Farmers & Merchants Bancorp Inc (NASDAQ: FMAO)

Farmers & Merchants Bancorp, Inc. is a bank holding company that primarily operates through its subsidiary The Farmers & Merchants State Bank which has been providing community banking services since 1897. The Bank serves customers across Northwest Ohio Northeast Indiana and Southeast Michigan through a network of branches and loan production offices. In addition to the Bank the Company formerly maintained a captive insurance company and currently offers insurance products through its wholly owned subsidiary F&M Insurance Agency LLC. The Company also provides investment services via its brokerage division FM Investment Services which has been active since 1999.

The company generates revenue mainly from interest income on its loan portfolio which includes commercial loans agricultural mortgages residential mortgages and consumer loans such as auto RV and personal loans. Fee based revenue comes from deposit account services including checking savings and time deposit accounts as well as ATM and ITM usage fees. Additional fee income is derived from online banking services investment advisory fees and commissions from the sale of insurance products. The Company also earns revenue from wire transfers ACH processing remote deposit capture and other transaction related services.

The company operates through the following segments.

• Banking: Provides a full range of commercial banking and savings services including commercial lending for equipment inventory and real estate agricultural lending for farmland livestock and operating loans residential mortgage lending including fixed rate adjustable rate and hybrid mortgage products consumer lending for automobiles recreational vehicles and personal loans deposit services comprising checking accounts savings accounts certificates of deposit and individual retirement account custodial services. The segment also offers ATM and ITM networks online banking with bill pay and mobile banking capabilities investment services through FM Investment Services and insurance products via F&M Insurance Agency LLC.

The Bank operates in a competitive environment that includes large national banks such as Huntington National Bank Fifth Third Bank PNC Wells Fargo Bank NA KeyBank NA and JPMorgan Chase Bank NA as well as regional banks credit unions and other community banks. According to FDIC deposit data as of June 30 2025 the Bank held the fourth position in its market area with a 5.14% share of total deposits. Competitive strengths stem from its long standing community presence since 1897 deep relationships with local borrowers particularly in the agricultural sector and its ability to offer personalized relationship banking. The Bank also benefits from its participation in state sponsored programs such as Ag Link Grow Now and Ohio Homebuyers Plus which allow it to provide specialized loan products at favorable terms. Its focus on relationship banking and local decision making enables it to respond quickly to customer needs.

The bank serves a diverse customer base that includes individual consumers households small and medium sized businesses agricultural producers and commercial and industrial enterprises. Specific customer segments consist of farmers seeking financing for land equipment and operating expenses homeowners looking for mortgages and home improvement loans and small business owners requiring working capital and equipment financing. The Bank also provides services to municipal entities and nonprofit organizations within its geographic footprint. No specific customer names are disclosed in the filing.