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Farmers & Merchants Bancorp NasdaqCM:FMAO Stock Report

Last Price


Market Cap







27 Sep, 2022


Company Financials +
FMAO fundamental analysis
Snowflake Score
Future Growth1/6
Past Performance5/6
Financial Health6/6

FMAO Stock Overview

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.

Farmers & Merchants Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Farmers & Merchants Bancorp
Historical stock prices
Current Share PriceUS$27.29
52 Week HighUS$42.14
52 Week LowUS$22.23
1 Month Change-8.70%
3 Month Change-18.44%
1 Year Change21.45%
3 Year Change4.88%
5 Year Change-28.49%
Change since IPO98.47%

Recent News & Updates

Sep 23

Farmers & Merchants Bancorp: Growing Bank To Consider

Summary We think you should be buying into regional banks into the weakness from the Fed, such as Farmers & Merchants Bancorp. Rising rates are a benefit to banks, but the fear of economic collapse is leading to pain. Growing loans and deposits organically and through acquisitions. Yield approaching 3% which is a decent return while waiting for capital gains. To no one's surprise, this rising rate environment has wreaked havoc on the markets. It has gotten particularly bad the last two weeks. Banks were hit hard the last few months. We think investors should let the market sell off some more here in September and then do some buying. One such place we would like to see our members buying in would be the banks. Regional banks in particular look set up to do well over the next few years after the market adjusts to the actions taken to stymie inflation. We encourage our members and followers to put money into financials, and specifically regional banks on this weakness. A higher rate environment will help banks in 2023 and 2024, and one that we like on a pull back to under $25 is Farmers & Merchants Bancorp (FMAO). Right now, the stock is pulling back slightly with a weak market the last two weeks, but the company has been doing well, despite a tough macro environment in 2022. When Farmers & Merchants reported Q2 earnings, they were impressive despite a tough macro situation in H1 2022. In addition, the bank pays a dividend that it just raised, and the yield will be over 3% at our preferred entry under $25. We think this dividend can be raised further next year as we move forward in a higher rate environment. Wait for a pullback, then buy. Let us discuss the key banking metrics we follow. Q2 headline strength The bank's operational results were mostly better than expected in Q2. Farmers & Merchants Bancorp saw revenues and earnings grow thanks to continued loan growth and deposit strength. The top line expanded from last year. The Q2 revenues were $21.9 million, rising 36.9% in this metric year-over-year, largely due to the completion of both the Perpetual Federal Savings Bank, Inc. and Ossian Financial Services, Inc. acquisitions. Still, organically, there was loan and deposit growth. It should be noted there will be more growth as the company is also purchasing People-s Sydney Financial as well. Earnings were strong as well. While year-over-year revenues ripped higher due to new assets under management, margins were strong, which helped fuel earnings power. Due to strong top line and increases in margins, the bottom line was better than expected. Net income was solid at $8.3 million or $0.44 per share, beating consensus by $0.01. Earnings will now start to grow at a more organic normalized pace, especially as the company fully incorporates recent acquisitions and their operations. The bank has been a serial acquirer the last few years. We think 2023, especially H2 2023 will be even better based on the trends we are seeing for banks, especially in a rising rate environment, once we see peak recessionary pressures abate. Book value suggests waiting for a dip We think you get a better price before entering the stock. While the stock is not expensive relative to tangible book, we would like to see you buy shares at or below book value. Thus, investors should wait, in our opinion, though we are bullish long-term FMAO stock is somewhat expensive at $27 relative to the tangible book value per share at June 30, 2022. Tangible book value per share was $17.43 as of this time. This tangible book value jumped from Q1 2022 and from the start of 2022. There is a strong pipeline of loans as well. Still, this is not an expensive stock on most financial metrics, but let it fall. It is very rare to find regional banks trading near tangible book. On this metric, valuation is a bit more stretched, but on a selloff, we are buyers. Loans and deposit growth As we always stress, growth in loans and deposits are a key metric that we follow. Naturally, with acquisitions, we expected a rise here. But growth on these metrics is key whether the bank is small or large. And this company is not very large numbers wise. The fact is that banks tend to do better when rates rise because the idea is that they should make more money on the margin between what they lend out and what they pay for funds. We are seeing signs of that now. The net interest margin for the quarter increased to 3.14%. Rising margins are a big plus for earnings potential. We want to own these stocks as margins widen. We know there is pressure from inflation and possible rising unemployment, which seems to be a Fed goal, but we suspect these stocks find a bottom soon. On top of the better margins, loans are growing, and not just because of acquisitions. Total loans were a record of $2.035 billion and increased 9.6% from $1.857 billion at the start of the year. Total loans were up 39.5%, or $576.4 million vs. compared to $1.46 billion in Q2 2021. Excellent. Total deposits have grown, which we like, and they grew 20% to $2.675 billion. The bank has strong liquidity with which to lend out to future customers. Farmers & Merchants Bancorp asset health So growing assets is great, but you want to have a sense of the quality of assets. Farmers & Merchants maintained strong asset quality metrics in Q2 2022. The provisions for loan losses creeped up much like other banks in Q2 as the macro situation is so poor. There was a provision of $1.63 million, rising from a year ago when they were $0.641 million. Non-performing loans improved dramatically as well. They were 0.28% in Q2 2022, improving from 0.48% of all loans a year ago, and 0.44% from Q1 2022. We will be closely watching for trends on this key metric. Net charge-offs are basically 0% of all loans, there was a small $26,000 charge off in Q2, and that is a win.

Sep 20
Farmers & Merchants Bancorp (NASDAQ:FMAO) Has Announced That It Will Be Increasing Its Dividend To $0.21

Farmers & Merchants Bancorp (NASDAQ:FMAO) Has Announced That It Will Be Increasing Its Dividend To $0.21

Farmers & Merchants Bancorp, Inc. ( NASDAQ:FMAO ) will increase its dividend on the 20th of October to $0.21, which is...

Sep 16

Farmers & Merchants Bancorp raises dividend by 10.5% to $0.21

Farmers & Merchants Bancorp (NASDAQ:FMAO) declares $0.21/share quarterly dividend, 10.5% increase from prior dividend of $0.19. Forward yield 3.21% Payable Oct. 20; for shareholders of record Sept. 26; ex-div Sept. 23. See FMAO Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

FMAOUS BanksUS Market

Return vs Industry: FMAO exceeded the US Banks industry which returned -24.9% over the past year.

Return vs Market: FMAO exceeded the US Market which returned -23.7% over the past year.

Price Volatility

Is FMAO's price volatile compared to industry and market?
FMAO volatility
FMAO Average Weekly Movement3.8%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: FMAO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FMAO's weekly volatility (4%) has been stable over the past year.

About the Company

1897390Lars Eller

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.

Farmers & Merchants Bancorp Fundamentals Summary

How do Farmers & Merchants Bancorp's earnings and revenue compare to its market cap?
FMAO fundamental statistics
Market CapUS$353.53m
Earnings (TTM)US$29.72m
Revenue (TTM)US$93.08m


P/E Ratio


P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FMAO income statement (TTM)
Cost of RevenueUS$0
Gross ProfitUS$93.08m
Other ExpensesUS$63.35m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date


Earnings per share (EPS)2.29
Gross Margin100.00%
Net Profit Margin31.93%
Debt/Equity Ratio53.1%

How did FMAO perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is FMAO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FMAO?

Other financial metrics that can be useful for relative valuation.

FMAO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does FMAO's PE Ratio compare to its peers?

FMAO PE Ratio vs Peers
The above table shows the PE ratio for FMAO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.4x
RCBC River City Bank
WTBA West Bancorporation
SMMF Summit Financial Group
JMSB John Marshall Bancorp
FMAO Farmers & Merchants Bancorp

Price-To-Earnings vs Peers: FMAO is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

How does FMAO's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: FMAO is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the US Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is FMAO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FMAO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.9x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: FMAO is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).

Share Price vs Fair Value

What is the Fair Price of FMAO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FMAO ($27.29) is trading below our estimate of fair value ($43.79)

Significantly Below Fair Value: FMAO is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Farmers & Merchants Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score


Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMAO's forecast earnings growth (9% per year) is above the savings rate (1.9%).

Earnings vs Market: FMAO's earnings (9% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: FMAO's earnings are forecast to grow, but not significantly.

Revenue vs Market: FMAO's revenue (3.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FMAO's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if FMAO's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Farmers & Merchants Bancorp performed over the past 5 years?

Past Performance Score


Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FMAO has high quality earnings.

Growing Profit Margin: FMAO's current net profit margins (31.9%) are higher than last year (28%).

Past Earnings Growth Analysis

Earnings Trend: FMAO's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: FMAO's earnings growth over the past year (42.1%) exceeds its 5-year average (16% per year).

Earnings vs Industry: FMAO earnings growth over the past year (42.1%) exceeded the Banks industry 8.5%.

Return on Equity

High ROE: FMAO's Return on Equity (10.7%) is considered low.

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Financial Health

How is Farmers & Merchants Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score


Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: FMAO's Assets to Equity ratio (9.5x) is low.

Allowance for Bad Loans: FMAO has a sufficient allowance for bad loans (351%).

Low Risk Liabilities: 93% of FMAO's liabilities are made up of primarily low risk sources of funding.

Loan Level: FMAO has an appropriate level of Loans to Assets ratio (75%).

Low Risk Deposits: FMAO's Loans to Deposits ratio (91%) is appropriate.

Level of Bad Loans: FMAO has an appropriate level of bad loans (0.3%).

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What is Farmers & Merchants Bancorp current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


Current Dividend Yield

Dividend Yield vs Market

Farmers & Merchants Bancorp Dividend Yield vs Market
How does Farmers & Merchants Bancorp dividend yield compare to the market?
SegmentDividend Yield
Company (Farmers & Merchants Bancorp)3.1%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Banks)3.4%
Analyst forecast in 3 Years (Farmers & Merchants Bancorp)2.9%

Notable Dividend: FMAO's dividend (3.08%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: FMAO's dividend (3.08%) is low compared to the top 25% of dividend payers in the US market (4.68%).

Stability and Growth of Payments

Stable Dividend: FMAO's dividends per share have been stable in the past 10 years.

Growing Dividend: FMAO's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.5%), FMAO's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Discover strong dividend paying companies


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Lars Eller (55 yo)





Mr. Lars B. Eller is President and Chief Executive Officer at Farmers & Merchants Bancorp, Inc. since February 01, 2019. Mr. Eller is President and Chief Executive Officer at Farmers & Merchants State Bank...

CEO Compensation Analysis

Lars Eller's Compensation vs Farmers & Merchants Bancorp Earnings
How has Lars Eller's remuneration changed compared to Farmers & Merchants Bancorp's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a


Mar 31 2022n/an/a


Dec 31 2021US$718kUS$383k


Sep 30 2021n/an/a


Jun 30 2021n/an/a


Mar 31 2021n/an/a


Dec 31 2020US$663kUS$384k


Sep 30 2020n/an/a


Jun 30 2020n/an/a


Mar 31 2020n/an/a


Dec 31 2019US$565kUS$350k


Sep 30 2019n/an/a


Jun 30 2019n/an/a


Mar 31 2019n/an/a


Dec 31 2018US$426kUS$88k


Compensation vs Market: Lars's total compensation ($USD717.79K) is below average for companies of similar size in the US market ($USD2.92M).

Compensation vs Earnings: Lars's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FMAO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: FMAO's board of directors are considered experienced (9.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: FMAO insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

NasdaqCM:FMAO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
23 Sep 22BuyUS$26,430Eugene BurkholderIndividual1,000US$26.43
16 Sep 22BuyUS$101,536David VernonIndividual3,800US$26.72
13 Sep 22BuyUS$13,015Steven PlansonIndividual475US$27.40
06 Sep 22BuyUS$27,100Eugene BurkholderIndividual1,000US$27.10
06 Sep 22BuyUS$4,067Steven PlansonIndividual150US$27.11
31 Aug 22BuyUS$14,005Steven PlansonIndividual478US$29.30
29 Aug 22BuyUS$29,330Eugene BurkholderIndividual1,000US$29.33
24 Jun 22BuyUS$102,318Jo HornishIndividual2,997US$34.14
18 Feb 22BuyUS$100,070Jo HornishIndividual2,967US$33.95

Ownership Breakdown

What is the ownership structure of FMAO?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,101,1448.5%
General Public8,661,24366.9%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.7%.

Top Shareholders

Top 25 shareholders own 28.89% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
BlackRock, Inc.
742,850$20.3m314.39%no data
Andrew Briggs
710,240$19.4m0.03%no data
The Vanguard Group, Inc.
556,244$15.2m11.66%no data
Manulife Asset Management
Geode Capital Management, LLC
202,542$5.5m119.85%no data
K. Stamm
141,992$3.9m0.17%no data
State Street Global Advisors, Inc.
139,307$3.8m319.85%no data
Dimensional Fund Advisors LP
112,522$3.1m37.43%no data
Northern Trust Global Investments
100,507$2.7m407.56%no data
Siena Capital Partners GP, LLC
Eaton Vance Management
59,624$1.6m347.33%no data
BNY Mellon Asset Management
55,648$1.5m96.98%no data
EAM Investors, LLC
Susquehanna Fundamental Investments, LLC
David Vernon
41,920$1.1m10.68%no data
Invesco Capital Management LLC
41,691$1.1m0%no data
Teachers Insurance and Annuity Association-College Retirement Equities Fund
40,527$1.1m0%no data
Keybank National Association, Asset Management Arm
Millennium Management LLC
38,622$1.1m-73.22%no data
Citadel Advisors LLC
38,213$1.0m106.86%no data
Fort Washington Investment Advisors, Inc.
First Trust Advisors LP
35,991$982.2k549.54%no data
Jo Hornish
35,652$972.9k9.99%no data
Goldman Sachs Group, Investment Banking and Securities Investments
34,557$943.1k30.77%no data
Charles Schwab Investment Management, Inc.
31,188$851.1k18.19%no data

Company Information

Farmers & Merchants Bancorp, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Farmers & Merchants Bancorp, Inc.
  • Ticker: FMAO
  • Exchange: NasdaqCM
  • Founded: 1897
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$353.534m
  • Shares outstanding: 12.95m
  • Website:

Number of Employees


  • Farmers & Merchants Bancorp, Inc.
  • 307 North Defiance Street
  • Archbold
  • Ohio
  • 43502
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMAONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2004

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Annual Earnings2021/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.