8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 21, 2021

Farmers & Merchants Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

Ohio	001-38084	34-1469491
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

307 North Defiance Street, Archbold, Ohio	43502
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number, including Area Code (419) 446-2501

N/A

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Each Exchange
Common Stock, No Par Value	FMAO	NASDAQ Capital Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17-CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

ITEM 2.02.Results of Operation and Financial Condition

On April 21, 2021, Farmers & Merchants Bancorp, Inc. issued a press release announcing its earnings for the three months ended March 31, 2021.  A copy of the press release is furnished herewith as Exhibit 99.

ITEM 9.01.Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number	Exhibit
99	Company Press release dated April 21, 2021

104 The Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto authorized.

	FARMERS & MERCHANTS BANCORP, INC.
		(Registrant)
Dated: April 21, 2021		/s/ Lars B. Eller
		Lars B. Eller
		President and Chief Executive Officer
		/s/ Barbara J. Britenriker
		Barbara J. Britenriker
		Executive Vice President and Chief Financial Officer

EX-99

Exhibit 99

Post Office Box 216 307 North Defiance Street Archbold, Ohio 43502 NEWS RELEASE

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

Farmers & Merchants Bancorp, Inc. Reports Record

2021 First Quarter Financial Results

ARCHBOLD, OHIO, April 21, 2021, Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2021 first quarter ended March 31, 2021.

2021 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

• Net income increased 19.6% to $4.9 million

• Earnings increased 18.9% to $0.44 per basic and diluted share

• Net interest income after provision for loan losses increased by 5.7% to $13.3 million, which included a $0.3 million increase in the first quarter provision for loan losses

• Noninterest income increased 59.9% to $5.0 million

• First quarter after-tax income benefited from $0.5 million of accelerated fees associated with the Paycheck Protection Program (“PPP”)

• Strong organic growth supported a 7.1% increase in net total loans and a 24.8% increase in total deposits

• Originated $43.5 million of new loans under the latest Paycheck Protection Program, helping F&M protect over 18,000 jobs throughout the program

• Return on average tangible equity increased to 10.10% from 9.13% for the first quarter last year

• Loans 30 days past due to total loans, excluding COVID related loans, was only 0.18%

• New full-service office in Fort Wayne, IN opened in 2021 second quarter

“2021 is off to a strong start as our markets emerge from the COVID-19 crisis and we continue to focus on providing local services and leading financial products to our retail, commercial, and agriculture customers.  As a result, we are gaining market share and benefitting from robust growth in loans, deposits, and noninterest income, which have helped us successfully offset higher provision for loan losses and operating expenses during the 2021 first quarter,” stated Lars B. Eller, President and Chief Executive Officer. “I am grateful to our team members who continue to work diligently and support the financial needs of our local customers and communities.”  

“The acquisition of Ossian Financial Services is expected to close in the coming weeks, and we are well positioned to quickly integrate Ossian into F&M’s platform.  Once completed, we expect the acquisition will add approximately $122 million in assets to F&M and will begin contributing to earnings in 2021.  In addition, we expect to see the benefit to noninterest expense of our office realignment strategy over the next several quarters, and we will use a portion of the savings to reinvest in expanding our digital and online offerings.”  

Income Statement

Net income for the 2021 first quarter ended March 31, 2021, was $4.9 million, compared to $4.1 million for the same period last year. Earnings per basic and diluted share for the 2021 first quarter was $0.44, compared to $0.37 for the same period last year.

Higher provision for loan losses and operating expenses were successfully offset by increased interest income, successful reductions in cost of funds, interest and fees earned from the Paycheck Protection Program, and a 59.9% or $1.9 million year-over-year increase in noninterest income. Increases in Customer Service Fees and Gain on sales of both 1-4 family mortgage loans and fixed rate agricultural loans were the biggest contributors in noninterest income.   F&M’s provision for loan losses increased from $1.4 million for the three months ended March 31, 2020, to $1.7 million for the three months ended March 31, 2021, as the Company prudently increased its allowance of loan losses primarily associated with continued economic uncertainty caused by the COVID-19 crisis.   In addition, noninterest expense increased by $1.7 million, due to higher operating expenses supporting a 20% larger Company in asset size and servicing a larger footprint. It also included a one-time expense of $0.3 million related to the Company’s pension.

Deposits

At March 31, 2021, total deposits were $1.684 billion, an increase of 24.8% from March 31, 2020, and an increase of 5.5% from December 31, 2020.  The significant organic deposit growth being experienced is a result of continued strength in expanding relationships with new and existing customers, and the benefits of PPP activity. In addition, we continue to see growing customer preferences to more stable and secure saving instruments as deposits have increased since the COVID-19 crisis began.

Loan Portfolio and Asset Quality

Total loans, net at March 31, 2021, increased 7.5% or by $94.0 million to $1.342 billion, compared to $1.248 billion at March 31, 2020, and up from $1.303 billion at December 31, 2020. The year-over-year improvement resulted primarily from the contribution of continued strong organic loan growth.  In addition, during the 2021 first quarter, the Company processed $57.5 million of PPP loan forgiveness and principal payments received and originated $43.5   million of new PPP loans, resulting in a total of $12.777 million of PPP loans within F&M’s loan portfolio.  

Mr. Eller continued, “Since the start of the crisis, we strengthened our relationships by increasing the amount of financial relief, assistance, and advice we are providing customers. During the first quarter, we processed more than 1,200 new PPP loans, and throughout the PPP process, we have helped our small business customers protect more than 18,000 jobs within our markets.”

“Our local relationships continue to produce strong organic growth, and loans not including PPP loans, increased nearly 2.3% during the 2021 first quarter.  We are experiencing organic loan growth across our Ohio, Indiana, and Michigan markets, due to our recently opened LPOs and our strong, experienced, and local lenders.  Our agriculture portfolios are also demonstrating compelling growth and strong asset performance as farmers benefit from robust market dynamics.”

Mr. Eller continued: “At March 31, 2021 there were only five loans totaling $10.4 million of COVID-related payment modifications, all of which are interest-only modifications and secured by real estate.  This compares to 190 loans representing a balance of $165 million in deferrals at the peak last year.  Given the uncertainty surrounding the COVID-19 crisis, we continue to fund our allowance for loan and lease losses, which increased by 69.0% over the past 12 months. Our allowance for loan and lease losses to total loans, adjusted for our PPP balances, is now over 1.28% and includes the $1.5 million credit mark associated with the 2019 Bank of Geneva acquisition.”  

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors.  Nonperforming loans were $8.1 million, or 0.61% of total loans at March 31, 2021, compared to $3.3 million, or 0.27% at March 31, 2020.  The year-over-year increase in nonperforming loans is primarily due to the impacts of the COVID-19 crisis.  

Mr. Eller concluded: “2021 is expected to be a transformative year for F&M.  Throughout the year, we will focus on executing our strategic plan, completing and integrating the Ossian acquisition, integrating last year’s acquisition of Adams County Financial Resources, achieving the benefits from our office realignment program, and driving strong organic growth by supporting our local communities.  I am proud of our continued strong performance and excited to update shareholders in the coming quarters on the progress we are making.”

Stockholders’ Equity and Dividends

Total stockholders’ equity increased 4.4% to $246.8 million at March 31, 2021, from $236.5 million at March 31, 2020. At March 31, 2021, the Company had a Tier 1 leverage ratio of 10.39%, compared to 11.56% at March 31, 2020.

Tangible stockholders’ equity increased to $195.9 million at March 31, 2021, compared to $180.9 million at March 31, 2020. On a per share basis, tangible stockholders’ equity at March 31, 2021, was $17.50 per share, compared to $16.26 per share at March 31, 2020.

For the 2021 first quarter, the company declared cash dividends of $0.17 per share, which is a 6.3% increase over the 2020 first quarter declared dividend payment. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 26 consecutive years. For the 2021 first quarter, the dividend payout ratio was 38.48% compared to 43.07% for the same period last year.

About Farmers & Merchants State Bank:  

The Farmers & Merchants State Bank is a local independent community bank that has been serving Northwest Ohio and Northeast Indiana since 1897.  The Farmers & Merchants State Bank provides commercial banking, retail banking and other financial services. Our locations are in Fulton, Defiance, Hancock, Henry, Lucas, Williams, and Wood counties in Northwest Ohio.  In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, and Steuben counties.

Safe harbor statement

Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended.  Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information.  For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures  

This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP).  A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.  A reconciliation of GAAP to non-GAAP financial measures is included within this press release.  

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME

(Unaudited) (in thousands of dollars, except per share data)

	Three Months Ended
	March 31, 2021			December 31, 2020		September 30, 2020			June 30, 2020			March 31, 2020
Interest Income
Loans, including fees	$	15,612		$	17,061	$	16,181		$	16,192		$	15,883
Debt securities:
U.S. Treasury and    government    agencies		751			695		761			767			1,146
Municipalities		308			295		279			243			262
Dividends		50			35		36			26			45
Federal funds sold		5			5		4			5			6
Other		39			48		32			40			122
Total interest income		16,765			18,139		17,293			17,273			17,464
Interest Expense
Deposits		1,340			1,619		1,864			2,254			2,901
Federal funds purchased    and securities sold    under agreement to    repurchase		166			170		174			187			244
Borrowed funds		222			226		231			257			266
Total interest    expense		1,728			2,015		2,269			2,698			3,411
Net Interest Income -    Before Provision for    Loan Losses		15,037			16,124		15,024			14,575			14,053
Provision for Loan Losses		1,700			1,995		1,987			1,569			1,430
Net Interest Income After    Provision For Loan    Losses		13,337			14,129		13,037			13,006			12,623
Noninterest Income
Customer service fees		2,814			2,750		2,299			2,258			1,586
Other service charges    and fees		838			980		879			704			1,039
Net gain on sale of loans		1,046			1,894		1,537			364			227
Net gain on sale of    available-for-sale    securities		293			-		-			-			270
Total noninterest    income		4,991			5,624		4,715			3,326			3,122
Noninterest Expense
Salaries and wages		4,390			5,068		5,102			4,095			4,223
Employee benefits		1,994			1,140		1,566			1,218			1,677
Net occupancy expense		577			585		558			564			564
Furniture and equipment		791			760		875			750			758
Data processing		505			428		490			408			442
Franchise taxes		446			241		368			369			368
ATM expense		449			456		444			376			414
Advertising		235			353		411			265			303
Net (gain) loss on sale    of other assets owned		(25	)		20		(7	)		(7	)		1
FDIC assessment		236			223		194			144			72
Mortgage servicing    rights amortization		505			247		296			356			132
Consulting fees		223			407		205			217			139
Other general and    administrative		2,033			1,358		1,553			1,612			1,575

Total noninterest    expense		12,359			11,286			12,055		10,367		10,668
Income Before Income    Taxes		5,969			8,467			5,697		5,965		5,077
Income Taxes		1,060			1,691			1,287		1,161		972
Net Income		4,909			6,776			4,410		4,804		4,105
Other Comprehensive    Income (Loss) (Net of    Tax):
Net unrealized gain    (loss) on available-for-    sale securities		(6,737	)		(207	)		639		661		4,998
Reclassification    adjustment for realized    gain on sale of    available-for-sale    securities		(293	)		-			-		-		(270	)
Net unrealized gain    (loss) on available-for-    sale securities		(7,030	)		(207	)		639		661		4,728
Tax expense (benefit)		(1,476	)		(44	)		134		139		993
Other comprehensive    income (loss)		(5,554	)		(163	)		505		522		3,735
Comprehensive Income (Loss)	$	(645	)	$	6,613		$	4,915	$	5,326	$	7,840
Basic and Diluted    Earnings Per Share	$	0.44		$	0.60		$	0.40	$	0.43	$	0.37
Dividends Declared	$	0.17		$	0.17		$	0.17	$	0.16	$	0.16

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in thousands of dollars, except share data)

	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	118,139		$	98,279		$	46,395		$	54,336		$	49,844
Federal funds sold		57,361			77,427			41,358			31,105			40,993
Total cash and cash equivalents		175,500			175,706			87,753			85,441			90,837
Interest-bearing time deposits		4,405			4,653			4,657			4,636			4,869
Securities - available-for-sale		352,974			307,812			259,041			236,292			204,121
Other securities, at cost		5,939			5,939			5,827			5,810			5,810
Loans held for sale		7,511			7,740			7,621			11,445			2,153
Loans, net		1,327,254			1,289,318			1,351,979			1,334,790			1,239,108
Premises and equipment		26,703			27,063			26,776			26,049			26,120
Goodwill		47,340			47,340			47,340			47,340			47,340
Mortgage servicing rights		3,444			3,320			3,027			2,740			2,672
Other real estate owned		148			71			206			135			185
Bank owned life insurance		25,347			25,208			15,501			15,399			15,313
Other assets		16,720			15,374			16,872			14,370			16,597
Total Assets	$	1,993,285		$	1,909,544		$	1,826,600		$	1,784,447		$	1,655,125
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	384,558		$	351,147		$	330,845		$	336,027		$	261,786
Interest-bearing
NOW accounts		605,533			542,317			534,792			504,846			463,734
Savings		451,043			455,145			392,059			374,871			341,256
Time		242,717			247,553			261,177			261,631			281,931
Total deposits		1,683,851			1,596,162			1,518,873			1,477,375			1,348,707
Federal Funds Purchased and securities    sold under agreements to repurchase		30,072			30,239			29,859			30,949			30,585
Federal Home Loan Bank (FHLB)    advances		17,840			17,861			17,724			19,087			24,788
Dividend payable		1,889			1,889			1,882			1,768			1,768
Accrued expenses and other liabilities		12,805			14,233			14,841			14,971			12,820
Total liabilities		1,746,457			1,660,384			1,583,179			1,544,150			1,418,668
Commitments and Contingencies
Stockholders' Equity
Common stock - No par value 20,000,000    shares authorized; issued and outstanding    12,230,000 shares 3/31/21 and 12/31/20		82,030			81,804			81,577			82,134			81,844
Treasury stock - 1,033.256 shares 3/31/21,    1,032,456 shares 12/31/20		(11,962	)		(11,932	)		(12,397	)		(12,668	)		(12,636	)
Retained earnings		176,617			173,591			168,381			165,476			162,416
Accumulated other comprehensive    income		143			5,697			5,860			5,355			4,833
Total stockholders' equity		246,828			249,160			243,421			240,297			236,457
Total Liabilities and Stockholders' Equity	$	1,993,285		$	1,909,544		$	1,826,600		$	1,784,447		$	1,655,125

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

SELECT FINANCIAL DATA

	For the Three Months Ended
Selected financial data	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Return on average assets		1.01	%		1.43	%		0.98	%		1.10	%		1.02	%
Return on average equity		7.87	%		11.04	%		7.28	%		8.07	%		7.06	%
Yield on earning assets		3.71	%		4.09	%		4.04	%		4.25	%		4.66	%
Cost of interest bearing   liabilities		0.53	%		0.64	%		0.74	%		0.91	%		1.22	%
Net interest spread		3.18	%		3.45	%		3.30	%		3.34	%		3.44	%
Net interest margin		3.33	%		3.63	%		3.51	%		3.59	%		3.75	%
Efficiency		62.57	%		52.20	%		62.11	%		57.91	%		63.09	%
Dividend payout ratio		38.48	%		27.77	%		42.66	%		36.80	%		43.07	%
Tangible book value    per share (1)	$	17.50		$	17.19		$	16.78		$	16.33		$	16.26
Tier 1 capital to    average assets		10.39	%		10.46	%		10.65	%		10.70	%		11.56	%
Average Shares Outstanding		11,197,012			11,177,765			11,142,797			11,129,341			11,134,870
(1)  Tangible Equity = Stockholder Equity less goodwill and other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities)

Loans	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
(Dollar amounts in thousands)
Commercial real estate	$	618,754		$	588,825		$	595,146		$	589,382		$	570,217
Agricultural real estate		179,945			189,159			192,883			194,606			194,383
Consumer real estate		175,675			175,588			175,963			174,069			174,731
Commercial and industrial		202,958			189,246			238,175			223,842			143,261
Agricultural		100,022			94,358			103,330			107,458			109,584
Consumer		54,445			52,540			53,320			50,108			49,022
Other		14,088			15,757			9,030			9,714			8,336
Less: Net deferred loan fees       and costs		(4,208	)		(2,483	)		(3,985	)		(4,456	)		(1,893	)
Total loans, net	$	1,341,679		$	1,302,990		$	1,363,862		$	1,344,723		$	1,247,641

Asset quality data	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
(Dollar amounts in thousands)
Nonaccrual loans	$	8,139		$	9,404		$	7,870		$	8,473		$	3,344
Troubled debt restructuring	$	5,774		$	6,514		$	7,028		$	7,034		$	1,934
90 day past due and accruing	$	-		$	-		$	-		$	-		$	-
Nonperforming loans	$	8,139		$	9,404		$	7,870		$	8,473		$	3,344
Other real estate owned	$	148		$	71		$	206		$	135		$	185
Non-performing assets	$	8,287		$	9,475		$	8,076		$	8,608		$	3,529
(Dollar amounts in thousands)
Allowance for loan and lease losses	$	14,425		$	13,672		$	11,883		$	10,538		$	8,533
Allowance for loan and lease    losses/total loans		1.08	%		1.05	%		0.87	%		0.78	%		0.68	%
Net charge-offs:
Quarter-to-date	$	947		$	205		$	37		$	169		$	125
Year-to-date	$	947		$	537		$	331		$	294		$	125
Net charge-offs to average loans
Quarter-to-date		0.07	%		0.02	%		0.00	%		0.01	%		0.01	%
Year-to-date		0.07	%		0.04	%		0.03	%		0.02	%		0.01	%
Non-performing loans/total loans		0.61	%		0.72	%		0.58	%		0.63	%		0.27	%
Allowance for loan and lease    losses/nonperforming loans		177.24	%		177.96	%		151.01	%		117.24	%		256.66	%

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES

(in thousands of dollars, except percentages)

	For the Three Months Ended							For the Three Months Ended
	March 31, 2021							March 31, 2020
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate			Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	1,328,571	$	15,612		4.70	%	$	1,236,848	$	15,883		5.14	%
Taxable Investment Securities		324,536		1,009		1.24	%		190,158		1,321		2.78	%
Tax-exempt Investment Securities		20,375		100		2.49	%		28,832		132		2.32	%
Fed Funds Sold & Other		136,663		44		0.13	%		46,393		128		1.10	%
Total Interest Earning Assets		1,810,145	$	16,765		3.71	%		1,502,231	$	17,464		4.66	%
Nonearning Assets		126,579							114,326
Total Assets	$	1,936,724						$	1,616,557
Interest Bearing Liabilities:
Savings Deposits	$	1,014,392	$	574		0.23	%	$	773,130	$	1,485		0.77	%
Other Time Deposits		242,033		766		1.27	%		277,579		1,416		2.04	%
Other Borrowed Money		17,848		222		4.98	%		24,787		266		4.29	%
Fed Funds Purchased & Securities
Sold under Agreement to Repurchase		30,210		166		2.20	%		38,954		244		2.51	%
Total Interest Bearing Liabilities	$	1,304,483	$	1,728		0.53	%	$	1,114,450	$	3,411		1.22	%
Noninterest bearing Liabilities		382,640							269,550
Stockholders Equity	$	249,601						$	232,557
Net Interest Income and    interest rate spread			$	15,037		3.18	%			$	14,053		3.44	%
Net Interest Margin						3.33	%						3.75	%
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC

ALLOWANCE RECONCILIATION

(in thousands of dollars, except percentages)

	For the Three
	Months Ended
	March 31, 2021
Allowance for Loan Losses	$	14,425
Credit Mark		1,500
Total Credit Mark & Allowance for Loan Losses		15,925
Loans	$	1,341,679
Adjustments
PPP Loans		(12,777	)
Loans excluding PPP Loans	$	1,328,902
Allowance for Loan Losses		1.08	%
Effect of Credit Mark		0.19	%
Effect of PPP Loans		0.01	%
Allowance for Loan Losses, excluding PPP Loans		1.28	%

XML

Cover	Apr. 21, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 21, 2021
Entity Registrant Name	Farmers & Merchants Bancorp, Inc.
Entity Central Index Key	0000792966
Entity Emerging Growth Company	false
Entity File Number	001-38084
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-1469491
Entity Address, Address Line One	307 North Defiance Street
Entity Address, City or Town	Archbold
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43502
City Area Code	419
Local Phone Number	446-2501
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	FMAO
Security Exchange Name	NASDAQ