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1. Company Snapshot

1.a. Company Description

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 and northeast Indiana.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 and credit card 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.In addition, the company offers commercial real estate loans, such as lines of credit and machinery purchase loans.Further, it provides automated teller machine or interactive teller machine services; and online and mobile banking, remote deposit capture or electronic deposit processing, and merchant credit card services.


It also offers electronic transaction origination, such as wire and automated clearing house file transmittal services.Farmers & Merchants Bancorp, Inc.was founded in 1897 and is headquartered in Archbold, Ohio.

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1.b. Last Insights on FMAO

Farmers & Merchants Bancorp, Inc.'s recent performance was driven by several positive factors. The company's Q2 2025 financial results showed record net income, rising loan demand, and expanding margins. Additionally, the bank opened its second full-service office in Michigan, expanding its presence. The company was also recognized as a Best Income Stock by Zacks, with a Strong Buy rating. Furthermore, F&M Bank launched "The Great Briefcase Hunt," a community engagement initiative. The bank's return on equity remains high, and its credit quality is pristine.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Farmers & Merchants Bancorp: Record Earnings Meets A Historically Cheap Valuation

Nov -22

Source: seekingalpha.com

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Best Income Stocks to Buy for Nov. 21st

Nov -21

Source: zacks.com

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New Strong Buy Stocks for Nov. 21: TDC, SBFG, and More

Nov -21

Source: zacks.com

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Best Income Stocks to Buy for Nov. 12

Nov -12

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F&M Bank Appoints Amy Cover as Chief Marketing & Experience Officer

Oct -31

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Banking and Related Activities

Expected Growth: 4.77%

Farmers & Merchants Bancorp, Inc.'s 4.77% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth.

7. Detailed Products

Personal Banking

Farmers & Merchants Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment services.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions, to help businesses grow and succeed.

Mortgage Lending

Farmers & Merchants Bancorp, Inc. offers a range of mortgage loan options, including fixed-rate and adjustable-rate mortgages, to help individuals and families achieve homeownership.

Wealth Management

The company provides wealth management services, including investment management, trust services, and financial planning, to help individuals and families achieve their long-term financial goals.

Online Banking

Farmers & Merchants Bancorp, Inc. offers online banking services, including bill pay, fund transfers, and account management, to provide customers with convenient access to their accounts.

Mobile Banking

The company provides mobile banking services, including mobile deposit, bill pay, and account management, to provide customers with on-the-go access to their accounts.

8. Farmers & Merchants Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Farmers & Merchants Bancorp, Inc. is low because the company operates in a highly regulated industry, making it difficult for new substitutes to emerge.

Bargaining Power Of Customers

The bargaining power of customers for Farmers & Merchants Bancorp, Inc. is medium because while customers have some bargaining power, the company's strong brand and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Farmers & Merchants Bancorp, Inc. is low because the company is a significant player in the industry, giving it bargaining power over its suppliers.

Threat Of New Entrants

The threat of new entrants for Farmers & Merchants Bancorp, Inc. is low because of the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Farmers & Merchants Bancorp, Inc. is high because of the competitive nature of the banking industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.01%
Debt Cost 3.95%
Equity Weight 48.99%
Equity Cost 7.08%
WACC 5.48%
Leverage 104.11%

11. Quality Control: Farmers & Merchants Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Riverview Bancorp

A-Score: 5.5/10

Value: 5.9

Growth: 3.6

Quality: 3.8

Yield: 5.0

Momentum: 7.5

Volatility: 7.3

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Farmers & Merchants Bancorp

A-Score: 5.4/10

Value: 4.9

Growth: 5.2

Quality: 7.0

Yield: 7.0

Momentum: 3.5

Volatility: 5.0

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IF Bancorp

A-Score: 5.4/10

Value: 4.1

Growth: 2.3

Quality: 4.7

Yield: 4.0

Momentum: 8.5

Volatility: 8.7

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Texas Community Bancshares

A-Score: 5.2/10

Value: 3.7

Growth: 4.6

Quality: 4.5

Yield: 1.0

Momentum: 8.0

Volatility: 9.3

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Amerant Bancorp

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.4

Yield: 3.0

Momentum: 4.0

Volatility: 5.7

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Glen Burnie

A-Score: 3.1/10

Value: 5.2

Growth: 1.6

Quality: 3.6

Yield: 4.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.8$

Current Price

24.8$

Potential

-0.00%

Expected Cash-Flows