Capital allocation remains disciplined, as evidenced by a consistent $3.0 million quarterly dividend payout and a 2026Q1 cash and bank balance of $174.1 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 34.01M | 36.39M | 32.47M | 22.15M | 40.67M | 34.74M | 27.38M | 23.93M | 10.74M | 17.65M | 12.43M | 14.81M | 19.16M | 16.99M | 14.21M | 15.2M | 11.44M | 5.78M | 8.67M | 8.54M | 13.38M | 9.22M | 14.69M | 19.48M | 7.87M | -3.36M | 8.69M | 21.1M | 12.35M |
| Operating CF Growth % | 279.22% | 12.05% | 46.64% | -45.55% | 17.06% | 26.88% | 14.42% | 122.88% | -39.16% | 41.99% | -16.06% | -22.7% | 12.75% | 19.55% | -6.51% | 32.95% | 97.7% | -33.26% | 1.44% | -36.15% | 45.12% | -37.24% | -24.58% | 147.53% | 334.3% | -138.64% | -58.8% | 70.94% | - |
| Net Income | 35.94M | 33.31M | 25.94M | 22.79M | 32.52M | 23.5M | 20.09M | 18.4M | 14.95M | 12.72M | 11.66M | 10.34M | 9.65M | 9.01M | 9.79M | 8.51M | 6.98M | 6.61M | 6.72M | 7.73M | 8.14M | 8.58M | 8.23M | 7.63M | 13.42M | 12.32M | 11.02M | 9.22M | 8.06M |
| Depreciation & Amortization | 4.63M | 0 | 6.37M | 5.77M | 4.02M | 4.99M | 4.3M | 3.52M | 2.25M | 2.15M | 2.21M | 2.06M | 2.12M | 1.93M | 2.23M | 1.95M | 2.07M | 2.26M | 1.66M | 1.32M | 1.37M | 1.46M | 1.47M | 1.94M | 1.58M | 1.59M | 1.76M | 1.77M | 1.64M |
| Deferred Taxes | 0 | 0 | 307K | 2.23M | 171K | -1.8M | -1.69M | 292K | 472K | 21K | 55K | 0 | 0 | 34K | -126K | -165K | 210K | 142K | -39K | -170K | 282K | 387K | -14K | -126K | -836K | -38K | -730K | -457K | -542K |
| Other Non-Cash Items | -2.29M | 4.53M | -5.47M | -2.68M | 8.37M | 3.22M | 4.54M | -4.97M | 157K | 2.69M | -1.15M | 818K | 6.2M | 4.28M | 643K | 5.24M | 3.29M | 2.8M | 2.27M | -337K | 3.59M | -1.38M | 5M | 4.14M | -438K | -17.23M | -3.36M | 10.57M | 3.19M |
| Working Capital Changes | -5.5M | -1.45M | 3.78M | -7.42M | -5.42M | 3.95M | -932K | 5.6M | -7.83M | -436K | -743K | 1.27M | 971K | 1.52M | 1.46M | -162K | -1.11M | -6.03M | -1.94M | 0 | 0 | 175K | 1K | 5.9M | -5.86M | 0 | 0 | 0 | 0 |
| Cash from Investing | -91.34M | -138.35M | -44.36M | -194.09M | -389.9M | -265.69M | -177.72M | -149.32M | 1.47M | -48.17M | -64.19M | -53.97M | 22.51M | -31.96M | -26.45M | -14.42M | -49.13M | -33.37M | -31.72M | -16.17M | -5.78M | -21.69M | 237K | 6.49M | -55.73M | -57.88M | -50.92M | -70.8M | -85.73M |
| Purchase of Investments | -71.87M | -49.75M | -99.13M | -13.4M | -39.99M | -171.3M | -183.69M | -110.19M | -13.87M | -15.34M | -114.82M | -60.92M | 0 | -103.32M | -134.44M | -117.74M | -244.81M | -124.35M | -65.58M | -95.8M | -44.38M | -73.38M | -81.55M | -86.85M | -114.02M | -33.16M | -43.27M | -274.93M | -263.62M |
| Sale/Maturity of Investments | 87.87M | 72.06M | 35.02M | 45.98M | 31.06M | 65.6M | 102.85M | 78.39M | 39.77M | 36.63M | 127.55M | 73.09M | 75.75M | 124.27M | 103.36M | 84.04M | 160.3M | 94.63M | 75.11M | 81.09M | 80.66M | 38.48M | 75.34M | 91.45M | 155.24M | 81.69M | 77.65M | 206.08M | 179.2M |
| Net Investment Activity | 16M | 22.31M | -64.11M | 32.59M | -8.93M | -105.7M | -80.85M | -31.8M | 25.91M | 21.29M | 12.73M | 12.16M | 75.75M | 20.95M | -31.07M | -33.71M | -84.51M | -29.73M | 9.53M | -14.71M | 36.28M | -34.9M | -6.21M | 4.6M | 41.22M | 48.53M | 34.38M | -68.85M | -84.42M |
| Acquisitions | 0 | 0 | 0 | 0 | 9.07M | -12.36M | 0 | -2.09M | 0 | 0 | 0 | 0 | 0 | 15.21M | 0 | 0 | -1.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -105.3M | -158.89M | 21.62M | -215.75M | -387.45M | -145.67M | -93.66M | -111.94M | -21.81M | -67.58M | -74.51M | -64.42M | -50.33M | -66.06M | 6.39M | 20.24M | 38.81M | -3.23M | -40.16M | 1.22M | -41.63M | 13.75M | 7.24M | 3.96M | -95.46M | -104.94M | -84.7M | 819K | 432K |
| Cash from Financing | 57.77M | 23.33M | 46.04M | 229.73M | 252.82M | 236.07M | 274.75M | 138.32M | -8.31M | 36.67M | 58.06M | 36.89M | -36.64M | -9.87M | 13.19M | -1.02M | 47.43M | 40.35M | -4.95M | 19.27M | 7.06M | 10.8M | -10.21M | -25.22M | 37.93M | 50.46M | 74.54M | 51.98M | 85.08M |
| Dividends Paid | -12.21M | -12.09M | -11.92M | -11.34M | -10.28M | -7.67M | -7.19M | -6.34M | -4.96M | -4.44M | -4.12M | -3.94M | -3.86M | -3.72M | -3.6M | -3.57M | -3.4M | -3.42M | -3.22M | -3.23M | -3.05M | -2.47M | -2.47M | -8.71M | -4.54M | -4.06M | -3.71M | -3.35M | -3.13M |
| Share Repurchases | -396K | -362K | -664K | -218K | -308K | -338K | -383K | -381K | -490K | -196K | -194K | -803K | -576K | -1.24M | -894K | -310K | -894K | -555K | -3.58M | -4.71M | -945K | -115K | 0 | 0 | -5.01M | -488K | -1.26M | -404K | -229K |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -396K | -362K | -664K | -218K | -308K | -338K | -383K | -381K | -490K | -196K | -194K | -803K | -576K | -1.24M | -894K | -310K | -894K | -555K | -3.58M | -4.71M | -945K | -115K | 0 | 0 | -5.01M | -488K | -1.26M | -404K | -229K |
| Debt Issuance (Net) | -1.54M | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 0 | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Other Financing | 104.53M | 43.97M | 78.3M | 112.95M | 190.8M | 169.81M | 289.81M | 168.98M | 2.14M | 46.31M | 62.37M | 31.63M | -27.7M | 2.19M | 22.74M | 16.07M | 56.05M | 55.76M | -11.98M | 12.11M | 9.11M | 2.09M | -861K | -1.31M | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 433K | -78.63M | 34.15M | 57.79M | -96.41M | 5.12M | 124.41M | 12.93M | 3.9M | 6.14M | 6.3M | -2.28M | 5.03M | -24.83M | 949K | -236K | 9.73M | 12.76M | -28M | 11.64M | 14.66M | -1.67M | 4.72M | 748K | -9.93M | -10.78M | 32.31M | 2.27M | 11.7M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 97.72M | 176.35M | 142.2M | 84.41M | 180.82M | 175.71M | 51.3M | 38.37M | 34.47M | 28.32M | 22.02M | 24.3M | 19.26M | 44.09M | 43.14M | 43.38M | 33.65M | 20.89M | 48.89M | 37.25M | 22.59M | 24.26M | 19.54M | 18.79M | 63.51M | 74.29M | 41.98M | 39.71M | 28.01M |
| Cash at End | 173.47M | 97.72M | 176.35M | 142.2M | 84.41M | 180.82M | 175.71M | 51.3M | 38.37M | 34.47M | 28.32M | 22.02M | 24.3M | 19.26M | 44.09M | 43.14M | 43.38M | 33.65M | 20.89M | 48.89M | 37.25M | 22.59M | 24.26M | 19.54M | 53.57M | 63.51M | 74.29M | 41.98M | 39.71M |
| Interest Paid | 69.2M | 69.91M | 76.5M | 55.12M | 13.75M | 7.05M | 10.09M | 13.54M | 6.47M | 5.06M | 4.15M | 3.61M | 3.73M | 4.68M | 6.3M | 8.29M | 11.24M | 13.28M | 18.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 6.5M | 8.71M | 3.1M | 5.42M | 7.7M | 6.15M | 6.47M | 3.95M | 5.16M | 5.1M | 5.01M | 3.08M | 4.29M | 3.24M | 4.08M | 1.85M | 1.88M | 2.73M | 2.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 31.96M | 34.62M | 30.6M | 11.22M | 38.07M | 32.78M | 24.16M | 20.42M | 8.11M | 15.76M | 10.02M | 13.09M | 16.25M | 14.93M | 12.44M | 14.26M | 9.14M | 5.37M | 7.58M | 5.87M | 12.95M | 8.68M | 13.9M | 17.41M | 6.38M | -4.83M | 8.09M | 18.34M | 10.6M |
| FCF Growth % | -20.02% | 13.12% | 172.83% | -70.54% | 16.15% | 35.66% | 18.31% | 151.83% | -48.55% | 57.23% | -23.44% | -19.43% | 8.85% | 20.02% | -12.74% | 55.96% | 70.16% | -29.18% | 29.26% | -54.7% | 49.21% | -37.54% | -20.18% | 173.15% | 232.07% | -159.7% | -55.91% | 72.96% | - |
Agricultural credit cycle sensitivity
According to recent financial disclosures, FMAO consistently generates positive net income, with 2026Q1 earnings of $9.6 million, providing a reliable foundation for capital retention that supports the bank's ongoing expansion into new Indiana markets while maintaining a conservative debt-to-equity profile of 0.81 percent.
The bank's ability to fund organic growth through retained earnings appears robust, reducing the necessity for external capital raises. Investors should monitor whether this internal capital generation remains sufficient to support the bank's footprint expansion without diluting shareholder value.
As reported in quarterly cash flow statements, FMAO exhibits significant volatility in investment activity, highlighted by a $35.4 million purchase of securities in 2026Q1, which suggests a dynamic approach to managing liquidity and interest rate risk within the bank's available-for-sale and held-to-maturity portfolios.
The frequent rotation between security purchases and sales indicates that management actively adjusts the balance sheet to navigate shifting interest rate environments. This activity warrants further investigation to determine if these fluctuations reflect tactical duration management or a response to deposit-driven liquidity needs.
Based on the bank's reported figures, FMAO maintains a consistent dividend payout of approximately $3.0 million per quarter, demonstrating a commitment to shareholder returns that appears sustainable given the bank's historical earnings performance and its conservative approach to share repurchases during the last ten quarters.
The minimal use of share buybacks suggests that management prioritizes capital preservation and organic growth over aggressive equity reduction. This strategy appears prudent given the inherent cyclicality of the agricultural lending niche and the potential for future capital requirements.
As indicated by the bank's cash flow data, provision for credit losses has remained relatively modest, peaking at $688,000 in 2025Q2, which suggests that management maintains a cautious yet measured approach to credit risk assessment within its specialized agricultural and commercial loan portfolios.
The variability in provision expenses may reflect management's subjective adjustments to qualitative factors regarding the local agricultural economy. Investors should monitor whether these provisions remain adequate if commodity price volatility begins to impact the debt-service coverage ratios of the bank's core borrower base.
Quick answers to the most common questions about buying FMAO stock.
Farmers & Merchants Bancorp, Inc. (FMAO) generated $36.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Farmers & Merchants Bancorp, Inc. (FMAO) generated $34.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Farmers & Merchants Bancorp, Inc. (FMAO) spent $1.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Farmers & Merchants Bancorp, Inc. (FMAO) returned $12.1M to shareholders via cash dividends and spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.