Farmers & Merchants Bancorp, Inc. · NASDAQ:FMAO
Farmers & Merchants Bancorp — Q2 2025 Earnings Presentation
24 slides from Farmers & Merchants Bancorp's earnings presentation, Aug 7, 2025
Slide 1: 2025 Second Quarter Investor Presentation
2025 Second Quarter Investor Presentation NASDAQ: FMAO
Slide 2: Forward Looking Statement
Forward Looking Statement Statements contained in any portion of the Company’s annual meeting 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,” “believ
Slide 3: Vision and Mission
Community vested to help people realize their best lives. VISION We nurture lasting relationships. MISSION NASDAQ: FMAO Slide 3
Slide 4: About F&M
About F&M Farmers & Merchants Bancorp, Inc. is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897 Top 100 Farm Lending Bank and Top 200 Publicly Traded Community Bank, according to American Banker Twice named Top 50 Social Media Banks
Slide 5: Compelling Opportunities Across Strong Markets
Compelling Opportunities Across Strong Markets Full service independent community bank, with offices serving customers in Northwest Ohio, Northeast Indiana, and Southern Michigan, along the corridors of Interstates 69, 80/90 and 75 In 2023, F&M opened a total of four new bank offices in new markets
Slide 6: Leading Market Share
Leading Market Share (data from FDIC June 2024 Market Share Report) F&M Total Market Share (1) Total Deposit Growth Ohio Market Share (1) Indiana Market Share (1) NASDAQ: FMAO Slide 6 $1,855 $2,227 $2,473 (1) MARKET SHARE DATA BASED ON ZIP CODES OF ALL F&M OFFICES F&M’s total deposits have increased
Slide 7: Profitable Financial Model
Profitable Financial Model Proven earnings model supported by geographic expansion, strong loan growth and pricing, controlled operating expenses, accretive acquisitions, and the contribution of noninterest income. NASDAQ: FMAO Slide 7 $ in millions Stockholders’ Equity 11.3% CAGR in Stockholders’ E
Slide 8: Legacy of Value Creation
Legacy of Value Creation On June 24, 2025, F&M’s Board of Directors declared a cash dividend of $0.22125 per share. On an annualized basis, F&M’s dividend per share has increased from $0.88 in 2024 to $0.89 in 2025. F&M is committed to returning capital to shareholders and has increased the annual c
Slide 9: Financial Highlights
Financial Highlights Total loans, net at June 30, 2025, increased 2.6%, or by $67.2 million to $2.63 billion year-over-year, driven primarily by higher commercial real estate, commercial and industrial, and agricultural loans, partially offset primarily by lower agricultural real estate, consumer re
Slide 10: Executing our Strategic Plan
Executing our Strategic Plan Leveraging Investments and Optimizing Platform New offices opened in 2023 in Fort Wayne, IN, Birmingham, MI, Toledo, OH and Oxford, OH added $53.9 million of new deposits and $80.5 million in new loans during 2024 Optimizing key vendor agreements during 2024 Continue to
Slide 11: Growth Oriented Strategy
Growth Oriented Strategy Invest in Infrastructure and Capabilities to Support Expansion Pursue Purposeful M&A Strategy Accelerate Digital Transformation and Growth Diversify Revenue by Increasing Noninterest Income Streams Increase Market Share and Improve Core Funding Strategy F&M is following a ne
Slide 12: Deploying Digital Strategies for Future Growth
27% Deploying Digital Strategies for Future Growth Reskill Workforce Align Leadership and Culture Improve the Customer Experience Leverage Modern Technologies Upgrade Systems and Processes 2024 Digital Engagement Growth Increase in Increase in Increase in Digital Wallet Cards Enrolled Increase in RD
Slide 13: Committed and Highly Experienced Leadership Team
Committed and Highly Experienced Leadership Team Barbara J. Britenriker EVP & Chief Financial Officer Britenriker has been with F&M for 40 years, beginning in the new accounts department and progressing through operations to become the Comptroller and then the CFO. Kevin Becker SVP & Chief Credit Of
Slide 14: Leadership Development Program
Aspiring Leader Focus areas: High Performer- HIPO on 9-Box Core Competencies Dependability Customer Service Teamwork Integrity First Time Supervisor Focus areas: Basic Management Skills Core Leadership Competencies Managing Conflict Managing Change Agility Leading People Sr. Manager/Director Level F
Slide 15: Proven Board of Directors
Proven Board of Directors Lars B. Eller Director President and CEO of the Company and The Farmers & Merchants State Bank Lori A. Johnston Director Executive Vice President at Medical Mutual Steven J. Planson Director President at Planson Farms, Inc. Kevin Frey Director Vice President of Frey & Sons,
Slide 16: Track Record of Deposit Growth
Track Record of Deposit Growth From 2019 – 2024, total deposits increased at a 15.8% CAGR Growing new demand deposit accounts (“DDA”) is an important near-term initiative Since the beginning of 2024, we added over 10,900 new checking accounts, and benefited from new and expanded relationships at off
Slide 17: Liquidity and Capital Position at June 30, 2025
Liquidity and Capital Position at June 30, 2025 NASDAQ: FMAO Slide 17 $746 million Contingent Liability Availability $519.3 million Total Cash, Cash Equivalents and Securities Available for Sale 12.87% Total Risk-Based Capital 2.6% Cash-to-Assets Ratio ~11.9% Uninsured Deposits / Total Deposits 8.50
Slide 18: CRE Dashboard at June 30, 2025
CRE Dashboard at June 30, 2025 CRE Overview at June 30, 2025 CRE was 51.2% of total loan portfolio Zero non-recourse office CRE 89% of office CRE is in suburbs 59% average hotel LTV 100% of hotel loans have full recourse guarantees 1.29% allowance for credit losses (ACL) on CRE alone Classified CRE
Slide 19: Fixed vs. Variable Loan Mix at June 30, 2025
Fixed vs. Variable Loan Mix at June 30, 2025 Compelling Variable Loan Mix Loan Maturity and Repricing as a % of Total Loan Portfolio Variable Loans by Product Category F&M has proactively balanced the amount of fixed vs. variable loans on its balance sheet. At June 30, 2025, approximately 36% of F&M
Slide 20: Strong Allowance Combined with Robust Asset Quality
Strong Allowance Combined with Robust Asset Quality Credit Quality Highlights Great Financial Crisis and Pandemic Portfolio risk mitigated through diversification and standardization of lending policies and procedures The Bank does not have a program to fund sub-prime loans F&M’s practice has been t
Slide 21: Supporting Our Communities
Supporting Our Communities PPP Lending F&M funded in a two-year period $142.3 million in PPP loans, including $53.8 million in 2021 PPP Lending by F&M is estimated to have impacted more than 18,000 jobs in our communities Community Involvement Provided $511,525 of charitable donations to support org
Slide 22: Agriculture Supports Business and Market Diversity
Agriculture Supports Business and Market Diversity Diversifies portfolio and historically inverse cycle with commercial loan performance Concentrated in three Midwest states to leverage soil quality ~40% of all F&M Ag real estate lending is sold on the secondary market Significant fee income driver
Slide 23: Consistent M&A Strategy Paired with Organic Growth
Consistent M&A Strategy Paired with Organic Growth Acquisition June 2022 $133 Million in Assets Acquisition October 2021 $395 Million in Assets Acquisition April 2021 $130 Million in Assets Asset Purchase December 2020 $83 Million in Assets Acquisition January 2019 $290 Million in Assets 13.6% CAGR
Slide 24: 2025 Priorities
2025 Priorities NASDAQ: FMAO Slide 24 Control Growth Focus on growing low-cost deposits Prudent underwriting and risk management to drive controlled loan growth Continually Innovate Enhance customer experience with new account opening software Utilize new automated and digital solutions Pursue new p
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