Farmers & Merchants Bancorp(FMAO) - 2025 Q3 - Quarterly Results

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]