ARCHBOLD, Ohio, April 22, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2026 first quarter ended March 31, 2026, on a consolidated basis.
2026 First-Quarter Financial and Operating Highlights
(at March 31, 2026, and on a year-over-year basis unless noted)
- 92 consecutive quarters of profitability
- Net income increased 37.8% to a first quarter record of $9.6 million, or $0.70 per basic and diluted share
- Strong profitability drives ROAA to 1.14%, compared to 0.85%
- Net charge-offs to average loans of 0.01%
- Tier 1 leverage ratio was 9.02%
- Cost of interest-bearing liabilities improved to 2.54%, from 2.76%
- Net interest margin increased by 39 basis points to 3.42%
- Efficiency ratio improved to 60.08%, compared to 66.79%
- First quarter dividend per share increased 4.0% to $0.92 annualized
Lars B. Eller, President and Chief Executive Officer, stated, “We are off to an outstanding start in 2026, delivering 37.8% year-over-year earnings growth driven by a 39-basis point expansion in net interest margin, strong levels of noninterest income, and solid balance sheet management. Our ability to generate this level of growth in profitability while maintaining excellent credit quality and disciplined expense management underscores the strength of our core franchise. We are seeing meaningful operating leverage across the business, and believe this momentum positions us well for continued earnings expansion and long-term shareholder value creation.”
Income Statement
Net income for the quarter ended March 31, 2026, was $9.6 million, compared to $7.0 million for the same period last year. Net income per basic and diluted share for the 2026 first quarter was $0.70, compared to $0.51 for the same period last year.
Deposits
At March 31, 2026, total deposits were $2.81 billion, an increase of 4.1%, or $109.4 million from March 31, 2025. For the three months ended March 31, 2026, F&M’s cost of interest-bearing liabilities was 2.54%, compared to 2.76% in the same period last year.
“Deposit growth in the quarter demonstrates the early success of our new three-year, growth-oriented strategic plan, including our renewed focus on strengthening core deposit generation and expanding our treasury management and retail offerings. In addition, asset quality within the loan portfolio remains strong, with low levels of nonperforming assets, historically low charge-offs, and continued stability across our markets. We successfully resolved a number of watch list credits during the quarter, reflecting the effectiveness of our proactive credit management team. Importantly, underlying loan demand remains strong, with approximately $60 million in approved loans within our pipeline, providing a solid foundation for continued portfolio growth. These trends reflect our local decision-making, disciplined underwriting and proactive risk management practices,” continued Mr. Eller.
Loan Portfolio and Asset Quality
Total loans, net at March 31, 2026, increased 3.9%, or by $100.7 million to $2.68 billion, compared to $2.58 billion at March 31, 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 $11.1 million, or 0.42% of total loans at March 31, 2026, compared to $11.3 million, or 0.42% of total loans at December 31, 2025, and $4.5 million, or 0.17% of total loans at March 31, 2025.
F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 49.0% of the Company’s total loan portfolio at March 31, 2026. F&M’s CRE portfolio included the following categories at March 31, 2026 (*):
CRE Category DollarBalance Percent of
CREPortfolio Percent of
Total Loan
Portfolio Multi-family $ 241,208 18.4% 9.0%Industrial 233,030 17.7% 8.7%Retail 224,629 17.1% 8.4%Hotels 163,217 12.4% 6.1%Office 133,398 10.1% 4.9%Gas Stations 75,874 5.8% 2.8%Food Service 51,638 3.9% 1.9%Development 34,204 2.6% 1.3%Auto Dealers 26,819 2.0% 1.0%Senior Living 21,382 1.6% 0.8%Other 110,150 8.4% 4.1%Total CRE $ 1,315,549 100.0% 49.0%
* Numbers have been rounded; totals may not foot due to rounding; and dollar amounts in thousands.
At March 31, 2026, the Company’s total allowance for credit losses to total loans was 1.08%, compared to 1.07% at March 31, 2025.
Mr. Eller concluded, “We have built a strong and scalable platform that positions F&M to deliver consistent performance while continuing to provide local banking solutions to the individuals and businesses we serve across Ohio, Indiana, and Michigan communities. This is an exciting time as we execute on our new three-year strategic plan, which is designed to build on our momentum and take F&M to the next level of growth, profitability, and long-term value creation.”
Stockholders’ Equity and Dividends
Total stockholders’ equity increased 9.1% to $375.9 million, or $27.30 per share at March 31, 2026, from $344.6 million, or $25.12 per share at March 31, 2025. The Company had a Tier 1 leverage ratio of 9.02% at March 31, 2026, compared to 8.44% at March 31, 2025.
Tangible stockholders’ equity increased to $285.9 million at March 31, 2026, compared to $252.9 million at March 31, 2025. On a per share basis, tangible stockholders’ equity at March 31, 2026, was $20.76 per share, compared to $18.44 per share at March 31, 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 quarter ended March 31, 2026, the Company declared cash dividends of $0.23 per share, representing a 4.0% increase over 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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME(Unaudited) (in thousands of dollars, except per share data)
Three Months Ended March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
Interest Income Loans, including fees $39,827 $40,999 $41,013 $39,530 $37,072 Debt securities: U.S. Treasury and government agencies 2,305 2,259 2,224 2,231 2,097 Municipalities 349 362 366 369 382 Dividends 245 250 309 311 338 Federal funds sold and other 572 696 572 1,051 1,113 Total interest income 43,298 44,566 44,484 43,492 41,002
Interest Expense Deposits 13,249 14,318 15,060 14,813 13,988 Federal funds purchased and securities sold under agreements to repurchase 145 226 273 272 271 Borrowed funds 2,176 1,966 1,966 2,411 2,550 Subordinated notes 284 285 284 285 284 Total interest expense 15,854 16,795 17,583 17,781 17,093
Net Interest Income - Before Provision for Credit Losses 27,444 27,771 26,901 25,711 23,909
Provision for Credit Losses - Loans 302 567 557 661 811
Provision for (Recovery of) Credit Losses - Off Balance Sheet Exposures 6 (1) (272) 27 (260)
Net Interest Income After Provision for Credit Losses 27,136 27,205 26,616 25,023 23,358
Noninterest Income Customer service fees 483 337 370 330 381 Other service charges and fees 1,283 1,311 1,349 1,206 1,124 Interchange income 1,513 1,275 1,273 1,259 1,421 Loan servicing income 838 814 674 629 762 Net gain on sale of loans 575 306 444 257 284 Increase in cash surrender value of bank owned life insurance 655 640 247 239 244 Gain (loss) on sale of other assets owned - (2) - 15 (54)Loss on sale of available-for-sale securities (347) - - - - Total noninterest income 5,000 4,681 4,357 3,935 4,162
Noninterest Expense Salaries and wages 8,267 8,037 8,108 7,567 7,878 Employee benefits 2,379 2,386 2,273 2,265 2,404 Net occupancy expense 1,169 1,052 1,104 1,075 1,199 Furniture and equipment 1,566 1,352 1,532 1,414 1,278 Data processing 994 964 1,109 1,057 557 Franchise taxes 400 397 397 397 397 ATM expense 576 676 665 761 491 Advertising 472 666 674 356 503 FDIC assessment 396 377 428 448 465 Servicing rights amortization - net 523 637 586 234 127 Loan expense 309 292 362 328 228 Consulting fees 254 182 242 494 745 Professional fees 500 352 516 502 559 Intangible asset amortization 305 446 445 444 445 Other general and administrative 1,691 1,237 1,298 1,918 1,484 Total noninterest expense 19,801 19,053 19,739 19,260 18,760
Income Before Income Taxes 12,335 12,833 11,234 9,698 8,760
Income Taxes 2,757 3,040 2,380 1,988 1,808
Net Income 9,578 9,793 8,854 7,710 6,952
Other Comprehensive Income (Loss) (Net of Tax): Net unrealized gain (loss) on available-for-sale securities (2,420) 2,657 6,610 1,149 6,464 Reclassification adjustment for realized loss on sale of available-for-sale securities 347 - - - - Net unrealized gain (loss) on available-for-sale securities (2,073) 2,657 6,610 1,149 6,464 Tax expense (benefit) (435) 558 1,388 241 1,358 Other comprehensive income (loss) (1,638) 2,099 5,222 908 5,106
Comprehensive Income $7,940 $11,892 $14,076 $8,618 $12,058
Basic Earnings Per Share $0.70 $0.71 $0.64 $0.56 $0.51
Diluted Earnings Per Share $0.70 $0.71 $0.64 $0.56 $0.51
Dividends Declared $0.23000 $0.23000 $0.22750 $0.22125 $0.22125
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) (in thousands of dollars, except share data) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Assets Cash and due from banks $172,847 $97,249 $116,448 $87,596 $172,612 Federal funds sold 623 469 582 635 425 Total cash and cash equivalents 173,470 97,718 117,030 88,231 173,037 Interest-bearing time deposits 1,253 1,498 1,498 1,992 1,992 Securities - available-for-sale 429,623 422,072 422,773 431,102 438,568 Other securities, at cost 12,672 13,032 11,509 13,994 14,062 Loans held for sale 5,579 3,934 3,003 6,359 2,331 Loans, net of allowance for credit losses 2,654,135 2,685,990 2,632,668 2,599,917 2,555,552 Premises and equipment 31,534 31,864 32,321 32,885 33,163 Goodwill 86,358 86,358 86,358 86,358 86,358 Loan servicing rights 4,972 5,175 5,537 5,810 5,805 Other real estate owned 319 Bank owned life insurance 45,407 47,410 35,602 35,355 35,116 Other assets 40,247 39,331 42,453 43,760 42,802
Total Assets $3,485,569 $3,434,382 $3,390,752 $3,345,763 $3,388,786
Liabilities and Stockholders' Equity Liabilities Deposits Noninterest-bearing $520,348 $527,327 $500,742 $497,804 $502,318 Interest-bearing NOW accounts 910,723 876,151 920,099 899,602 874,881 Savings 753,289 729,472 713,391 691,468 696,635 Time 625,302 597,785 617,679 621,455 626,450 Total deposits 2,809,662 2,730,735 2,751,911 2,710,329 2,700,284 Federal funds purchased and securities sold under agreements to repurchase 14,762 37,718 22,718 27,562 27,258 Federal Home Loan Bank (FHLB) advances 218,987 227,377 187,913 188,445 245,474 Subordinated notes, net of unamortized issuance costs 34,962 34,933 34,904 34,875 34,846 Dividend payable 3,128 3,125 3,091 3,000 2,997 Accrued expenses and other liabilities 28,120 29,632 28,435 30,760 33,326 Total liabilities 3,109,621 3,063,520 3,028,972 2,994,971 3,044,185
Commitments and Contingencies Stockholders' Equity Common stock - No par value authorized 40,000,000 shares 3/31/26 and 12/31/25; issued 14,564,425 shares 3/31/26 and 12/31/25; outstanding 13,768,667 shares 3/31/26 and 13,748,074 shares 12/31/25 135,270 135,531 135,170 135,805 135,407 Treasury stock - 795,758 shares 3/31/26 and 816,351 shares 12/31/25 (10,403) (10,636) (10,584) (10,674) (10,768)Retained earnings 264,607 257,855 251,181 244,870 240,079 Accumulated other comprehensive loss (13,526) (11,888) (13,987) (19,209) (20,117) Total stockholders' equity 375,948 370,862 361,780 350,792 344,601
Total Liabilities and Stockholders' Equity $3,485,569 $3,434,382 $3,390,752 $3,345,763 $3,388,786
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIESSELECT FINANCIAL DATA
For the Three Months EndedSelected financial data March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025Return on average assets 1.14% 1.14% 1.05% 0.92% 0.85%Return on average equity 10.31% 10.55% 9.83% 8.88% 8.31%Yield on earning assets 5.38% 5.55% 5.62% 5.45% 5.19%Cost of interest-bearing liabilities 2.54% 2.69% 2.83% 2.83% 2.76%Net interest spread 2.84% 2.86% 2.79% 2.62% 2.43%Net interest margin 3.42% 3.46% 3.40% 3.22% 3.03%Efficiency ratio 60.08% 58.38% 63.11% 64.93% 66.79%Dividend payout ratio 32.62% 31.90% 34.90% 38.91% 43.10%Tangible book value per share $20.76 $20.40 $19.71 $18.91 $18.44 Tier 1 leverage ratio 9.02% 8.81% 8.74% 8.50% 8.44%Average shares outstanding 13,754,684 13,749,420 13,733,858 13,720,339 13,706,003
Loans March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
(Dollar amounts in thousands) Commercial real estate $1,315,549 $1,355,571 $1,355,166 $1,345,953 $1,325,698 Agricultural real estate 215,846 217,034 222,145 221,004 215,898 Consumer real estate 534,987 526,439 522,416 523,781 523,383 Commercial and industrial 309,046 314,405 296,084 293,826 278,254 Agricultural 228,730 218,050 179,361 157,870 153,607 Consumer 55,576 58,838 60,469 59,348 60,115 Other 22,564 23,133 24,086 24,653 24,985 Less: Net deferred loan fees, costs and other(1) (1,436) (1,511) (1,452) (1,488) (1,748)Total loans, net $2,680,862 $2,711,959 $2,658,275 $2,624,947 $2,580,192
Asset quality data March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
(Dollar amounts in thousands) Nonaccrual loans $11,070 $11,256 $5,155 $3,745 $4,492 90 day past due and accruing $- $- $- $- $- Nonperforming loans $11,070 $11,256 $5,155 $3,745 $4,492 Other real estate owned $319 $- $- $- $- Nonperforming assets $11,389 $11,256 $5,155 $3,745 $4,492 Allowance for credit losses - loans $27,830 $27,688 $27,475 $26,977 $26,352 Allowance for credit losses - off balance sheet credit exposures 1,041 1,035 1,037 1,308 1,281 Total allowance for credit losses $28,871 $28,723 $28,512 $28,285 $27,633 Total allowance for credit losses/total loans 1.08% 1.06% 1.07% 1.08% 1.07%Net charge-offs: Quarter-to-date $160 $354 $59 $36 $285 Year-to-date $160 $734 $380 $321 $285 Net charge-offs to average loans Quarter-to-date 0.01% 0.01% 0.00% 0.00% 0.01%Year-to-date 0.01% 0.03% 0.01% 0.01% 0.01%Nonperforming loans/total loans 0.42% 0.42% 0.19% 0.14% 0.17%Allowance for credit losses/nonperforming loans 251.40% 245.98% 532.98% 720.35% 586.64%NPA coverage ratio 244.36% 245.98% 532.98% 720.35% 586.64% (1)Excludes carrying value adjustments of $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025, $1.9 million as of September 30, 2025, $1.9 million as of June 30, 2025 and $1.7 million as of March 31, 2025 related to interest rate swaps associated with fixed rate loans
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIESAVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES(in thousands of dollars, except percentages)
For the Three Months Ended For the Three Months Ended March 31, 2026 March 31, 2025Interest Earning Assets: Average Balance Interest/Dividends Annualized Yield/Rate Average Balance Interest/Dividends Annualized Yield/RateLoans $2,699,645 $39,827 5.90% $2,578,531 $37,072 5.75%Taxable investment securities 438,799 2,830 2.58% 458,519 2,739 2.39%Tax-exempt investment securities 13,228 69 2.64% 18,310 78 2.16%Fed funds sold & other 66,720 572 3.40% 105,770 1,113 4.21%Total Interest Earning Assets 3,218,392 $43,298 5.38% 3,161,130 $41,002 5.19% Nonearning Assets 192,648 166,630 Total Assets $3,411,040 $3,327,760 Interest-Bearing Liabilities: NOW accounts and savings deposits $1,625,117 $8,531 2.10% $1,543,665 $8,564 2.22%Time deposits 602,375 4,718 3.13% 627,498 5,424 3.46%Other borrowed money 215,937 2,176 4.03% 245,734 2,550 4.15%Fed funds purchased & securities sold under agreement to repurchase 17,285 145 3.36% 27,480 271 3.94%Subordinated notes 34,943 284 3.25% 34,828 284 3.26%Total Interest-Bearing Liabilities $2,495,657 $15,854 2.54% $2,479,205 $17,093 2.76% Noninterest-Bearing Liabilities 538,460 509,190 Stockholders' Equity $376,923 $339,365 Net Interest Income and Interest Rate Spread $27,444 2.84% $23,909 2.43% Net Interest Margin 3.42% 3.03% 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 SUBSIDIARIESAVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES(in thousands of dollars, except percentages)
For the Three Months Ended March 31, 2026 For the Three Months Ended March 31, 2025 As Reported Excluding Acc/AmortDifference As Reported Excluding Acc/AmortDifference $Yield $Yield $Yield $Yield $Yield $YieldInterest Earning Assets: Loans $39,8275.90% $39,4475.85% $3800.05% $37,0725.75% $36,4685.66% $6040.09%Taxable investment securities 2,8302.58% 2,8302.58% -0.00% 2,7392.39% 2,7392.39% -0.00%Tax-exempt investment securities 692.64% 692.64% -0.00% 782.16% 782.16% -0.00%Fed funds sold & other 5723.40% 5723.40% -0.00% 1,1134.21% 1,1134.21% -0.00%
Total Interest Earning Assets 43,2985.38% 42,9185.34% 3800.04% 41,0025.19% 40,3985.11% 6040.08% Interest-Bearing Liabilities: NOW accounts and savings deposits $8,5312.10% $8,5312.10% $-0.00% $8,5642.22% $8,5642.22% $-0.00%Time deposits 4,7183.13% 4,7183.13% -0.00% 5,4243.46% 5,4243.46% -0.00%Other borrowed money 2,1764.03% 2,1734.03% 30.00% 2,5504.15% 2,5474.15% 30.00%Federal funds purchased and securities sold under agreement to repurchase 1453.36% 1453.36% -0.00% 2713.94% 2713.94% -0.00%Subordinated notes 2843.25% 2843.25% -0.00% 2843.26% 2843.26% -0.00%
Total Interest-Bearing Liabilities 15,8542.54% 15,8512.54% 30.00% 17,0932.76% 17,0902.76% 3-0.00% Interest/Dividend income/yield 43,2985.38% 42,9185.34% 3800.04% 41,0025.19% 40,3985.11% 6040.08%Interest Expense / yield 15,8542.54% 15,8512.54% 30.00% 17,0932.76% 17,0902.76% 3-0.00%Net Interest Spread 27,4442.84% 27,0672.80% 3770.04% 23,9092.43% 23,3082.35% 6010.08%Net Interest Margin 3.42% 3.37% 0.05% 3.03% 2.95% 0.08%
Company Contact:Investor and Media Contact:Lars B. Eller
President and Chief Executive Officer
Farmers & Merchants Bancorp, Inc.
(419) 446-2501
[email protected] M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
[email protected]
