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Farmers and Merchants State Bank

Langdon, ND · Cert 21728 · F&M Bancshares Inc.

State charter, non-member · FDIC · 1 branch

Q2 2026

$143.1MAssets
$80.9MLoans
$105.6MDeposits
$20.8MEquity
Loan mix
77%RE $39.7M17%C&I $9.1M6%Consumer $3.1MQ2 2025Q2 2026
Deposit mix
83%Interest-bearing $87.9M17%Noninterest $17.7MQ2 2025Q2 2026

NIM

4.64%Q2 ’244.90%Q2 ’255.30%Q2 ’26+28%+21%

Non-interest income vs. expense

1.76%Q2 ’241.80%Q2 ’251.78%Q2 ’26+2%-2%

Executive Summary

  • Earnings: ROA of 1.33%, up 42 bps year over year; NIM at 3.45%.
  • Asset quality: problem loans at 1.86% of loans (+126 bps YoY), with net recoveries of 1.01%.
  • Capital: tier 1 leverage ratio of 15.70%, up 147 bps from a year ago.
  • Funding: loans stand at 76.62% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

1.33%+42 bps YoY

Net Interest Margin (quarter, annualized)

3.45%+60 bps YoY

Efficiency Ratio (quarter, annualized)

50.00%-1,110 bps YoY

Tier 1 Leverage Ratio

15.70%+147 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.91%1.13%1.11%1.11%1.33%+42 bps
Return on Equity7.23%8.55%8.11%7.93%9.22%+199 bps
Net Interest Margin2.85%2.93%3.14%3.19%3.45%+60 bps
Efficiency Ratio61.10%52.45%49.34%52.33%50.00%-1,110 bps
Non-Interest Burden1.71%1.48%1.48%1.61%1.67%-4 bps
Growth
Asset Growth (YoY)2.35%-1.77%2.20%-1.15%-1.84%-418 bps
Loan Growth (YoY)8.93%6.11%7.23%7.32%2.63%-631 bps
Deposit Growth (YoY)-6.26%-1.27%2.92%0.48%3.92%+1,018 bps
Asset Quality
Nonperforming Loans / Loans0.60%1.17%1.34%4.67%1.86%+126 bps
Net Charge-Offs / Loans0.00%0.00%0.00%1.04%-1.01%-101 bps
Allowance / Loans0.80%0.78%0.88%0.73%1.00%+21 bps
Allowance Coverage of NPLs1.3x0.7x0.7x0.2x0.5x-0.8x
Capital
Tier 1 Leverage Ratio14.23%14.38%14.72%14.79%15.70%+147 bps
Total Risk-Based Capital14.23%14.38%14.72%14.79%15.70%+147 bps
Equity / Assets12.77%13.63%13.79%14.24%14.53%+177 bps
Liquidity & Funding
Loans / Deposits77.58%77.64%76.12%71.42%76.62%-97 bps
Liquid Assets / Assets1.18%0.50%0.57%1.47%0.69%-49 bps
CRE / Total Capitaln/a27.98%30.55%25.86%n/an/a