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Farmers & Merchants Bancorp, Inc.NasdaqCM:FMAO Stock Report

Market Cap US$417.2m
Share Price
n/a
1Y17.7%
7D0.9%
1D0.6%
Portfolio Value
​
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Farmers & Merchants Bancorp, Inc.

NasdaqCM:FMAO Stock Report

Market Cap: US$417.2m

Farmers & Merchants Bancorp (FMAO) Stock Overview

Operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in Northwest Ohio, Northeast Indiana, and Southeast Michigan. More details

FMAO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

Rewards

Trading at 17% below our estimate of its fair value

Earnings are forecast to grow 8.78% per year

Earnings grew by 31.4% over the past year

Pays a reliable dividend of 2.98%

Risk Analysis

Significant insider selling over the past 3 months


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Farmers & Merchants Bancorp, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Farmers & Merchants Bancorp
Historical stock prices
Current Share PriceUS$30.84
52 Week HighUS$32.00
52 Week LowUS$22.77
Beta0.81
1 Month Change9.79%
3 Month Change18.07%
1 Year Change17.67%
3 Year Change39.23%
5 Year Change42.58%
Change since IPO124.29%

Recent News & Updates

Recent updates

Seeking Alpha • Oct 19

Farmers & Merchants Bancorp GAAP EPS of $0.68 misses by $0.03, revenue of $26.32M beats by $3.37M

Farmers & Merchants Bancorp press release (NASDAQ:FMAO): Q3 GAAP EPS of $0.68 misses by $0.03. Revenue of $26.32M (+16.9% Y/Y) beats by $3.37M. Net income increased 51.3% to a quarterly record of $9.0 million, from $5.9 million. Average shares outstanding increased 16.7% as a result of the Perpetual Federal Savings Bank Acquisition Efficiency rate improved to 51.19% for the 2022 third quarter, and 53.16% for the 2022 nine months Organic loan growth of 21.3%, excluding PPP loans and loan balances at time of acquisitions Total loans were a record of $2.143 billion and increased 15.4% from $1.857 billion at December 31, 2021 Total assets increased 25.5% to a record $2.784 billion Deposits increased 22.3% to $2.283 billion Strong asset quality continues as nonperforming loans declined 12.5% to $5.5 million, or 0.26% of total loans Net charge-offs to average loans were 0.00%, the sixth consecutive quarter at or below 0.00% Return on average equity, increased to 12.53% from 9.32% Return on average tangible equity, based on regulatory calculations, increased to 15.50% from 12.23% on a year-over-year basis 2022 third quarter cash dividend increased by 16.7% year-over-year to $0.21 per share
Seeking Alpha • Sep 23

Farmers & Merchants Bancorp: Growing Bank To Consider

Summary We think you should be buying into regional banks into the weakness from the Fed, such as Farmers & Merchants Bancorp. Rising rates are a benefit to banks, but the fear of economic collapse is leading to pain. Growing loans and deposits organically and through acquisitions. Yield approaching 3% which is a decent return while waiting for capital gains. To no one's surprise, this rising rate environment has wreaked havoc on the markets. It has gotten particularly bad the last two weeks. Banks were hit hard the last few months. We think investors should let the market sell off some more here in September and then do some buying. One such place we would like to see our members buying in would be the banks. Regional banks in particular look set up to do well over the next few years after the market adjusts to the actions taken to stymie inflation. We encourage our members and followers to put money into financials, and specifically regional banks on this weakness. A higher rate environment will help banks in 2023 and 2024, and one that we like on a pull back to under $25 is Farmers & Merchants Bancorp (FMAO). Right now, the stock is pulling back slightly with a weak market the last two weeks, but the company has been doing well, despite a tough macro environment in 2022. When Farmers & Merchants reported Q2 earnings, they were impressive despite a tough macro situation in H1 2022. In addition, the bank pays a dividend that it just raised, and the yield will be over 3% at our preferred entry under $25. We think this dividend can be raised further next year as we move forward in a higher rate environment. Wait for a pullback, then buy. Let us discuss the key banking metrics we follow. Q2 headline strength The bank's operational results were mostly better than expected in Q2. Farmers & Merchants Bancorp saw revenues and earnings grow thanks to continued loan growth and deposit strength. The top line expanded from last year. The Q2 revenues were $21.9 million, rising 36.9% in this metric year-over-year, largely due to the completion of both the Perpetual Federal Savings Bank, Inc. and Ossian Financial Services, Inc. acquisitions. Still, organically, there was loan and deposit growth. It should be noted there will be more growth as the company is also purchasing People-s Sydney Financial as well. Earnings were strong as well. While year-over-year revenues ripped higher due to new assets under management, margins were strong, which helped fuel earnings power. Due to strong top line and increases in margins, the bottom line was better than expected. Net income was solid at $8.3 million or $0.44 per share, beating consensus by $0.01. Earnings will now start to grow at a more organic normalized pace, especially as the company fully incorporates recent acquisitions and their operations. The bank has been a serial acquirer the last few years. We think 2023, especially H2 2023 will be even better based on the trends we are seeing for banks, especially in a rising rate environment, once we see peak recessionary pressures abate. Book value suggests waiting for a dip We think you get a better price before entering the stock. While the stock is not expensive relative to tangible book, we would like to see you buy shares at or below book value. Thus, investors should wait, in our opinion, though we are bullish long-term FMAO stock is somewhat expensive at $27 relative to the tangible book value per share at June 30, 2022. Tangible book value per share was $17.43 as of this time. This tangible book value jumped from Q1 2022 and from the start of 2022. There is a strong pipeline of loans as well. Still, this is not an expensive stock on most financial metrics, but let it fall. It is very rare to find regional banks trading near tangible book. On this metric, valuation is a bit more stretched, but on a selloff, we are buyers. Loans and deposit growth As we always stress, growth in loans and deposits are a key metric that we follow. Naturally, with acquisitions, we expected a rise here. But growth on these metrics is key whether the bank is small or large. And this company is not very large numbers wise. The fact is that banks tend to do better when rates rise because the idea is that they should make more money on the margin between what they lend out and what they pay for funds. We are seeing signs of that now. The net interest margin for the quarter increased to 3.14%. Rising margins are a big plus for earnings potential. We want to own these stocks as margins widen. We know there is pressure from inflation and possible rising unemployment, which seems to be a Fed goal, but we suspect these stocks find a bottom soon. On top of the better margins, loans are growing, and not just because of acquisitions. Total loans were a record of $2.035 billion and increased 9.6% from $1.857 billion at the start of the year. Total loans were up 39.5%, or $576.4 million vs. compared to $1.46 billion in Q2 2021. Excellent. Total deposits have grown, which we like, and they grew 20% to $2.675 billion. The bank has strong liquidity with which to lend out to future customers. Farmers & Merchants Bancorp asset health So growing assets is great, but you want to have a sense of the quality of assets. Farmers & Merchants maintained strong asset quality metrics in Q2 2022. The provisions for loan losses creeped up much like other banks in Q2 as the macro situation is so poor. There was a provision of $1.63 million, rising from a year ago when they were $0.641 million. Non-performing loans improved dramatically as well. They were 0.28% in Q2 2022, improving from 0.48% of all loans a year ago, and 0.44% from Q1 2022. We will be closely watching for trends on this key metric. Net charge-offs are basically 0% of all loans, there was a small $26,000 charge off in Q2, and that is a win.
Analysis Article • Sep 20

Farmers & Merchants Bancorp (NASDAQ:FMAO) Has Announced That It Will Be Increasing Its Dividend To $0.21

Farmers & Merchants Bancorp, Inc. ( NASDAQ:FMAO ) will increase its dividend on the 20th of October to $0.21, which is...
Seeking Alpha • Sep 16

Farmers & Merchants Bancorp raises dividend by 10.5% to $0.21

Farmers & Merchants Bancorp (NASDAQ:FMAO) declares $0.21/share quarterly dividend, 10.5% increase from prior dividend of $0.19. Forward yield 3.21% Payable Oct. 20; for shareholders of record Sept. 26; ex-div Sept. 23. See FMAO Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

FMAOUS BanksUS Market
7D0.9%2.4%0.8%
1Y17.7%21.7%20.2%

Return vs Industry: FMAO underperformed the US Banks industry which returned 18.7% over the past year.

Return vs Market: FMAO matched the US Market which returned 18.6% over the past year.

Price Volatility

Is FMAO's price volatile compared to industry and market?
FMAO volatility
FMAO Average Weekly Movement3.5%
Banks Industry Average Movement3.4%
Market Average Movement7.3%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: FMAO has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: FMAO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1897473Lars Ellerwww.fm.bank

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in Northwest Ohio, Northeast Indiana, and Southeast Michigan. The company offers checking, savings, and time deposit accounts; certificates of deposit; and custodial services for individual retirement and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer lending products; loans for farmland, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvement loans; and loans for autos, trucks, recreational vehicles, and motorcycles.

Farmers & Merchants Bancorp, Inc. Fundamentals Summary

How do Farmers & Merchants Bancorp's earnings and revenue compare to its market cap?
FMAO fundamental statistics
Market capUS$417.22m
Earnings (TTM)US$35.50m
Revenue (TTM)US$123.94m
11.8x
P/E Ratio
1.1x
P/B Ratio

Is FMAO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
FMAO income statement (TTM)
RevenueUS$123.94m
Cost of RevenueUS$0
Gross ProfitUS$123.94m
Other ExpensesUS$88.45m
EarningsUS$35.50m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)2.61
Gross Margin100.00%
Net Profit Margin28.64%
Debt/Equity Ratio71.7%

How did FMAO perform over the long term?

See historical performance and comparison

Dividends

3.0%
Current Dividend Yield
35%
Payout Ratio

Does FMAO pay a reliable dividends?

See FMAO dividend history and benchmarks
When do you need to buy FMAO by to receive an upcoming dividend?
Farmers & Merchants Bancorp dividend dates
Ex Dividend DateJul 10 2026
Dividend Pay DateJul 20 2026
Days until Ex dividend3 days
Days until Dividend pay date13 days

Does FMAO pay a reliable dividends?

See FMAO dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/06 03:59
End of Day Share Price 2026/07/06 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Farmers & Merchants Bancorp, Inc. is covered by 4 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Daniel CardenasBrean Capital Historical (Janney Montgomery)
Brendan NosalHovde Group, LLC
Nathan RacePiper Sandler Companies