Farmers & Merchants Bancorp (FMAO) investor relations material

Executive summary

• Achieved record quarterly net income of $11.8 million, up 53% year-over-year and 23% sequentially, marking the most profitable quarter in company history.

• Maintained 93 consecutive quarters of profitability, with strong operating leverage and disciplined expense management.

• Continued growth in loans and deposits, supported by favorable economic trends in core markets.

Financial highlights

• Net income for Q2 2026 was $11.8 million ($0.86 per share), compared to $7.7 million ($0.56 per share) in Q2 2025.

• Net income for the first half of 2026 was $21.4 million ($1.55 per share), up from $14.7 million ($1.07 per share) year-over-year.

• Net interest margin rose to 3.48%, up 26 basis points year-over-year.

• Efficiency ratio improved to 56.08% from 64.93% year-over-year.

• Total deposits grew 5.9% to $2.87 billion; total loans increased 3.0% to $2.70 billion year-over-year.

Outlook and guidance

• Management expects continued profitable growth, leveraging a strong balance sheet and ongoing investments in people, technology, and markets.

• Focus remains on executing a new three-year strategic plan to drive long-term value.