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Farmers and Merchants Bank

Milford, NE · Cert 16810 · Country Bank Shares Inc.

State charter, non-member · FDIC · 12 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks $1B-$10B in assets operating in a single state3

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 $1B-$10B in assets operating in a single state (n=257 to 258). 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

67

Q2 2024Q2 2026peer median (50)

Asset Quality

100

Q2 2024Q2 2026peer median (50)

Profitability

20

Q2 2024Q2 2026peer median (50)

Liquidity

0

Q2 2024Q2 2026peer median

Efficiency

70

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

Milford, NE · Cert 16810 · Country Bank Shares Inc.

State charter, non-member · FDIC · 12 branches

Q2 2026

$1.1BAssets
$232.8MLoans
$885.6MDeposits
$88.0MEquity
Loan mix
84%RE $155.4M16%C&I $29.0M0%Consumer $0.4MQ3 2024Q2 2026
Deposit mix
93%Interest-bearing $824.7M7%Noninterest $60.9MQ3 2024Q2 2026

Market Position · Lincoln, NE · 2026 SOD (annual) · 4.0% share · #7 of 33 inst. · $0.6B of $16.1B

49.1% Seward
28.8% Nuckolls
2.3% Buffalo
5.4% Cass

Executive Summary

  • Earnings: ROA of 0.89%, down 10 bps year over year; NIM at 2.04%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 10.64%, down 9 bps from a year ago.
  • Funding: loans stand at 26.29% of deposits as of Q2 2026.

Return on Assets (YTD, annualized)

0.89%-10 bps YoY

Net Interest Margin (YTD, annualized)

2.04%-19 bps YoY

Efficiency Ratio (YTD, annualized)

53.39%+3 bps YoY

Tier 1 Leverage Ratio

10.64%-9 bps YoY

NIM

4.09%Q2 ’244.45%Q2 ’254.06%Q2 ’26+8%-8%

Non-interest income vs. expense

1.39%Q2 ’241.31%Q2 ’251.16%Q2 ’26-16%-5%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.74%0.77%1.00%0.99%0.95%0.89%0.87%0.89%-10 bps
Return on Equity9.28%9.89%13.74%13.73%12.75%11.59%10.53%10.71%-302 bps
Net Interest Margin2.00%2.18%2.04%2.23%2.20%2.22%2.06%2.04%-19 bps
Efficiency Ratio66.23%64.57%51.59%53.37%55.82%58.55%53.13%53.39%+3 bps
Non-Interest Burden1.25%1.32%0.97%1.05%1.07%1.17%1.00%1.00%-5 bps
Growth
Asset Growth (YoY)9.31%12.30%8.67%6.70%4.13%2.15%7.38%8.44%+174 bps
Loan Growth (YoY)3.01%2.51%-1.92%-7.27%-8.39%-4.06%-3.01%-1.44%+582 bps
Deposit Growth (YoY)8.83%12.37%9.66%8.24%3.34%1.89%7.18%7.03%-121 bps
Asset Quality
Nonperforming Loans / Loans0.08%0.00%0.00%0.00%0.03%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans-0.03%0.14%0.00%0.00%0.00%0.00%0.00%0.00%0 bps
Allowance / Loans0.55%0.38%0.41%0.41%0.41%0.39%0.42%0.41%+1 bps
Allowance Coverage of NPLs7.1x964.0x964.0x965.0x13.2xn/an/an/an/a
Capital
Tier 1 Leverage Ratio10.05%10.97%9.49%10.73%11.01%11.15%10.74%10.64%-9 bps
Total Risk-Based Capital21.11%21.44%20.48%22.34%21.80%22.40%23.81%21.45%-89 bps
Equity / Assets8.31%7.33%7.22%7.04%8.20%8.51%8.10%8.35%+131 bps
Liquidity & Funding
Loans / Deposits33.00%31.61%28.92%28.55%29.25%29.77%26.18%26.29%-226 bps
Liquid Assets / Assets2.46%1.96%0.79%1.91%0.71%2.78%2.43%2.29%+38 bps
CRE / Total Capitaln/an/an/an/a17.86%17.14%17.25%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

Milford, NE · Cert 16810 · Peer group: banks $1B-$10B in assets operating in a single state (n=257-258) · Country Bank Shares Inc.

State charter, non-member · FDIC · 12 branches

Q2 2026

$1.1BAssets
$232.8MLoans
$885.6MDeposits
$88.0MEquity

Executive Summary

  • Strongest standing: nonperforming loans / loans outperforms 100% of banks $1B-$10B in assets operating in a single state (rank 3 of 258).
  • Widest gap: net interest margin trails 99% of banks $1B-$10B in assets operating in a single state (rank 255 of 258).
  • Overall: at or above the peer median on 5 of 9 directional measures.

Return on Assets

0.87%

Rank 204 of 258

Net Interest Margin

2.04%

Rank 255 of 258

Efficiency Ratio

53.39%

Rank 78 of 257

Equity / Assets

8.35%

Rank 228 of 258

Non-interest income vs. expense

$1.7M$12.1MINCOMEEXPENSE
Unfavorable gap of $10.4M · efficiency ratio beats 70% of banks $1B-$10B in assets operating in a single state
Bank 53.39%Peer median 60.3%Q1 2026Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRank8-Qtr TrendPeer Position
Earnings
Return on Assets0.87%0.93%1.23%1.54%Beats 21%204 / 258
Return on Equity10.40%9.26%11.84%14.74%Beats 37%163 / 258
Net Interest Margin2.04%3.16%3.49%3.88%Beats 1%255 / 258
Efficiency Ratio53.39%51.71%60.30%69.65%Beats 70%78 / 257
Asset Quality
Nonperforming Loans / Loans0.00%0.19%0.46%0.90%Beats 100%3 / 258
Net Charge-Offs / Loans0.00%0.01%0.02%0.07%Beats 100%15 / 258
Capital
Tier 1 Capital Ratio21.26%11.41%12.98%15.12%Beats 94%15 / 258
Total Risk-Based Capital Ratio21.45%12.10%13.91%16.08%Beats 94%16 / 258
Equity / Assets8.35%9.09%10.24%11.72%Beats 12%228 / 258
Liquidity & Funding
Loans / Deposits26.29%73.24%86.34%95.95%1st pctl255 / 258
Loans / Assets22.07%63.01%72.27%78.40%1st pctl255 / 258
Brokered Deposits / Depositsn/aNot reported for this institution