335,380
Total Liabilities and Stockholders' Equity			$	3,390,752			$	3,345,763			$	3,388,786			$	3,364,723			$	3,389,185

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
		For the Three Months Ended																				For the Nine Months Ended
Selected financial data		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				September 30, 2025				September 30, 2024
Return on average assets			1.05	%			0.92	%			0.85	%			0.99	%			0.78	%			0.94	%			0.71	%
Return on average equity			9.83	%			8.88	%			8.31	%			10.00	%			7.93	%			8.99	%			7.28	%
Yield on earning assets			5.62	%			5.45	%			5.19	%			5.20	%			5.27	%			5.42	%			5.17	%
Cost of interest bearing liabilities			2.83	%			2.83	%			2.76	%			3.01	%			3.21	%			2.84	%			3.16	%
Net interest spread			2.79	%			2.62	%			2.43	%			2.19	%			2.06	%			2.58	%			2.01	%
Net interest margin			3.40	%			3.22	%			3.03	%			2.84	%			2.71	%			3.22	%			2.68	%
Efficiency ratio			63.11	%			64.93	%			66.79	%			59.82	%			67.98	%			64.87	%			70.36	%
Dividend payout ratio			34.90	%			38.91	%			43.10	%			35.75	%			45.99	%			38.64	%			50.99	%
Tangible book value per share		$	19.71			$	18.91			$	18.44			$	17.74			$	17.72
Tier 1 leverage ratio			8.74	%			8.50	%			8.44	%			8.12	%			8.04	%
Average shares outstanding			13,733,858				13,720,339				13,706,003				13,699,869				13,687,119				13,720,168				13,679,955
Loans		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
(Dollar amounts in thousands)
Commercial real estate		$	1,355,166			$	1,345,953			$	1,325,698			$	1,310,811			$	1,301,160
Agricultural real estate			222,145				221,004				215,898				216,401				220,328
Consumer real estate			522,416				523,781				523,383				520,114				524,055
Commercial and industrial			296,084				293,826				278,254				275,152				260,732
Agricultural			179,361				157,870				153,607				152,080				137,252
Consumer			60,469				59,348				60,115				63,009				67,394
Other			24,086				24,653				24,985				24,978				25,916
Less: Net deferred loan fees, costs and other(1)			(1,452	)			(1,488	)			(1,748	)			(1,750	)			(1,546	)
Total loans, net		$	2,658,275			$	2,624,947			$	2,580,192			$	2,560,795			$	2,535,291
Asset quality data		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
(Dollar amounts in thousands)
Nonaccrual loans		$	5,155			$	3,745			$	4,494			$	3,124			$	2,898
90 day past due and accruing		$	-			$	-			$	-			$	-			$	-
Nonperforming loans		$	5,155			$	3,745			$	4,494			$	3,124			$	2,898
Other real estate owned		$	-			$	-			$	-			$	-			$	-
Nonperforming assets		$	5,155			$	3,745			$	4,494			$	3,124			$	2,898
Allowance for credit losses - loans		$	27,475			$	26,977			$	26,352			$	25,826			$	25,484
Allowance for credit losses - off balance sheet credit exposures			1,037				1,308				1,281				1,541				1,661
Total allowance for credit losses		$	28,512			$	28,285			$	27,633			$	27,367			$	27,145
Total allowance for credit losses/total loans			1.07	%			1.08	%			1.07	%			1.07	%			1.07	%
Adjusted credit losses with accretable yield/total loans			1.06	%			1.07	%			1.08	%			1.08	%			1.10	%
Net charge-offs:
Quarter-to-date		$	59			$	36			$	285			$	4			$	68
Year-to-date		$	380			$	321			$	285			$	142			$	138
Net charge-offs to average loans
Quarter-to-date			0.00	%			0.00	%			0.01	%			0.00	%			0.00	%
Year-to-date			0.01	%			0.01	%			0.01	%			0.01	%			0.01	%
Nonperforming loans/total loans			0.19	%			0.14	%			0.17	%			0.12	%			0.11	%
Allowance for credit losses/nonperforming loans			532.98	%			720.35	%			586.38	%			826.70	%			879.37	%
NPA coverage ratio			532.98	%			720.35	%			586.38	%			826.70	%			879.37	%
(1)Excludes carrying value adjustments of $1.9 million as of September 30, 2025, $1.9 million as of June 30, 2025, $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024 and $3.0 million as of September 30, 2024 related to interest rate swaps associated with fixed rate loans

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
		For the Three Months Ended									For the Three Months Ended
		September 30, 2025									September 30, 2024
Interest Earning Assets:		Average Balance			Interest/Dividends			Annualized Yield/Rate			Average Balance			Interest/Dividends			Annualized Yield/Rate
Loans		$	2,649,409		$	41,013		6.19	%		$	2,551,899		$	36,873		5.78	%
Taxable investment securities			445,088			2,827		2.54	%			415,943			2,107		2.03	%
Tax-exempt investment securities			16,066			72		2.27	%			19,661			81		2.09	%
Fed funds sold & other			56,131			572		4.08	%			197,258			2,840		5.76	%
Total Interest Earning Assets			3,166,694		$	44,484		5.62	%			3,184,761		$	41,901		5.27	%
Nonearning Assets			182,320									168,055
Total Assets		$	3,349,014								$	3,352,816
Interest-Bearing Liabilities:
NOW accounts and savings deposits		$	1,620,026		$	9,966		2.46	%		$	1,538,387		$	10,691		2.78	%
Time deposits			609,844			5,094		3.34	%			667,224			6,256		3.75	%
Other borrowed money			188,123			1,966		4.18	%			264,539			2,804		4.24	%
Fed funds purchased & securities
sold under agreement to repurchase			27,274			273		4.00	%			27,481			277		4.03	%
Subordinated notes			34,885			284		3.26	%			34,769			284		3.27	%
Total Interest-Bearing Liabilities		$	2,480,152		$	17,583		2.83	%		$	2,532,400		$	20,312		3.21	%
Noninterest-Bearing Liabilities			511,468									491,851
Stockholders' Equity		$	357,394								$	328,565
Net Interest Income and Interest Rate Spread					$	26,901		2.79	%					$	21,589		2.06	%
Net Interest Margin								3.40	%								2.71	%
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, 2025									September 30, 2024
Interest Earning Assets:		Average Balance			Interest/Dividends			Annualized Yield/Rate			Average Balance			Interest/Dividends			Annualized Yield/Rate
Loans		$	2,615,332		$	117,615		6.00	%		$	2,561,774		$	108,666		5.66	%
Taxable investment securities			454,288			8,403		2.47	%			397,466			5,575		1.87	%
Tax-exempt investment securities			17,025			224		2.22	%			20,684			249		2.03	%
Fed funds sold & other			87,106			2,736		4.19	%			165,227			7,231		5.84	%
Total Interest Earning Assets			3,173,751		$	128,978		5.42	%			3,145,151		$	121,721		5.17	%
Nonearning Assets			174,982									161,113
Total Assets		$	3,348,733								$	3,306,264
Interest-Bearing Liabilities:
NOW accounts and savings deposits		$	1,557,564		$	28,009		2.40	%		$	1,487,809		$	30,291		2.71	%
Time deposits			621,126			15,852		3.40	%			662,129			18,423		3.71	%
Other borrowed money			220,820			6,927		4.18	%			264,310			8,235		4.15	%
Fed funds purchased & securities
sold under agreement to repurchase			27,352			816		3.98	%			27,887			837		4.00	%
Subordinated notes			34,856			853		3.26	%			34,741			853		3.27	%
Total Interest-Bearing Liabilities		$	2,461,718		$	52,457		2.84	%		$	2,476,876		$	58,639		3.16	%
Noninterest-Bearing Liabilities			538,665									507,843
Stockholders' Equity		$	348,350								$	321,545
Net Interest Income and Interest Rate Spread					$	76,521		2.58	%					$	63,082		2.01	%
Net Interest Margin								3.22	%								2.68	%
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, 2025															For the Three Months Ended September 30, 2024
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$			Yield
Interest Earning Assets:
Loans	$	41,013	6.19	%		$	40,359	6.09	%		$	654	0.10	%		$	36,873	5.78	%		$	36,149	5.67	%		$	724		0.11	%
Taxable investment securities		2,827	2.54	%			2,827	2.54	%			-	0.00	%			2,107	2.03	%			2,107	2.03	%			-		0.00	%
Tax-exempt investment securities		72	2.27	%			72	2.27	%			-	0.00	%			81	2.09	%			81	2.09	%			-		0.00	%
Fed funds sold & other		572	4.08	%			572	4.08	%			-	0.00	%			2,840	5.76	%			2,840	5.76	%			-		0.00	%
Total Interest Earning Assets		44,484	5.62	%			43,830	5.54	%			654	0.08	%			41,901	5.27	%			41,177	5.17	%			724		0.10	%
Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	9,966	2.46	%		$	9,966	2.46	%		$	-	0.00	%		$	10,691	2.78	%		$	10,691	2.78	%		$	-		0.00	%
Time deposits		5,094	3.34	%			5,094	3.34	%			-	0.00	%			6,256	3.75	%			6,256	3.75	%			-		0.00	%
Other borrowed money		1,966	4.18	%			1,963	4.17	%			3	0.01	%			2,804	4.24	%			2,800	4.23	%			4		0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		273	4.00	%			273	4.00	%			-	0.00	%			277	4.03	%			277	4.03	%			-		0.00	%
Subordinated notes		284	3.26	%			284	3.26	%			-	0.00	%			284	3.27	%			284	3.27	%			-		0.00	%
Total Interest-Bearing Liabilities		17,583	2.83	%			17,580	2.84	%			3	-0.01	%			20,312	3.21	%			20,308	3.21	%			4		0.00	%
Interest/Dividend income/yield		44,484	5.62	%			43,830	5.54	%			654	0.08	%			41,901	5.27	%			41,177	5.17	%			724		0.10	%
Interest Expense / yield		17,583	2.83	%			17,580	2.84	%			3	-0.01	%			20,312	3.21	%			20,308	3.21	%			4		0.00	%
Net Interest Spread		26,901	2.79	%			26,250	2.70	%			651	0.09	%			21,589	2.06	%			20,869	1.96	%			720		0.10	%
Net Interest Margin			3.40	%				3.32	%				0.08	%				2.71	%				2.62	%					0.09	%
	For the Nine Months Ended September 30, 2025															For the Nine Months Ended September 30, 2024
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					Difference
	$		Yield			$		Yield			$		Yield			$		Yield			$		Yield			$			Yield
Interest Earning Assets:
Loans	$	117,615	6.00	%		$	115,755	5.90	%		$	1,860	0.10	%		$	108,666	5.66	%		$	106,588	5.55	%		$	2,078		0.11	%
Taxable investment securities		8,403	2.47	%			8,403	2.47	%			-	0.00	%			5,575	1.87	%			5,575	1.87	%			-		0.00	%
Tax-exempt investment securities		224	2.22	%			224	2.22	%			-	0.00	%			249	2.03	%			249	2.03	%			-		0.00	%
Fed funds sold & other		2,736	4.19	%			2,736	4.19	%			-	0.00	%			7,231	5.84	%			7,231	5.84	%			-		0.00	%
Total Interest Earning Assets		128,978	5.42	%			127,118	5.34	%			1,860	0.08	%			121,721	5.17	%			119,643	5.08	%			2,078		0.09	%
Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	28,009	2.40	%		$	28,009	2.40	%		$	-	0.00	%		$	30,291	2.71	%		$	30,291	2.71	%		$	-		0.00	%
Time deposits		15,852	3.40	%			15,852	3.40	%			-	0.00	%			18,423	3.71	%			18,423	3.71	%			-		0.00	%
Other borrowed money		6,927	4.18	%			6,917	4.18	%			10	0.00	%			8,235	4.15	%			8,254	4.16	%			(19	)	-0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		816	3.98	%			816	3.98	%			-	0.00	%			837	4.00	%			837	4.00	%			-		0.00	%
Subordinated notes		853	3.26	%			853	3.26	%			-	0.00	%			853	3.27	%			853	3.27	%			-		0.00	%
Total Interest-Bearing Liabilities		52,457	2.84	%			52,447	2.84	%			10	0.00	%			58,639	3.16	%			58,658	3.16	%			(19	)	0.00	%
Interest/Dividend income/yield		128,978	5.42	%			127,118	5.34	%			1,860	0.08	%			121,721	5.17	%			119,643	5.08	%			2,078		0.09	%
Interest Expense / yield		52,457	2.84	%			52,447	2.84	%			10	0.00	%			58,639	3.16	%			58,658	3.16	%			(19	)	0.00	%
Net Interest Spread		76,521	2.58	%			74,671	2.50	%			1,850	0.08	%			63,082	2.01	%			60,985	1.92	%			2,097		0.09	%
Net Interest Margin			3.22	%				3.14	%				0.08	%				2.68	%				2.59	%					0.09	%

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

FAQ

How much did Farmers & Merchants Bancorp (FMAO) earn in Q3 2025?

FMAO reported Q3 2025 net income of $8.9 million, up 35.9% year-over-year, or $0.64 per share.

What was FMAO's net interest margin for Q3 2025 and how did it change?

FMAO's net interest margin was 3.40% in Q3 2025, an increase of 69 basis points year-over-year.

How large are FMAO's loans and deposits at September 30, 2025?

At September 30, 2025, total loans, net were $2.66 billion and total deposits were $2.75 billion.

What happened to FMAO's asset quality in Q3 2025?

Nonperforming loans rose to $5.2 million (0.19% of loans), while net charge-offs remained near 0.00%.

Did FMAO change its dividend policy in 2025 (FMAO)?

Yes. FMAO declared a cash dividend for the quarter reflecting the 31st consecutive annual increase in its regular dividend.

Did Farmers & Merchants Bancorp (FMAO) open new branches in 2025?

Yes. FMAO opened its second full-service office in Michigan in Troy during Q3 2025.