Farmers & Merchants Bancorp reported record second quarter net income of $24.7 million, or $36.39 per diluted common share, for the period ended June 30, 2026. This represents an increase of $1.7 million, or 7.3%, compared to net income of $23.1 million, or $32.94 per diluted share, for the second quarter of 2025. The company achieved an annualized return on average assets of 1.71% and a return on average equity of 14.84% for the quarter.

Net interest income for the quarter was $57.4 million, an increase of $3.5 million, or 6.46%, from the same period in 2025. The net interest margin on a tax-equivalent basis improved to 4.20% from 4.07% in the prior year's quarter. The increase in net interest margin was primarily driven by a 46 basis point increase in the yield on the investment securities portfolio to 3.71% for the six months ended June 30, 2026, compared to 3.25% in the same period of 2025.

Total loans and leases grew by $80.2 million, or 2.2%, to $3.70 billion, while total deposits increased by $332.6 million, or 7.0%, to $5.09 billion as of June 30, 2026, compared to June 30, 2025. The loan-to-deposit ratio stood at 73.1% at the end of the quarter, down from 76.4% a year earlier. Total assets were $5.8 billion, up 6.5% from $5.5 billion as of June 30, 2025.

Credit quality remained resilient during the quarter, with an allowance for credit losses on gross loans and leases of 2.08%. Net charge-offs were $165,000, and non-accrual loans totaled $2.7 million at quarter-end. The company recorded a provision for credit losses of $500,000 for the second quarter of 2026, compared to a provision of $1.4 million in the second quarter of 2025.

The company's capital position strengthened, with a total risk-based capital ratio of 16.04%, a common equity tier 1 ratio of 14.56%, and a tier 1 leverage ratio of 11.68% as of June 30, 2026. Tangible book value per common share increased 15.38% to $963.82 compared to $835.33 as of June 30, 2025.

Financial Highlights

Farmers & Merchants Bancorp, Inc. has declared a quarterly cash dividend of $0.23 per share for the second quarter of 2026, representing a 4.0% increase from the previous year. The dividend is payable on July 20, 2026, to shareholders of record as of July 10, 2026. The decision underscores the bank's continued strong momentum and solid financial performance, reinforcing its commitment to creating long-term value for shareholders.

The Board of Directors of Farmers & Merchants Bancorp, Inc., the holding company of F&M Bank, approved the dividend. The bank reported total assets of $3.49 billion as of March 31, 2026. F&M Bank operates as a local independent community bank, serving its communities since 1897 with a focus on commercial banking, retail banking, and other financial services.

Key Dividend Details

About F&M Bank

F&M Bank provides commercial banking, retail banking, and other financial services across multiple counties in Ohio, Northeast Indiana, and Michigan. The bank's footprint includes locations in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, it operates in Adams, Allen, DeKalb, Jay, Steuben, and Wells counties. The Michigan footprint includes Oakland County, with Loan Production Offices in Muncie, Indiana, and Perrysburg and Bryan, Ohio.