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].