Farmers & Merchants Bancorp (FMAO) Small-Cap Virtual Conference summary

Business overview and growth

• Operates in Ohio, Indiana, and Michigan with $3.4 billion in assets and 38 branches, focusing on ag and commercial banking.

• Achieved 16% asset CAGR and 7% net income CAGR over the past decade.

• Deposit growth in Ohio and Indiana has been 46% and 28% respectively over four years, with strong market share in most locations.

• Dividend has been raised for 30 consecutive years, placing it among the top on NASDAQ for dividend consistency.

• Growth has been balanced between organic expansion and acquisitions, tripling in size over seven years.

Strategic initiatives and operations

• Opened new branches in key markets and used loan production offices to enter new areas, notably in Michigan and Ohio.

• Loan production offices have led to significant loan growth, such as $600 million in Michigan, and justified new full-service branches.

• Focused on talent development, blending internal promotions with external hires to support growth and expertise.

• Diversified revenue streams by expanding treasury management, renegotiating card contracts, and building out investment and swap businesses.

• Investment business has grown to nearly $400 million in AUM, providing a non-interest income stream.

Leadership and governance

• Senior team includes long-tenured internal leaders and experienced external hires, supporting both continuity and new expertise.

• Board of directors has diversified geographically and by business background, with recent additions from Michigan and Indiana.

• Board age limit has led to turnover and fresh perspectives, including expertise in law, cybersecurity, and wealth management.