Ohio's Farmers & Merchants Bancorp Q4 net income rises

Overview

• Ohio-based community bank's Q4 net income rose 16.8% yr/yr to a record $9.8 mln

• Net interest margin for Q4 increased by 62 basis points to 3.46%

• Dividend per share increased 4% to $0.92 annualized, marking 31st consecutive annual increase

Outlook

• Company expects to sustain elevated profitability levels throughout 2026

• Farmers & Merchants Bancorp developing new three-year strategic plan for growth

• Company plans expansion within Ohio, Indiana, and Michigan in line with strategic priorities

Result Drivers

• NET INTEREST INCOME - Increase driven by improved net interest margin and lower cost of interest-bearing liabilities

• MARKET EXPANSION - Growth supported by strategic investments in market presence and leadership enhancements

• LOAN PORTFOLIO - Emphasis on maintaining a diverse loan portfolio with a focus on commercial real estate loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Farmers & Merchants Bancorp Inc is $27.50, about 0.9% below its February 11 closing price of $27.75

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX4CmmPv

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