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Farmers & Merchants Bancorp, Inc. Reports 2026 First-Quarter Financial Results

News Provided by GlobeNewswire2026-04-22

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	Dollar Balance		Percent of CRE Portfolio	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 SUBSIDIARIES
CONSOLIDATED 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 SUBSIDIARIES
CONDENSED 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 SUBSIDIARIES
SELECT FINANCIAL DATA

	For the Three Months Ended
Selected financial data	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Return 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 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
	March 31, 2026						March 31, 2025
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	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 SUBSIDIARIES
AVERAGE 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/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$		Yield
Interest Earning Assets:
Loans	$	39,827	5.90	%	$	39,447	5.85	%	$	380	0.05	%	$	37,072	5.75	%	$	36,468	5.66	%	$	604	0.09	%
Taxable investment securities		2,830	2.58	%		2,830	2.58	%		-	0.00	%		2,739	2.39	%		2,739	2.39	%		-	0.00	%
Tax-exempt investment securities		69	2.64	%		69	2.64	%		-	0.00	%		78	2.16	%		78	2.16	%		-	0.00	%
Fed funds sold & other		572	3.40	%		572	3.40	%		-	0.00	%		1,113	4.21	%		1,113	4.21	%		-	0.00	%
Total Interest Earning Assets		43,298	5.38	%		42,918	5.34	%		380	0.04	%		41,002	5.19	%		40,398	5.11	%		604	0.08	%

Interest-Bearing Liabilities:
NOW accounts and savings deposits	$	8,531	2.10	%	$	8,531	2.10	%	$	-	0.00	%	$	8,564	2.22	%	$	8,564	2.22	%	$	-	0.00	%
Time deposits		4,718	3.13	%		4,718	3.13	%		-	0.00	%		5,424	3.46	%		5,424	3.46	%		-	0.00	%
Other borrowed money		2,176	4.03	%		2,173	4.03	%		3	0.00	%		2,550	4.15	%		2,547	4.15	%		3	0.00	%
Federal funds purchased and
securities sold under agreement to
repurchase		145	3.36	%		145	3.36	%		-	0.00	%		271	3.94	%		271	3.94	%		-	0.00	%
Subordinated notes		284	3.25	%		284	3.25	%		-	0.00	%		284	3.26	%		284	3.26	%		-	0.00	%
Total Interest-Bearing Liabilities		15,854	2.54	%		15,851	2.54	%		3	0.00	%		17,093	2.76	%		17,090	2.76	%		3	-0.00	%

Interest/Dividend income/yield		43,298	5.38	%		42,918	5.34	%		380	0.04	%		41,002	5.19	%		40,398	5.11	%		604	0.08	%
Interest Expense / yield		15,854	2.54	%		15,851	2.54	%		3	0.00	%		17,093	2.76	%		17,090	2.76	%		3	-0.00	%
Net Interest Spread		27,444	2.84	%		27,067	2.80	%		377	0.04	%		23,909	2.43	%		23,308	2.35	%		601	0.08	%
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 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

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