UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period September 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-38084 FARMERS & MERCHANTS BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

ARCHBOLD, Ohio, Oct. 31, 2025 (GLOBE NEWSWIRE) -- F&M Bank (“F&M”), an Archbold, Ohio-based bank owned by Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO), is proud to announce the appointment of Amy Cover to Chief Marketing & Experience Officer (CMXO). In this expanded role, Cover will continue to lead the Bank’s marketing and brand initiatives while overseeing customer experience and internal communications to ensure a consistent, meaningful connection between F&M’s brand, employees, and customers. “Amy h ...

Financial Performance - Net income for Q3 2025 was $8.9 million, a 35.9% increase from $6.5 million in Q3 2024, with earnings per share rising to $0.64 from $0.48[6] - Net income for the three months ended September 30, 2025, was $8,854,000, an increase of 14.8% compared to $7,710,000 for the previous quarter[25] - The company reported comprehensive income of $14,076,000 for the three months ended September 30, 2025, compared to $8,618,000 in the previous quarter, reflecting a 63.5% increase[25] - Basic earnings per share for the three months ended September 30, 2025, were $0.64, up from $0.56 in the previous quarter, representing a 14.3% increase[25] Loans and Deposits - Total loans increased by $123.0 million, or 4.9%, to $2.66 billion compared to $2.54 billion at the same time last year[11] - Total deposits rose by $67.1 million, or 2.5%, to $2.75 billion year-over-year[7] - Loans, net of allowance for credit losses, stood at $2,632,668,000 as of September 30, 2025, compared to $2,599,917,000 in June 2025, showing a growth of 1.3%[27] - Total deposits increased to $2,751,911,000 as of September 30, 2025, compared to $2,710,329,000 in June 2025, reflecting a growth of 1.5%[28] Interest Income and Expenses - Total interest income for the three months ended September 30, 2025, was $44,484,000, an increase from $41,901,000 for the same period last year, representing a growth of 6.2%[24] - Total interest expense for the three months ended September 30, 2025, was $17,583,000, a decrease from $20,312,000 in the same quarter last year, representing a decline of 13.5%[24] - The net interest income for the three months ended September 30, 2025, was $26,901 thousand, reflecting an increase from $21,589 thousand in the previous year[35] - The overall interest income for the nine months ended September 30, 2025, was $2,521,000, reflecting a yield increase of 0.09% compared to the previous year[38] Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2025, totaled $4,357,000, compared to $3,960,000 in the same quarter last year, marking a growth of 10.0%[24] - Total noninterest expense for the three months ended September 30, 2025, was $19,739,000, up 2.5% from $19,260,000 in the previous quarter[25] - Total noninterest income for the nine months ended September 30, 2025, was $12,454,000, an increase from $11,622,000 in the previous year, representing a growth of 7.2%[24] Asset and Equity Growth - Total assets as of September 30, 2025, reached $3,390,752,000, a slight increase from $3,345,763,000 in June 2025[27] - Total stockholders' equity increased by 7.9% to $361.8 million, or $26.31 per share[16] - Total stockholders' equity increased to $361.78 million as of September 30, 2025, compared to $350.79 million on December 31, 2024, reflecting a growth of approximately 3.0%[29] - Stockholders' equity increased to $357,394 thousand as of September 30, 2025, up from $328,565 thousand a year prior[35] Credit Quality - Nonperforming loans were $5.2 million, or 0.19% of total loans, compared to $2.9 million, or 0.11% a year earlier[12] - Nonperforming loans increased to $5.16 million as of September 30, 2025, compared to $3.75 million on June 30, 2025, marking a rise of 37.6%[32] - The allowance for credit losses on loans was $27.48 million as of September 30, 2025, up from $26.98 million on June 30, 2025, indicating a proactive stance on credit risk management[32] Operational Efficiency - The efficiency ratio improved to 63.11%, down from 67.98%[7] - The efficiency ratio improved to 63.11% for the three months ended September 30, 2025, down from 64.93% for the previous quarter, indicating enhanced operational efficiency[31] - The dividend payout ratio decreased to 34.90% for the three months ended September 30, 2025, compared to 38.91% for the previous quarter, suggesting a more conservative approach to dividend distribution[31] Strategic Initiatives - A new three-year strategic plan will be developed to define growth priorities and guide future success[15] - The company opened its second full-service office in Michigan, located in Troy[7]

Core Insights - Farmers & Merchants Bancorp, Inc. reported strong financial results for the third quarter of 2025, achieving one of the most profitable quarters in its 128-year history, with a net income of $8.9 million, a 35.9% increase from the previous year [2][10]. Financial Performance - Net income for Q3 2025 was $8.9 million, up from $6.5 million in Q3 2024, resulting in earnings per share of $0.64 compared to $0.48 [3][10]. - Year-to-date net income for the first nine months of 2025 reached $23.5 million, compared to $17.6 million for the same period in 2024, with earnings per share increasing from $1.28 to $1.71 [3][10]. Deposits and Liabilities - Total deposits as of September 30, 2025, were $2.75 billion, reflecting a 2.5% increase from $2.68 billion a year earlier [4][10]. - The cost of interest-bearing liabilities decreased to 2.83% in Q3 2025 from 3.21% in Q3 2024, indicating improved cost management [4][5]. Loan Portfolio and Asset Quality - Total loans increased by 4.9% year-over-year, reaching $2.66 billion, driven by growth in commercial real estate and agricultural loans [7][10]. - Nonperforming loans were $5.2 million, or 0.19% of total loans, up from $2.9 million (0.11%) a year earlier, but still reflecting strong asset quality [8][10]. Equity and Dividends - Total stockholders' equity rose by 7.9% to $361.8 million, with a Tier 1 leverage ratio of 8.74% [14][10]. - The company declared a cash dividend of $0.2275 per share for Q3 2025, marking a 2.8% increase from the previous year, and has increased dividends for 31 consecutive years [15][16][10]. Strategic Outlook - The company plans to develop a new three-year strategic plan to define growth priorities and enhance shareholder value, leveraging its community-banking values across its markets [13][10].

Group 1 - Farmers & Merchants Bancorp (NASDAQ: FMAO) is the holding company of Farmers & Merchants State Bank, operating 38 offices in Ohio and Indiana [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Group 1 - Farmers & Merchants Bancorp (NASDAQ: FMAO) is the holding company of Farmers & Merchants State Bank, operating 38 offices in Ohio and Indiana [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Core Insights - F&M Bank has appointed Mike Benson as Senior Vice President and Senior Small Business Banking Manager to enhance its support for small businesses in Ohio, Indiana, and Michigan [1][2] Company Overview - F&M Bank is an independent community bank established in 1897, providing commercial and retail banking services across various counties in Ohio, Northeast Indiana, and Michigan [5] Leadership and Expertise - Mike Benson brings 40 years of banking experience, focusing on credit management, retail banking, and business banking development, which will be instrumental in strengthening F&M's small business lending programs [2][3] - Benson has held significant leadership roles in various banks, including Chief Credit Officer at Andover Bank and Business Banking Segment Leader at FirstMerit Bank, showcasing his extensive background in the banking sector [3] Strategic Goals - The creation of Benson's position aligns with F&M's strategy to establish robust processes and reporting structures that will facilitate the bank's growth and success in small business lending [2][3]

Core Points - Farmers & Merchants Bancorp, Inc. announced a quarterly cash dividend of $0.2275 per share, reflecting a 2.82% year-over-year increase [1][2] - This marks the 31st consecutive annual increase in the company's regular dividend payment [2] Financial Performance - The total assets of Farmers & Merchants Bancorp, Inc. were reported at $3.35 billion as of June 30, 2025 [1] - The increase in the quarterly dividend amounts to $0.00625 per share and a $0.025 per share increase in the annual dividend [2] Management Commentary - The President and CEO, Lars B. Eller, emphasized the importance of returning capital to shareholders through dividend increases as a key component of the company's capital allocation strategy [3] - The company has maintained a long track record of consecutive dividend increases, showcasing its sustained growth and strong capital base [3] Company Overview - Farmers & Merchants State Bank, the operating entity of Farmers & Merchants Bancorp, has been serving communities since 1897, providing various banking services [3] - The bank operates in multiple counties across Ohio, Northeast Indiana, and Michigan, indicating a broad geographical presence [3]

Core Points - F&M Bank successfully raised $48,500 through its 8th Annual Ohio Charity Golf Classic and 4th Annual Indiana Charity Golf Classic, benefiting local charities [1][2][3] Group 1: Event Details - The Ohio Charity Golf Classic took place on August 15, 2025, at Ironwood Golf Course, hosting over 140 golfers and raising $32,000 for four local organizations [2] - The Indiana Charity Golf Classic occurred on September 25, 2025, at Brookwood Golf Club, with over 65 golfers participating and raising $16,500 for the Adams Wells Crisis Center and Honor Flight Northeast Indiana [3] Group 2: Company Overview - F&M Bank is an independent community bank established in 1897, providing commercial and retail banking services across various counties in Ohio and Northeast Indiana [4]

Core Points - F&M Bank successfully raised $48,500 through its charity golf events to support local organizations focused on family health, veterans, disability services, and child advocacy [1][2][3] Group 1: Charity Events - The 8th Annual Ohio Charity Golf Classic raised $32,000 with over 140 golfers participating, benefiting four local organizations [2] - The 4th Annual Indiana Charity Golf Classic raised $16,500 with over 65 golfers, supporting the Adams Wells Crisis Center and Honor Flight Northeast Indiana [3] Group 2: Community Impact - F&M Bank emphasizes the importance of community spirit and collaboration in supporting local organizations that make a significant difference [2] - The funds raised will aid organizations such as Sara's Garden, Northwestern Ohio Community Action Commission, The Ability Center, and the Family & Child Abuse Prevention Center [2]