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Farmers & Merchants Bank

Waterloo, AL · Cert 1745

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 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 under $1B in assets operating in a single state (n=743 to 746). 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

68

Q2 2024Q2 2026peer median (50)

Asset Quality

13

Q2 2024Q2 2026peer median (50)

Profitability

12

Q2 2024Q2 2026peer median (50)

Liquidity

0

Q2 2024Q2 2026peer median

Efficiency

38

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 & Merchants Bank

Waterloo, AL · Cert 1745

State charter, non-member · FDIC · 2 branches

Q2 2026

$98.3MAssets
$5.3MLoans
$86.5MDeposits
$11.3MEquity
Loan mix
27%RE $1.1M40%C&I $1.6M32%Consumer $1.3MQ2 2025Q2 2026
Deposit mix
77%Interest-bearing $66.5M23%Noninterest $20.0MQ2 2025Q2 2026

NIM

2.99%Q2 ’243.09%Q2 ’253.13%Q2 ’26+36%+21%

Non-interest income vs. expense

0.82%Q2 ’240.89%Q2 ’251.06%Q2 ’26+6%+38%

Market Position · Florence-Muscle Shoals, AL · 2026 SOD (annual) · 2.2% share · #11 of 16 inst. · $0.1B of $3.9B

Executive Summary

  • Earnings: ROA of 0.59%, up 15 bps year over year; NIM at 1.45%.
  • Asset quality: problem loans at 1.33% of loans (-52 bps YoY), with net charge-offs at 0.04%.
  • Capital: tier 1 leverage ratio of 17.03%, down 54 bps from a year ago.
  • Funding: loans stand at 6.16% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.59%+15 bps YoY

Net Interest Margin (YTD, annualized)

1.45%+25 bps YoY

Efficiency Ratio (YTD, annualized)

69.75%+514 bps YoY

Tier 1 Leverage Ratio

17.03%-54 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.43%0.44%0.16%0.65%0.59%+15 bps
Return on Equity4.47%4.39%1.55%5.74%5.14%+67 bps
Net Interest Margin1.20%1.20%1.21%1.44%1.45%+25 bps
Efficiency Ratio64.61%64.53%88.60%57.89%69.75%+514 bps
Non-Interest Burden0.71%0.72%1.06%0.77%0.99%+27 bps
Growth
Asset Growth (YoY)-1.69%4.30%4.81%5.39%2.41%+410 bps
Loan Growth (YoY)1.46%6.71%-4.23%-10.72%-0.39%-185 bps
Deposit Growth (YoY)-3.32%4.66%1.51%4.08%1.21%+453 bps
Asset Quality
Nonperforming Loans / Loans1.85%1.39%0.80%3.93%1.33%-52 bps
Net Charge-Offs / Loans0.22%0.12%-0.04%0.73%0.04%-19 bps
Allowance / Loans3.37%3.15%3.49%3.63%3.51%+14 bps
Allowance Coverage of NPLs1.8x2.3x4.4x0.9x2.6x+0.8x
Capital
Tier 1 Leverage Ratio17.57%17.13%16.72%17.18%17.03%-54 bps
Total Risk-Based Capital17.57%17.13%16.72%17.18%17.03%-54 bps
Equity / Assets10.43%11.38%11.48%11.22%11.49%+105 bps
Liquidity & Funding
Loans / Deposits6.26%6.59%6.12%5.65%6.16%-10 bps
Liquid Assets / Assets2.72%2.64%2.61%2.39%2.40%-32 bps
CRE / Total Capitaln/a5.81%6.64%5.13%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 & Merchants Bank

Waterloo, AL · Cert 1745 · Peer group: banks under $1B in assets operating in a single state (n=743-746)

State charter, non-member · FDIC · 2 branches

Q2 2026

$98.3MAssets
$5.3MLoans
$86.5MDeposits
$11.3MEquity

Executive Summary

  • Strongest standing: tier 1 capital ratio outperforms 72% of banks under $1B in assets operating in a single state (rank 206 of 746).
  • Widest gap: net interest margin trails 99% of banks under $1B in assets operating in a single state (rank 741 of 746).
  • Overall: at or above the peer median on 3 of 9 directional measures.

Return on Assets

0.59%

Rank 611 of 746

Net Interest Margin

1.45%

Rank 741 of 746

Efficiency Ratio

69.75%

Rank 461 of 746

Equity / Assets

11.49%

Rank 281 of 746

Non-interest income vs. expense

$0.1M$1.1MINCOMEEXPENSE
Unfavorable gap of $1.1M · efficiency ratio beats 38% of banks under $1B in assets operating in a single state
Bank 69.75%Peer median 64.6%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.59%0.72%1.06%1.45%Beats 18%611 / 746
Return on Equity5.14%6.74%10.51%13.63%Beats 18%611 / 746
Net Interest Margin1.45%3.17%3.68%4.16%Beats 1%741 / 746
Efficiency Ratio69.75%55.74%64.58%75.47%Beats 38%461 / 746
Asset Quality
Nonperforming Loans / Loans1.33%0.09%0.42%1.07%Beats 19%600 / 743
Net Charge-Offs / Loans0.26%0.00%0.01%0.05%Beats 6%700 / 743
Capital
Tier 1 Capital Ratio17.03%11.55%13.75%17.60%Beats 72%206 / 746
Total Risk-Based Capital Ratio17.03%11.71%14.33%18.43%Beats 70%227 / 746
Equity / Assets11.49%8.90%10.51%13.06%Beats 62%281 / 746
Liquidity & Funding
Loans / Deposits6.16%61.31%78.27%90.78%1st pctl742 / 746
Loans / Assets5.42%53.60%66.97%76.08%1st pctl742 / 746
Brokered Deposits / Depositsn/aNot reported for this institution