Farmers & Merchants Bancorp, Inc. Reports 2026 Third-Quarter and Year-to-Date Financial Results

ARCHBOLD, Ohio, Oct. 22, 2026 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2026 third quarter and year-to-date ended September 30, 2026, on a consolidated basis.

2026 Third-Quarter Financial and Operating Highlights
(at September 30, 2026, and on a year-over-year basis unless noted)

94 consecutive quarters of profitability
Net income increased 30.3% to $11.5 million, or $0.84 per basic and diluted share
Strong profitability drives ROAA to 1.29%, compared to 1.05%
Net charge-offs to average loans of 0.00%
Tier 1 leverage ratio was 9.14%
Cost of interest-bearing liabilities improved to 2.59%, from 2.83%
Net interest margin increased by 17 basis points to 3.57%
Efficiency ratio improved to 58.09%, compared to 63.11%
Third quarter regular dividend per share increased 5.5% to $0.96 annualized
Company declared an additional $0.01 per share special dividend, bringing total third-quarter payment to $0.250 per share

Lars B. Eller, President and Chief Executive Officer, stated, “2026 is shaping up to be a historic year of profitability and growth with year-to-date earnings per share increasing 39.8% to $2.39. Throughout the 2026 nine-month period, our team has worked hard to expand our net interest margin, control operating expenses, grow our balance sheet, and maintain excellent asset quality. We are encouraged by the progress we have made across these key priorities and believe we are well positioned to sustain our positive momentum through the remainder of 2026 and into 2027.”

Income Statement
Net income for the quarter ended September 30, 2026, was $11.5 million, compared to $8.9 million for the same period last year. Net income per basic and diluted share for the 2026 third quarter was $0.84, compared to $0.64 for the same period last year. Net income for the nine months ended September 30, 2026, was $32.9 million, compared to $23.5 million for the same period last year. Net income per basic and diluted share for the 2026 nine months was $2.39, compared to $1.71 for the same period last year.

Mr. Eller continued: “We believe F&M is well positioned to navigate a higher interest rate environment and capitalize on opportunities to further expand our net interest margin. With loan repricing opportunities extending through 2028, we believe we have a favorable backdrop to support interest income growth in the coming quarters and years. Combined with our disciplined approach to deposit pricing and funding costs, we remain optimistic about our ability to maintain the significant improvement in net interest margin achieved over the past year.”

Deposits
At September 30, 2026, total deposits were $2.96 billion, an increase of 7.7%, or $210.6 million from September 30, 2025. For the three months ended September 30, 2026, F&M’s cost of interest-bearing liabilities was 2.59%, compared to 2.83% in the same period last year.

Loan Portfolio and Asset Quality
Total loans, net at September 30, 2026, increased 3.0%, or by $79.0 million to $2.74 billion, compared to $2.66 billion at September 30, 2025. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and consumer real estate loans, partially offset by lower commercial real estate, consumer, and agricultural real estate 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 year-over-year basis and were $6.2 million, or 0.23% of total loans at September 30, 2026, compared to $7.4 million, or 0.27% of total loans at June 30, 2026, and $5.2 million, or 0.19% of total loans at September 30, 2025.

F&M maintains a well-balanced, diverse, and high performing CRE portfolio. CRE loans represented 48.2% of the Company’s total loan portfolio at September 30, 2026. F&M’s CRE portfolio included the following categories at September 30, 2026 ^(*):

CRE Category	Dollar Balance		Percent of CRE Portfolio	Percent of Total Loan Portfolio

Multi-family	$	248,851	18.8%	9.1%
Retail		241,155	18.3%	8.8%
Industrial		211,320	16.0%	7.7%
Hotels		176,727	13.4%	6.5%
Office		125,283	9.5%	4.6%
Gas Stations		83,361	6.3%	3.0%
Food Service		53,045	4.0%	1.9%
Development		35,527	2.7%	1.3%
Auto Dealers		26,163	2.0%	1.0%
Senior Living		17,205	1.3%	0.6%
Other		102,384	7.7%	3.7%
Total CRE	$	1,321,021	100.0%	48.2%

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

At September 30, 2026, the Company’s total allowance for credit losses to total loans was 1.08%, compared to 1.07% at September 30, 2025.

Mr. Eller concluded, “Our relationship-based banking model and local decision-making continue to differentiate F&M across our Ohio, Indiana, and Michigan markets. We maintain a healthy lending pipeline, reflecting continued opportunities to support businesses and consumers throughout our communities. Our local market knowledge and disciplined underwriting practices allow us to remain selective in pursuing new business while maintaining strong asset quality. We believe this balanced approach to profitable growth, combined with our continued focus on operational efficiency and shareholder returns, positions F&M to build upon our strong financial performance.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 6.9% to $386.9 million, or $28.12 per share at September 30, 2026, from $361.8 million, or $26.31 per share at September 30, 2025. The Company had a Tier 1 leverage ratio of 9.14% at September 30, 2026, compared to 8.74% at September 30, 2025.

Tangible stockholders’ equity increased to $297.5 million at September 30, 2026, compared to $271.0 million at September 30, 2025. On a per share basis, tangible stockholders’ equity at September 30, 2026, was $21.62 per share, compared to $19.71 per share at September 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 32 consecutive years. For the nine months ended September 30, 2026, the Company declared cash dividends of $0.71 per share, representing a 6.0% increase over the same period last year. For the nine months ended September 30, 2026, the dividend payout ratio was 29.34% compared to 38.64% for the same period last year.

As part of F&M’s disciplined approach to capital management, the Company has continued to actively repurchase shares of F&M common stock. These repurchases are intended, in part, to help offset dilution associated with equity-based management compensation while supporting F&M’s broader objective of managing capital in a manner that enhances long-term shareholder value.

Mr. Eller concluded, “One of the most rewarding aspects of our continued financial success is the ability to share that success with our shareholders. Our 32^nd consecutive annual dividend increase, and third quarter special dividend, are testaments to the strength of our franchise, the consistency of our financial performance, and our disciplined approach to capital management. We believe the combination of profitable growth, a strong balance sheet, and consistent capital returns positions F&M to create meaningful long-term value for our shareholders.”

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															Nine Months Ended
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			September 30, 2026			September 30, 2025
Interest Income
Loans, including fees	$	42,061		$	40,839		$	39,827		$	40,999		$	41,013		$	122,727		$	117,615
Debt securities:
U.S. Treasury and government agencies		3,057			2,712			2,305			2,259			2,224			8,074			6,552
Municipalities and corporate bonds		346			347			349			362			366			1,042			1,117
Dividends		207			239			245			250			309			691			958
Federal funds sold and other		1,321			1,510			572			696			572			3,403			2,736
Total interest income		46,992			45,647			43,298			44,566			44,484			135,937			128,978
Interest Expense
Deposits		14,758			14,432			13,249			14,318			15,060			42,439			43,861
Federal funds purchased and securities sold under agreements to repurchase		120			118			145			226			273			383			816
Borrowed funds		1,694			1,894			2,176			1,966			1,966			5,764			6,927
Subordinated notes		480			285			284			285			284			1,049			853
Total interest expense		17,052			16,729			15,854			16,795			17,583			49,635			52,457
Net Interest Income – Before Provision for Credit Losses		29,940			28,918			27,444			27,771			26,901			86,302			76,521
Provision for (Recovery of) Credit Losses – Loans		(104	)		173			302			567			557			371			2,029
Provision for (Recovery of) Credit Losses – Off Balance Sheet Exposures		479			148			6			(1	)		(272	)		633			(505	)
Net Interest Income After Provision for Credit Losses		29,565			28,597			27,136			27,205			26,616			85,298			74,997
Noninterest Income
Customer service fees		380			544			483			337			370			1,407			1,081
Other service charges and fees		1,331			1,301			1,283			1,311			1,349			3,915			3,679
Interchange income		1,339			1,347			1,513			1,275			1,273			4,199			3,953
Loan servicing income		686			846			838			814			674			2,370			2,065
Net gain on sale of loans		399			683			575			306			444			1,657			985
Increase in cash surrender value of bank owned life insurance		731			681			655			640			247			2,067			730
Gain (loss) on sale of other assets owned		1			30			–			(2	)		–			31			(39	)
Loss on sale of available-for-sale securities		–			–			(347	)		–			–			(347	)		–
Total noninterest income		4,867			5,432			5,000			4,681			4,357			15,299			12,454
Noninterest Expense
Salaries and wages		8,594			8,381			8,267			8,037			8,108			25,242			23,553
Employee benefits		2,458			2,338			2,379			2,386			2,273			7,175			6,942
Net occupancy expense		1,081			931			1,169			1,052			1,104			3,181			3,378
Furniture and equipment		1,685			1,594			1,566			1,352			1,532			4,845			4,224
Data processing		840			778			994			964			1,109			2,612			2,723
Franchise taxes		394			395			400			397			397			1,189			1,191
ATM expense		576			561			576			676			665			1,713			1,917
Advertising		906			363			472			666			674			1,741			1,533
FDIC assessment		413			389			396			377			428			1,198			1,341
Servicing rights amortization – net		349			328			523			637			586			1,200			947
Loan expense		530			578			309			292			362			1,417			918
Consulting fees		312			325			254			182			242			891			1,481
Professional fees		447			425			500			352			516			1,372			1,577
Intangible asset amortization		305			304			305			446			445			914			1,334
Other general and administrative		1,328			1,574			1,691			1,237			1,298			4,593			4,700
Total noninterest expense		20,218			19,264			19,801			19,053			19,739			59,283			57,759
Income Before Income Taxes		14,214			14,765			12,335			12,833			11,234			41,314			29,692
Income Taxes		2,676			2,968			2,757			3,040			2,380			8,401			6,176
Net Income		11,538			11,797			9,578			9,793			8,854			32,913			23,516
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		(5,915	)		(545	)		(2,420	)		2,657			6,610			(8,880	)		14,223
Reclassification adjustment for realized loss on sale of available-for-sale securities		–			–			347			–			–			347			–
Net unrealized gain (loss) on available-for-sale securities		(5,915	)		(545	)		(2,073	)		2,657			6,610			(8,533	)		14,223
Tax expense (benefit)		(1,242	)		(115	)		(435	)		558			1,388			(1,792	)		2,987
Other comprehensive income (loss)		(4,673	)		(430	)		(1,638	)		2,099			5,222			(6,741	)		11,236
Comprehensive Income	$	6,865		$	11,367		$	7,940		$	11,892		$	14,076		$	26,172		$	34,752
Basic Earnings Per Share	$	0.84		$	0.86		$	0.70		$	0.71		$	0.64		$	2.39		$	1.71
Diluted Earnings Per Share	$	0.84		$	0.86		$	0.70		$	0.71		$	0.64		$	2.39		$	1.71

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)

	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	205,125		$	155,879		$	172,847		$	97,249		$	116,448
Federal funds sold		686			511			623			469			582
Total cash and cash equivalents		205,811			156,390			173,470			97,718			117,030

Interest-bearing time deposits		518			518			1,253			1,498			1,498
Securities – available-for-sale		455,977			441,254			429,623			422,072			422,773
Other securities, at cost		10,681			10,681			12,672			13,032			11,509
Loans held for sale		2,527			2,994			5,579			3,934			3,003
Loans, net of allowance for credit losses		2,709,358			2,677,072			2,654,135			2,685,990			2,632,668
Premises and equipment		29,590			30,334			31,534			31,864			32,321
Goodwill		86,358			86,358			86,358			86,358			86,358
Loan servicing rights		5,034			5,085			4,972			5,175			5,537
Other real estate owned		–			–			319
Bank owned life insurance		48,751			48,021			45,407			47,410			35,602
Other assets		44,450			43,411			40,247			39,331			42,453

Total Assets	$	3,599,055		$	3,502,118		$	3,485,569		$	3,434,382		$	3,390,752

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	518,286		$	506,119		$	520,348		$	527,327		$	500,742
Interest-bearing
NOW accounts		952,573			898,902			910,723			876,151			920,099
Savings		803,763			771,379			753,289			729,472			713,391
Time		687,870			693,008			625,302			597,785			617,679
Total deposits		2,962,492			2,869,408			2,809,662			2,730,735			2,751,911

Federal funds purchased and securities
sold under agreements to repurchase		15,168			14,771			14,762			37,718			22,718
Federal Home Loan Bank (FHLB) advances		167,903			168,447			218,987			227,377			187,913
Subordinated notes, net of unamortized issuance costs		35,000			34,991			34,962			34,933			34,904
Dividend payable		3,399			3,130			3,128			3,125			3,091
Accrued expenses and other liabilities		28,166			26,655			28,120			29,632			28,435
Total liabilities		3,212,128			3,117,402			3,109,621			3,063,520			3,028,972

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value; authorized 40,000,000 shares;
issued 14,564,425 shares; outstanding 13,762,268 shares 9/30/26
and 13,748,074 shares 12/31/25		134,761			135,510			135,270			135,531			135,170
Treasury stock – 802,157 shares 9/30/26 and 816,351 shares 12/31/25		(11,651	)		(10,293	)		(10,403	)		(10,636	)		(10,584	)
Retained earnings		282,446			273,455			264,607			257,855			251,181
Accumulated other comprehensive loss		(18,629	)		(13,956	)		(13,526	)		(11,888	)		(13,987	)
Total stockholders’ equity		386,927			384,716			375,948			370,862			361,780

Total Liabilities and Stockholders’ Equity	$	3,599,055		$	3,502,118		$	3,485,569		$	3,434,382		$	3,390,752

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA

	For the Three Months Ended															For the Nine Months Ended
Selected financial data	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			September 30, 2026			September 30, 2025
Return on average assets		1.29	%		1.34	%		1.14	%		1.14	%		1.05	%		1.25	%		0.94	%
Return on average equity		11.76	%		12.37	%		10.31	%		10.55	%		9.83	%		11.45	%		8.99	%
Yield on earning assets		5.61	%		5.48	%		5.38	%		5.55	%		5.62	%		5.50	%		5.42	%
Cost of interest-bearing liabilities		2.59	%		2.56	%		2.54	%		2.69	%		2.83	%		2.56	%		2.84	%
Net interest spread		3.02	%		2.92	%		2.84	%		2.86	%		2.79	%		2.94	%		2.58	%
Net interest margin		3.57	%		3.48	%		3.42	%		3.46	%		3.40	%		3.50	%		3.22	%
Efficiency ratio		58.09	%		56.08	%		60.08	%		58.38	%		63.11	%		58.15	%		64.87	%
Dividend payout ratio		29.45	%		26.53	%		32.62	%		31.90	%		34.90	%		29.34	%		38.64	%
Tangible book value per share	$	21.62		$	21.41		$	20.76		$	20.40		$	19.71
Tier 1 leverage ratio		9.14	%		8.99	%		9.02	%		8.81	%		8.74	%
Average shares outstanding		13,779,936			13,773,387			13,754,684			13,749,420			13,733,858			13,769,428			13,720,168

Loans	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
(Dollar amounts in thousands)
Commercial real estate	$	1,321,021		$	1,308,600		$	1,315,549		$	1,355,571		$	1,355,166
Agricultural real estate		210,321			208,223			215,846			217,034			222,145
Consumer real estate		548,913			533,438			534,987			526,439			522,416
Commercial and industrial		343,720			337,487			309,046			314,405			296,084
Agricultural		245,639			244,611			228,730			218,050			179,361
Consumer		47,251			50,953			55,576			58,838			60,469
Other		22,089			22,574			22,564			23,133			24,086
Less: Net deferred loan fees, costs and other ⁽¹⁾		(1,635	)		(1,419	)		(1,436	)		(1,511	)		(1,452	)
Total loans, net	$	2,737,319		$	2,704,467		$	2,680,862		$	2,711,959		$	2,658,275


Asset quality data	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
(Dollar amounts in thousands)
Nonaccrual loans	$	6,219		$	7,383		$	11,070		$	11,256		$	5,155
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	6,219		$	7,383		$	11,070		$	11,256		$	5,155
Other real estate owned	$	–		$	–		$	319		$	–		$	–
Nonperforming assets	$	6,219		$	7,383		$	11,389		$	11,256		$	5,155


Allowance for credit losses – loans	$	27,802		$	27,941		$	27,830		$	27,688		$	27,475
Allowance for credit losses – off balance sheet credit exposures		1,668			1,189			1,041			1,035			1,037
Total allowance for credit losses	$	29,470		$	29,130		$	28,871		$	28,723		$	28,512
Total allowance for credit losses/total loans		1.08	%		1.08	%		1.08	%		1.06	%		1.07	%
Net charge-offs:
Quarter-to-date	$	35		$	62		$	160		$	354		$	59
Year-to-date	$	257		$	222		$	160		$	734		$	380
Net charge-offs to average loans
Quarter-to-date		0.00	%		0.00	%		0.01	%		0.01	%		0.00	%
Year-to-date		0.01	%		0.01	%		0.01	%		0.03	%		0.01	%
Nonperforming loans/total loans		0.23	%		0.27	%		0.42	%		0.42	%		0.19	%
Allowance for credit losses/nonperforming loans		447.05	%		378.45	%		251.40	%		245.98	%		532.98	%
NPA coverage ratio		447.05	%		378.45	%		244.36	%		245.98	%		532.98	%

⁽¹⁾Excludes carrying value adjustments of ($159) thousand as of September 30, 2026, $546 thousand as of June 30, 2026, $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025 and $1.9 million as of September 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
	September 30, 2026						September 30, 2025
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate		Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	2,726,585	$	42,061	6.18	%	$	2,649,409	$	41,013	6.19	%
Taxable investment securities		473,448		3,545	3.00	%		445,088		2,827	2.54	%
Tax-exempt investment securities		12,202		65	2.70	%		16,066		72	2.27	%
Fed funds sold & other		145,409		1,321	3.63	%		56,131		572	4.08	%
Total Interest Earning Assets		3,357,644	$	46,992	5.61	%		3,166,694	$	44,484	5.62	%

Nonearning Assets		191,469						182,320

Total Assets	$	3,549,113					$	3,349,014

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	1,730,869	$	9,749	2.25	%	$	1,620,026	$	9,966	2.46	%
Time deposits		684,990		5,009	2.93	%		609,844		5,094	3.34	%
Other borrowed money		168,106		1,694	4.03	%		188,123		1,966	4.18	%
Fed funds purchased & securities
sold under agreement to repurchase		14,835		120	3.24	%		27,274		273	4.00	%
Subordinated notes		34,997		480	5.49	%		34,885		284	3.26	%
Total Interest-Bearing Liabilities	$	2,633,797	$	17,052	2.59	%	$	2,480,152	$	17,583	2.83	%

Noninterest-Bearing Liabilities		526,148						511,468

Stockholders’ Equity	$	389,168					$	357,394

Net Interest Income and Interest Rate Spread			$	29,940	3.02	%			$	26,901	2.79	%

Net Interest Margin					3.57	%					3.40	%

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, 2026						September 30, 2025
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate		Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	2,705,821	$	122,727	6.06	%	$	2,615,332	$	117,615	6.00	%
Taxable investment securities		456,789		9,606	2.80	%		454,288		8,403	2.47	%
Tax-exempt investment securities		12,729		201	2.67	%		17,025		224	2.22	%
Fed funds sold & other		127,828		3,403	3.55	%		87,106		2,736	4.19	%
Total Interest Earning Assets		3,303,167	$	135,937	5.50	%		3,173,751	$	128,978	5.42	%

Nonearning Assets		192,543						174,982

Total Assets	$	3,495,710					$	3,348,733

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	1,688,457	$	27,678	2.19	%	$	1,557,564	$	28,009	2.40	%
Time deposits		651,283		14,761	3.02	%		621,126		15,852	3.40	%
Other borrowed money		190,338		5,764	4.04	%		220,820		6,927	4.18	%
Fed funds purchased & securities
sold under agreement to repurchase		15,646		383	3.26	%		27,352		816	3.98	%
Subordinated notes		34,971		1,049	4.00	%		34,856		853	3.26	%
Total Interest-Bearing Liabilities	$	2,580,695	$	49,635	2.56	%	$	2,461,718	$	52,457	2.84	%

Noninterest-Bearing Liabilities		532,079						538,665

Stockholders’ Equity	$	382,936					$	348,350

Net Interest Income and Interest Rate Spread			$	86,302	2.94	%			$	76,521	2.58	%

Net Interest Margin					3.50	%					3.22	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)

	For the Three Months Ended September 30, 2026												For the Three Months Ended September 30, 2025
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$		Yield
Interest Earning Assets:
Loans	$	42,061	6.18	%	$	42,054	6.18	%	$	7	0.00	%	$	41,013	6.19	%	$	40,359	6.09	%	$	654	0.10	%
Taxable investment securities		3,545	3.00	%		3,545	3.00	%		–	0.00	%		2,827	2.54	%		2,827	2.54	%		–	0.00	%
Tax-exempt investment securities		65	2.70	%		65	2.70	%		–	0.00	%		72	2.27	%		72	2.27	%		–	0.00	%
Fed funds sold & other		1,321	3.63	%		1,321	3.63	%		–	0.00	%		572	4.08	%		572	4.08	%		–	0.00	%
Total Interest Earning Assets		46,992	5.61	%		46,985	5.60	%		7	0.01	%		44,484	5.62	%		43,830	5.54	%		654	0.08	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	9,749	2.25	%	$	9,749	2.25	%	$	–	0.00	%	$	9,966	2.46	%	$	9,966	2.46	%	$	–	0.00	%
Time deposits		5,009	2.93	%		5,009	2.93	%		–	0.00	%		5,094	3.34	%		5,094	3.34	%		–	0.00	%
Other borrowed money		1,694	4.03	%		1,691	4.02	%		3	0.01	%		1,966	4.18	%		1,963	4.17	%		3	0.01	%
Federal funds purchased and
securities sold under agreement to
repurchase		120	3.24	%		120	3.24	%		–	0.00	%		273	4.00	%		273	4.00	%		–	0.00	%
Subordinated notes		480	5.49	%		480	5.49	%		–	0.00	%		284	3.26	%		284	3.26	%		–	0.00	%
Total Interest-Bearing Liabilities		17,052	2.59	%		17,049	2.59	%		3	0.00	%		17,583	2.83	%		17,580	2.84	%		3	-0.01	%

Interest/Dividend income/yield		46,992	5.61	%		46,985	5.60	%		7	0.01	%		44,484	5.62	%		43,830	5.54	%		654	0.08	%
Interest Expense / yield		17,052	2.59	%		17,049	2.59	%		3	0.00	%		17,583	2.83	%		17,580	2.84	%		3	-0.01	%
Net Interest Spread		29,940	3.02	%		29,936	3.01	%		4	0.01	%		26,901	2.79	%		26,250	2.70	%		651	0.09	%
Net Interest Margin			3.57	%			3.57	%			0.00	%			3.40	%			3.32	%			0.08	%


	For the Nine Months Ended September 30, 2026												For the Nine Months Ended September 30, 2025
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$		Yield
Interest Earning Assets:
Loans	$	122,727	6.06	%	$	122,110	6.03	%	$	617	0.03	%	$	117,615	6.00	%	$	115,755	5.90	%	$	1,860	0.10	%
Taxable investment securities		9,606	2.80	%		9,606	2.80	%		–	0.00	%		8,403	2.47	%		8,403	2.47	%		–	0.00	%
Tax-exempt investment securities		201	2.67	%		201	2.67	%		–	0.00	%		224	2.22	%		224	2.22	%		–	0.00	%
Fed funds sold & other		3,403	3.55	%		3,403	3.55	%		–	0.00	%		2,736	4.19	%		2,736	4.19	%		–	0.00	%
Total Interest Earning Assets		135,937	5.50	%		135,320	5.47	%		617	0.03	%		128,978	5.42	%		127,118	5.34	%		1,860	0.08	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	27,678	2.19	%	$	27,678	2.19	%	$	–	0.00	%	$	28,009	2.40	%	$	28,009	2.40	%	$	–	0.00	%
Time deposits		14,761	3.02	%		14,761	3.02	%		–	0.00	%		15,852	3.40	%		15,852	3.40	%		–	0.00	%
Other borrowed money		5,764	4.04	%		5,754	4.03	%		10	0.01	%		6,927	4.18	%		6,917	4.18	%		10	0.00	%
Federal funds purchased and
securities sold under agreement to
repurchase		383	3.26	%		383	3.26	%		–	0.00	%		816	3.98	%		816	3.98	%		–	0.00	%
Subordinated notes		1,049	4.00	%		1,049	4.00	%		–	0.00	%		853	3.26	%		853	3.26	%		–	0.00	%
Total Interest-Bearing Liabilities		49,635	2.56	%		49,625	2.56	%		10	0.00	%		52,457	2.84	%		52,447	2.84	%		10	0.00	%

Interest/Dividend income/yield		135,937	5.50	%		135,320	5.47	%		617	0.03	%		128,978	5.42	%		127,118	5.34	%		1,860	0.08	%
Interest Expense / yield		49,635	2.56	%		49,625	2.56	%		10	0.00	%		52,457	2.84	%		52,447	2.84	%		10	0.00	%
Net Interest Spread		86,302	2.94	%		85,695	2.91	%		607	0.03	%		76,521	2.58	%		74,671	2.50	%		1,850	0.08	%
Net Interest Margin			3.50	%			3.47	%			0.03	%			3.22	%			3.14	%			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	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Stockholders’ Equity	$	386,927	$	384,716	$	375,948	$	370,862	$	361,780
Less Goodwill and Other Intangibles		89,433		89,738		90,043		90,347		90,792
Tangible Common Equity	$	297,494	$	294,978	$	285,905	$	280,515	$	270,988

Average Stockholders’ Equity	$	389,168	$	382,584	$	376,923	$	368,235	$	357,394
Less average Goodwill and Other Intangibles		89,633		89,933		90,234		90,629		91,076
Average Tangible Common Equity	$	299,535	$	292,651	$	286,689	$	277,606	$	266,318

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

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Farmers & Merchants Bancorp, Inc.