Core Insights - Farmers & Merchants Bancorp, Inc. reported strong financial results for the second quarter of 2025, achieving a net income of $7.7 million, marking a 35.7% increase from $5.7 million in the same period last year, and the second-strongest second quarter in the company's 128-year history [2][3][9] - Total revenue growth was 18.2% year-over-year, driven by an increase in net interest income and noninterest income, significantly outpacing the rise in noninterest expenses [2][9] - The net interest margin expanded by 51 basis points year-over-year to 3.22%, benefiting from higher asset yields and a stable interest rate environment [2][9] Financial Performance - Net income per share for the second quarter was $0.56, compared to $0.42 for the same period last year [3][9] - For the first half of 2025, net income reached $14.7 million, up from $11.0 million in the same period last year, with earnings per share increasing from $0.81 to $1.07 [3][9] - Total assets increased by $23.1 million, or 0.7%, to $3.35 billion as of June 30, 2025 [9] Deposits and Loans - Total deposits were $2.71 billion, reflecting a 2.6% increase from $2.64 billion a year earlier [4][9] - Total loans, net increased by $67.2 million, or 2.6%, to $2.63 billion, driven primarily by higher commercial real estate and industrial loans [6][9] - Loan demand remains strong, with a sequential increase of $45.0 million, or a 7.0% annualized rate [5][9] Asset Quality - Nonperforming loans were $3.7 million, or 0.14% of total loans, compared to $2.5 million, or 0.10% a year earlier [7][9] - The allowance for credit losses to total loans was 1.08% as of June 30, 2025, compared to 1.06% a year earlier [10][25] Stockholders' Equity and Dividends - Total stockholders' equity increased by 8.7% to $350.8 million, or $25.56 per share [11][12] - The company declared cash dividends of $0.44250 per share for the first half of 2025, representing a 0.6% increase over the same period last year [13][9]