Operating cash flow of $10.8M in 2026Q2 comfortably covers dividend payments of $3.1M, indicating the bank is generating sufficient internal capital to fund its balance sheet growth without external financing.
Farmers & Merchants Bancorp, Inc. (FMAO) cash flow statement — 28-year operating, investing & financing cash flows
| 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 | 43.7M | 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 % | 1246.21% | 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 | 40.02M | 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 | 3.81M | 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 | -2.08M | 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 | 887K | -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 | -89.04M | -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 | -20.47M | -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 | 38.29M | 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 | 17.82M | 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 | -106.19M | -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 | 63.06M | 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 | -12.34M | -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 | -438K | -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 | -438K | -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 | 103.8M | 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 | 17.72M | -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 | 173.47M | 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 | 105.95M | 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 | 68.5M | 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 | 4.12M | 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 | 43.04M | 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 % | 37.97% | 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% | - |
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.
Key Metrics
Top Statement Risk
Securities portfolio volatility
Metrics are mathematically derived from official filings.
Earnings Retention Supports Organic Growth
FMAO's net income has grown to $11.8M in 2026Q2, with operating cash flow consistently covering dividends, suggesting the bank is generating sufficient internal capital to fund its balance sheet expansion without external raises.
The bank's OCF/NI ratio has normalized to 0.92 in the latest quarter after periods of significant volatility, indicating that earnings are translating more predictably into cash. This consistent generation of capital, paired with modest dividend payments of $3.1M per quarter, implies a strong capacity for retained earnings to support loan growth and regulatory capital buffers organically.
Active Securities Portfolio Management
FMAO's investing cash flows show large, offsetting purchases and sales of investment securities, with net purchases of $10.4M in 2026Q2, indicating active portfolio rebalancing rather than a one-directional build.
The pattern of significant purchases (e.g., $35.4M in 2026Q2) followed by sales (e.g., $25.0M in the same period) suggests the bank is actively managing duration and liquidity within its securities portfolio. This activity appears to be a tactical response to the rate environment, potentially seeking to optimize yield while managing interest rate risk, rather than a passive accumulation strategy.
Loan Growth Outpaces Deposit Inflows
The bank's loan loss provision expense has been consistently positive and elevated, reaching $321K in 2026Q2, which may indicate ongoing loan book expansion and associated credit risk provisioning.
The consistent positive loan loss provision expense, after a negative provision in 2024Q1, suggests the bank is actively building reserves to support a growing loan portfolio. This trend aligns with the accelerating net interest income growth noted in the income statement analysis, implying that loan volume expansion is a key driver of the bank's recent performance.
Financing Flows Reflect Strategic Debt Management
FMAO's financing activities show consistent long-term debt repayments of $1.0M per quarter, indicating a deliberate strategy to reduce wholesale funding reliance and improve its deposit-funded balance sheet profile.
The steady outflow for long-term debt repayment, with no new issuances in most quarters, suggests management is prioritizing a more conservative funding mix. This trend, combined with minimal short-term debt activity, implies the bank is relying on its deposit base and internal capital generation to fund asset growth, which may enhance funding stability.
Cash Flow Volatility Masks Underlying Trends
The OCF/NI ratio has swung from 0.14 to 2.86 over the past ten quarters, highlighting that the cash flow statement is a less reliable indicator of FMAO's core earnings power and financial health than the balance sheet.
The extreme volatility in operating cash flow, driven by movements in trading assets and loan originations, makes single-quarter cash flow metrics analytically noisy. Investors should focus on the more stable trends in net income and the balance sheet, as the cash flow statement's distortions obscure the bank's underlying capital generation and liquidity position.