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Regular quarterly dividend increased 4.0% year-over-year, to $0.23 per shareARCHBOLD, Ohio, March 24, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Farmers & Merchants Bancorp, Inc., (Nasdaq: FMAO) the holding company of F&M Bank, with total assets of $3.43 billion at December 31, 2025, today announced that it has approved the Company’s quarterly cash dividend of $0.23 per share, a 4.0% year-over-year increase. The first-quarter dividend is payable on April 20, 2026, to shareholders of record as of Apr ...

Lending and Loan Portfolio - The Bank's loan portfolio includes significant agricultural loans, with recent increases in commercial and industrial lending activities[16] - The Bank operates three Loan Production Offices (LPOs), two in Ohio and one in Indiana, to enhance its lending capabilities[16] - The Bank does not engage in sub-prime lending, focusing instead on creditworthiness and secured loans[19] - The Bank focuses on Qualified Mortgage (QM) status for originated mortgage loans, which provides presumptions of compliance under the Ability to Repay rules[63] Market Position and Competition - The Bank ranked 4th in market share with 5.14% in its primary market as of June 30, 2025[24] - The Bank's competitive landscape includes approximately five other depository institutions in its primary market[24] Employee and Operational Metrics - The Bank's employee count stood at 474 full-time equivalent employees as of December 31, 2025[25] - The Bank's most recent CRA performance evaluation dated July 7, 2025, assigned a rating of "Satisfactory"[70] Product Offerings and Services - The Bank has expanded its product offerings, including a new low-income home buyer mortgage program launched in November 2023[18] - The Bank's digital products and services are continuously upgraded to meet changing customer preferences[17] - The Bank participates in various state programs to offer competitive mortgage products, enhancing customer savings[18] Regulatory Compliance and Capital Requirements - The Company is required to maintain minimum capital levels according to Federal Reserve Board guidelines, with potential restrictions on acquisitions if capital falls below these levels[43] - As of December 31, 2025, the Bank was classified as well capitalized under the prompt corrective action guidelines[48] - The Company must adhere to various regulatory capital requirements, including those from the Basel III framework, which could impact capital planning and operations[44][47] - The Federal Deposit Insurance Corporation Improvement Act of 1991 established five capital categories for insured depository institutions, affecting operational capabilities based on capital status[48] - The Company’s ability to pay dividends is limited to the retained earnings of its banking subsidiary, subject to regulatory approval[49] Interest Rate and Financial Management - The Bank's net interest margin is forecasted at 3.06%, with a potential decline of 11.63% if interest rates rise by 3.00%[313] - The monthly cost of funds decreased from 2.89% at December 31, 2024, to 2.58% at December 31, 2025[314] - The Bank's balance sheet is slightly asset-sensitive after experiencing 175 basis points of Fed rate cuts from September 2024 through December 2025[313] - The Bank's interest rate risk management aims to maintain sensitivity of net interest spreads and net income to potential changes in interest rates[312] - The Bank's profitability may be adversely affected if asset/liability management strategies are unsuccessful[312] - The Company must continue its trajectory of improved pricing discipline for new loans and deposits[315] Cybersecurity and Anti-Money Laundering - The Bank is subject to cybersecurity regulations that require disclosures regarding risk management and incident reporting[57] - The Company is responsible for compliance with anti-money laundering laws, which impose significant obligations to prevent financial crimes[59] Community Reinvestment Act (CRA) and Reporting - The final rule amendments to the Community Reinvestment Act (CRA) were issued on October 24, 2023, but their implementation is currently paused due to ongoing litigation[71] - The Company is required to collect and report data on covered small business credit applications as per the final rules issued on March 30, 2023[69]

Financial Performance - Net income for Q4 2025 reached a record $9.8 million, a 16.8% increase year-over-year, translating to $0.71 per share[5] - Full-year net income increased 28.4% to $33.3 million, or $2.43 per share, compared to $25.9 million in 2024[7] - Net income for the three months ended December 31, 2025, was $9,793,000, an increase of 10.5% compared to $8,854,000 for the previous quarter[25] - Basic earnings per share for the twelve months ended December 31, 2025, was $2.43, compared to $1.90 for the same period last year, representing a growth of 28%[25] - The company declared dividends of $0.23000 per share for the quarter ended December 31, 2025, an increase from $0.22750 in the previous quarter[25] Asset and Loan Growth - Total loans, net rose by 5.9% to $2.71 billion, up from $2.56 billion at the end of 2024[11] - Total loans, including fees, for the three months ended December 31, 2025, were $40,999,000, compared to $36,663,000 in the same period last year, indicating an increase of 12.8%[24] - Loans for the twelve months ended December 31, 2025, reached $2,632,363 thousand, generating interest income of $158,614 thousand at a yield of 6.03%[35] - Loans amounted to $4,611,000,000 with a yield of 6.03% for the twelve months ended December 31, 2025, up from $4,509,000,000 and a yield of 5.94% in 2024, indicating a growth of $102,000,000 and an increase in yield of 0.09%[37] Deposit and Liability Changes - Total deposits increased by 1.6% to $2.73 billion as of December 31, 2025[9] - Total deposits decreased to $2,730,735,000 as of December 31, 2025, from $2,751,911,000 in the prior quarter, a decline of 0.8%[27] - Total liabilities as of December 31, 2025, were $3,063,520,000, an increase from $3,028,972,000 in the previous quarter, reflecting a growth of 1.1%[27] Efficiency and Profitability Metrics - The efficiency ratio improved to 58.38%, down from 59.82% in the previous year[5] - Return on average assets improved to 1.14% for the twelve months ended December 31, 2025, compared to 0.99% for the same period in 2024[30] - Return on average equity rose to 10.55% for the twelve months ended December 31, 2025, up from 9.43% in 2024[30] - The net interest margin was reported at 3.46% for the twelve months ended December 31, 2025, compared to 3.28% in 2024, indicating better profitability on earning assets[30] Interest Income and Expense - Total interest income for the three months ended December 31, 2025, was $44,566,000, an increase from $41,851,000 for the same period in 2024, representing a year-over-year growth of 6.5%[24] - Total interest expense for the twelve months ended December 31, 2025, was $69,252,000, down from $77,660,000 in 2024, representing a decrease of 10.9%[24] - Interest expense for the twelve months ended December 31, 2025, was $252,000,000, maintaining a yield of 2.80%, consistent with the previous year[37] Credit Quality and Provisions - Nonperforming loans were $11.3 million, or 0.42% of total loans, compared to $3.1 million, or 0.12% of total loans in 2024[12] - Provision for credit losses on loans for the three months ended December 31, 2025, was $567,000, up from $346,000 in the same period last year, indicating a 64% increase in provisions[24] - The allowance for credit losses on loans stood at $27.69 million as of December 31, 2025, up from $25.83 million a year earlier, reflecting increased provisions for potential loan losses[31] Strategic Initiatives - A new three-year strategic plan is being developed to drive sustainable performance and create enduring value for shareholders[15]

Core Insights - Farmers & Merchants Bancorp, Inc. reported record quarterly earnings per share, stockholders' equity, and total assets for the fourth quarter and full year of 2025, reflecting strong operational performance and growth across its markets [2][4]. Financial Performance - Net income for Q4 2025 was $9.8 million, up 16.8% from $8.4 million in Q4 2024, with earnings per share increasing to $0.71 from $0.61 [3][9]. - For the full year 2025, net income reached $33.3 million, a 28.4% increase from $25.9 million in 2024, with earnings per share rising to $2.43 from $1.90 [3][9]. - The company achieved a return on average assets of 0.99% for 2025, compared to 0.78% in 2024, and a return on average equity of 10.00%, up from 9.43% [9][27]. Deposits and Loans - Total deposits as of December 31, 2025, were $2.73 billion, a 1.6% increase from the previous year [5][9]. - Total loans, net increased by 5.9% to $2.71 billion, driven by growth in commercial real estate and agricultural loans, despite a decline in consumer loans [7][9]. Asset Quality - Nonperforming loans were $11.3 million, or 0.42% of total loans, compared to $3.1 million, or 0.12% of total loans in the previous year, indicating a focus on monitoring higher-risk sectors [8][9]. - The allowance for credit losses to total loans was 1.03% as of December 31, 2025, down from 1.08% in 2024 [11]. Stockholders' Equity and Dividends - Total stockholders' equity increased by 10.6% to $370.9 million, with tangible book value per share rising to $20.40 from $17.74 [13][14]. - The company declared a quarterly dividend of $0.23 per share, a 4.0% increase from the same period last year, marking the 31st consecutive annual increase in dividends [14][15]. Strategic Outlook - The company is positioned for sustained profitability in 2026, supported by a strong balance sheet and a focus on long-term value creation through a new three-year strategic plan [4][12].

Core Insights - F&M Bank has promoted Mike Schnitkey to Agri-Finance and Northwest Ohio Market President, reflecting the bank's commitment to local leadership and community banking principles [1][5]. Company Overview - F&M Bank, established in 1897, is an independent community bank providing commercial and retail banking services across various counties in Ohio, Northeast Indiana, and Michigan [7]. Leadership and Experience - Mike Schnitkey has been with F&M Bank since September 1995 and has extensive experience in agricultural finance, overseeing agricultural lending operations and managing a diverse customer portfolio [2][3]. - He combines his agricultural expertise with commercial banking experience, providing tailored financing solutions to support business growth [3]. Community Involvement - Schnitkey has demonstrated a strong commitment to community service, holding leadership roles in local organizations such as the Henry County Soil & Water and the Ridgeville Telephone Company [4]. Strategic Growth - The promotion of Schnitkey aligns with F&M's strategy to empower local decision-makers and enhance service delivery, supporting the bank's broader growth objectives [5].

Core Viewpoint - Farmers & Merchants Bancorp, Inc. has announced a quarterly cash dividend of $0.23 per share, reflecting a commitment to return excess capital to shareholders and demonstrating strong financial performance in 2025 [1][3]. Dividend Announcement - The approved quarterly cash dividend is $0.23 per share, payable on January 20, 2026, to shareholders of record as of December 29, 2025 [1]. - This dividend represents a year-over-year increase of $0.00875 per share, or 4.0%, and a quarter-over-quarter increase of $0.0025 per share, or 1.1% [2]. Company Performance - The increase in the dividend underscores the company's strong financial and operating performance in 2025 and reflects growing optimism for 2026 [3]. - Farmers & Merchants Bancorp has a history of paying quarterly dividends for over 50 years and has increased its annual dividend for 31 consecutive years [3]. Company Background - Farmers & Merchants State Bank, the operating entity of Farmers & Merchants Bancorp, has been serving communities since 1897, providing commercial and retail banking services across various counties in Ohio and parts of Indiana and Michigan [4].

Core Viewpoint - Farmers & Merchants Bancorp, Inc. has announced a quarterly cash dividend increase of 4.0% year-over-year to $0.23 per share, reflecting strong financial performance and a commitment to returning capital to shareholders [1][2][3]. Financial Performance - The total assets of Farmers & Merchants Bancorp, Inc. were reported at $3.39 billion as of September 30, 2025 [1]. - The dividend increase of $0.00875 per share represents a 4.0% rise compared to the same quarter last year and a 1.1% increase from the previous quarter's dividend [2]. Management Commentary - Lars B. Eller, President and CEO, expressed satisfaction with the continued growth in dividends, highlighting the company's strong financial and operational performance in 2025 and optimism for 2026 [3]. Company Background - Farmers & Merchants State Bank, the banking entity under Farmers & Merchants Bancorp, has been operational since 1897, providing various banking services across multiple counties in Ohio and parts of Indiana and Michigan [4].

Group 1: Alpine Income Property Trust (PINE) - The company is a real estate investment trust that owns and operates a portfolio of single-tenant net lease commercial properties [1] - The Zacks Consensus Estimate for its current year earnings has increased by 2.3% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 7.1%, which is higher than the industry average of 4.7% [1] Group 2: Farmers & Merchants Bancorp (FMAO) - This company is a community bank holding company providing commercial and retail banking services [2] - The Zacks Consensus Estimate for its current year earnings has increased by 5.3% over the last 60 days [2] - The company has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 3.9%, compared to the industry average of 2.6% [2] Group 3: First Financial Corporation Indiana (THFF) - The company is a multi-bank holding company offering various financial products and services across several states [3] - The Zacks Consensus Estimate for its current year earnings has increased by 3.9% over the last 60 days [3] - The company has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 3.7%, which is above the industry average of 3% [3]

Core Insights - Three stocks with strong income characteristics and buy rankings are highlighted for investors on November 14th Group 1: Universal Corporation (UVV) - Universal Corporation is a business-to-business agriproducts company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 6.5% over the last 60 days [1] - The company has a dividend yield of 6.2%, significantly higher than the industry average of 3.1% [2] Group 2: Hanmi Financial Corporation (HAFC) - Hanmi Financial Corporation is a holding company for Hanmi Bank, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 5.4% over the last 60 days [2] - The company offers a dividend yield of 4.0%, above the industry average of 3.1% [2] Group 3: Farmers & Merchants Bancorp, Inc. (FMAO) - Farmers & Merchants Bancorp, Inc. is a bank holding company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 5.3% over the last 60 days [3] - The company has a dividend yield of 3.7%, compared to the industry average of 2.6% [3]