Earnings release
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Exhibit 99 Post Office Box 216 307 North Defiance Street Archbold, Ohio 43502 NEWS RELEASE Company Contact: Investor and Media Contact: Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com Farmers & Merchants Bancorp, Inc. Reports 2026 Third-Quarter and Year-to-Date Financial Results ARCHBOLD, OHIO, October 22, 2026, Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2026 third quarter and year-to-date ended September 30, 2026, on a consolidated basis. 2026 Third-Quarter Financial and Operating Highlights (at September 30, 2026, and on a year-over-year basis unless noted) • 94 consecutive quarters of profitability • Net income increased 30.3% to $11.5 million, or $0.84 per basic and diluted share • Strong profitability drives ROAA to 1.29%, compared to 1.05% • Net charge-offs to average loans of 0.00% • Tier 1 leverage ratio was 9.14% • Cost of interest-bearing liabilities improved to 2.59%, from 2.83% • Net interest margin increased by 17 basis points to 3.57% • Efficiency ratio improved to 58.09%, compared to 63.11% • Third quarter regular dividend per share increased 5.5% to $0.96 annualized • Company declared an additional $0.01 per share special dividend, bringing total third-quarter payment to $0.250 per share Lars B. Eller, President and Chief Executive Officer, stated, “2026 is shaping up to be a historic year of profitability and growth with year-to-date earnings per share increasing 39.8% to $2.39. Throughout the 2026 nine-month period, our team has worked hard to expand our net interest margin, control operating expenses, grow our balance sheet, and maintain excellent asset quality. We are encouraged by the progress we have made across these key priorities and believe we are well positioned to sustain our positive momentum through the remainder of 2026 and into 2027.” Income Statement Net income for the quarter ended September 30, 2026, was $11.5 million, compared to $8.9 million for the same period last year. Net income per basic and diluted share for the 2026 third quarter was $0.84, compared to $0.64 for the same period last year. Net income for the nine months ended September 30, 2026, was $32.9 million, compared to $23.5 million for the same period last year. Net income per basic and diluted share for the 2026 nine months was $2.39, compared to $1.71 for the same period last year. Mr. Eller continued: “We believe F&M is well positioned to navigate a higher interest rate environment and capitalize on opportunities to further expand our net interest margin. With loan repricing opportunities extending through 2028, we believe we have a favorable backdrop to support interest income growth in the coming quarters and years. Combined
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with our disciplined approach to deposit pricing and funding costs, we remain optimistic about our ability to maintain the significant improvement in net interest margin achieved over the past year.” Deposits At September 30, 2026, total deposits were $2.96 billion, an increase of 7.7%, or $210.6 million from September 30, 2025. For the three months ended September 30, 2026, F&M’s cost of interest-bearing liabilities was 2.59%, compared to 2.83% in the same period last year. Loan Portfolio and Asset Quality Total loans, net at September 30, 2026, increased 3.0%, or by $79.0 million to $2.74 billion, compared to $2.66 billion at September 30, 2025. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and consumer real estate loans, partially offset by lower commercial real estate, consumer, and agricultural real estate loans. F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans continue to normalize on a year-over-year basis and were $6.2 million, or 0.23% of total loans at September 30, 2026, compared to $7.4 million, or 0.27% of total loans at June 30, 2026, and $5.2 million, or 0.19% of total loans at September 30, 2025. F&M maintains a well-balanced, diverse, and high performing CRE portfolio. CRE loans represented 48.2% of the Company’s total loan portfolio at September 30, 2026. F&M’s CRE portfolio included the following categories at September 30, 2026 (*): CRE Category Dollar Balance Percent of CRE Portfolio Percent of Total Loan Portfolio Multi-family $ 248,851 18.8% 9.1% Retail 241,155 18.3% 8.8% Industrial 211,320 16.0% 7.7% Hotels 176,727 13.4% 6.5% Office 125,283 9.5% 4.6% Gas Stations 83,361 6.3% 3.0% Food Service 53,045 4.0% 1.9% Development 35,527 2.7% 1.3% Auto Dealers 26,163 2.0% 1.0% Senior Living 17,205 1.3% 0.6% Other 102,384 7.7% 3.7% Total CRE $ 1,321,021 100.0% 48.2% * Numbers have been rounded; totals may not foot due to rounding; and dollar amounts in thousands. At September 30, 2026, the Company’s total allowance for credit losses to total loans was 1.08%, compared to 1.07% at September 30, 2025. Mr. Eller concluded, “Our relationship-based banking model and local decision-making continue to differentiate F&M across our Ohio, Indiana, and Michigan markets. We maintain a healthy lending pipeline, reflecting continued opportunities to support businesses and consumers throughout our communities. Our local market knowledge and disciplined underwriting practices allow us to remain selective in pursuing new business while maintaining strong asset quality. We believe this balanced approach to profitable growth, combined with our continued focus on operational efficiency and shareholder returns, positions F&M to build upon our strong financial performance.”
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Stockholders’ Equity and Dividends Total stockholders’ equity increased 6.9% to $386.9 million, or $28.12 per share at September 30, 2026, from $361.8 million, or $26.31 per share at September 30, 2025. The Company had a Tier 1 leverage ratio of 9.14% at September 30, 2026, compared to 8.74% at September 30, 2025. Tangible stockholders’ equity increased to $297.5 million at September 30, 2026, compared to $271.0 million at September 30, 2025. On a per share basis, tangible stockholders’ equity at September 30, 2026, was $21.62 per share, compared to $19.71 per share at September 30, 2025. Tangible stockholders’ equity and tangible book value per share are non-GAAP financial measures; see “Use of Non-GAAP Financial Measures.” F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 32 consecutive years. For the nine months ended September 30, 2026, the Company declared cash dividends of $0.71 per share, representing a 6.0% increase over the same period last year. For the nine months ended September 30, 2026, the dividend payout ratio was 29.34% compared to 38.64% for the same period last year. As part of F&M’s disciplined approach to capital management, the Company has continued to actively repurchase shares of F&M common stock. These repurchases are intended, in part, to help offset dilution associated with equity-based management compensation while supporting F&M’s broader objective of managing capital in a manner that enhances long- term shareholder value. Mr. Eller concluded, “One of the most rewarding aspects of our continued financial success is the ability to share that success with our shareholders. Our 32ndconsecutive annual dividend increase, and third quarter special dividend, are testaments to the strength of our franchise, the consistency of our financial performance, and our disciplined approach to capital management. We believe the combination of profitable growth, a strong balance sheet, and consistent capital returns positions F&M to create meaningful long-term value for our shareholders.”
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About Farmers & Merchants Bancorp, Inc. Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is a financial holding company headquartered in Archbold, Ohio, and the parent company of The Farmers & Merchants State Bank. 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 Muncie, Indiana; and Perrysburg and Bryan, Ohio. Use of Non-GAAP Financial Measures This release contains certain non-GAAP financial measures, including tangible stockholders’ equity and tangible book value per share. Management believes these measures facilitate period-to-period comparisons of the Company’s performance and provide useful supplemental information to investors; however, they should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Basis of Presentation The financial information in this release is preliminary, based on management’s current expectations, and is subject to change pending completion of customary quarterly closing processes and review. Unless otherwise indicated, all figures are presented on a consolidated basis and comparisons are to the same period of the prior year. Averages may be annualized. Totals may not foot due to rounding. 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 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” “project,” “target,” “goal,” “will,” “would,” and similar expressions. 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, deposit flows and pricing, liquidity and access to wholesale funding, interest rate and asset-liability management, credit quality (including commercial real estate exposures), collateral values, inflation and macroeconomic conditions, changes in laws and regulations (including capital and liquidity requirements and the implementation of “Basel III Endgame”), FDIC assessments, stress testing and supervisory expectations, cybersecurity and third-party/vendor risks, competition and technological change, geopolitical events, severe weather and natural disasters, agricultural sector conditions, the accuracy of CECL estimates and other accounting judgments, capital and dividend restrictions, and other risks described in F&M’s filings with the SEC. F&M undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 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.
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (Unaudited) (in thousands of dollars, except per share data) Three Months Ended Nine Months Ended September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 September 30, 2026 September 30, 2025 Interest Income Loans, including fees $ 42,061 $ 40,839 $ 39,827 $ 40,999 $ 41,013 $ 122,727 $ 117,615 Debt securities: U.S. Treasury and government agencies 3,057 2,712 2,305 2,259 2,224 8,074 6,552 Municipalities and corporate bonds 346 347 349 362 366 1,042 1,117 Dividends 207 239 245 250 309 691 958 Federal funds sold and other 1,321 1,510 572 696 572 3,403 2,736 Total interest income 46,992 45,647 43,298 44,566 44,484 135,937 128,978 Interest Expense Deposits 14,758 14,432 13,249 14,318 15,060 42,439 43,861 Federal funds purchased and securities sold under agreement to repurchase 120 118 145 226 273 383 816 Borrowed funds 1,694 1,894 2,176 1,966 1,966 5,764 6,927 Subordinated notes 480 285 284 285 284 1,049 853 Total interest expense 17,052 16,729 15,854 16,795 17,583 49,635 52,457 Net Interest Income - Before Provision for Credit Losses 29,940 28,918 27,444 27,771 26,901 86,302 76,521 Provision for (Recovery of) Credit Losses - Loans (104) 173 302 567 557 371 2,029 Provision for (Recovery of) Credit Losses - Off Balance Sheet Credit Exposures 479 148 6 (1) (272) 633 (505) Net Interest Income After Provision for Credit Losses 29,565 28,597 27,136 27,205 26,616 85,298 74,997 Noninterest Income Customer service fees 380 544 483 337 370 1,407 1,081 Other service charges and fees 1,331 1,301 1,283 1,311 1,349 3,915 3,679 Interchange income 1,339 1,347 1,513 1,275 1,273 4,199 3,953 Loan servicing income 686 846 838 814 674 2,370 2,065 Net gain on sale of loans 399 683 575 306 444 1,657 985 Increase in cash surrender value of bank owned life insurance 731 681 655 640 247 2,067 730 Net gain (loss) on sale of other assets owned 1 30 - (2) - 31 (39) Net loss on sale of available-for-sale securities - - (347) - - (347) - Total noninterest income 4,867 5,432 5,000 4,681 4,357 15,299 12,454 (continued)
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (continued) (Unaudited) (in thousands of dollars, except per share data) Three Months Ended Six Months Ended September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 September 30, 2026 September 30, 2025 Noninterest Expense Salaries and wages 8,594 8,381 8,267 8,037 8,108 25,242 23,553 Employee benefits 2,458 2,338 2,379 2,386 2,273 7,175 6,942 Net occupancy expense 1,081 931 1,169 1,052 1,104 3,181 3,378 Furniture and equipment 1,685 1,594 1,566 1,352 1,532 4,845 4,224 Data processing 840 778 994 964 1,109 2,612 2,723 Franchise taxes 394 395 400 397 397 1,189 1,191 ATM expense 576 561 576 676 665 1,713 1,917 Advertising 906 363 472 666 674 1,741 1,533 FDIC assessment 413 389 396 377 428 1,198 1,341 Servicing rights amortization - net 349 328 523 637 586 1,200 947 Loan expense 530 578 309 292 362 1,417 918 Consulting fees 312 325 254 182 242 891 1,481 Professional fees 447 425 500 352 516 1,372 1,577 Intangible asset amortization 305 304 305 446 445 914 1,334 Other general and administrative 1,328 1,574 1,691 1,237 1,298 4,593 4,700 Total noninterest expense 20,218 19,264 19,801 19,053 19,739 59,283 57,759 Income Before Income Taxes 14,214 14,765 12,335 12,833 11,234 41,314 29,692 Income Taxes 2,676 2,968 2,757 3,040 2,380 8,401 6,176 Net Income 11,538 11,797 9,578 9,793 8,854 32,913 23,516 Other Comprehensive Income (Loss) (Net of Tax): Net unrealized gain (loss) on available- for-sale securities (5,915) (545) (2,420) 2,657 6,610 (8,880) 14,223 Reclassification adjustment for realized loss on sale of available- for-sale securities - - 347 - - 347 - Net unrealized gain (loss) on available- for-sale securities (5,915) (545) (2,073) 2,657 6,610 (8,533) 14,223 Tax expense (benefit) (1,242) (115) (435) 558 1,388 (1,792) 2,987 Other comprehensive income (loss) (4,673) (430) (1,638) 2,099 5,222 (6,741) 11,236 Comprehensive Income $ 6,865 $ 11,367 $ 7,940 $ 11,892 $ 14,076 $ 26,172 $ 34,752 Basic Earnings Per Share $ 0.84 $ 0.86 $ 0.70 $ 0.71 $ 0.64 $ 2.39 $ 1.71 Diluted Earnings Per Share $ 0.84 $ 0.86 $ 0.70 $ 0.71 $ 0.64 $ 2.39 $ 1.71
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of dollars, except share data) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Assets Cash and due from banks $ 205,125 $ 155,879 $ 172,847 $ 97,249 $ 116,448 Federal funds sold 686 511 623 469 582 Total cash and cash equivalents 205,811 156,390 173,470 97,718 117,030 Interest-bearing time deposits 518 518 1,253 1,498 1,498 Securities - available-for-sale 455,977 441,254 429,623 422,072 422,773 Other securities, at cost 10,681 10,681 12,672 13,032 11,509 Loans held for sale 2,527 2,994 5,579 3,934 3,003 Loans, net of allowance for credit losses 2,709,358 2,677,072 2,654,135 2,685,990 2,632,668 Premises and equipment 29,590 30,334 31,534 31,864 32,321 Goodwill 86,358 86,358 86,358 86,358 86,358 Loan servicing rights 5,034 5,085 4,972 5,175 5,537 Bank owned life insurance 48,751 48,021 45,407 47,410 35,602 Other assets 44,450 43,411 40,247 39,331 42,453 Total Assets $ 3,599,055 $ 3,502,118 $ 3,485,569 $ 3,434,382 $ 3,390,752 Liabilities and Stockholders' Equity Liabilities Deposits Noninterest-bearing $ 518,286 $ 506,119 $ 520,348 $ 527,327 $ 500,742 Interest-bearing NOW accounts 952,573 898,902 910,723 876,151 920,099 Savings 803,763 771,379 753,289 729,472 713,391 Time 687,870 693,008 625,302 597,785 617,679 Total deposits 2,962,492 2,869,408 2,809,662 2,730,735 2,751,911 Federal funds purchased and securities sold under agreements to repurchase 15,168 14,771 14,762 37,718 22,718 Federal Home Loan Bank (FHLB) advances 167,903 168,447 218,987 227,377 187,913 Subordinated notes, net of unamortized issuance costs 35,000 34,991 34,962 34,933 34,904 Dividend payable 3,399 3,130 3,128 3,125 3,091 Accrued expenses and other liabilities 28,166 26,655 28,120 29,632 28,435 Total liabilities 3,212,128 3,117,402 3,109,621 3,063,520 3,028,972 Commitments and Contingencies Stockholders' Equity Common stock - No par value; authorized 40,000,000 shares; issued 14,564,425 shares; outstanding 13,762,268 shares 9/30/26 and 13,748,074 shares 12/31/25 134,761 135,510 135,270 135,531 135,170 Treasury stock - 802,157 shares 9/30/26 and 816,351 shares 12/31/25 (11,651) (10,293) (10,403) (10,636) (10,584) Retained earnings 282,446 273,455 264,607 257,855 251,181 Accumulated other comprehensive loss (18,629) (13,956) (13,526) (11,888) (13,987) Total stockholders' equity 386,927 384,716 375,948 370,862 361,780 Total Liabilities and Stockholders' Equity $ 3,599,055 $ 3,502,118 $ 3,485,569 $ 3,434,382 $ 3,390,752
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES SELECT FINANCIAL DATA For the Three Months Ended For the Nine Months Ended Selected financial data September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 September 30, 2026 September 30, 2025 Return on average assets 1.29% 1.34% 1.14% 1.14% 1.05% 1.25% 0.94% Return on average equity 11.76% 12.37% 10.31% 10.55% 9.83% 11.45% 8.99% Yield on earning assets 5.61% 5.48% 5.38% 5.55% 5.62% 5.50% 5.42% Cost of interest-bearing liabilities 2.59% 2.56% 2.54% 2.69% 2.83% 2.56% 2.84% Net interest spread 3.02% 2.92% 2.84% 2.86% 2.79% 2.94% 2.58% Net interest margin 3.57% 3.48% 3.42% 3.46% 3.40% 3.50% 3.22% Efficiency ratio 58.09% 56.08% 60.08% 58.38% 63.11% 58.15% 64.87% Dividend payout ratio 29.45% 26.53% 32.62% 31.90% 34.90% 29.34% 38.64% Tangible book value per share $ 21.62 $ 21.41 $ 20.76 $ 20.40 $ 19.71 Tier 1 leverage ratio 9.14% 8.99% 9.02% 8.81% 8.74% Average shares outstanding 13,779,9 36 13,773,3 87 13,754,6 84 13,749,4 20 13,733,8 58 13,769,4 28 13,720,16 8 Loans September 30, 2026 June 30, 2026 March 31, 2026 December 30, 2025 September 30, 2025 (Dollar amounts in thousands) Commercial real estate $ 1,321,021 $ 1,308,600 $ 1,315,549 $ 1,355,571 $ 1,355,166 Agricultural real estate 210,321 208,223 215,846 217,034 222,145 Consumer real estate 548,913 533,438 534,987 526,439 522,416 Commercial and industrial 343,720 337,487 309,046 314,405 296,084 Agricultural 245,639 244,611 228,730 218,050 179,361 Consumer 47,251 50,953 55,576 58,838 60,469 Other 22,089 22,574 22,564 23,133 24,086 Less: Net deferred loan fees costs and other (1,635) (1,419) (1,436) (1,511) (1,452) Total loans, net $ 2,737,319 $ 2,704,467 $ 2,680,862 $ 2,711,959 $ 2,658,275 Excludes carrying value adjustments of ($159) thousand as of September 30, 2026, $546 thousand as of June 30, 2026, $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025 and $1.9 million as of September 30, 2025 related to interest rate swaps associated with fixed rate loans (1) (1)
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES SELECT FINANCIAL DATA (continued) Asset quality data September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 (Dollar amounts in thousands) Nonaccrual loans $ 6,219 $ 7,383 $ 11,070 $ 11,256 $ 5,155 90 day past due and accruing $ - $ - $ - $ - $ - Nonperforming loans $ 6,219 $ 7,383 $ 11,070 $ 11,256 $ 5,155 Other real estate owned $ - $ - $ 319 $ - $ - Nonperforming assets $ 6,219 $ 7,383 $ 11,389 $ 11,256 $ 5,151 Allowance for credit losses - loans $ 27,802 $ 27,941 $ 27,830 $ 27,688 $ 27,475 Allowance for credit losses - off balance sheet credit exposures 1,668 1,189 1,041 1,035 1,037 Total allowance for credit losses $ 29,470 $ 29,130 $ 28,871 $ 28,723 $ 28,512 Total allowance for credit losses/ total loans 1.08% 1.08% 1.08% 1.06% 1.07% Net charge-offs: Quarter-to-date $ 35 $ 62 $ 160 $ 354 $ 59 Year-to-date $ 257 $ 222 $ 160 $ 734 $ 380 Net charge-offs to average loans Quarter-to-date 0.00% 0.00% 0.01% 0.01% 0.00% Year-to-date 0.01% 0.01% 0.01% 0.03% 0.01% Nonperforming loans/total loans 0.23% 0.27% 0.42% 0.42% 0.19% Allowance for credit losses/ nonperforming loans 447.05% 378.45% 251.40% 245.98% 532.98% NPA coverage ratio 447.05% 378.45% 244.36% 245.98% 532.98%
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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 September 30, 2026 September 30, 2025 Average Balance Interest/ Dividends Annualize d Yield/Rat e Average Balance Interest/ Dividends Annualize d Yield/Rat e Interest Earning Assets: Loans $ 2,726,585 $ 42,061 6.18% $ 2,649,409 $ 41,013 6.19% Taxable investment securities 473,448 3,545 3.00% 445,088 2,827 2.54% Tax-exempt investment securities 12,202 65 2.70% 16,066 72 2.27% Fed funds sold & other 145,409 1,321 3.63% 56,131 572 4.08% Total Interest Earning Assets 3,357,644 $ 46,992 5.61% 3,166,694 $ 44,484 5.62% Nonearning Assets 191,469 182,320 Total Assets $ 3,549,113 $ 3,349,014 Interest-Bearing Liabilities: NOW accounts and savings deposits $ 1,730,869 $ 9,749 2.25% $ 1,620,026 $ 9,966 2.46% Time deposits 684,990 5,009 2.93% 609,844 5,094 3.34% Other borrowed money 168,106 1,694 4.03% 188,123 1,966 4.18% Fed funds purchased & securities sold under agreement to repurchase 14,835 120 3.24% 27,274 273 4.00% Subordinated notes 34,997 480 5.49% 34,885 284 3.26% Total Interest-Bearing Liabilities $ 2,633,797 $ 17,052 2.59% $ 2,480,152 $ 17,583 2.83% Noninterest-Bearing Liabilities 526,148 511,468 Stockholders' Equity $ 389,168 $ 357,394 Net Interest Income and Interest Rate Spread $ 29,940 3.02% $ 26,901 2.79% Net Interest Margin 3.57% 3.40% 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
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued) (in thousands of dollars, except percentages) For the Nine Months Ended For the Nine Months Ended September 30, 2026 September 30, 2025 Average Balance Interest/ Dividends Annualize d Yield/Rat e Average Balance Interest/ Dividends Annualize d Yield/Rat e Interest Earning Assets: Loans $ 2,705,821 $ 122,727 6.06% $ 2,615,332 $ 117,615 6.00% Taxable investment securities 456,789 9,606 2.80% 454,288 8,403 2.47% Tax-exempt investment securities 12,729 201 2.67% 17,025 224 2.22% Fed funds sold & other 127,828 3,403 3.55% 87,106 2,736 4.19% Total Interest Earning Assets 3,303,167 $ 135,937 5.50% 3,173,751 $ 128,978 5.42% Nonearning Assets 192,543 174,982 Total Assets $ 3,495,710 $ 3,348,733 Interest-Bearing Liabilities: NOW accounts and savings deposits $ 1,688,457 $ 27,678 2.19% $ 1,557,564 $ 28,009 2.40% Time deposits 651,283 14,761 3.02% 621,126 15,852 3.40% Other borrowed money 190,338 5,764 4.04% 220,820 6,927 4.18% Fed funds purchased & securities sold under agreement to repurchase 15,646 383 3.26% 27,352 816 3.98% Subordinated notes 34,971 1,049 4.00% 34,856 853 3.26% Total Interest-Bearing Liabilities $ 2,580,695 $ 49,635 2.56% $ 2,461,718 $ 52,457 2.84% Noninterest-Bearing Liabilities 532,079 538,665 Stockholders' Equity $ 382,936 $ 348,350 Net Interest Income and Interest Rate Spread $ 86,302 2.94% $ 76,521 2.58% Net Interest Margin 3.50% 3.22% 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
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued) (in thousands of dollars, except percentages) For the Three Months Ended For the Three Months Ended September 30, 2026 September 30, 2025 As Reported Excluding Accretion/Amortiza tion Difference As Reported Excluding Accretion/Amortiza tion Difference $ Yield $ Yield $ Yield $ Yield $ Yield $ Yield Interest Earning Assets: Loans $ 42, 061 6.18% $ 42, 054 6.18% $ 7 0.00% $ 41, 013 6.19% $ 40, 359 6.09% $ 654 0.10% Taxable investment securities 3,5 45 3.00% 3,5 45 3.00% - 0.00% 2,8 27 2.54% 2,8 27 2.54% - 0.00% Tax-exempt investment securities 65 2.70% 65 2.70% - 0.00% 72 2.27% 72 2.27% - 0.00% Fed funds sold & other 1,3 21 3.63% 1,3 21 3.63% - 0.00% 572 4.08% 572 4.08% - 0.00% Total Interest Earning Assets 46, 992 5.61% 46, 985 5.60% 7 0.01% 44, 484 5.62% 43, 830 5.54% 654 0.08% Interest-Bearing Liabilities: NOW accounts and savings deposits $ 9,7 49 2.25% $ 9,7 49 2.25% $ - 0.00% $ 9,9 66 2.46% $ 9,9 66 2.46% $ - 0.00% Time deposits 5,0 09 2.93% 5,0 09 2.93% - 0.00% 5,0 94 3.34% 5,0 94 3.34% - 0.00% Other borrowed money 1,6 94 4.03% 1,6 91 4.02% 3 0.01% 1,9 66 4.18% 1,9 63 4.17% 3 0.01% Fed funds purchased and securities sold under agreement to repurchase 120 3.24% 120 3.24% - 0.00% 273 4.00% 273 4.00% - 0.00% Subordinated notes 480 5.49% 480 5.49% - 0.00% 284 3.26% 284 3.26% - 0.00% Total Interest-Bearing Liabilities 17, 052 2.59% 17, 049 2.59% 3 0.00% 17, 583 2.83% 17, 580 2.84% 3 -0.01% Interest/Dividend income/yield 46, 992 5.61% 46, 985 5.60% 7 0.01% 44, 484 5.62% 43, 830 5.54% 654 0.08% Interest Expense / yield 17, 052 2.59% 17, 049 2.59% 3 0.00% 17, 583 2.83% 17, 580 2.84% 3 -0.01% Net Interest Spread 29, 940 3.02% 29, 936 3.01% 4 0.01% 26, 901 2.79% 26, 250 2.70% 651 0.09% Net Interest Margin 3.57% 3.57% 0.00% 3.40% 3.32% 0.08% 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
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued) (in thousands of dollars, except percentages) For the Nine Months Ended For the Nine Months Ended September 30, 2026 September 30, 2025 As Reported Excluding Accretion/Amortiza tion Difference As Reported Excluding Accretion/Amortiza tion Difference $ Yield $ Yield $ Yield $ Yield $ Yield $ Yield Interest Earning Assets: Loans $ 122 ,72 7 6.06% $ 122 ,11 0 6.03% $ 617 0.03% $ 117 ,61 5 6.00% $ 115 ,75 5 5.90% $ 1,8 60 0.10% Taxable investment securities 9,6 06 2.80% 9,6 06 2.80% - 0.00% 8,4 03 2.47% 8,4 03 2.47% - 0.00% Tax-exempt investment securities 201 2.67% 201 2.67% - 0.00% 224 2.22% 224 2.22% - 0.00% Fed funds sold & other 3,4 03 3.55% 3,4 03 3.55% - 0.00% 2,7 36 4.19% 2,7 36 4.19% - 0.00% Total Interest Earning Assets 135 ,93 7 5.50% 135 ,32 0 5.47% 617 0.03% 128 ,97 8 5.42% 127 ,11 8 5.34% 1,8 60 0.08% Interest-Bearing Liabilities: NOW accounts and savings deposits $ 27, 678 2.19% $ 27, 678 2.19% $ - 0.00% $ 28, 009 2.40% $ 28, 009 2.40% $ - 0.00% Time deposits 14, 761 3.02% 14, 761 3.02% - 0.00% 15, 852 3.40% 15, 852 3.40% - 0.00% Other borrowed money 5,7 64 4.04% 5,7 54 4.03% 10 0.01% 6,9 27 4.18% 6,9 17 4.18% 10 0.00% Fed funds purchased and securities sold under agreement to repurchase 383 3.26% 383 3.26% - 0.00% 816 3.98% 816 3.98% - 0.00% Subordinated notes 1,0 49 4.00% 1,0 49 4.00% - 0.00% 853 3.26% 853 3.26% - 0.00% Total Interest-Bearing Liabilities 49, 635 2.56% 49, 625 2.56% 10 0.00% 52, 457 2.84% 52, 447 2.84% 10 0.00% Interest/Dividend income/yield 135 ,93 7 5.50% 135 ,32 0 5.47% 617 0.03% 128 ,97 8 5.42% 127 ,11 8 5.34% 1,8 60 0.08% Interest Expense / yield 49, 635 2.56% 49, 625 2.56% 10 0.00% 52, 457 2.84% 52, 447 2.84% 10 0.00% Net Interest Spread 86, 302 2.94% 85, 695 2.91% 607 0.03% 76, 521 2.58% 74, 671 2.50% 1,8 50 0.08% Net Interest Margin 3.50% 3.47% 0.03% 3.22% 3.14% 0.08% 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
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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF TANGIBLE COMMON EQUITY (in thousands of dollars) For the Three Months Ended Reconciliation of Common Stockholders' Equity to Tangible Common Equity September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Stockholders' Equity $ 386,927 $ 384,716 $ 375,948 $ 370,862 $ 361,780 Less Goodwill and Other Intangibles 89,433 89,738 90,043 90,347 90,792 Tangible Common Equity $ 297,494 $ 294,978 $ 285,905 $ 280,515 $ 270,988 Average Stockholders' Equity $ 389,168 $ 382,584 $ 376,923 $ 368,235 $ 357,394 Less average Goodwill and Other Intangibles 89,633 89,933 90,234 90,629 91,076 Average Tangible Common Equity $ 299,535 $ 292,651 $ 286,689 $ 277,606 $ 266,318