FMAOMEDIUM SIGNALFINANCIAL10-K

FMAO reported strong earnings growth driven by substantially reduced credit loss provisions, indicating improved asset quality and risk management.

The meaningful reduction in credit loss provisions suggests the bank's loan portfolio quality has improved significantly, which directly contributed to higher net income. This improvement in credit metrics, combined with higher operating cash flows, indicates stronger operational performance and risk management execution.

Comparing 2026-02-27 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

FMAO demonstrated solid financial performance with net income growing meaningfully to $33.3M, primarily driven by substantially lower provision for credit losses falling to $1.7M. Operating cash flow increased modestly to $36.7M while the company maintained a strong balance sheet with cash rising to $24.3M and stockholders' equity growing to $370.9M. The overall picture signals improved asset quality and steady profitability growth for this regional banking operation.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
-63.1%
$4.6M$1.7M

Provisions reduced 63.1% — improving credit quality or reserve release boosting reported earnings.

Share Buybacks
Cash Flow
-45.5%
$664K$362K

Buyback activity reduced 45.5% — capital being redeployed elsewhere or cash conservation underway.

Net Income
P&L
+28.4%
$25.9M$33.3M

Net income grew 28.4% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
+26.1%
$19.3M$24.3M

Cash grew 26.1% — improving liquidity position supports investment and shareholder returns.

Operating Cash Flow
Cash Flow
+13.1%
$32.5M$36.7M

Operating cash flow grew 13.1% — strong conversion of earnings to cash, healthy business fundamentals.

Stockholders Equity
Balance Sheet
+10.6%
$335.2M$370.9M

Equity base grew 10.6% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-26
ADDED
As of February 20, 2026, the Registrant had 14,564,425 shares of common stock issued of which 13,748,074 shares are outstanding.
Changes In and Disagreements on Accounting and Financial Disclosure 119 Item9a.
Form 10-K Summary 126 Signatures 127 Exhibit 10.9 Farmers Merchants Bancorp, Inc.
Certifications Under Section 906 150 Exhibit 101.INS Inline XBRL Instance Document The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
Total Pages: 151 2 Forward Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, statements regarding the Company s expectations, beliefs, plans, objectives, goals, projections, assumptions, or future events or performance and may be identified by words such as may, will, should, could, anticipate, believe, expect, intend, plan, estimate, project, continue, potential, or similar expressions.
Additional risks and uncertainties not presently known to the Company or that the Company currently deems immaterial also may adversely affect the Company s business, financial condition, results of operations, or cash flows.
Forward-looking statements speak only as of the date on which they are made.
Except as required by applicable law or regulation, the Company undertakes no obligation to update, revise, or publicly disclose the results of any revisions to any forward-looking statement to reflect new information, future events, or otherwise.
Readers are cautioned not to place undue reliance on forward-looking statements.
REMOVED
As of February 21, 2025, the Registrant had 14,564,425 shares of common stock issued of which 13,700,311 shares are outstanding.
Changes In and Disagreements on Accounting and Financial Disclosure 120 Item9a.
Form 10-K Summary 128 Signatures 129 Exhibit 10.5 Form of Restricted Stock Award with Non-solicit Covenants 130 Exhibit 10.6 Form of Restricted Stock Award for Senior Officers with Non-competition Covenants 134 Exhibit 10.8 Change in Control Agreement 138 Exhibit 19.
Clawback Policy 156 Exhibit 101.INS Inline XBRL Instance Document The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
Total Pages: 158 3 Forward Looking Statements Statements contained in the Company's Annual Report on Form 10-K may be forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of such words as "intend," "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." Such forward-looking statements are based on current expectations but may differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.
Other factors which could have a material adverse effect on the operations of the Company and its subsidiaries which include, but are not limited to, changes in interest rates, general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S.
Treasury and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Bank's market area, changes in relevant accounting principles and guidelines and other factors over which management has no control.
The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Our other subsidiary, Farmers Merchants Risk Management (Captive) was a captive insurance company formed in December 2014 and located in Nevada.
MORE FINANCIAL SIGNALS
CRMHIGHSalesforce significantly increased debt by 71% to $14.4B while simultaneously ac...
2026-03-02
UNHHIGHUNH's operating income plummeted 41% despite 12% revenue growth, indicating seve...
2026-03-02
PFEHIGHPfizer achieved a dramatic 87.3% reduction in total debt from $31.4B to $4.0B, r...
2026-02-26
GILDHIGHGILD dramatically increased R&D spending by 81.5% to $9.1B while introducing new...
2026-02-24
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →