Key Highlights

  • Farmers & Merchants’ $0.24 regular and $0.01 special dividends trade ex-dividend October 9, 2026, with payment on October 20.
  • The regular quarterly dividend rose 5.5% year over year to $0.24, the company’s 32nd consecutive annual dividend increase.
  • Second-quarter Net Income was $11.8 million, up 53.0%, with EPS of $0.86 compared with $0.56 a year earlier.
  • Net interest Margin was 3.48%, up 26 basis points, and the efficiency ratio improved to 56.08% from 64.93%.

Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) declared a regular quarterly dividend of $0.24 per share and a one-time Special Dividend of $0.01, a total of $0.25 and a 2.75% yield, payable October 20 to shareholders of record on October 9, 2026. The $0.24 regular amount equals 27.9% of second-quarter EPS of $0.86.

Dividend Program and Shareholder Returns

The board announced the dividends on September 29, 2026. The regular $0.24 quarterly dividend increased 5.5% year over year, while the release also describes the $0.01 rise as 4.3% from the previous dividend payment, and the annual dividend rose $0.04 per share. The $0.01 special dividend marks America’s 250th anniversary. The shares trade ex-dividend on October 9.

The company described this as its 32nd consecutive annual dividend increase, said it has paid a quarterly dividend for over 50 years, and stated that its annualized dividend rose about 109% over 10 years. The $0.24 amount equals $0.96 on an annualized basis, a computed figure. Each dividend remains subject to board approval.

About the Company

Farmers & Merchants Bancorp, Inc. is the Holding Company for F&M Bank, a community bank serving its communities since 1897. Its footprint covers 17 counties, 10 in Ohio, six in northeast Indiana and Oakland County, Michigan. Total Assets were $3.50 billion ($3,502,118 thousand) at June 30, 2026, and the company described its history as spanning nearly 130 years.

Second-Quarter Earnings, Margin and Efficiency

Second-quarter net income was $11.8 million ($11,797 thousand), up 53.0% from $7.7 million ($7,710 thousand), and EPS was $0.86 basic and diluted, compared with $0.56. Management called it the most profitable quarter in the company’s 129-year history. First-half net income was $21.4 million, compared with $14.7 million.

Net interest margin was 3.48%, up 26 basis points from 3.22%. The cost of interest-bearing liabilities was 2.56%, down from 2.83%, and the efficiency ratio was 56.08%, down from 64.93%. Net charge-offs to average loans were 0.00%.

Income Statement, Loans and Deposits

Net interest income was $28,918 thousand, compared with $25,711 thousand, and noninterest income was $5,432 thousand, compared with $3,935 thousand. Noninterest expense was $19,264 thousand, compared with $19,260 thousand. Provisions were $173 thousand on loans and $148 thousand on off-balance sheet exposures, compared with $661 thousand and $27 thousand.

Total deposits were $2.87 billion, up 5.9%, or $159.1 million, from a year earlier. Net loans rose 3.0%, or $79.5 million, to $2.70 billion. Nonperforming loans were $7,383 thousand, or 0.27% of loans, compared with $11,070 thousand, or 0.42%, at March 31. The allowance was 1.08% of loans.

Capital and Dividend Relationships

Book value per share was $27.92, compared with $25.56 a year earlier, and tangible Book Value per share was $21.41, compared with $18.91. The Tier 1 Leverage Ratio was 8.99%. Dividends declared were $0.23 per quarter in the second quarter and $0.46 per share for the first half, which the release described as 4.0% above the prior-year period.

On 13,779,385 shares outstanding, the $0.25 total payment equals about $3.44 million, a computed figure. Net interest income rose 12.5% and noninterest income rose 38.0%, both computed.

Outlook

Farmers & Merchants’ $0.24 regular quarterly dividend and $0.01 special dividend are payable October 20 to shareholders of record on October 9, 2026. The 3.48% net interest margin, the 2.56% cost of interest-bearing liabilities, the 56.08% efficiency ratio, and the 8.99% Tier 1 leverage ratio are the relevant considerations.