Farmers & Merchants Bancorp, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with net income rising to $33.3 million, a 28.4% increase from $25.9 million in 2024. The company's earnings per share also improved, reaching $2.43 compared to $1.90 in the previous year. Total interest income increased by $9.97 million to $173.54 million, driven primarily by growth in the loan portfolio, which rose to $2.71 billion, up from $2.56 billion in 2024. The net interest margin improved to 3.28%, up from 2.72% in 2024, reflecting effective management of interest rates and funding costs.
The company experienced notable changes in its loan portfolio, particularly in the agricultural sector, which saw a 44% increase year-over-year, amounting to $66.2 million. The commercial and industrial loan segments also showed growth, with a 12% increase in the last quarter of 2025. The overall loan growth was funded by a 1.6% increase in deposits, which totaled $2.73 billion, and a significant reduction in cash positions by 44.6%. The provision for credit losses increased by $1.65 million, primarily due to loan growth and some weaker macroeconomic indicators.
Strategically, Farmers & Merchants Bancorp made several operational adjustments, including the formation of F&M Insurance Agency, LLC in November 2023, to offer insurance products. The company also opened a new office in Troy, Michigan, expanding its geographic footprint. As of December 31, 2025, the bank employed 474 full-time equivalent employees, reflecting a slight increase from the previous year. The bank's market share in its primary service areas was reported at 5.14%, ranking it fourth among local depository institutions.
Looking ahead, the company expressed a cautious but optimistic outlook, focusing on continued core deposit growth and moderate loan growth while managing costs effectively. The management emphasized the importance of maintaining a strong capital base, with total stockholders' equity increasing to $370.9 million, up from $335.2 million in 2024. The bank's capital ratios remained well above regulatory requirements, positioning it favorably for future growth and stability in a potentially volatile economic environment.
About FARMERS & MERCHANTS BANCORP INC
Farmers & Merchants Bancorp, Inc. is a bank holding company operating The Farmers & Merchants State Bank, a community bank serving Ohio, Indiana, and Michigan. It offers commercial, agricultural, mortgage, and consumer banking services, including loans, deposits, and digital banking. The company focuses on local markets, emphasizing safety, soundness, and regulatory compliance, with core strengths in relationship-based banking and diversified financial services.
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