ARCHBOLD, Ohio, Feb.  12, 2025  (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 fourth quarter and twelve months ended December 31, 2024.

2024 Fourth Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

87 consecutive quarters of profitabilityNet income increased 51.2% to $8.4 million, or $0.61 per basic and diluted share, from $5.5 million, or $0.41 per basic and diluted shareAsset quality remains at historically strong levels with nonperforming loans of only $3.1 million at December 31, 2024, compared to $22.4 million at December 31, 2023Net charge-offs to average loans were 0.00%Allowance for credit losses was 826.70% of nonperforming loansTier 1 leverage ratio was 8.12%Net interest margin increased 27 basis points to 2.84%Efficiency ratio improved to 59.82%, compared to 69.23% for the same period a year ago

2024 Full-Year Financial Highlights Include (on a year-over-year basis unless noted):

Total loans, net were $2.56 billion at December 31, 2024, compared to $2.58 billion at December 31, 2023 and $2.54 billion at September 30, 2024Total assets increased 2.5% to $3.36 billionDeposits increased 3.0% to a record $2.69 billionStockholders’ equity increased 5.9% to $335.2 millionNet interest income after provision for credit losses increased 7.5% to $85.6 millionReturn on average tangible equity was 8.91%F&M ended 2024 with excellent liquidity levels, and over $690 million in contingent funding sources, and a cash-to-assets ratio of 5.3%, compared to 4.3% at December 31, 2023Dividend raised 3.8% year-over-year, representing the 30th consecutive annual increase in the Company’s regular dividend payment since 1994

Lars B. Eller, President and Chief Executive Officer, stated, “Our strong 2024 financial performance reflects solid execution of our multi-year strategic plan, as we have remained focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. Thanks to the unwavering dedication of our team and the trust of our customers, F&M’s financial and operating results strengthened throughout 2024. This performance creates a solid foundation and further solidifies F&M’s position as a leading community bank in the Ohio, Indiana and Michigan markets we serve.”

Mr. Eller continued, “Strong earnings growth in 2024 was driven by the success of ongoing strategies aimed at expanding our net interest margin, maintaining excellent asset quality, and driving efficiencies across our business. Core earnings for the 2024 fourth quarter were strong as net interest income after provision for credit losses increased 16.1% year-over-year to a quarterly record of $22.6 million, and noninterest income expanded 4.1% year-over-year to $4.0 million. We believe these trends highlight the improvements we have made to profitability, and we expect these trends to continue in the second half 2025.”

Income Statement
Net income for the 2024 fourth quarter ended December 31, 2024, was $8.4 million, compared to $5.5 million for the same period last year. Net income per basic and diluted share for the 2024 fourth quarter was $0.61, compared to $0.41 for the same period last year. Net income for the 2024 twelve months ended December 31, 2024, was $25.9 million, compared to $22.8 million for the same period last year. Net income per basic and diluted share for the 2024 twelve months was $1.90, compared to $1.67 for the same period last year.

Deposits
At December 31, 2024, total deposits were a record $2.69 billion, an increase of 3.0% from December 31, 2023. The Company’s cost of interest-bearing liabilities was 3.01% for the quarter ended December 31, 2024, compared to 3.02% for the quarter ended December 31, 2023. For the 2024 twelve months ended December 31, 2024, F&M’s cost of interest-bearing liabilities was 3.12%, compared to 2.53% in the prior year reflecting the higher rate environment and growth in interest-bearing checking and savings accounts.

Mr. Eller commented, “Throughout 2024, we pursued strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we added nearly 7,500 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended 2024 with a loan-to-deposit ratio of 94.4%, compared to 98.0% at December 31, 2023.”

Loan Portfolio and Asset Quality
“While the demand for loans is high across our markets, our approach to risk and pricing remains prudent. This strategy has contributed to historically strong asset quality over the past two quarters and is a testament to F&M’s risk, lending, and compliance capabilities and high-performing teams.   We expect loan growth to increase modestly in 2025, with growth weighted in the back half of the year. In addition, 31.4% of our loan portfolio is subject to reprice in the next 12 months. We believe these favorable trends will contribute to higher net interest income in 2025,” continued Mr. Eller.

Total loans, net at December 31, 2024, decreased 0.7%, or by $19.3 million to $2.56 billion, compared to $2.58 billion at December 31, 2023. The year-over-year decline was driven primarily by lower consumer real estate, consumer, and agricultural real estate loans, partially offset primarily by higher commercial and industrial and agricultural loans. Compared to the quarter ended September 30, 2024, total loans, net at December 31, 2024 increased by 0.9% or $23.5 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $3.1 million, or 0.12% of total loans at December 31, 2024, compared to $22.4 million, or 0.87% of total loans at December 31, 2023, and $2.9 million, or 0.11% at September 30, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.2% of the Company’s total loan portfolio at December 31, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.2% of the Company's total loan portfolio at December 31, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $958,100.

F&M’s CRE portfolio included the following categories at December 31, 2024:

CRE Category  Dollar 
Balance Percent of
CRE
Portfolio(*) Percent of 
Total Loan
Portfolio(*) Industrial $269,315 20.6% 10.5%Multi-family  233,868 17.8% 9.1%Retail  219,395 16.7% 8.6%Hotels  141,514 10.8% 5.5%Office  134,139 10.2% 5.2%Gas Stations  70,767 5.4% 2.8%Food Service  49,246 3.8% 1.9%Senior Living  31,799 2.4% 1.3%Development  29,491 2.3% 1.2%Auto Dealers  28,081 2.1% 1.1%Other  103,196 7.9% 4.0%Total CRE $1,310,811 100.0% 51.2%

* Numbers have been rounded

At December 31, 2024, the Company’s allowance for credit losses to nonperforming loans was 826.70%, compared to 111.95% at December 31, 2023. The allowance to total loans was 1.07% at December 31, 2024, compared to 1.06% at December 31, 2023. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at December 31, 2024, compared to 1.13% at December 31, 2023.

Mr. Eller concluded, “Throughout the new year, we will leverage F&M’s strong banking platform, while continuing to make strategic investments that expanded our operations, capabilities, and services. We believe this will expand operating efficiencies and produce better outcomes for our customers. I am proud of our strong performance in 2024, and expect 2025 to be another good year for F&M.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 5.9% to $335.2 million, or $24.47 per share at December 31, 2024, from $316.5 million, or $23.17 per share at December 31, 2023. The Company’s Tier 1 leverage ratio of 8.12%, remained stable compared to December 31, 2023.

Tangible stockholders’ equity increased to $270.0 million at December 31, 2024, compared to $254.2 million at December 31, 2023. On a per share basis, tangible stockholders’ equity at December 31, 2024, was $17.74 per share, compared to $16.29 per share at December 31, 2023.

For the twelve months ended December 31, 2024, the Company declared cash dividends of $0.8825 per share, representing a 3.8% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the twelve months ended December 31, 2024, the dividend payout ratio was 46.07% compared to 50.65% for the same period last year.

About Farmers & Merchants State Bank: 
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures 
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME 
(Unaudited) (in thousands of dollars, except per share data)  Three Months Ended  Twelve Months Ended December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024  December 31,
2023  December 31,
2024  December 31,
2023 Interest Income Loans, including fees$36,663  $36,873  $36,593  $35,200  $34,493  $145,329  $129,344 Debt securities: U.S. Treasury and government agencies1,882  1,467  1,148  1,045  987  5,542  4,090 Municipalities384  387  389  394  397  1,554  1,598 Dividends367  334  327  333  365  1,361  882 Federal funds sold24  7  7  7  8  45  44 Other2,531  2,833  2,702  1,675  2,020  9,741  3,850 Total interest income41,851  41,901  41,166  38,654  38,270  163,572  139,808 Interest Expense Deposits15,749 16,947 16,488 15,279 15,015  64,463  46,923 Federal funds purchased and securities sold under agreements to repurchase274  277  276  284  293  1,111  1,474 Borrowed funds2,713  2,804  2,742  2,689  2,742  10,948  8,876 Subordinated notes285  284  285  284  285  1,138  1,138 Total interest expense19,021  20,312  19,791  18,536  18,335  77,660  58,411 Net Interest Income - Before Provision for Credit Losses22,830  21,589  21,375  20,118  19,935  85,912  81,397 Provision for (Recovery of) Credit Losses - Loans346  282  605  (289) 278  944  1,698 Provision for (Recovery of) Credit Losses - Off Balance Sheet Credit Exposures(120) (267) (18) (266) 189  (671) 46 Net Interest Income After Provision for Credit Losses22,604  21,574  20,788  20,673  19,468  85,639  79,653 Noninterest Income Customer service fees237  300  189  598  415  1,324  1,332 Other service charges and fees1,176  1,155  1,085  1,057  1,090  4,473  4,343 Interchange income1,322  1,315  1,330  1,429  1,310  5,396  5,318 Loan servicing income771  710  513  539  666  2,533  4,405 Net gain on sale of loans223  215  314  107  230  859  699 Increase in cash surrender value of bank owned life insurance248  265  236  216  216  965  834 Net gain (loss) on sale of other assets owned22  -  49  -  (86) 71  (135)Net loss on sale of available-for-sale securities-  -  -  -  -  -  (891)Total noninterest income3,999  3,960  3,716  3,946  3,841  15,621  15,905 Noninterest Expense Salaries and wages7,020  7,713  7,589  7,846  6,981  30,168  26,915 Employee benefits2,148  2,112  2,112  2,171  1,218  8,543  7,520 Net occupancy expense1,072  1,054  999  1,027  1,187  4,152  3,833 Furniture and equipment1,032  1,472  1,407  1,353  1,370  5,264  5,022 Data processing160  339  448  500  785  1,447  3,147 Franchise taxes312  410  265  555  308  1,542  1,487 ATM expense328  472  397  473  665  1,670  2,611 Advertising498  597  519  530  397  2,144  2,606 FDIC assessment505  516  507  580  594  2,108  1,982 Servicing rights amortization - net244  219  187  168  182  818  611 Loan expense236  244  251  229  246  960  1,055 Consulting fees242  251  198  186  192  877  832 Professional fees368  453  527  445  331  1,793  1,430 Intangible asset amortization446  445  444  445  446  1,780  1,780 Other general and administrative1,465  1,128  1,495  1,333  1,532  5,421  6,373 Total noninterest expense16,076  17,425  17,345  17,841  16,434  68,687  67,204 Income Before Income Taxes10,527  8,109  7,159  6,778  6,875  32,573  28,354 Income Taxes2,146  1,593  1,477  1,419  1,332  6,635  5,567 Net Income8,381  6,516  5,682  5,359  5,543  25,938  22,787 Other Comprehensive Income (Loss) (Net of Tax): Net unrealized gain (loss) on available-for-sale securities(7,403) 11,664  2,531  (1,995) 13,261  4,797  10,781 Reclassification adjustment for realized loss on sale of available-for-sale securities-  -  -  -  -  -  891 Net unrealized gain (loss) on available-for-sale securities(7,403) 11,664  2,531  (1,995) 13,261  4,797  11,672 Tax expense (benefit)(1,554) 2,449  531  (418) 2,784  1,008  2,451 Other comprehensive income (loss)(5,849) 9,215  2,000  (1,577) 10,477  3,789  9,221 Comprehensive Income$2,532  $15,731  $7,682  $3,782  $16,020  $29,727  $32,008 Basic Earnings Per Share$0.61  $0.48  $0.42  $0.39  $0.41  $1.90  $1.67 Diluted Earnings Per Share$0.61  $0.48  $0.42  $0.39  $0.41  $1.90  $1.67 Dividends Declared$0.22125  $0.22125  $0.22  $0.22  $0.22  $0.88250  $0.85

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS 
(Unaudited) (in thousands of dollars, except per share data)  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024  December 31,
2023  (Unaudited)  (Unaudited)  (Unaudited) Assets Cash and due from banks$ 174,855  $ 244,572  $ 191,785  $ 186,541  $ 140,917 Federal funds sold1,496  932  1,283  1,241  1,284 Total cash and cash equivalents176,351  245,504  193,068  187,782  142,201  Interest-bearing time deposits2,482  2,727  3,221  2,735  2,740 Securities - available-for-sale426,556  404,881  365,209  347,516  358,478 Other securities, at cost14,400  15,028  14,721  14,744  17,138 Loans held for sale2,996  1,706  1,628  2,410  1,576 Loans, net of allowance for credit losses of $25,826 12/31/24 and $25,024 12/31/232,536,043  2,512,852  2,534,468  2,516,687  2,556,167 Premises and equipment33,828  33,779  34,507  35,007  35,790 Construction in progress-  35  38  9  8 Goodwill86,358  86,358  86,358  86,358  86,358 Loan servicing rights5,656  5,644  5,504  5,555  5,648 Bank owned life insurance34,872  34,624  34,359  34,123  33,907 Other assets45,181  46,047  49,552  54,628  43,218 Total Assets$ 3,364,723  $ 3,389,185  $ 3,322,633  $ 3,287,554  $ 3,283,229  Liabilities and Stockholders' Equity Liabilities Deposits Noninterest-bearing$ 516,904  $ 481,444  $ 479,069  $ 510,731  $ 528,465 Interest-bearing NOW accounts850,462  865,617  821,145  829,236  816,790 Savings671,818  661,565  673,284  635,430  599,191 Time647,581  676,187  667,592  645,985  663,017 Total deposits2,686,765  2,684,813  2,641,090  2,621,382  2,607,463  Federal funds purchased and securities sold under agreements to repurchase27,218  27,292  27,218  28,218  28,218 Federal Home Loan Bank (FHLB) advances246,056  263,081  266,102  256,628  265,750 Subordinated notes, net of unamortized issuance costs34,818  34,789  34,759  34,731  34,702 Dividend payable2,996  2,998  2,975  2,975  2,974 Accrued expenses and other liabilities31,659  40,832  27,825  25,930  27,579 Total liabilities3,029,512  3,053,805  2,999,969  2,969,864  2,966,686  Commitments and Contingencies  Stockholders' Equity Common stock - No par value 20,000,000 shares authorized; issued 14,564,425 shares 12/31/24 and 12/31/23; outstanding 13,699,536135,565  135,193  135,829  135,482  135,515 shares 12/31/24 and 13,664,641 shares 12/31/23 Treasury stock - 864,889 shares 12/31/24 and 899,784 shares 12/31/23(10,985) (10,904) (11,006) (10,851) (11,040)Retained earnings235,854  230,465  226,430  223,648  221,080 Accumulated other comprehensive loss(25,223) (19,374) (28,589) (30,589) (29,012)Total stockholders' equity335,211  335,380  322,664  317,690  316,543  Total Liabilities and Stockholders' Equity$ 3,364,723  $ 3,389,185  $ 3,322,633  $ 3,287,554  $ 3,283,229

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA  For the Three Months EndedFor the Twelve Months EndedSelected financial dataDecember 31,
2024 September 30,
2024 June 30,
2024 March 31,
2024 December 31,
2023December 31,
2024 December 31,
2023Return on average assets  0.99%  0.78%  0.69%  0.66%  0.67%  0.78%  0.71%Return on average equity  10.00%  7.93%  7.13%  6.76%  7.27%  7.98%  7.46%Yield on earning assets  5.20%  5.27%  5.22%  5.00%  4.93%  5.17%  4.67%Cost of interest bearing liabilities  3.01%  3.21%  3.18%  3.06%  3.02%  3.12%  2.53%Net interest spread  2.19%  2.06%  2.04%  1.94%  1.91%  2.05%  2.14%Net interest margin  2.84%  2.71%  2.71%  2.60%  2.57%  2.72%  2.72%Efficiency  59.82%  67.98%  69.03%  74.08%  69.23%  67.54%  68.48%Dividend payout ratio  35.75%  45.99%  52.35%  55.52%  54.23%  46.07%  50.65%Tangible book value per share $17.74 $17.72 $16.79 $16.39 $16.29 Tier 1 leverage ratio  8.12%  8.04%  8.02%  8.40%  8.20% Average shares outstanding  13,699,869  13,687,119  13,681,501  13,671,166  13,665,773  13,679,955  13,641,336 LoansDecember 31,
2024 September 30,
2024 June 30,
2024 March 31,
2024 December 31,
2023 (Dollar amounts in thousands) Commercial real estate $1,310,811 $1,301,160 $1,303,598 $1,304,400 $1,337,766 Agricultural real estate  216,401  220,328  222,558  227,455  223,791 Consumer real estate  520,114  524,055  525,902  525,178  521,895 Commercial and industrial  275,152  260,732  268,426  256,051  254,935 Agricultural  152,080  137,252  142,909  127,670  132,560 Consumer  63,009  67,394  70,918  74,819  79,591 Other  24,978  25,916  26,449  26,776  30,136 Less: Net deferred loan fees, costs and other (1)  (676)  1,499  (1,022)  (982)  517 Total loans, net $2,561,869 $2,538,336 $2,559,738 $2,541,367 $2,581,191   Asset quality dataDecember 31,
2024 September 30,
2024 June 30,
2024 March 31,
2024December 31,
2023 (Dollar amounts in thousands) Nonaccrual loans $3,124 $2,898 $2,487 $19,391 $22,353 90 day past due and accruing $- $- $- $- $- Nonperforming loans $3,124 $2,898 $2,487 $19,391 $22,353 Other real estate owned $- $- $- $- $- Nonperforming assets $3,124 $2,898 $2,487 $19,391 $22,353   Allowance for credit losses $25,826 $25,484 $25,270 $24,680 $25,024 Allowance for unfunded  1,541  1,661  1,928  1,946  2,212 Total allowance for credit losses $27,367 $27,145 $27,198 $26,626 $27,236 Total allowance for credit losses/total loans  1.07%  1.07%  1.06%  1.05%  1.06% Adjusted credit losses with accretable yield/total loans  1.08%  1.10%  1.10%  1.11%  1.13% Net charge-offs: Quarter-to-date $4 $68 $15 $55 $531 Year-to-date $142 $138 $70 $55 $551 Net charge-offs to average loans Quarter-to-date  0.00%  0.00%  0.00%  0.00%  0.02% Year-to-date  0.01%  0.01%  0.00%  0.00%  0.02% Nonperforming loans/total loans  0.12%  0.11%  0.10%  0.76%  0.87% Allowance for credit losses/nonperforming loans  826.70%  879.37%  1016.08%  127.28%  111.95% NPA coverage ratio  826.70%  879.37%  1016.08%  127.28%  111.95%  (1) Includes carrying value adjustments of $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES 
(in thousands of dollars, except percentages)  For the Three Months Ended  For the Three Months Ended  December 31, 2024  December 31, 2023 Interest Earning Assets:Average
Balance Interest/
Dividends Annualized
Yield/Rate  Average
Balance Interest/
Dividends Annualized
Yield/Rate Loans$ 2,543,628 $ 36,663 5.77% $ 2,553,023 $ 34,493 5.41%Taxable investment securities450,648 2,554 2.27% 386,931 1,660 1.72%Tax-exempt investment securities18,571 79 2.15% 24,145 89 1.87%Fed funds sold & other209,307 2,555 4.88% 142,642 2,028 5.69%Total Interest Earning Assets3,222,154 $ 41,851 5.20% 3,106,741 $ 38,270 4.93% Nonearning Assets174,172      189,202  Total Assets$ 3,396,326      $ 3,295,943  Interest Bearing Liabilities: Savings deposits$ 1,548,638 $ 9,459 2.44% $ 1,392,304 $ 8,570 2.46%Other time deposits666,896 6,290 3.77% 701,347 6,445 3.68%Other borrowed money255,490 2,713 4.25% 265,948 2,742 4.12%Fed funds purchased & securities sold under agreement to repurchase27,341 274 4.01% 28,739 293 4.08%Subordinated notes34,799 285 3.28% 34,683 285 3.29%Total Interest Bearing Liabilities$ 2,533,164 $ 19,021 3.01% $ 2,423,021 $ 18,335 3.02% Noninterest Bearing Liabilities527,751      567,813  Stockholders' Equity$ 335,411      $ 305,109  Net Interest Income and Interest Rate Spread  $ 22,830 2.19%   $ 19,935 1.91% Net Interest Margin    2.84%     2.57% Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts   For the Twelve Months Ended  For the Twelve Months Ended  December 31, 2024  December 31, 2023 Interest Earning Assets:Average
Balance Interest/
DividendsAnnualized
Yield/Rate  Average
Balance Interest/
DividendsAnnualized
Yield/Rate Loans$ 2,557,213 $ 145,329 5.68% $ 2,491,502 $ 129,344 5.19%Taxable investment securities410,764 8,129 1.98% 394,424 6,204 1.57%Tax-exempt investment securities20,154 328 2.06% 24,686 366 1.88%Fed funds sold & other176,307 9,786 5.55% 85,018 3,894 4.58%Total Interest Earning Assets3,164,438 $ 163,572 5.17% 2,995,630 $ 139,808 4.67% Nonearning Assets164,464      197,726  Total Assets$ 3,328,902      $ 3,193,356  Interest Bearing Liabilities: Savings deposits$ 1,502,365 $ 39,750 2.65% $ 1,376,318 $ 27,424 1.99%Other time deposits663,320 24,713 3.73% 640,390 19,499 3.04%Other borrowed money262,094 10,948 4.18% 220,175 8,876 4.03%Fed funds purchased & securities sold under agreement to repurchase27,750 1,111 4.00% 35,421 1,474 4.16%Subordinated notes34,755 1,138 3.27% 34,640 1,138 3.29%Total Interest Bearing Liabilities$ 2,490,284 $ 77,660 3.12% $ 2,306,944 $ 58,411 2.53% Noninterest Bearing Liabilities513,588      580,931  Stockholders' Equity$ 325,030      $ 305,481  Net Interest Income and Interest Rate Spread  $ 85,912 2.05%   $ 81,397 2.14% Net Interest Margin    2.72%     2.72% Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES 
(in thousands of dollars, except percentages)  For the Three Months Ended December 31, 2024 For the Three Months Ended December 31, 2023 As Reported Excluding Acc/Amort Difference As Reported Excluding Acc/Amort Difference $Yield  $Yield  $ Yield  $Yield  $Yield  $ Yield Interest Earning Assets: Loans$ 36,6635.77% $ 36,0395.67% $ 624 0.10% $ 34,4935.41% $ 33,7695.29% $ 724 0.12%Taxable investment securities2,5542.27% 2,5542.27% - 0.00% 1,6601.72% 1,6601.72% - 0.00%Tax-exempt investment securities792.15% 792.15% - 0.00% 891.87% 891.87% - 0.00%Fed funds sold & other2,5554.88% 2,5554.88% - 0.00% 2,0285.69% 2,0285.69% - 0.00%Total Interest Earning Assets41,8515.20% 41,2275.12% 624 0.08% 38,2704.93% 37,5464.84% 724 0.09% Interest Bearing Liabilities: Savings deposits$ 9,4592.44% $ 9,4592.44% $             - 0.00% $ 8,5702.46% $ 8,5702.46% $             - 0.00%Other time deposits6,2903.77% 6,2903.77% - 0.00% 6,4453.68% 6,3813.64% 64 0.04%Other borrowed money2,7134.25% 2,7104.24% 3 0.01% 2,7424.12% 2,7604.15% (18)-0.03%Federal funds purchased  and securities sold under agreement to repurchase2744.01% 2744.01% - 0.00% 2934.08% 2934.08% - 0.00%Subordinated notes2853.28% 2853.28% - 0.00% 2853.29% 2853.29% - 0.00%Total Interest Bearing Liabilities19,0213.01% 19,0183.00% 3 0.01% 18,3353.02% 18,2893.02% 46 0.00% Interest/Dividend income/yield41,8515.20% 41,2275.12% 624 0.08% 38,2704.93% 37,5464.84% 724 0.09%Interest Expense / yield19,0213.01% 19,0183.00% 3 0.01% 18,3353.02% 18,2893.02% 46 0.00%Net Interest Spread22,8302.19% 22,2092.12% 621 0.07% 19,9351.91% 19,2571.82% 678 0.09%Net Interest Margin 2.84%  2.76%   0.08%  2.57%  2.48%   0.09%  For the Twelve Months Ended December 31, 2024 For the Twelve Months Ended December 31, 2023 As Reported Excluding Acc/Amort Difference As Reported Excluding Acc/Amort Difference $Yield  $Yield  $ Yield  $Yield  $Yield  $ Yield Interest Earning Assets: Loans$ 145,3295.68% $ 142,6275.58% $ 2,702 0.10% $ 129,3445.19% $ 126,1335.06% $ 3,211 0.13%Taxable investment securities8,1291.98% 8,1291.98% - 0.00% 6,2041.57% 6,2041.57% - 0.00%Tax-exempt investment securities3282.06% 3282.06% - 0.00% 3661.88% 3661.88% - 0.00%Fed funds sold & other9,7865.55% 9,7865.55% - 0.00% 3,8944.58% 3,8944.58% - 0.00%Total Interest Earning Assets163,5725.17% 160,8705.09% 2,702 0.08% 139,8084.67% 136,5974.57% 3,211 0.10% Interest Bearing Liabilities: Savings deposits$ 39,7502.65% $ 39,7502.65% $             - 0.00% $ 27,4241.99% $ 27,4241.99% $             - 0.00%Other time deposits24,7133.73% 24,7133.73% - 0.00% 19,4993.04% 19,8393.10% (340)-0.06%Other borrowed money10,9484.18% 10,9644.18% (16)0.00% 8,8764.03% 8,9474.06% (71)-0.03%Federal funds purchased  and securities sold under agreement to repurchase1,1114.00% 1,1114.00% - 0.00% 1,4744.16% 1,4744.16% - 0.00%Subordinated notes1,1383.27% 1,1383.27% - 0.00% 1,1383.29% 1,1383.29% - 0.00%Total Interest Bearing Liabilities77,6603.12% 77,6763.12% (16)0.00% 58,4112.53% 58,8222.55% (411)-0.02% Interest/Dividend income/yield163,5725.17% 160,8705.09% 2,702 0.08% 139,8084.67% 136,5974.57% 3,211 0.10%Interest Expense / yield77,6603.12% 77,6763.12% (16)0.00% 58,4112.53% 58,8222.55% (411)-0.02% Net Interest Spread85,9122.05% 83,1941.97% 2,718 0.08% 81,3972.14% 77,7752.02% 3,622 0.12%Net Interest Margin 2.72%  2.63%   0.09%  2.72%  2.60%   0.12%

Company Contact:Investor and Media Contact:Lars B. Eller
President and Chief Executive Officer
Farmers & Merchants Bancorp, Inc.
(419) 446-2501 
[email protected] M. Berger
Managing Director
SM Berger & Company, Inc. 
(216) 464-6400
[email protected]