Farmers & Merchants Bancorp, Inc.

NasdaqCM:FMAO Stock Report

Market Cap: US$417.2m

Farmers & Merchants Bancorp Past Earnings Performance

Past criteria checks 5/6

Farmers & Merchants Bancorp has been growing earnings at an average annual rate of 4.9%, while the Banks industry saw earnings growing at 3.2% annually. Revenues have been growing at an average rate of 8% per year. Farmers & Merchants Bancorp's return on equity is 9.6%, and it has net margins of 28.6%.

Key information

4.89%

Earnings growth rate

1.08%

EPS growth rate

Banks Industry Growth11.18%
Revenue growth rate8.04%
Return on equity9.56%
Net Margin28.64%
Last Earnings Update31 Mar 2026

Recent past performance 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.

Revenue & Expenses Breakdown

How Farmers & Merchants Bancorp makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NasdaqCM:FMAO Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
31 Mar 2612435670
31 Dec 2511933660
30 Sep 2511431640
30 Jun 2510929620
31 Mar 2510427610
31 Dec 2410125600
30 Sep 249823600
30 Jun 249521590
31 Mar 249521570
31 Dec 239623580
30 Sep 239824570
30 Jun 2310028550
31 Mar 239931530
31 Dec 229832480
30 Sep 229633470
30 Jun 229330460
31 Mar 228926460
31 Dec 218423440
30 Sep 217922440
30 Jun 217521430
31 Mar 217221410
31 Dec 206920400
30 Sep 206518380
30 Jun 206318360
31 Mar 206519370
31 Dec 196418370
30 Sep 196117350
30 Jun 195816340
31 Mar 195414310
31 Dec 185015280
30 Sep 185015280
30 Jun 184914270
31 Mar 184814260
31 Dec 174713260
30 Sep 174612260
30 Jun 174512260
31 Mar 174412260
31 Dec 164412240
30 Sep 164311250
30 Jun 164211250
31 Mar 164110250
31 Dec 154010240
30 Sep 154010240

Quality Earnings: FMAO has high quality earnings.

Growing Profit Margin: FMAO's current net profit margins (28.6%) are higher than last year (25.9%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: FMAO's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: FMAO's earnings growth over the past year (31.4%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: FMAO earnings growth over the past year (31.4%) exceeded the Banks industry 23.3%.

Return on Equity

High ROE: FMAO's Return on Equity (9.6%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/06 08:22
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

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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