Core Viewpoint - F&M Bank has appointed Ahmed Alomari to its Board of Directors, which is expected to enhance the bank's digital capabilities and technology infrastructure [1][3]. 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, as well as in Michigan [5]. Appointment Details - Ahmed Alomari was appointed to the Board of Directors during the monthly board meeting on June 24, 2025 [1]. - Alomari is recognized for his expertise in Oracle database performance and enterprise systems architecture, having founded Cybernoor in 2007 and served as CEO until its acquisition by Buchanan Technologies in 2021 [2]. Executive Insights - Lars Eller, President and CEO of F&M Bank, highlighted Alomari's technical expertise and innovative track record as valuable assets for the bank's future [3]. - Alomari holds a degree in Computer Science from the University of Michigan's School of Engineering [3].

Core Viewpoint - Farmers & Merchants Bancorp, Inc. has announced a quarterly cash dividend of $0.22125 per share, reflecting its commitment to returning capital to shareholders [1][2]. Group 1: Dividend Announcement - The Board of Directors approved a quarterly cash dividend of $0.22125 per share, payable on July 20, 2025, to shareholders of record as of July 7, 2025 [1]. - F&M has a history of paying quarterly dividends for over 50 years and has increased its annual dividend for 30 consecutive years [2]. Group 2: Company Overview - Farmers & Merchants Bancorp, Inc. is the holding company for F&M Bank, which has total assets of $3.39 billion as of March 31, 2025 [1]. - F&M Bank has been serving its communities since 1897, providing commercial and retail banking services across various counties in Ohio and parts of Indiana and Michigan [3].

Core Viewpoint - F&M Bank has promoted Eric D. Faust to Executive Vice President, recognizing his contributions to risk management and regulatory compliance since joining the bank in 2022 [1][4]. Company Overview - F&M Bank is an independent community bank based in Archbold, Ohio, serving its communities since 1897, offering commercial and retail banking services across multiple counties in Ohio and parts of Indiana and Michigan [5]. Leadership and Contributions - Eric D. Faust has successfully built a comprehensive risk and compliance team at F&M, integrating regulatory compliance into strategic decision-making and enhancing oversight structures [2][4]. - His leadership has been pivotal in ensuring that F&M meets evolving regulatory expectations while fostering a strong foundation for growth [2][4]. Background of Eric D. Faust - Prior to his role at F&M, Faust held significant positions in risk management, including First Vice President and Director of Risk Management at Northstar Financial Group and Examination Manager for the State of Michigan's Department of Insurance and Financial Services [3]. - He holds an MBA from Davenport University and a Bachelor of Science in Business Administration from Central Michigan University [3].

Core Viewpoint - F&M Bank announces the resignation of Jo Ellen Hornish from its Board of Directors after serving since 2013, highlighting her contributions to the bank's strategic vision and growth [1][2][3]. Group 1: Board Resignation - Jo Ellen Hornish has resigned from the Board of Directors of F&M Bank following the board meeting on May 20, 2025 [1]. - Hornish served on the Board since 2013, providing valuable insights particularly in the transportation and manufacturing sectors [2]. - Her leadership experience and service on the Audit Committee and the Corporate Governance and Nominating Committee were instrumental in guiding the bank through significant growth phases [2]. Group 2: Acknowledgment and Impact - Lars Eller, President and CEO of F&M Bank, expressed gratitude for Hornish's dedication and leadership, stating her contributions have shaped the bank's current success [3]. - Hornish's extensive corporate and community leadership experience, along with her commitment to philanthropic efforts, reflects her strong community values [3][4]. Group 3: Company Background - F&M Bank is an independent community bank established in 1897, providing commercial and retail banking services across various counties in Ohio and parts of Northeast Indiana and Michigan [5].

2025 First Quarter Investor Presentation NASDAQ: FMAO Forward Looking Statement Statements contained in any portion of the Company's annual meeting may be forward-looking statements, as that term is defined in the private securities litigation reform act of 1995. Forward- looking statements may be identified by the use of such words as "intend," "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." Such forward-looking statements are based on current expectations but may diff ...

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[21]. - The acquisition of Perpetual Federal Savings Bank had a total consideration of approximately $100.3 million, with $59.2 million in cash and $41.1 million in stock[24]. - The total purchase price for the acquisition of Ossian Financial Services, Inc. was approximately $20.0 million, all in cash[27]. - The acquisition of Limberlost Bancshares, Inc. amounted to approximately $78.9 million, with $8.5 million in cash and $70.4 million in stock[29]. - The goodwill resulting from the acquisition of Peoples Federal Savings and Loan Association was $5.9 million, primarily due to expected synergies and economies of scale[22]. - The Company has reduced costs through economies of scale as a result of the acquisitions[21]. Financial Performance - Net income for the three months ended March 31, 2025, was $6.952 million, a 29.7% increase from $5.359 million in the same period of 2024[90]. - Basic and diluted earnings per share increased to $0.51 for the three months ended March 31, 2025, up from $0.39 in 2024, reflecting improved profitability[90]. - Overall net income for Q1 2025 was $1.6 million higher than Q1 2024, indicating a positive outlook for profitability[149]. - Noninterest income exceeded $4 million for the quarter, driven primarily by treasury services and increased debit card usage[147]. - Noninterest expenses rose by $919 thousand compared to Q1 2024, with significant increases in consulting services and employee benefits[148]. Loan Portfolio - The company reported a net loan balance of $2.56 billion as of March 31, 2025, an increase from $2.54 billion as of December 31, 2024[45]. - The company’s loan portfolio included $1.33 billion in commercial real estate loans as of March 31, 2025, up from $1.31 billion at the end of 2024[45]. - Fixed-rate loans accounted for $1.04 billion of the total loan portfolio as of March 31, 2025, while variable-rate loans totaled $1.54 billion[46]. - The total current financing receivables as of March 31, 2025, were $2,580,190,000[49]. - The total gross charge-offs year-to-date for Consumer Real Estate loans are reported at $0, indicating no losses in this segment[60]. - The total risk rating for Consumer Real Estate loans indicates a significant portion, 38.41%, is under Special Mention (5) status, which may require monitoring[60]. Credit Quality and Allowance for Credit Losses - The total allowance for credit losses (ACL) increased to $26.352 million as of March 31, 2025, from $25.826 million at the end of 2024[78]. - The Company recorded a one-time adjustment of $4.5 million to the allowance for credit losses, which is $3.4 million net of tax[72]. - The specific reserve portion of the ACL was $159 thousand at March 31, 2025, up from $52 thousand at December 31, 2024[185]. - The company employs a nine-tier risk rating system to assess loan quality, with ratings ranging from 1 (Excellent) to 8 (Loss)[56]. - The company recognizes that repayment success for consumer loans is influenced by borrower income, debt levels, and employment status[51]. Securities and Investments - As of March 31, 2025, total available-for-sale securities amounted to $464.0 million with a fair value of $438.6 million, reflecting unrealized losses of $25.7 million[36]. - The total amortized cost of mortgage-backed securities was $140.9 million with a fair value of $130.9 million, indicating unrealized losses of $10.2 million[36]. - The fair value of securities is expected to recover as bonds approach their maturity date, indicating a positive outlook for the company's investment strategy[39]. - The balance of investments in qualified affordable housing projects was $3.5 million as of March 31, 2025, slightly down from $3.6 million at December 31, 2024[101]. Regulatory and Accounting Updates - Recent accounting pronouncements include ASU 2023-06, which requires additional disclosures related to cash flows and debt, effective for annual periods beginning after December 15, 2024[133]. - The company plans to adopt ASU 2023-07 regarding segment reporting, which enhances disclosure requirements, effective December 31, 2024[136]. - The company does not expect the adoption of recent accounting updates to have a material effect on its financial position or results of operations[135]. - The company is attentive to ongoing regulatory changes, including the CFPB's final rule on data collection for small business loans[167]. Capital and Liquidity - The company remains well-capitalized with strong liquidity levels and asset quality, positioning itself for future growth[149]. - The Bank declared a dividend of $3.5 million in Q1 2025 and remains well-capitalized with a Tier I Leverage Ratio of 9.10%[208]. - The Bank's uninsured deposit ratio remains low at 12.1%, with total uninsured deposits of $327.0 million as of March 31, 2025[191]. - The company has issued $35,000,000 in subordinated notes with a fixed-to-floating interest rate, qualifying as Tier 2 capital until July 30, 2026[125].

Core Viewpoint - Farmers & Merchants Bancorp, Inc. reported strong financial results for the first quarter of 2025, highlighting improvements in profitability, efficiency, and asset quality, driven by strategic priorities and local community banking services [2][10]. Financial Performance - Net income for Q1 2025 was $7.0 million, a 29.7% increase from $5.4 million in Q1 2024, with earnings per share rising to $0.51 from $0.39 [3][6]. - Total revenue increased by 16.7% year-over-year, while noninterest expense rose by 5.2%, leading to a 49.6% increase in pre-tax, pre-provision income [2][6]. - The net interest margin grew by 43 basis points year-over-year to 3.03%, reflecting effective loan repricing and disciplined loan origination [2][24]. Deposits and Cost of Funds - Total deposits reached $2.70 billion, marking a 3.0% increase from the previous year, with a reduction in the cost of interest-bearing liabilities to 2.76% from 3.06% [4][24]. - The company successfully optimized its deposit base, resulting in a decline of $19.5 million in more expensive time-account balances [5]. Loan Portfolio and Asset Quality - Total loans increased by 1.6% year-over-year to $2.58 billion, driven by growth in agricultural, commercial, and industrial loans [7][9]. - Nonperforming loans represented only 0.17% of total loans, indicating strong credit quality, down from 0.76% a year earlier [8][9]. Stockholders' Equity and Dividends - Total stockholders' equity increased by 8.5% to $344.6 million, with a Tier 1 leverage ratio of 8.44% [10][11]. - The company declared cash dividends of $0.22125 per share, a 0.6% increase from the same period last year, maintaining a commitment to returning capital to shareholders [12].

Core Viewpoint - Farmers & Merchants Bancorp, Inc. reported strong financial results for the first quarter of 2025, highlighting improved profitability, revenue growth, and operational efficiency, driven by strategic priorities and effective execution by the team [2][11]. Financial Performance - Net income for Q1 2025 was $7.0 million, a 29.7% increase from $5.4 million in Q1 2024, with earnings per share rising to $0.51 from $0.39 [3][21]. - Total revenue increased by 16.7% year-over-year, while noninterest expense rose by 5.2%, leading to a 49.6% increase in pre-tax, pre-provision income [2][7]. Asset and Deposit Growth - Total deposits reached $2.70 billion, reflecting a 3.0% increase from $2.62 billion a year earlier [4][19]. - The company successfully optimized its deposit base, with a year-over-year decline of $19.5 million in more expensive time-account balances, while core deposits grew by $78.9 million [5][11]. Loan Portfolio and Quality - Total loans increased by 1.6% year-over-year to $2.58 billion, driven by growth in agricultural, commercial, and industrial loans [6][21]. - Nonperforming loans represented only 0.17% of total loans, maintaining strong asset quality [7][22]. Efficiency and Ratios - The net interest margin improved by 43 basis points year-over-year to 3.03%, with a cost of interest-bearing liabilities decreasing to 2.76% from 3.06% [2][21]. - The efficiency ratio improved to 66.79%, down from 74.08% in the previous year [7][21]. Stockholders' Equity and Dividends - Total stockholders' equity increased by 8.5% to $344.6 million, with a tangible book value per share of $19.17 [11][12]. - The company declared cash dividends of $0.22125 per share, a 0.6% increase from the same period last year, with a dividend payout ratio of 43.10% [13][21].

Financial Performance - Total revenue rose by 16.7% year-over-year, while noninterest expense increased by 5.2%, leading to a 49.6% increase in pre-tax, pre-provision income to $9.3 million [5]. - Net income for Q1 2025 was $7.0 million, a 29.7% increase from $5.4 million in Q1 2024, with earnings per share rising to $0.51 [7]. - Net income for Q1 2025 was $6,952,000, down 17.03% from $8,381,000 in Q4 2024 [22]. - Basic and diluted earnings per share for Q1 2025 were both $0.51, compared to $0.61 in Q4 2024 [22]. - Cash dividends declared were $0.22125 per share, reflecting a 0.6% increase over the same period last year [16]. Loan and Deposit Growth - Total loans increased by $40.5 million, or 1.6%, to $2.58 billion compared to the same period last year [6]. - Total deposits grew by $78.9 million, or 3.0%, to $2.70 billion [6]. - Total loans, net increased to $2,581,904 million as of March 31, 2025, from $2,561,869 million in the previous quarter, marking a growth of 0.8% [27]. - Total deposits rose to $2,700,284 million, up from $2,686,765 million in the previous quarter, indicating an increase of 0.5% [25]. Asset Management - Total assets increased to $3,388,786 million as of March 31, 2025, compared to $3,364,723 million as of December 31, 2024, reflecting a growth of 0.7% [24]. - The total assets of the company reached $3,327,760,000 in March 2025, compared to $3,252,779,000 in March 2024, marking a growth of 2.3% [31]. - Total interest-earning assets increased to $3,161,130,000 in March 2025 from $3,093,539,000 in March 2024, reflecting a growth of 2.2% [31]. Credit Quality - Nonperforming loans were $4.5 million, representing only 0.17% of total loans, a significant improvement from 0.76% a year ago [11]. - Nonperforming loans increased to $4,494,000 in March 2025 from $3,124,000 in December 2024, representing a 43.8% increase [29]. - The allowance for credit losses to nonperforming loans was 586.38%, compared to 127.28% a year ago [12]. - The allowance for credit losses to nonperforming loans ratio was 586.38% in March 2025, down from 826.70% in December 2024, indicating a decrease in coverage [29]. - Provision for credit losses on loans was $811,000 in Q1 2025, up from $346,000 in Q4 2024 [21]. - Net charge-offs for the quarter-to-date in March 2025 were $285,000, significantly higher than $4,000 in the previous quarter, indicating a substantial increase in credit losses [29]. Efficiency and Ratios - The efficiency ratio improved to 66.79%, down from 74.08% [6]. - Efficiency ratio was reported at 66.79%, an increase from 59.82% in the previous quarter, indicating a decline in operational efficiency [27]. - Return on average assets decreased to 0.85% for the three months ended March 31, 2025, down from 0.99% in the previous quarter [27]. - Return on average equity declined to 8.31% from 10.00% in the previous quarter, showing a decrease of 1.69 percentage points [27]. - The Tier 1 leverage ratio improved to 8.44%, up from 8.12% in the previous quarter, indicating a stronger capital position [27]. Interest Income and Expenses - Net interest margin increased by 43 basis points year-over-year to 3.03% and by 19 basis points from Q4 2024 [5]. - Total interest income for Q1 2025 was $41,002,000, a decrease of 2.03% from $41,851,000 in Q4 2024 [21]. - Net interest income after provision for credit losses was $23,358,000, up 3.32% from $22,604,000 in Q4 2024 [22]. - Total interest expense decreased to $17,093,000 in Q1 2025 from $19,021,000 in Q4 2024, a decline of 10.14% [21]. - The net interest margin improved to 3.03% compared to 2.84% in the previous quarter, reflecting an increase of 0.19 percentage points [27]. - The net interest margin improved to 3.03% in March 2025, up from 2.60% in March 2024, indicating enhanced profitability on interest-earning assets [31].

Core Points - Farmers & Merchants Bancorp, Inc. has approved a quarterly cash dividend of $0.22125 per share, payable on April 20, 2025, to shareholders of record as of April 4, 2025 [1] - The company reported total assets of $3.36 billion as of December 31, 2024 [1] Company Overview - Farmers & Merchants Bancorp, Inc. is the holding company of F&M Bank, an independent community bank established in 1897, providing commercial and retail banking services [2] - F&M Bank operates in various counties in Ohio and Northeast Indiana, with additional locations in Michigan [2]