FMAO delivered its fourth consecutive EPS beat with accelerating profitability trends. The 17 bps NIM expansion, declining NPLs, and special dividend signal strong credit and capital momentum. Monitor Q4 for continued margin expansion as loan repricing opportunities extend through 2028.
Price Chart
Executive Summary
Farmers & Merchants Bancorp reported Q3 2026 net income of $11.5M ($0.84/share), a 30.3% YoY increase from $8.9M ($0.64/share), driven by net interest margin expansion to 3.57% and improved efficiency. The results exceeded the $0.81 consensus estimate, marking the fourth consecutive beat, with credit quality remaining strong (NPLs at 0.23% of loans).
Key Financial Metrics
Key Facts
- Net income increased 30.3% YoY to $11.5M ($0.84/share) vs $8.9M ($0.64/share) in Q3 2025
- EPS of $0.84 beat consensus estimate of $0.81 by 3.7%
- Net interest margin expanded 17 bps YoY to 3.57% from 3.40%
- Efficiency ratio improved to 58.09% from 63.11% YoY
- Nonperforming loans declined to $6.2M (0.23% of loans) from $11.1M (0.42%) at March 31, 2026
- Deposits grew 7.7% YoY to $2.96B; Tier 1 leverage ratio improved to 9.14%
- Company declared a $0.01/share special dividend alongside $0.24 regular quarterly dividend
Financial Impact
Q3 2026 net income $11.5M vs $8.9M YoY (+30.3%); EPS $0.84 vs $0.64 YoY; NIM 3.57% vs 3.40%
Risk Factors
- Net interest margin could compress if deposit costs rise faster than loan yields
- Commercial real estate exposure at 48.2% of loan portfolio remains elevated
- Subordinated notes interest expense increased to $480K from $284K YoY due to rate step-up
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-429065 |
| Document: fmao-20261022.htm | 0001193125-26-429065 |
| Document: 0001193125-26-429065-index-headers.html | 0001193125-26-429065 |
| Document: 0001193125-26-429065-index.html | 0001193125-26-429065 |
| Document: 0001193125-26-429065.txt | 0001193125-26-429065 |
| 8-K Data (Synthetic) | 0001193125-26-429065 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $36.54 $36.81 | ▲ +0.74% | ▲ +0.03% | $36.58 (+0.11%) |
Oct 22, 2026 4d ago | Press Release | $36.54 $36.81 | ▲ +0.74% | ▲ +0.03% | $36.58 (+0.11%) |
Sep 29, 2026 27d ago | Press Release | $34.62 $34.91 | ▲ +0.84% | ▲ +0.66% | $36.58 (+5.66%) |
Aug 14, 2026 10w ago | Insider Cluster | $35.11 $35.03 | ▼ −0.23% | ▲ +0.24% | $36.58 (+4.19%) |
Aug 12, 2026 10w ago | Insider Cluster | $35.33 $35.11 | ▼ −0.62% | ▼ −0.42% | $36.58 (+3.54%) |
Aug 7, 2026 11w ago | Insider Cluster | $34.38 $35.06 | ▲ +1.98% | ▲ +2.30% | $36.58 (+6.40%) |
Aug 6, 2026 11w ago | Insider Cluster | $34.67 $34.14 | ▼ −1.55% | ▼ −1.52% | $36.58 (+5.50%) |
Aug 5, 2026 11w ago | Insider Cluster | $34.04 $34.67 | ▲ +1.87% | ▲ +1.26% | $36.58 (+7.47%) |
Aug 3, 2026 12w ago | Insider Cluster | $34.52 $33.92 | ▲ +1.75% | ▲ +1.55% | $36.58 (−5.96%) |
Jul 27, 2026 13w ago | Press Release | $34.44 $35.07 | ▲ +1.83% | ▲ +3.37% | $36.58 (+6.21%) |
US Market Status
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