- Farmers & Merchants Bancorp, Inc. reported a **35.9% increase** in net income for the third quarter of 2025, reaching **$8.9 million**, or **$0.64 per basic and diluted share**.  **[792966_0001193125-25-250828_fmao-ex99.htm:0]** 
- The company achieved its **90th consecutive quarter of profitability**.  **[792966_0001193125-25-250828_fmao-ex99.htm:0]** 
- Net interest margin improved by **69 basis points** year-over-year to **3.40%** for Q3 2025.  **[792966_0001193125-25-250828_fmao-ex99.htm:0]** 
- Total loans, net, increased by **4.9%** to **$2.66 billion** at September 30, 2025, while total deposits grew by **2.5%** to **$2.75 billion**.  **[792966_0001193125-25-250828_fmao-ex99.htm:0]** 
- The efficiency ratio improved to **63.11%** from 67.98% in the prior year period, and the company declared its **31st consecutive annual increase** in its regular dividend payment.  **[792966_0001193125-25-250828_fmao-ex99.htm:0]**

Farmers & Merchants Bancorp, Inc. Reports Strong Q3 2025 Financial Results

- **Net income** for the third quarter of 2025 increased **35.9%** year-over-year to **$8.9 million**, or **$0.64 per basic and diluted share**.  **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_0]**  Year-to-date net income was **$23.5 million**, or **$1.71 per basic and diluted share**.  **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_1]** 
- The **net interest margin** improved by **69 basis points** year-over-year to **3.40%** for the third quarter of 2025.  **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_0]** 
- At September 30, 2025, **total loans, net** grew **4.9%** to **$2.66 billion**, and **total deposits** increased **2.5%** to **$2.75 billion** compared to September 30, 2024.  **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_0]** 
- The **efficiency ratio improved to 63.11%** in Q3 2025, compared to 67.98% in the prior year period.  **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_0]** 
- The company declared its **31st consecutive annual increase** in its regular dividend payment, with a cash dividend of **$0.2275 per share** for Q3 2025, representing a **2.8% increase** over the same period last year.  **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_0]** **[792966_1ed42c49c4d0477da57efa54b5ec4d3a_3]**

- **Merchants & Marine Bancorp, Inc.** has entered into a definitive agreement to acquire **Farmers-Merchants Bank & Trust Company (FM Bank)** in an **all-cash transaction**.  **[792966_e28123a0a956442190eb218d823752e8_0]** 
- The merger, **unanimously approved** by both companies' boards of directors, is expected to close in the **second quarter of 2026**, pending regulatory and FM Bank shareholder approvals.  **[792966_e28123a0a956442190eb218d823752e8_0]** 
- **FM Bank**, which has almost **$450 million in assets** and is headquartered in Breaux Bridge, Louisiana, will continue to operate under its established brand as a division of Merchants & Marine Bank, with its current President and CEO, Fred Mills, remaining in his leadership role.  **[792966_e28123a0a956442190eb218d823752e8_0]** **[792966_e28123a0a956442190eb218d823752e8_1]**

Farmers-Merchants Bank & Trust to be Acquired by Merchants & Marine Bancorp

- **Farmers & Merchants Bancorp (FMCB) reported record third quarter 2025 net income of $23.7 million**, an increase of **7.22%** compared to the third quarter of 2024, with **diluted earnings per share of $33.92**, up **13.22%** from the prior year's third quarter.  **[792966_5edb38659ced48cab365483333241a46_0]** **[792966_5edb38659ced48cab365483333241a46_1]** 
- The company's **tangible book value per share increased 9.8% to $877.13** as of September 30, 2025, compared to $799.04 as of September 30, 2024.  **[792966_5edb38659ced48cab365483333241a46_0]** **[792966_5edb38659ced48cab365483333241a46_3]** 
- FMCB maintained a **strong capital position** with a preliminary total risk-based capital ratio of **15.76%** and a common equity tier 1 ratio of **14.28%** as of September 30, 2025, exceeding regulatory requirements for "well-capitalized" banks.  **[792966_5edb38659ced48cab365483333241a46_0]** **[792966_5edb38659ced48cab365483333241a46_4]** 
- Credit quality remained resilient with a **net charge-off ratio of 0.03%** and a **non-accrual loan and leases ratio of 0.03%** for the third quarter of 2025.  **[792966_5edb38659ced48cab365483333241a46_0]** 
- The company authorized an **increase of $45.0 million to its existing share repurchase program** and changed its dividend policy from semi-annually to quarterly.  **[792966_5edb38659ced48cab365483333241a46_4]**

Farmers & Merchants Bancorp Reports Record Third Quarter 2025 Earnings

- Farmers & Merchants Bancorp (FMAO) manages **$3.4 billion in assets**, demonstrating robust growth with a **16% CAGR in asset growth** and **7% CAGR in net income** over the last ten years.  **[792966_2147586_1]**  The company has also consistently rewarded shareholders by **raising its dividend for thirty consecutive years**.  **[792966_2147586_1]** 
- The bank has achieved significant expansion, **tripling in size over the last seven years** through a balanced strategy of **$1.2 billion in organic growth and $1.2 billion through acquisitions**.  **[792966_2147586_1]**  This includes successful De Novo offices, which have generated **over $80 million in deposits** from four new branches.  **[792966_2147586_2]** 
- FMAO highlights its strong asset quality, evidenced by **0% net charge-offs** and a **30-90 day pass-through of 14 basis points**, positioning it in the **top 5 percentile** of its peer group.  **[792966_2147586_7]** **[792966_2147586_11]**  The lending portfolio is diversified, with **over 51% in commercial real estate** and a strategic **50/50 fixed and variable loan mix**.  **[792966_2147586_6]** **[792966_2147586_7]** 
- The company's Net Interest Margin (NIM) has improved from approximately **2.63% to 3.13%**  **[792966_2147586_8]** , with expectations for further expansion if interest rates drop by another 100 basis points.  **[792966_2147586_9]**  FMAO is targeting a **1.25% Return on Assets (ROA)**, an efficiency ratio in the **50s**, and a NIM of **3.25% or better**.  **[792966_2147586_8]** 
- A key differentiator is FMAO's **agribusiness, which constitutes 25% of the loan book**, characterized by low delinquency rates around **30 basis points** and **95% of customers having crop insurance**.  **[792966_2147586_7]** **[792966_2147586_8]**  The bank also diversifies revenue through non-interest income streams like treasury management, card contracts, and **nearly $400 million in Assets Under Management (AUM)** from its investment business.  **[792966_2147586_4]**

FARMERS & MERCHANTS BANCORP (FMAO)