Farmers & Merchants Bancorp (FMAO) Posts Best Quarter in 129 Years
As seen on the 24/7 Wall St. homepage on July 27, 2026.
Farmers & Merchants Bancorp posted its most profitable quarter in 129 years, beating EPS by 27% as net interest margins expanded 26 basis points and the bank raised its dividend for the 31st consecutive year. Return on average assets hit 1.34%, the best result in 23 quarters.
Continue ReadingShow less
Farmers & Merchants Bancorp reported Q2 2026 earnings per share of $0.86, clearing the consensus estimate of $0.67 by roughly 28%. Revenue came in at $34.35 million, beating expectations by nearly 16%. The quarter's results mark the most profitable in the bank's 129-year history, a milestone that stands out even against a backdrop of steadily improving beats stretching back through 2024.
The engine behind the outperformance was net interest margin expansion of 26 basis points, which widened the gap between what the bank earns on loans and pays on deposits. Return on average assets reached 1.34%, the strongest reading in 23 quarters, reflecting tighter cost controls and a more favorable lending environment. Taken together, those two metrics suggest the profitability improvement is structural rather than a one-time event.
Sponsored
_________________________________
What's Your Number...?
Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)
__________________________________________
Management also raised the dividend for the 31st consecutive year, underscoring confidence in the bank's earnings power going forward. For investors watching FMAO, the key question is whether margin expansion can hold at this level or continue to widen as the rate environment evolves.
Mentioned: FMAO