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]

Group 1: Suzano S.A. (SUZ) - Suzano S.A. is a pulp and paper company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.7% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 4.07, significantly lower than the industry average of 14.00 [1] - Suzano S.A. possesses a Value Score of A [1] Group 2: Farmers & Merchants Bancorp, Inc. (FMAO) - Farmers & Merchants Bancorp is a bank holding company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its next year earnings has increased by 5.3% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 10.33, compared to the industry average of 30.40 [2] - Farmers & Merchants Bancorp possesses a Value Score of B [2] Group 3: Universal Corporation (UVV) - Universal Corporation is a business-to-business agriproducts company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.5% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 11.23, which is slightly lower than the industry average of 11.70 [3] - Universal Corporation possesses a Value Score of B [3]

Group 1: Investment Opportunities - Farmers & Merchants Bancorp, Inc. (FMAO) has a Zacks Rank 1 and a dividend yield of 3.7%, higher than the industry average of 2.6% [1] - NatWest Group plc (NWG) also holds a Zacks Rank 1 with a dividend yield of 3.1%, surpassing the industry average of 2.9% [2] - SB Financial Group, Inc. (SBFG) is another company with a Zacks Rank 1, although its dividend yield is not specified [2] Group 2: Earnings Estimates - Farmers & Merchants Bancorp, Inc. has seen its current year earnings estimate increase by 5.3% over the last 60 days [1] - NatWest Group plc's current year earnings estimate has risen by 13.8% over the last 60 days [2] - SB Financial Group, Inc. has experienced a 5.4% increase in its current year earnings estimate over the last 60 days [2]

Acquisitions - The total consideration for the acquisition of Peoples-Sidney Financial Corporation was approximately $23.2 million, consisting of $9.8 million in cash and $13.4 million in stock[22]. - The acquisition of Peoples-Sidney Financial Corporation resulted in an increase in the deposit base in Sidney and the greater Shelby County, along with reduced transaction costs[22]. - Goodwill from the acquisition of Peoples-Sidney Financial Corporation amounted to $5.9 million, primarily due to expected synergies and economies of scale[23]. - The total consideration for the acquisition of Perpetual Federal Savings Bank was approximately $100.3 million, consisting of $59.2 million in cash and $41.1 million in stock[25]. - Goodwill from the acquisition of Perpetual Federal Savings Bank was $25.2 million, reflecting expected synergies and economies of scale[26]. - The total purchase price for the acquisition of Ossian Financial Services was approximately $20.0 million, all in cash[28]. - Goodwill from the acquisition of Ossian Financial Services was $7.9 million, which is deductible for tax purposes over 15 years[29]. - The total consideration for the acquisition of Limberlost Bancshares was approximately $78.9 million, consisting of $8.5 million in cash and $70.4 million in stock[30]. - The acquisition of Adams County Financial Resources involved a total purchase price of $825 thousand, with $800 thousand allocated to customer list intangible assets[33]. Amortization and Expenses - The amortization expense of core deposit intangible for the nine months ended September 30, 2024, was $1.2 million, with an estimated $1.7 million to be expensed in 2025[32]. - Amortization expense for the customer list intangible for the nine months ended September 30, 2024 was $92 thousand, with a total of $123 thousand to be expensed in 2025[34]. - The total amortized cost of nonaccrual loans as of September 30, 2025, was $5,155,000, with $4,104,000 in nonaccrual loans with no allowance for credit loss[47]. - The allowance for credit losses (ACL) was impacted by a one-time adjustment of $4,500,000 in 2023, which was $3,400,000 net of tax[71]. - The provision for credit losses on loans for the three months ended September 30, 2025, was $557,000, compared to a recovery of $282,000 for the same period in 2024, indicating a shift from recovery to provision[76]. - The total recoveries for the nine months ended September 30, 2025, were $207,000, compared to $55,000 in the same period of 2024, showing a substantial increase in recoveries[76]. - The charge-offs for the nine months ended September 30, 2025, totaled $587,000, compared to $587,000 in the same period of 2024, indicating no change in charge-offs year-over-year[76]. Loan Performance and Quality - Loan balances as of September 30, 2025, totaled $2,659,727 thousand, an increase from $2,562,545 thousand as of December 31, 2024[44]. - The net loans after accounting for deferred loan fees and allowance for credit losses amounted to $2,632,668 thousand as of September 30, 2025[44]. - The company employs a nine-tier risk rating system to grade its loans, which helps in assessing the credit risk associated with each loan[53]. - The company’s underwriting criteria for consumer real estate loans emphasize the borrower's income, debt level, and employment status, which are critical for repayment success[48]. - Agricultural loans are particularly vulnerable to commodity prices and weather conditions, with risk mitigated through the use of futures contracts and crop insurance[50]. - The company recognizes the importance of stress testing on higher balance loans to ensure borrowers' ability to repay in changing rate environments[51][52]. - The company’s commercial and industrial loans are subject to risks related to cash flow adequacy and economic trends, which are monitored closely[52]. - The total past due loans as of December 31, 2024, was $5,598,000, with $3,769,000 in loans 30-59 days past due, $712,000 in loans 60-89 days past due, and $1,117,000 in loans greater than 90 days past due[46]. - The company evaluates credit quality for consumer loans based on aging status and payment performance, with loans over 90 days past due classified as nonperforming[63]. Financial Performance - The net income for the three months ended September 30, 2025, was $8,854,000, an increase of 35.8% compared to $6,516,000 for the same period in 2024[89]. - Basic and diluted earnings per share for the nine months ended September 30, 2025, were $1.71, up from $1.28 for the same period in 2024, representing a growth of 33.6%[89]. - Net income for Q3 2025 was $2.3 million higher than Q3 2024 and $1.1 million higher than Q2 2025, indicating a trend towards greater profitability[148]. - The average loan balance grew by $97.5 million or 3.8%, with interest income on loans increasing by $4.1 million or 11.2% compared to the same quarter in 2024[206]. - Net interest income for the first nine months of 2025 increased by $13.4 million compared to the same period last year, with a year-to-date net interest margin improvement of 54 basis points[138]. Deposits and Securities - The total deposits as of September 30, 2025, amounted to $2.751 billion, slightly up from $2.687 billion at December 31, 2024[120]. - Interest-bearing deposits totaled $1.633 billion as of September 30, 2025, compared to $1.522 billion at December 31, 2024[120]. - The pledged investment securities totaled $267.1 million as of September 30, 2025, with an increase of $15.3 million compared to year-end 2024[199]. - The total fair value of securities available-for-sale as of September 30, 2025, was $421,315,000, compared to $426,626,000 as of December 31, 2024[111]. Interest Rate Management - The Bank entered into three pay-fixed receive variable interest rate swap transactions with a combined notional value of $100 million to manage interest rate risk[91]. - The cumulative fair value hedging adjustment for loans was $221,242,000 as of September 30, 2025, compared to $249,127,000 as of December 31, 2024, indicating a decrease of 11.2%[93]. - The Bank's notional amount of interest rate swaps associated with loans was $100,000, with a fair value loss of $(1,725) compared to a fair value loss of $(976) as of December 31, 2024[97]. Strategic Developments - The Bank opened a full-service branch in Troy, Michigan, on August 1, 2025, expanding its footprint[136]. - The company is developing its next three-year strategic plan during the fourth quarter of 2025, building on its record of success[136]. - The Bank's insurance agency, F&M Insurance Agency, LLC, was established in November 2023 to offer insurance products[160].