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Farmers and Merchants Bank

Milligan, NE · Cert 14275 · FM Group Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets operating regionally3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets operating regionally (n=94). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

65

Q2 2024Q2 2026peer median (50)

Asset Quality

78

Q2 2024Q2 2026peer median (50)

Profitability

46

Q2 2024Q2 2026peer median (50)

Liquidity

0

Q2 2024Q2 2026peer median

Efficiency

99

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Farmers and Merchants Bank

Milligan, NE · Cert 14275 · FM Group Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

$215.4MAssets
$178.9MLoans
$165.1MDeposits
$23.8MEquity
Loan mix
85%RE $96.6M14%C&I $15.4M1%Consumer $1.3MQ2 2025Q2 2026
Deposit mix
91%Interest-bearing $150.2M9%Noninterest $14.9MQ2 2025Q2 2026

NIM

6.20%Q2 ’246.10%Q2 ’256.02%Q2 ’26-16%-1%

Non-interest income vs. expense

1.63%Q2 ’241.61%Q2 ’251.35%Q2 ’260%-19%

Executive Summary

  • Earnings: ROA of 1.40%, up 25 bps year over year; NIM at 3.17%.
  • Asset quality: problem loans at 0.19% of loans (-95 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 11.08%, down 76 bps from a year ago.
  • Funding: loans stand at 108.32% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.40%+25 bps YoY

Net Interest Margin (YTD, annualized)

3.17%-5 bps YoY

Efficiency Ratio (YTD, annualized)

39.23%-726 bps YoY

Tier 1 Leverage Ratio

11.08%-76 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.15%1.25%1.30%1.33%1.40%+25 bps
Return on Equity9.61%10.57%11.01%11.68%12.43%+282 bps
Net Interest Margin3.22%3.18%3.16%3.20%3.17%-5 bps
Efficiency Ratio46.49%44.06%43.52%40.46%39.23%-726 bps
Non-Interest Burden1.57%1.46%1.44%1.32%1.26%-30 bps
Growth
Asset Growth (YoY)14.02%7.91%12.62%18.77%14.69%+67 bps
Loan Growth (YoY)13.30%16.58%21.44%20.23%17.69%+439 bps
Deposit Growth (YoY)13.64%5.59%11.60%19.90%18.37%+472 bps
Asset Quality
Nonperforming Loans / Loans1.14%0.68%0.64%0.57%0.19%-95 bps
Net Charge-Offs / Loans0.00%0.00%0.00%0.01%0.00%0 bps
Allowance / Loans1.08%1.01%0.99%1.04%1.08%0 bps
Allowance Coverage of NPLs0.9x1.5x1.5x1.8x5.8x+4.9x
Capital
Tier 1 Leverage Ratio11.84%11.65%11.70%11.56%11.08%-76 bps
Total Risk-Based Capital16.03%14.90%14.46%15.22%14.97%-106 bps
Equity / Assets11.56%11.54%11.45%11.41%11.03%-53 bps
Liquidity & Funding
Loans / Deposits108.94%115.92%116.69%110.24%108.32%-62 bps
Liquid Assets / Assets15.25%9.91%7.74%11.91%13.73%-151 bps
CRE / Total Capitaln/a33.48%29.49%30.59%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Farmers and Merchants Bank

Milligan, NE · Cert 14275 · Peer group: banks under $1B in assets operating regionally (n=94) · FM Group Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

$215.4MAssets
$178.9MLoans
$165.1MDeposits
$23.8MEquity

Executive Summary

  • Strongest standing: efficiency ratio outperforms 99% of banks under $1B in assets operating regionally (rank 2 of 94).
  • Widest gap: net interest margin trails 86% of banks under $1B in assets operating regionally (rank 81 of 94).
  • Overall: at or above the peer median on 8 of 9 directional measures.

Return on Assets

1.37%

Rank 29 of 94

Net Interest Margin

3.17%

Rank 81 of 94

Efficiency Ratio

41.51%

Rank 2 of 94

Equity / Assets

11.03%

Rank 32 of 94

Non-interest income vs. expense

$0.2M$2.9MINCOMEEXPENSE
Unfavorable gap of $2.7M · efficiency ratio beats 99% of banks under $1B in assets operating regionally
Bank 41.51%Peer median 62.4%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.37%0.82%1.19%1.46%Beats 69%29 / 94
Return on Equity12.45%7.85%11.84%14.03%Beats 55%42 / 94
Net Interest Margin3.17%3.42%3.81%4.18%Beats 14%81 / 94
Efficiency Ratio41.51%55.99%62.41%73.02%Beats 99%2 / 94
Asset Quality
Nonperforming Loans / Loans0.19%0.19%0.47%1.14%Beats 77%23 / 94
Net Charge-Offs / Loans0.00%0.00%0.02%0.05%Beats 79%21 / 94
Capital
Tier 1 Capital Ratio13.84%10.28%11.95%15.07%Beats 64%34 / 94
Total Risk-Based Capital Ratio14.97%10.31%12.59%15.88%Beats 65%33 / 94
Equity / Assets11.03%8.98%10.21%11.41%Beats 66%32 / 94
Liquidity & Funding
Loans / Deposits108.32%72.62%84.44%94.55%96th pctl4 / 94
Loans / Assets83.03%62.50%72.84%78.99%82nd pctl17 / 94
Brokered Deposits / Depositsn/aNot reported for this institution