ARCHBOLD, Ohio, July 27, 2026 (GLOBE NEWSWIRE) -- 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 agreements 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 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
Gain (loss) on sale of other assets owned		30				-				(2	)			-				15			30				(39	)
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
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
Other real estate owned		-				319
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 31, 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
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			$	5,155			$	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	%
(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
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
Interest Earning Assets:	Average Balance			Interest/Dividends			Annualized Yield/Rate			Average Balance			Interest/Dividends			Annualized Yield/Rate
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
	For the Six Months Ended									For the Six Months Ended
	June 30, 2026									June 30, 2025
Interest Earning Assets:	Average Balance			Interest/Dividends			Annualized Yield/Rate			Average Balance			Interest/Dividends			Annualized Yield/Rate
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
(in thousands of dollars, except percentages)
	For the Three Months Ended June 30, 2026															For the Three Months Ended June 30, 2025
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					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	%
Federal 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	%
	For the Six Months Ended June 30, 2026															For the Six Months Ended June 30, 2025
	As Reported					Excluding Acc/Amort					Difference					As Reported					Excluding Acc/Amort					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	%
Federal 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	%

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

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