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Letter portraitLegal landscapeQuarterYTD

Farmers & Merchants Bank, The

Stuttgart, AR · Cert 16216 · Farmers&Merchants Bankshares

State charter, Fed member · FED · 21 branches

Q2 2026

$2.0BAssets
$1.4BLoans
$1.7BDeposits
$225.4MEquity
Loan mix
82%RE $1.0B14%C&I $0.2B4%Consumer $0.1BQ2 2025Q2 2026
Deposit mix
86%Interest-bearing $1.5B14%Noninterest $0.2BQ2 2025Q2 2026

NIM

4.55%Q2 ’245.08%Q2 ’255.35%Q2 ’26+23%+10%

Non-interest income vs. expense

2.45%Q2 ’242.78%Q2 ’252.75%Q2 ’26-2%+21%

Market Position · Fayetteville-Springdale-Rogers, AR · 2026 SOD (annual) · 2.3% share · #10 of 42 inst. · $0.5B of $20.2B

5.0% Washington
54.5% Arkansas
15.7% Baxter
4.0% Craighead

Executive Summary

  • Earnings: ROA of 1.07%, up 6 bps year over year; NIM at 3.65%.
  • Asset quality: problem loans at 0.39% of loans (+12 bps YoY), with net charge-offs at 0.01%.
  • Capital: tier 1 leverage ratio of 9.79%, down 4 bps from a year ago.
  • Funding: loans stand at 83.33% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.07%+6 bps YoY

Net Interest Margin (YTD, annualized)

3.65%+32 bps YoY

Efficiency Ratio (YTD, annualized)

63.94%+37 bps YoY

Tier 1 Leverage Ratio

9.79%-4 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.01%1.02%1.02%1.05%1.07%+6 bps
Return on Equity9.29%9.37%9.29%9.45%9.60%+31 bps
Net Interest Margin3.33%3.29%3.36%3.64%3.65%+32 bps
Efficiency Ratio63.56%64.04%63.88%64.41%63.94%+37 bps
Non-Interest Burden1.69%1.75%1.81%2.08%2.05%+36 bps
Growth
Asset Growth (YoY)2.33%6.07%7.75%7.49%6.32%+399 bps
Loan Growth (YoY)6.15%7.08%7.08%6.15%5.86%-29 bps
Deposit Growth (YoY)5.18%9.65%6.98%9.34%11.19%+601 bps
Asset Quality
Nonperforming Loans / Loans0.27%0.23%0.47%0.53%0.39%+12 bps
Net Charge-Offs / Loans0.24%0.16%0.14%0.00%0.01%-24 bps
Allowance / Loans1.20%1.22%1.27%1.27%1.29%+9 bps
Allowance Coverage of NPLs4.5x5.4x2.7x2.4x3.3x-1.1x
Capital
Tier 1 Leverage Ratio9.83%9.57%9.76%9.86%9.79%-4 bps
Total Risk-Based Capital9.83%9.57%9.76%9.86%9.79%-4 bps
Equity / Assets10.85%10.91%11.16%11.11%11.19%+34 bps
Liquidity & Funding
Loans / Deposits87.51%84.18%85.35%81.67%83.33%-419 bps
Liquid Assets / Assets0.12%0.29%0.18%1.63%0.78%+66 bps
CRE / Total Capitaln/a317%314%309%n/an/a