FMAO 10-K & 10-Q changes, risk factors and insider trading
Farmers & Merchants Bancorp Inc. · Nasdaq · Savings Institution, Federally Chartered · CIK 792966 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Quantitative Modeling Risk”
New heading “Compliance Obligations of Bank Holding Companies and Insured Depositories”
New heading “Emerging Financial Technologies”
New heading ““Debanking,” Fair Access and Supervisory Expectations”
New heading “Data Privacy, Cybersecurity, and Information Security Compliance”
New heading “Consumer Compliance, CRA Modernization, and Fair Lending”
New heading “Payments, Fee Practices, and Operational Risk”
New heading “Consumer Credit Normalization and Portfolio Risk”
New heading “Pandemic, Public-Health, and Agricultural Disease Risks”
Removed heading “Changes in U.S. trade policies, such as the implementation of tariffs, and other factors beyond the Company’s control may adversely impact our business, financial condition and results of operations”
Largest changes
“Although U.S. and global economies may have lingering effects from the COVID-19 pandemic, certain adverse consequences of the pandemic, such as inflationary pressures, continue to impact the macroeconomic environment and could adversely affect our business. The global macroeconomic outlook continues to remain uncertain due to a variety of other factors as well, including lasting impacts to the labor market and ongoing supply chain disruptions. …”see in full comparison
“Changes in U.S. trade policies, such as the implementation of tariffs, and other factors beyond the Company’s control may adversely impact our business, financial condition and results of operations”see in full comparison
“The ongoing trade policies and potential tariff initiatives being pursued by the U.S. government under the administration of President Trump could present potential risks unique to the markets within which we operate, particularly with respect to the threatened imposition of additional tariffs on certain products imported from countries such as Mexico, Canada, China and the European Union. Many of our commercial borrowers operate in agriculture, food processing, and manufacturing; industries that are particularly sensitive to changes in trade policy. …”see in full comparison
“Periods of inflation may impact our profitability by negatively impacting our fixed costs and expenses, including increasing funding costs and expense related to talent acquisition and retention. Additionally, inflation may lead to a decrease in our customers’ purchasing power and negatively affect the need or demand for our products and services. If significant inflation continues, our business could also be negatively affected by, among other things, increased default rates leading to credit losses which could decrease our appetite for new credit extensions.”see in full comparison
“We are subject to extensive federal and state data privacy, cybersecurity, and information security requirements. Expanding state privacy regimes, incident-notification rules, and vendor-oversight standards have increased the complexity and cost of compliance, particularly across multiple jurisdictions and third-party relationships. Failure to comply with applicable laws or to safeguard customer or confidential information could result in regulatory inquiries, penalties, litigation, remediation costs, and reputational harm. …”see in full comparison
“Consumer credit performance is normalizing from historically strong conditions, reflecting higher interest rates, elevated prices, and reduced savings. Deterioration in borrower cash flows, labor-market weakness, or persistent inflation could increase delinquencies and charge-offs in our retail portfolios, including unsecured consumer loans. Higher loss emergence would increase our allowance for credit losses under CECL, potentially leading to earnings volatility, elevated provision levels and slower loan growth.”see in full comparison
Full comparison: every changed paragraph (45)
Payments on agricultural real estate loans are dependent on the profitable operation or management of the farm property securing the loan. The success of the farm may be affected by many factors outside the control of the borrower, including adverse weather conditions that prevent the planting of a crop or limit crop yields (such as hail, drought and floods), loss of livestock due to disease or other factors, declines in market prices for agricultural products (both domestically and internationally) and the impact of government regulations (including changes in price supports, subsidies and environmental regulations). In addition, many farms are dependent on a limited number of key individuals whose injury or death may significantly affect the successful operation of the farm. If the cash flow from a farming operation is diminished, the borrower’s ability to repay the loan may be impaired. The primary crops in our market areas are corn, wheat and soybeans. Accordingly, adverse circumstances affecting these crops could have an adverse effect on our agricultural real estate loan portfolio.portfolio segment.
Changes in U.S. trade policies, such as the implementation of tariffs, and other factors beyond the Company’s control may adversely impact our business, financial condition and results of operations
The ongoing trade policies and potential tariff initiatives being pursued by the U.S. government under the administration of President Trump could present potential risks unique to the markets within which we operate, particularly with respect to the threatened imposition of additional tariffs on certain products imported from countries such as Mexico, Canada, China and the European Union. Many of our commercial borrowers operate in agriculture, food processing, and manufacturing; industries that are particularly sensitive to changes in trade policy. The imposition of tariffs on imported goods, the added potential for retaliatory tariffs by foreign governments, or other similar restrictions on international trade could increase costs for manufacturers, reduce demand for U.S. agricultural exports, and disrupt supply chains. If these factors lead to financial strain on our borrowers, we may experience increased credit risk, higher loan delinquencies, and a potential decline in loan demand.
Additionally, any prolonged trade tensions or the implementation of tariffs could negatively impact the broader economic environment in the Midwest, potentially leading to reduced consumer spending, lower economic growth, and decreased demand for other banking products and services. As a result, our financial performance, including credit quality and loan growth, could be adversely affected by these policy changes. While we actively monitor these developments and work closely with our agricultural customers, there is no assurance that we can fully mitigate the risks posed by potential tariff initiatives or other trade-related disruptions. These factors could materially affect our business, financial condition, and results of operations.
Quantitative Modeling Risk
We rely on quantitative modeling to measure risks and to estimate certain financial values. Quantitative models may be used to help manage certain aspects of our business and to assist with certain business decisions, including estimating expected lifetime credit losses, measuring the fair value of financial instruments when reliable market prices are unavailable, estimating the effects of changing interest rates and other market measures on our financial condition and results of operations, managing risk, and for capital planning purposes. All models have certain limitations. For instance, these methodologies inherently rely on assumptions, historical analyses, and correlations which may not capture or fully incorporate all relevant conditions and circumstances. As a consequence, such limitations may result in losses, particularly in times of market distress. Additionally, as businesses and markets continue to rapidly evolve, our measurements may not accurately reflect this evolution. Even if the underlying assumptions and historical correlations used in our models are adequate, our models may be deficient due to errors in computer code, inaccurate data, misuse of data, or the use of a model for a purpose outside the scope of the model’s design.
Reliance on such models presents the risk that our resulting business decisions will be adversely affected due to incorrect, missing, or misleading information. If our models fail to produce reliable results on an ongoing basis, we may not make appropriate risk management, capital planning, or other business or financial decisions. Strategies that we employ to manage and govern the risks associated with our use of models may not be effective or fully reliable. Also, information that we provide to the public or regulators based on poorly designed models could be inaccurate or misleading.
Changes in interest rates affect our operating performance and financial condition in diverse ways. Our profitability depends in substantial part on our “net interest spread,” which is the difference between the rates we receive on loans and investments and the rates we pay for deposits and other sources of funds. Our net interest spread will depend on many factors that are partly or entirely outside our control, including competition, federal economic, monetary and fiscal policies, and economic conditions generally. Net interest spreads have widened and narrowed in response to these and other factors, which are often collectively referred to as “interest rate risk.” The Federal Reserve began increasing the Federal Funds rate in 2022 and continued into 2023 in an effort to tame inflation. These rate increases totaling 550 basis points have negatively impacted our interest spread. Beginning in September of 2024, the Federal Reserve began decreasing the Federal Funds rate which totaled 100 basis points throughout the remainder of the2024 year.and 75 basis points in 2025. These rate decreases have increased our interest spread to 2.65% in 2025 from 2.05% in 2024.
Inflation Risk
Periods of inflation may impact our profitability by negatively impacting our fixed costs and expenses, including increasing funding costs and expense related to talent acquisition and retention. Additionally, inflation may lead to a decrease in our customers’ purchasing power and negatively affect the need or demand for our products and services. If significant inflation continues, our business could also be negatively affected by, among other things, increased default rates leading to credit losses which could decrease our appetite for new credit extensions.
A key component of employee retention is providing a fair compensation base combined with the opportunity for additional compensation for above average performance. Compensation and incentive arrangements may not be sufficient to retain key personnel in a highly competitive labor market, and increased compensation costs or turnover could adversely affect our business, financial condition, and results of operations.
A key component of employee retention is providing a fair compensation base combined with the opportunity for additional compensation for above average performance. In this regard, the Company and the Bank use two incentive programs. The Company uses a stock award program to recognize and incentivize officers of the Bank. Under the long-term incentive compensation plan, restricted stock awards may be granted to officers. The amount of shares to be granted each year is determined by the Board Compensation Committee and may vary each year in its amount of shares and the number of recipients. The Compensation Committee determines the number of shares to be awarded overall and to the Chief Executive Officer (“CEO”) specifically. The CEO then makes recommendations to the committee as to the recipients of the remaining shares. The full Board of Directors approves the action of the Committee. Since the plan’s inception in 2005, all granted stock awards have utilized a three year cliff vesting feature. This is viewed as a retention aid as the awards may be forfeited should an officer leave employment during the vesting period.
A second incentive program of the Bank is based on cash compensation of which almost all employees participate (excluding commission based employees and other employees paid for specific higher paid positions, such as peak time). A discussion of executive officer pay is incorporated within the proxy and as such, this discussion will pertain to all other employees. The Bank splits the incentive based on pay ranges and position with each having a percentage of base pay used for the incentive. The employees are paid a cash incentive based on the projected overall performance of the Bank in terms of Return of Average Assets (“ROA”) and the achievement of pre-established team and/or individual goals. The Compensation Committee determines the target performance levels on which the percentage of pay will be based. The Committee takes into account the five and ten year trend of ROA along with budget forecasted for the next year and the Bank’s past year performance. The Committee also considers the predicted banking environment under which the Bank will be operating. In prior years, with the formation of the Captive, the ROA goal had been exclusive of the effect of the additional insurance expense at the Bank level, as well as other expenses as agreed upon by the Compensation Committee. The majority of lower based employees receive incentive pay in December of the same year based on the year-to-date base compensation through the last pay received in November.
Higher pay range employees, other than executive officers, may receive incentive pay based on additional criterion. These individuals are rewarded based on overall ROA of the Bank along with individual pre-established goals. Non-executive officers, therefore, have incentive pay at risk for individual performance. The individualized goals are recommended by each individual’s supervisor and are approved by an incentive committee of the Bank. The goals are designed to improve the performance of the Bank while also limiting the risk of a short-term performance focus. For example, a lending officer may be given two goals of which one is to grow loans within specific targets and another is tied to a specific level of past dues and charge-offs. The second goal limits the ability to be rewarded for growth at all costs along with the specific target levels within the growth goal itself. Non-executive officers in a support department may be given goals which create efficiencies, ensure compliance with procedures, or generate new fee or product opportunities. On average, three to four goals were given to each non-executive officer in 2024. Non-executive officers are paid cash incentives based on the year-end ROA of the Bank and receive it within the first quarter of the following year. Should the ROA be forecasted to be positive but below the base target set by the Board, the covered non-executive officers are paid an incentive under the same basis and timing as lower based employees disclosed above.
The percentages of base pay on which the incentive is calculated graduates higher as does the responsibility level of the employee and their ability to impact the financial performance of the Bank. These percentages are recommended by management to the Compensation Committee and Board for approval. The cash incentive plan along with its targets and goals are subject to modification at the Compensation Committee and Board’s discretion throughout each year.
Under regulatory capital adequacy guidelines, we must meet guidelines that involve quantitative measures of assets, liabilities and certain off-balanceoff balance sheet items. Failure to meet minimum capital requirements could have a material effect on our financial condition and could subject us to a variety of enforcement actions, as well as certain restrictions on our business. Failure to maintain the status of “well-capitalized” under the regulatory framework could adversely affect the confidence that our customers have in us, which may lead to a decline in the demand for or a reduction in the prices that we are able to charge for our products and services. Failure to meet the guidelines could also limit our access to liquidity sources.
Compliance Obligations of Bank Holding Companies and Insured Depositories
We and our bank subsidiary operate within an extensive and evolving framework of federal and state laws, regulations, and supervisory expectations that govern nearly all aspects of our operations. As a bank holding company, we are subject to the Bank Holding Company Act and related regulations, while our bank is overseen by federal and state regulators through examination and enforcement authority. We are also subject to numerous requirements under consumer protection, privacy, anti-money laundering, sanctions, community reinvestment, and securities laws, as well as payment system and third-party risk management standards.
These obligations restrict permissible activities, affect capital, liquidity, and growth strategies, and impose significant compliance and operational costs. Examinations may result in Matters Requiring Attention or enforcement actions, and deficiencies in our risk, compliance, or governance programs could lead to penalties, remediation orders, restrictions on dividends or expansion, and reputational harm.
The regulatory landscape continues to evolve through new legislation, rulemaking, and supervisory guidance in areas such as consumer protection, AML and sanctions, fintech partnerships, model risk, payments modernization, data privacy, and fair access. Future changes—or differing federal and state requirements—could increase compliance costs, limit product or service offerings, or otherwise adversely affect our business, financial condition, and results of operations.
Emerging Financial Technologies
Advances in payment technologies and other financial innovations—including offerings by non-bank financial service providers—may increase competitive pressures on traditional deposit, payment, and lending products. Even if we do not offer such products or services, changes in customer preferences and the growth of alternative payment mechanisms could reduce demand for certain traditional banking services, compress fee income or net interest margins, and adversely affect our business, financial condition, and results of operations.
“Debanking,” Fair Access and Supervisory Expectations
Evolving federal and state scrutiny of account onboarding, offboarding, and access to banking services—often referred to as “debanking” or “fair access”—could increase our compliance, legal, and reputational risks. Policymakers and regulators are reconsidering the role of “reputation risk” in supervision and adopting laws that limit account decisions based on perceived political or non-risk factors. These measures may conflict with each other or with our obligations under existing law.
Supervisory expectations emphasizing individualized, risk-based decisions and enhanced documentation may require policy and system changes and greater resources. We could face criticism or penalties if regulators find our account actions insufficiently supported or discriminatory, or if we must maintain accounts beyond our risk appetite. Conflicting standards and rising public attention to alleged “debanking” may increase complaint volume, compliance costs, and reputational exposure. Any of these developments could materially affect our business, financial condition, or results of operations.
Data Privacy, Cybersecurity, and Information Security Compliance
We are subject to extensive federal and state data privacy, cybersecurity, and information security requirements. Expanding state privacy regimes, incident-notification rules, and vendor-oversight standards have increased the complexity and cost of compliance, particularly across multiple jurisdictions and third-party relationships. Failure to comply with applicable laws or to safeguard customer or confidential information could result in regulatory inquiries, penalties, litigation, remediation costs, and reputational harm. Ongoing changes in privacy and cybersecurity laws may require additional investment in systems, controls, and personnel, and could adversely affect our operations and financial results.
Consumer Compliance, CRA Modernization, and Fair Lending
We are subject to extensive consumer protection, fair lending, and Community Reinvestment Act (CRA) obligations. CRA modernization and evolving fair-lending expectations may require changes to our assessment areas, data collection, monitoring, product offerings, and governance. The use of models or analytics in pricing, marketing, or underwriting increases fair-lending and conduct risk if not properly controlled. Failure to meet supervisory expectations could result in criticism, penalties, remediation obligations, restrictions on growth or activities, or reputational harm.
Payments, Fee Practices, and Operational Risk
Regulatory and supervisory scrutiny of consumer fees—including overdraft and other service charges—continues to evolve. Changes to fee practices, disclosure requirements, or remediation obligations could reduce noninterest income and increase compliance costs. Adoption of faster payment systems and real-time networks heightens operational, fraud, and funds-availability risks, requiring ongoing enhancements to risk controls, vendor oversight, and reconciliation processes. Network rule changes or settlement obligations could further increase costs or operational complexity and adversely affect our results.
Consumer Credit Normalization and Portfolio Risk
Consumer credit performance is normalizing from historically strong conditions, reflecting higher interest rates, elevated prices, and reduced savings. Deterioration in borrower cash flows, labor-market weakness, or persistent inflation could increase delinquencies and charge-offs in our retail portfolios, including unsecured consumer loans. Higher loss emergence would increase our allowance for credit losses under CECL, potentially leading to earnings volatility, elevated provision levels and slower loan growth.
Any successful cyber attack or other security breach involving the misappropriation or other unauthorized disclosure of confidential customer information or that compromises our ability to function could severely damage our reputation, erode confidence in the security of our systems, products and services, expose us to the risk of litigation and liability, disrupt our operations and have a material adverse effect on our business. Any successful cyber attack may also subject the Company to regulatory investigations, litigation or enforcement, or require the payment of regulatory fines or penalties or undertaking costly remediation efforts with respect to third parties affected by a cyber securitycybersecurity incident, all or any of which could adversely affect the Company’s business, financial condition or results of operations and damage its reputation.
We are constantly at riskRisk of increasedIncreased lossesLosses from fraudFraud
InThe JuneCompany 2016,accounts for the Financialallowance Accountingfor Standardscredit Boardlosses (FASB)in issuedaccordance with ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," which replaced the "incurred loss" model for recognizing credit losses withutilizes an "expected loss" model referred to as the Current Expected Credit Loss model, or “CECL.” Under the CECL model, we are required to present certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, at the net amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement takes place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the "incurred loss" model previously required under GAAP, which delayed recognition until it was probable a loss had been incurred. Accordingly, the adoption of the CECL model materially affects how we determine our allowance for credit losses. Moreover, the CECL model may create more volatility in the level of our allowance for credit losses. If we are required to increase our level of allowance for credit losses for any reason, such increase could adversely affect our business, financial condition and results of operations. Please see Note 1 in the notes to consolidated financial statements for additional information.
The new CECL standard became effective for us on January 1, 2023. Please see Note 1 in the notes to consolidated financial statements for additional information.
Global Economic and Geopolitical Instability Trade Policy, and Inflationary Risks
Many of our commercial borrowers operate in agriculture, food processing, and manufacturing; industries that are particularly sensitive to changes in trade policy and global supply chains. The imposition of tariffs on imported goods, the added potential for retaliatory tariffs by foreign governments, or other similar restrictions on international trade could increase costs for domestic manufacturers and consumers alike, as well as reduce demand abroad for U.S. exports, and disrupt supply chains. Any prolonged trade tensions could negatively impact the broader economic environment in the Midwest where the Bank operates, potentially leading to reduced consumer spending, lower economic growth, and decreased demand for other banking products and services. If these factors lead to financial strain on our borrowers, we may experience increased credit risk, higher loan delinquencies, and a potential decline in loan demand.
As a result, our financial performance, including credit quality and loan growth, could be adversely affected by these policy changes. While we actively monitor these developments and work closely with our agricultural customers, there is no assurance that we can fully mitigate the risks posed by tariff initiatives or other trade-related disruptions. These factors could materially affect our business, financial condition, and results of operations.
Pandemic, Public-Health, and Agricultural Disease Risks
Future widespread health emergencies, pandemics, or agricultural disease outbreaks could adversely affect economic activity, disrupt supply chains, or impair the financial condition of industries operating in our markets.
Pandemic Risk
Although U.S. and global economies may have lingering effects from the COVID-19 pandemic, certain adverse consequences of the pandemic, such as inflationary pressures, continue to impact the macroeconomic environment and could adversely affect our business. The global macroeconomic outlook continues to remain uncertain due to a variety of other factors as well, including lasting impacts to the labor market and ongoing supply chain disruptions. The extent to which our business and results of operations may continue to be adversely affected by this macroeconomic uncertainty will depend on numerous evolving factors and future developments; the extent and duration of lingering effects on the economy, inflation, consumer confidence and consumer and business spending.
Indiana and Ohio are leading producers of poultry, eggs and poultry products, and rank at the top in the country in production of ducks, eggs, turkeys, and are significant producers of broilers. In January 2025, there was a documented regional increase in incidents of a highly contagious avian influenza known as H5N1 bird flu, which occurred in the Indiana counties of Jay, Allen and Adams, and the Ohio counties of Mercer and Van Wert. To date, Ohio had the most confirmed cases of avian flu in the United States, with the virus having affected approximately 50 commercial flocks, including turkey, duck, and egg farms. The Bank currently has loan customers in these counties who operate in the poultry industry and whose operations may be highly vulnerable to any significant outbreak of the virus, which could materially affect their ability to operate and therefore repay their loans. Similar future outbreaks or public-health events affecting key borrower industries could increase credit losses, reduce loan demand, or otherwise adversely affect our business, financial condition, and results of operations. The Bank continues to actively monitor thisflu highlyoutbreaks fluidaffecting situation.our customers.
Management's Discussion & Analysis (MD&A)
Removed heading “Revision of Previously Issued Financial Statements”
Largest changes
“Competition for deposits has become a constant factor in the liquidity challenge for financial institutions. Gone are the years of abundant deposits provided through government intervention during the COVID years. Time deposits which had been off the balance sheets of many, returned vigorously in 2023 and 2024. In 2025, we strived to limit the reliance on these instruments due to the expense and the focus on short term rates due to the inverted and still slightly inverted yield curve. Time deposits (CDs) reached a high in average balances in 2024 at $663.3 million costing 3.73%. …”see in full comparison
“The loan growth mentioned previously occurred mostly in the commercial and agricultural portfolios. F&M Commercial Banking Division had increased demand in the fourth quarter 2025 and overall solid growth for 2025. The commercial and the commercial real estate portfolios, combined, grew $84.0 million in outstandings year over year. Solid loan growth in the Commercial & Industrial sector was $17.9 million, or 6% in the last quarter of 2025 and $37.2 million for the year or 12%. …”see in full comparison
“Liquidity remains a focus as the competition for deposits existed throughout 2023 and 2024 and still continues going into 2025. A special emphasis was placed on deposit growth in the 2nd and 3rd quarters of 2023 and the team responded when a deposit campaign was launched to raise an additional $100 million in deposits. As the competition for deposits has increased, the Company has increased emphasis on its liquidity position. The frequency of management liquidity meetings shifted to bi-weekly in late October 2023. …”see in full comparison
As discussed previously and presented in the table on the next page, charge-offssee in full comparisondecreasedincreased to$480$1.0thousandmillion for2024.2025.72.1%73.7% of the charge-offs stemmed from the consumerportfolio.portfolio segment. Charge-offs were $480 thousand for 2024 and $990 thousand for20232023. Recoveries were $294 thousand in 2025 compared to $338 and$827$439 thousand for2022. Recoveries were $338 thousand in2024compared to $439and$298 for 2023 and 2022,2023, respectively. The net charge-offs for the last three years were all under$600$800 thousand with20232025 the highest at$551$734 thousand and 2024 the lowest at $142 thousand. Management has factored in the continuing impact of high interest rates and inflationary pressures on borrowers' repayment capacity, especially in rate-sensitive consumer real estate, agricultural and commercial portfolio segments. These trends resulted in a higher modeled loss rate and adjustment to qualitative reserves.
see in full comparisonInterestForexpense2024,(whichaverageincludes deposit, federal funds purchased, securities sold under agreement to repurchase, borrowed funds and subordinated notes) increased from all interest bearing funding sources with the exception of federal funds purchased and securities sold under agreement to repurchase in 2024 over 2023 and all funding sources in 2023 over 2022. Average interest bearinginterest-bearing liabilities increased $183.3 million over 2023 with approximately $19.3 million additionalinterest expense while average interest bearing liabilities increased $366.4 million over 2022 with an additional $44.0 million ofinterest expense. Overall, the funding goal the last three years has been to grow core deposits. Two strategies have been employed through the years, one of allowing expensive time deposits to run off until needed for funding and secondly to offer newnon-interest bearingnoninterest-bearing deposit products. Bothof thesestrategies were designed to assist in controlling interest expenseinwhileaalsorisingprovidingratefundingenvironment.for loan growth. In 2024 and 2023, liquidity needs and loan growth created the need to quickly generate deposits. Competition within the market areas forced us to increase rates for deposits during thethreeprioryeartwotimeyears.period.InBetween2024,2022averageand 2023, the prime rate increased 525 basis points and decreased 100 basis points in 2024. Average interest bearinginterest-bearing deposits increased $149.0 million compared to2023 and $230.4 million compared to 2022.2023. During 2024, interest expense from deposits increased by $17.5 million from2023 and 2023 increased by $37.0 million from 2022.2023. The majority, 81.7%, of the increased deposit expense of 2024 and 95.5%, of the increased expense of 2023 was influenced by rates rather than due to additional cost associated with deposit growth. Borrowed fund balances increased in 2024and 2023 by$41.9 millionand $145.8 million, respectively,as a means tofundprovidethe loan growthliquidity which resulted in an additional interest expense of $2.1million and $6.7 million, respectively. During 2021, the Company issued subordinated notes and incurred $1.1 million of interest expense in both 2024 and 2023. Refer to Note 10 of the Company’s consolidated financial statements for further discussion regarding subordinated notes.million.
Full comparison: every changed paragraph (161)
Certain 2024 and 2023 amounts within the noninterestloans incomedisclosure (Note 4) and noninterestthe expenseloan section of theManagement's Company'sDiscussion consolidatedand statements of incomeAnalysis have been reclassified to conform with current year presentation to provide additional information to the reader. The reclassifications had no effect on income.
Revision of Previously Issued Financial Statements
The Company has voluntarily revised amounts reported in previously issued financial statements for the periods presented in this Annual Report on Form 10-K to correct two immaterial errors.
Within the loans disclosure (Note 4), the vintage loan tables that represent the risk category of loans by portfolio class and year of origination as of December 31, 2023 have been updated to separate origination year 2019 from the prior year for the term loans amortized cost basis.
Within the derivative financial instruments disclosure (Note 18), the derivative fair value on the tables that present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Bank's asset/liability management activities listing notional value, weighted average remaining maturity and weighted average rate included a clerical error that has been corrected to match the derivative fair value presented on two other tables as of December 31, 2023.
These revisions had no effect on total assets, stockholders’ equity or net income as previously reported.
The Company evaluated the impact of the improper adherence to disclosure requirements and clerical errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No.108 and, based upon quantitative and qualitative factors, determined the errors were not material to the previously issued financial statements and disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2023.
Critical Accounting Policies and Estimates
The focus for 2025 was to improve profitability through the control of loan growth and improvement in the customer gathering of core deposits to fund loans. Cost control, balance sheet management and overall revenue enhancement were included. The Bank strove to reduce dependency on high-cost deposits and expand our contingent liability funding options. As the numbers show, we have been successful in all these areas and begin 2026 with a continuing focus on strong core deposit growth, moderate loan growth and controlling costs.
The largest contributor to better profitability was the increase in the net interest margin from 2.72% to 3.28%, a 56-basis point increase and net interest spread increasing 60 basis points in comparing year-end 2024 to year-end 2025. Loan growth at just under 6%, was funded by a decreased cash position by 44.6%, a 1.6% increase in deposits and a slight 1.3% decrease in investments. Most importantly, both sides of the balance sheet showed improved profitability. The asset yield improved from 5.17% for 2024 to 5.45% for 2025, a nice 28 basis point increase in a declining interest rate environment. The cost of interest-bearing liabilities decreased by 32 basis points for the year, 2024 at 3.12% and 2025 at 2.80%, respectively. In terms of dollars, net interest income increased $18.4 million year over year, easily surpassing the $4.5 million gain in 2024 over 2023.
The provision for credit losses related to loans increased by $1.65 million, predominately resultant from loan growth and, to a lesser extent, some weaker macro-economic data. Please refer to Note 4 for further analysis of both our loan portfolio and the associated allowance for credit loss.
The loan growth mentioned previously occurred mostly in the commercial and agricultural portfolios. F&M Commercial Banking Division had increased demand in the fourth quarter 2025 and overall solid growth for 2025. The commercial and the commercial real estate portfolios, combined, grew $84.0 million in outstandings year over year. Solid loan growth in the Commercial & Industrial sector was $17.9 million, or 6% in the last quarter of 2025 and $37.2 million for the year or 12%. We saw overall higher line of credit utilization as well as some new customers were added in the fourth quarter in the transportation sector. Lending rates and terms remained consistent with the previous quarter and an overall downward trend for 2025. Economic factors, inflation, and the impact on potential tariffs remained the largest concerns to commercial business in the F&M footprint in 2025. The commercial team continues to monitor the portfolio and borrowing bases closely for the impact from credit and inflationary pressures. Credit quality and past dues remained sound and collateral values and auction values are still holding consistent with previous quarters and 2024.
The largest single portfolio growth occurred in Agricultural, increasing 44% or $66.2 million in 2025 as compared to 2024. The Agricultural and Elevator portfolio saw increased usage in the 4th quarter of 2025, as our clients managed through the harvest season. Elevator line of credit usage increased from 29% at December 31, 2024 to 61% at December 31, 2025, and resulted in balances outstanding of $37.5 million at year-end 2025 compared to $14.1 million at year-end 2024. Throughout our market area grain farmers were affected by the late season drought, but overall yields were better than anticipated. Margins continue to be tight for grain farmers as commodity prices have remained lower due to ample supply. Crop insurance and government payments will provide support. Agricultural businesses have performed well, but the decline in net farm income has had the greatest impact on those in equipment sales resulting in higher Agricultural equipment dealer line utilization from additional usage from existing customers as well as new business with new customers. Seasonal demand of short-term borrowings was strong in last quarter of 2025 but moving forward is anticipated to be flat. Delinquencies continue to be low with positive performance within the Agricultural portfolio.
The Home Loan Division saw an increase to our production but predominantly in our HELOC balances. This growth was $21.7 million for the year or a 34% increase over 2024. We saw overall higher line of credit utilization, up from 40% on December 31, 2024, to 45% on December 31, 2025, as well as additional new customer growth. This is due to mortgage rates still being higher than what most borrowers have on their current mortgages thus making home equities the best option for borrowers in most cases. We did see a slight increase in construction loans which is a sign of communities looking to increase housing inventory. Fixed mortgage rates started declining in the 3rd quarter of 2025 which increased refinance opportunities. Limited inventory, while better than previous years, was still prevalent in most of the communities F&M Bank serves.
The aforementioned growth in the other portfolio sectors has reduced the Bank’s overall relative concentration in Commercial Real Estate (CRE) and Development, and our growth rate in non-owner-occupied CRE has decreased. The largest sector increases within CRE were hospitality and retail. The largest geographic increase with CRE was in the state of Michigan.
Overall, past due loans remain low, though increasing slightly, with some increase in Agriculture and Farmland portfolio. Non-accruals remain low, though increasing, with the larger increase in the Agriculture and Farmland portfolio. Special Mention and Substandard loans rose again in the fourth quarter and were up significantly for the year. While we have experienced migration to more criticized and classified assets, our adversely classified loans as a percentage of capital remain sound. We have also experienced a migration to our less risky grades (2- and 3-grades) that increased $156 million in 2025 from 35% of the Commercial/Agricultural portfolio to 40%, which has resulted in a much lower concentration of baseline 4-grade loans. There was some further migration within the Criticized assets from Special Mention to Substandard in the fourth quarter, but we don’t expect to incur any losses at this time.
The Bank continues to see the benefit of originating higher yielding loans and having our longer duration loans amortize down. The Bank has much more floating-rate loans today than at this time last year and the concentration of longer-term, fixed-rate loans is decreasing.
A $1.5 million improvement occurred in noninterest income items for 2025 as compared 2024. Apart from net gain (loss) on sale of other assets owned and interchange income, all other line-item components experienced increased revenue over prior year. Items of note are the increase in cash surrender values in the Bank Owned Life Insurance due to the additional purchase of $18 million and the approximately $6.8 million surrender of policies. This improvement is expected to continue through 2026 with additional surrenders over the next 2 years. Loan servicing income and net gain on sale of loans increased reflecting the additional sale of loans both in the home loan portfolio and in the agricultural real estate partial sales. The Bank continues to earn servicing income as those managed portfolio balances continue to increase. Lastly, the additional revenue from our Treasury management team and the FM Investments division are evident in the other service charges and fees increase over 2024. The Bank also leased out a portion of our excess office space in Hicksville to medical providers. The Bank will continue to look for other opportunities to turn excess space at our offices into revenue opportunities.
In 2024, we focused on investing in our infrastructure and technology. These investments, along with a higher incentive expense (due to improved performance) for 2025, are much of the reason for the increase in noninterest expense of $8.1 million for 2025 as compared to 2024. The Bank also opened an additional office in the 3rd quarter of 2025 in Troy, Michigan. This office brings our total to 2 located in Michigan. Those offices manage over $514 million in loans and $64.6 million in deposits. ATM expense reports a significant increase of $923 thousand due to 2024 being lower from contract credits having been applied. It is in line with 2023 at $18 thousand lower than 2023. Data processing has the same experience and for the same reason as the ATM expense. 2025 is $2.24 million higher than 2024 though $540 thousand higher than 2023. The only noninterest expense that did not increase was in the FDIC assessments. This is a regulatory fee imposed by the FDIC. It fluctuates quarterly and the decrease reflects improved metrics at the Bank upon which they base the charges along with deposit balances.
Overall, a strong last quarter helped to complete the strong year for F&M. Improvement in the bottom line of $7.4 million or a 28.4% increase over year-end 2024. Declared dividends per share were increased in the last two quarters of the year to reflect the improved profitability. Capital increased 10.6% or $35.7 million. The Company’s previous 3-year strategic plan has closed, and the next 3-year plan is being finalized. The Company has laid a framework from which to build continued improvement.
The strategic plan for 2024 was to slow our loan growth and focus on improving our profitability while realigning our balance sheet. The benefits of that plan continue to show in our financial performance as compared to year end 2023 and in each quarter of 2024. Net interest margin was 2.84% for the fourth quarter 2024 compared to 2.57% for the same quarter 2023. This resulted in almost $2.9 million more in net interest income in comparing the same time periods. In total for 2024 as compared to 2023, over $4.5 million more was earned in net interest income. This is a confirmation of the plan and highlights the improvement heading into 2025.
In terms of balance sheet realignment, total loans decreased 0.75%, or $19.3 million, when comparing the balances as of December 31, 2024, to same date 2023. The largest decreases were in commercial real estate and consumer. A part of the realignment was to increase deposits and improve liquidity. Total assets increased 2.5% to $3.36 billion with cash-to-assets ratio improving to 5.3% at year-end 2024 compared to 4.3% at year-end 2023. This was funded by increased deposits of 3.0% in 2024 to end at $2.69 billion.
Where the focus has remained unchanged through the years is in asset quality. As of December 31, 2024, past dues over 30 days remain well contained at 0.22% of loans and average 0.46% for the year. Non-accruals were down significantly, mostly due to one relationship for $3.6 million paying off completely and a $16.5 million relationship being reduced to $7.1 million and payments brought current. Both loans are in the Agricultural industry. Non-accruals were down from 0.87% to 0.12% from year-end 2023 to year-end 2024. Special Mention loans were reduced $63 million due to upgrades and some migration to Substandard, which increased $25 million for the year. But overall, the Watch List, which is comprised of loans designated as Special Mention, Classified and Doubtful, was reduced $38.4 million in 2024. Watch List loans are down from 4.09% of loans on December 31, 2023, to 2.60% of loans on December 31, 2024.
F&M Commercial Banking Division saw loan demand slow throughout 2024 with increased activity in the fourth quarter in comparison to the previous two quarters. Lending rates increased throughout 2024 with some retraction with the Federal Reserve rate cuts beginning in September. Commercial clients entered 2024 with concerns surrounding the availability of materials, but inflationary impacts remained the biggest concern throughout 2024. Credit quality of the commercial portfolio remains solid and fourth quarter collateral values and auction values are still holding consistent with previous quarters. Fourth Quarter 2024 past dues and delinquencies were low again for the F&M portfolio, but the team continues to monitor the portfolio closely for the impact of higher rates and inflationary pressures.
We continue to increase our floating rate loan exposure and have increased our CRE and multi-family loans pledged to FHLB to provide additional liquidity. We have seen an increase in line of credit utilization. Unfunded construction exposure is down as loans have funded which aided the improvement in asset yield.
Throughout our market area, yields for our grain farmers were mostly average but better than anticipated given the dry growing conditions in 2024 through much of our market area. Commodity prices have declined below levels we have seen the last several years with the anticipation that net farm income will decline in 2024. The financial performance of our Agricultural portfolio will continue to be monitored, but the overall sound financial position of the portfolio is believed to be well positioned for the typical cycles we see in production agriculture. Our livestock and agricultural business clientele have performed well but certain sectors may also show a decline in revenue as farmer spending declines. Loan demand has remained flat. The performance of our agricultural portfolio continues to remain strong.
The consumer secondary real estate market had more activity in the second half of 2024 with the third quarter recording the most activity. Home Equity loans remain a constant contributor in keeping our home loan originators busy. The other constant is our nontraditional borrower and their need for financing. Mortgage rates declined in the third quarter and remained in the low 6’s which has aided in keeping lenders active. Housing inventory is still low but has seen a slight increase. The Bank’s Home Loan Team continues to find the best mortgage solutions for all our clients while looking for opportunities to help with housing initiatives in the underserved areas of our communities utilizing our Hometown Advantage Mortgage program.
Another offering we are excited to be a part of is the OHIO HOMEBUYER PLUS saver program offered in conjunction with the State of Ohio to future Ohio homeowners to save for a home purchase within the next five years. During the third quarter, the State of Ohio changed the terms of the offering due to the extremely unexpected high demand for the program. The Bank suspended offering of the product until such time as we could adjust our offering to the new conditions of the State. We began to offer again in the fourth quarter under modified terms. The Bank can offer a higher than market interest rate to our depositor with the State placing a lower than market rate CD with the Bank to provide funding. The adjusted program is capped at $100 million in use and an account limitation of $100 thousand with the State only matching the first $25,000 with a lower than market rate.
Net noninterest income and expense was a higher expense of nearly $1.8 million for 2024 as compared to 2023. The largest fluctuation in noninterest income was caused by the establishment of agricultural servicing rights in 2023, decreasing the line-item loan servicing income in noninterest income by almost $1.9 million in 2024 as compared to 2023. The largest fluctuation in noninterest expense was the savings in data processing and ATM expense of $2.6 million due to the application of credits from a renegotiated core processing contract. These savings were offset by higher employee costs of $4.3 million in 2024 as compared to 2023. Salary and wages were impacted by a higher incentive being awarded from the stronger financial performance of 2024 and employee benefits was impacted by higher medical expenses and cost of premiums. The headcount increased by 17 full-time equivalents throughout the year.
Overall, net income for the quarter was higher than the previous quarter by approximately $1.9 million and over same quarter last year by $2.8 million. On a year-over- year basis, net income surpassed December 31, 2023’s by $3.2 million. The benefits of adjusting our focus for 2024 has shown in the financials. Capital balances as of December 31, 2024, increased $18.7 million over same date 2023 of which $3.8 million is attributed to a lower accumulated other comprehensive loss position. At the same time, the Company continues to increase our dividend for our shareholders, which remains a priority. The declared dividend in September 2024 included matching the previous quarterly declaration and adding a 1/8th of a cent to it. The Company’s annual dividend will have increased from $0.2375 in 2004 to $0.8825 in 2024, reflecting a 6.8% compound annual growth rate over this period. The Company continues to focus on improving our capital and overall financial performance. The steps may be small; however, they are continuing to move in a positive direction.
The discussion now centers on the individual line items of the Company's consolidated statement of income and their effect on net income. This section will focus on the most traditional and impactful source of revenue contributing to the profitability of the Company which is net interest income.
Net interest income is the difference between interest income earned on interest earning assets, such as loans and securities, and interest expense paid on interest bearinginterest-bearing liabilities used to fund those assets, such as interest bearinginterest-bearing deposits and other borrowings. Net interest income is affected by changes in both interest rates and the amount and composition of earning assets and liabilities. The change in net interest income is most often measured by two statistics – interest spread and net interest margin. The difference between the yields earned on earning assets and the rates paid for interest bearinginterest-bearing liabilities represents the interest spread. The net interest margin is the difference of funds (interest expense) between the yield on earning assets and the cost as a percentage of earning assets. Because noninterest bearingnoninterest-bearing sources of funds such as demand deposits and stockholders’ equity also support earning assets, the net interest margin exceeds the net interest spread.
The work began in 2024 to focus on increasing profitability through management of the balance sheet and thereby improving our net interest margin and spread. The success of that strategy became apparent in 2024 and expanded in 2025. The Company utilized new pricing models in both loans and deposits that worked in tandem with each other. Introduced in mid-2024, the models continue to be tweaked to improve effectiveness and are updated collaboratively within multiple divisions of the Bank. The goal is to keep the models simple for ease of use and to remain focused on improving profitability.
Following the rapid rise of interest rates from March of 2020 to July of 2023, to the cuts beginning in September 2024, the Company has experienced the most volatile interest rate environment in decades. The Federal Reserve decreased rates three times during 2025 by 25 basis points each time on September 17th, October 29th and December 10th. The charts to follow will emphasize how well we managed the switch in rate positions from 2023.
For 2025, net interest income grew 21.4% or almost $18.4 million over 2024’s. The growth was split almost equally between interest income improvement and interest expense. 54.3% of the improvement was in interest income, increasing by nearly $10 million. Interest expense decreased by $8.4 million when comparing 2025 to 2024. The next step in reviewing the improvement is to determine what drove the improvement. Our goal for 2025 was to hold the loan portfolio mostly flat and increase core deposits, especially in transaction accounts. The following charts show in totality, interest income improvement was due to rate improvement exclusively. The only category impacted negatively in both volume and rate change was Federal Funds sold and other, as would be expected with the Fed rate drops and putting excess cash to better use in loans. Average balances in loans grew $75.2 million which is basically flat considering the overall portfolio is over $2.6 billion. Security activity for the year was limited to replacement purchases and for CRA investments. Both loans and investments’ profitability benefited more due to rate changes than due to growth. Increasing rates in a falling rate environment is a feat and credit goes to both lenders and use of the loan pricing model.
In 2024, the focus was on increasing profitability while also repositioning the balance sheet. The effects of which can be seen in the improvement of $4.5 million to net interest income as compared to 2023. Total interest income increased $23.8 million which was offset by increased interest expense of approximately $19.3 million. Interest and fee income from loans were responsible for $16.0 million of the improved interest income with rate accounting for 78.6% of this increase. Average loan balances increased $65.7 million from the prior year and accounted for 21.4% of the increased loan interest income. As of December 31, 2024, the Company’s loan portfolio was 36.0% variable with 31.4% of total loans subject to repricing within the next twelve months. The Company’s loan portfolio on December 31, 2023, was 31.6% variable with 24.9% of total loans repricing within the next twelve months. The security portfolio, used for purposes of liquidity and contingency planning as a means of balance sheet gap management, increased $11.8 million in average during 2024 as compared to 2023 with associated interest income increasing $1.9 million over 2023. Average federal funds sold and interest bearinginterest-bearing deposit balances increased $91.3 million as compared to the prior year and generated an additional $5.9 million in interest income. During 2024, the prime rate decreased 50 basis points in September and 25 basis points in both November and December to end the year at 7.50%.
During the first quarter of 2023, securities of $21.6 million with an annual yield of $274 thousand were swapped at a loss of $891 thousand with securities with an annual yield of $1.6 million. In 2023, there were four additional 25 basis point increases in February, March, May and July to end the year at 8.50%. Overall, total interest income was $23.8 million higher for 2024 than 2023 on an additional $168.8 million in total average earning assets.
Interest expense (which includes deposits, federal funds purchased, securities sold under agreement to repurchase, borrowed funds and subordinated notes) all decreased in 2025 as compared to 2024, while for 2024 as compared to 2023, they all increased from all interest-bearing funding sources with the exception of federal funds purchased and securities sold under agreement to repurchase. Interest expense decreased $8.4 million on lower average balances from interest-bearing liabilities of $18.6 million in 2025 versus 2024. Average interest-bearing balances decreased in 2025 in all areas except for NOW accounts and savings deposits and subordinated notes. Borrowed funds decreased $49.4 million as maturing prior year borrowings were able to be paid off and not replaced with new borrowings during 2025. The best result is the increase in noninterest-bearing demand deposits, average balances increased $22.4 million in the core deposit gathering efforts in 2025. Time deposits decreased in average balances during 2025 as compared to 2024 with the impact being a decrease of interest expense of $3.8 million. The lower interest expense was driven more by changing rates than in decreased average balances. The largest interest expense decrease due to changes in rate, was in NOW accounts and savings deposits. The decrease attributed to rate was $4.5 million while volume change drove an increase in interest expense of $2.0 million. The net result being a decrease of interest expense due to NOW accounts and savings deposits of over $2.4 million.
One of the largest factors of the reduced earnings for 2023 as compared to 2022 was the decrease in net interest income of $5.4 million. Increases in average balances and interest rates led to an increase in interest income of approximately $38.7 million which was absorbed by an increase in interest expense of $44.0 million. Loan interest and associated fee income increased $35.1 million as compared to the prior year with 54.2% of it driven by volume. The growth in average loan balances of $417.8 million over 2022 was 5.0% related to organic growth within the Bank's broader markets and 4.5% directly attributable to the Company's recent acquisitions. The Company’s loan portfolio at December 31, 2023, was 31.6% variable with 24.9% of total loans repricing within the next twelve months. Average balances on the security portfolio decreased $28.6 million as compared to 2022 with an increase in interest income of $612 thousand. As securities matured, the balances were used to fund loan growth. During the first quarter of 2023, securities of $21.6 million with an annual yield of $274 thousand were swapped at a loss of $891 thousand with securities with an annual yield of $1.6 million. In 2023 with the higher interest rates, interest income on federal funds sold and interest bearing bank deposits generated an additional $3.0 million over 2022. Beginning in March of 2022, the prime rate increased 25 basis points followed by a 50 basis point increase in May, four 75 basis point increases in June, July, September and November with a final 50 basis point increase in December to end the year at 7.50%. In 2023, there were four additional 25 basis point increases in February, March, May and July to end the year at 8.50%. Overall, total interest income was $23.8 million higher for 2024 than 2023 on an additional $168.8 million in total average earning assets and was $38.7 million higher for 2023 than 2022 on an additional $378.9 million in total average earning assets.
InterestFor expense2024, (whichaverage includes deposit, federal funds purchased, securities sold under agreement to repurchase, borrowed funds and subordinated notes) increased from all interest bearing funding sources with the exception of federal funds purchased and securities sold under agreement to repurchase in 2024 over 2023 and all funding sources in 2023 over 2022. Average interest bearinginterest-bearing liabilities increased $183.3 million over 2023 with approximately $19.3 million additional interest expense while average interest bearing liabilities increased $366.4 million over 2022 with an additional $44.0 million of interest expense. Overall, the funding goal the last three years has been to grow core deposits. Two strategies have been employed through the years, one of allowing expensive time deposits to run off until needed for funding and secondly to offer new non-interest bearingnoninterest-bearing deposit products. Both of these strategies were designed to assist in controlling interest expense inwhile aalso risingproviding ratefunding environment.for loan growth. In 2024 and 2023, liquidity needs and loan growth created the need to quickly generate deposits. Competition within the market areas forced us to increase rates for deposits during the threeprior yeartwo timeyears. period.In Between2024, 2022average and 2023, the prime rate increased 525 basis points and decreased 100 basis points in 2024. Average interest bearinginterest-bearing deposits increased $149.0 million compared to 2023 and $230.4 million compared to 2022.2023. During 2024, interest expense from deposits increased by $17.5 million from 2023 and 2023 increased by $37.0 million from 2022.2023. The majority, 81.7%, of the increased deposit expense of 2024 and 95.5%, of the increased expense of 2023 was influenced by rates rather than due to additional cost associated with deposit growth. Borrowed fund balances increased in 2024 and 2023 by $41.9 million and $145.8 million, respectively, as a means to fundprovide the loan growthliquidity which resulted in an additional interest expense of $2.1 million and $6.7 million, respectively. During 2021, the Company issued subordinated notes and incurred $1.1 million of interest expense in both 2024 and 2023. Refer to Note 10 of the Company’s consolidated financial statements for further discussion regarding subordinated notes.million.
Total interest expense totaledequaled $69.3, $77.7, $58.4 and $14.4$58.4 million for 2025, 2024, 2023 and 2022,2023, respectively. The decreased expense for 2025 as compared to 2024 was 79.1% due to change in rates being paid in a falling rate environment. The increased expense was approximately 76.2% attributable to the higher interest rate environment in 2024 as compared to 2023 and 87.2% attributable to the rising interest rate environment in 2023 as compared to 2022.2023.
For 2025, we saw a reversal of the trend of a declining net interest margin and spread comparing 2023 to 2024. The improved interest income and reduced interest expense for 2025 resulted in a 56 and 60 basis points improvement in net interest margin and spread, respectively. The asset yield for 2025 improved 28 basis points as compared to 2024 and the interest expense/cost decreased 32 basis points in the same comparison. Net interest margin for 2025 was 3.28% compared to 2024’s 2.72%. Net interest spread was 2.65% for 2025 versus 2.05% for 2024. Disciplined loan growth, payoffs of expensive borrowings and using excess liquidity to accomplish those improvements were the primary factors. The Company had predicted improved profitability in a declining rate environment.
Overall, we have seen a decrease in the net interest margin and spread comparing 2022 to 2024. The increased interest expense of 2024 resulted in the net interest margin remaining flat while interest spread decreased 9 basis points compared to 2023 due to the cost of funds increasing more than the increase in asset yield. Interest margin decreased by 60 basis points and interest spread decreased by 99 basis points in 2023 as compared to 2022 with the increased cost of funds outpacing the increased asset yield. For 2024, average loan balances increased $65.7 million over the prior year with increased interest income of $16.0 million. In 2024, the Bank was able to see the impact of a higher rate environment with 78.6% of the increased interest income related to rate changes as presented in the charts below. Average balances of federal funds sold and interest bearinginterest-bearing deposits with other institutions increased $91.3 million and increased interest rates generated an additional $5.9 million in interest income over 2023. The overall asset yield for 2024 increased 50 basis points as compared to 2023. Looking at the components behind the change in net interest margin for 2023 as compared to 2022, increased average balances in loans of $417.8 million over the prior year contributed to increased interest income of $35.1 million with volume responsible for 54.2% of the increase as presented in the charts below. The large revenue gain in loan interest was aided by the increased earnings from federal funds sold and interest bearing deposits of $3.0 million with decreased average balances of $10.3 million as the funds were used for loan growth. The overall asset yield in 2023 increased by 80 basis points over 2022.
Interest expense for 2025 was lower by $8.4 million than 2024. In comparing interest expense/cost, 2025 was lower by 32 basis points compared to 2024, capturing back some of the higher 2024 increase in cost. 2024 was 59 basis points higher than 2023. 2.80%, 3.12% and 2.53% was the interest expense/cost for 2025, 2024 and 2023, respectively. 2025 improvement was driven 79.1% by changes in interest rates and the other 20.9% by volume changes in the portfolio.
For 2024, interest expense continued to increase and was 33.0% higher than 2023 and was 76.2% impacted by changes in interest rates. Competition for deposits continued to be extremely high and rate shopping between financial institutions was apparent. The Company’s goal iswas to increase core depositsdeposits, which includesincluding savings depositsdeposits, which increased $126.0 million while non-interest bearingnoninterest-bearing demand deposits decreased $14.8 million in average balances, respectively as compared to 2023. In 2024, time deposits increased $41.9 million in average balances year over year. The increased interest expense in 2024 for savings deposits and time deposits accounted for 91.1% of the total interest expense increase. Overall, cost of funds increased 59 basis points or 23.3% over 2023 with only 23.8% due to volume increases. The remaining 76.2% was related to changes in interest rates. In the area where the strategic plan was to gather core deposits, the average balance in savings grew by $41.0 million during 2023 as compared to 2022’s average balance. The other average balance increase for core deposits was the change in non-interest bearing demand deposits. 2023’s average balance in this portfolio was $13.4 million higher than 2022’s average balance. In 2023, the Company ran several time deposit promotions which resulted in increased average balances of $189.4 million. The increased interest expense in 2023 for savings deposits and time deposits accounted for 84.1% of the total interest expense increase. Overall, cost of funds increased 179 basis points for 2023 over 2022. The reason behind the increase was 87.2% due to rate increases and 12.8% due to volume increases.
In comparing 2024 to 2023, net interest margin was 2.72% which remained flat while net interest spread decreased 9 basis points to 2.05%. Loan volume accounted for $16.0 million or 67.3% of the increased interest income with an increased asset yield of 49 basis points. The asset yield on federal funds sold and interest bearing deposits increased 97 basis points year over year. Total asset yield increased 50 basis points while total cost of funds increased 59 basis points, creating the 9 basis point difference in spread. Overall yield improves when the balances of the highest yielding asset, which is loans, increases. Loans as a percentage of earning assets was 80.8% while loans to total assets was 76.8% for 2024. The goal is, as always, to improve the net interest margin and spread and thereby improve profitability.
The net interest margin for 2023 was 2.72% compared to 2022 which was 3.32%. The 0.60% decrease for 2023 was related to the increased interest expense which was greater than the increased interest income. Loan volume accounted for $35.1 million or 90.7% of the increased interest income with an increased asset yield of 64 basis points. The asset yield on federal funds sold and interest bearing deposits increased 179 basis points compared to the prior year. Net interest spread was 2.14% for 2023 compared to 2022’s 3.13%, creating a 99 basis point difference in the spread. Loans as a percentage of earning assets was 83.2% while loans to total assets was 78.0% for 2023.
The Company will always prefer to see improvement in real dollars over percentages. The strategy for increasing core deposits, in order to mitigate the higher cost of funds and to continue the opportunity for fee dollars from services provided, continues to be a top focus for 2025.2026.
Total assets of the Company increased overall as did the earning assets in both average and year-end during 20242025 and 2023.2024. This matched the increase in interest dollars. The percentage of average earning assets to total average assets reflects the best utilization of funds. ForThe 2024,total increase in average earning assets was $19.1 million with the percentageratio atof earning assets to assets decreasing to 94.63% versus 95.06% for 2024. The ratio was higher93.81% thanfor 2023. For 2023 atand 93.81%.2025, Thethe addition of new offices increased the non-earning assets with cash balances held at the new offices and also the investment in the capital assets of their building and furniture. One office in Troy, MI was added in 3rd quarter 2025. One of the thingsareas that has helped to improve the profitability over the years was the percentage of average loans to total assets. For 2024,2025, the average balance of loans to total average assets was 76.82%,78.25%, 76.82% for 2024 and 78.02% for 20232023. andOverall 74.73%yield forimproves 2022.when Loansthe arebalances of the highest yielding assetasset, forwhich is loans, increases. The goal is, as always, to improve the Company.net interest margin and spread and thereby improve profitability.
Net interest spread is the difference between what the Company earns on its assets and what it pays on its liabilities. It is generally from this spread that the Company must fund its operations and generate profit. When the asset yield decreases so must funding costs in order to maintain the same profitability. It becomes increasingly challenging as the asset yield gets closer to the prime lending rate, or the break-even point, of operations. In a rising rate environment, the challenge is to hold the cost steady while allowing time for the asset portfolio to rise. Floors and ceilings on variable products also impact the level of increase in either scenario. The floors provide yield protection in a lower rate environment while the rising rates will not benefit the asset yield until the spread plus prime is higher than the floor. The challenge is to increase the spread during renewals and on new loans. After the rate hikes in 2022 and 2023, the majority of loans have increased over the floors.
After the rate hikes in 2022 and 2023, most loans had increased over the floors in 2024 and the falling rates in 2025 now puts the spotlight on this key factor to profitability.
In terms of interest expense, 2024’s increase as compared to 2023 was approximately 76.2% due to the increase in rates. 2023’s increase was approximately 87.2% due to the increase in rates as compared to 2022.
The impact of the change in the portfolio mix was a factor in the liabilities as it was in the assets. In comparing to 2023 and 2022, both 2024 and 2023 had increases in average balances of all interest bearing liabilities with the exception of federal funds purchased and securities sold under agreement to repurchase. Refer to Note 10 for additional information on other borrowed money, which consists of both short and long term borrowings, and subordinated notes.
The following tables present net interest income, interest spread and net interest margin for the three years 20222023 through 2024,2025, comparing average outstanding balances of earning assets and interest bearinginterest-bearing liabilities with the associated interest income and expense. The tables show the corresponding average rates of interest earned and paid. Average outstanding loan balances include non-performing loans, real estate loans held for sale and carrying value adjustments related to interest rate swaps of $1.1$1.7, $1.1, and $2.7 million for 2025, 2024 and 2023, respectively. Average outstanding security balances are computed based on carrying values including unrealized gains and losses on available-for-sale securities. The average cost of funds for 2024 was 3.12%, 59 basis points higher than 2023’s 2.53%.
The following tables show changes in interest income, interest expense and net interest resulting from changes in volume and rate variances for major categories of earnings assets and interest bearinginterest-bearing liabilities.
Non-InterestNoninterest Income
The discussion now focuses on the noninterest income and expense generated by the Company for the years ended 20222023 through 2024.2025. For 2024,2025, noninterest income was $15.6$17.1 million, aan decreaseincrease of $1.5 million or 9.7% from 2024. Noninterest income decreased $284 thousand or 1.8% from 2023. Noninterest income increased $109 thousand, or 0.7% in total for 20232024 as compared to 20222023 which ended at $15.8$15.9 million.
Other service charges increased $517 thousand as compared to 2024. Of this total, service charges increased $252 thousand while overdraft, returned check charges and recurring overdraft fees increased $206 thousand over 2024. Business charges accounted for $236 thousand while consumer charges accounted for the remaining $222 thousand of the aforementioned. Wire transfers increased $52 thousand as compared to 2024. Customer service fees increased $94 thousand over 2024 which was mainly comprised of increased credit card fees of $100 thousand, rental income primarily from excess office space in the Hicksville branch of $49 thousand, merchant services of $38 thousand and release fees of $25 thousand offset by decreased miscellaneous fees of $101 thousand. Other service charges and fees increased $130 thousand during 2024 as compared to 2023 with overdraft, returned check charges and recurring overdraft fees accounting for $68 thousand of the increase. Wire transfer fees and service charges accounted for $29 and $22 thousand, respectively, of the increase as compared to 2023.
Other service charges and fees increased $130 thousand during 2024 as compared to 2023. Overdraft, returned check charges and recurring overdraft fees also increased $75 thousand during 2024 as compared to 2023. Other service charges and fees increased $117 thousand during 2023 as compared to 2022. This was mainly due to increased overdraft, returned check charges and recurring overdraft fees which increased $116 thousand during 2023 over 2022. 2023 customer service fee revenue was $718 thousand lower than 2022, mostly due to decreased credit card income.
Loan servicing income decreased $1.9 million during 2024 as compared to 2023. The establishment of agricultural real estate servicing rights during 2023 recognized $2.3 million of servicing income that was not present in prior years. Loan servicing income was $4.4 million during 2023 as compared to $2.2 million for 2022.
What changed in the latest 10-Q
Risk Factors
New heading “Global Economic and Geopolitical Instability, Trade Policy and Inflationary Risks”
New heading “Adverse Conditions in the Agricultural Economy Could Adversely Affect Our Agricultural Borrowers and Our Credit Quality”
Largest changes
“These conditions, together with fiscal and monetary policies, tariffs, retaliatory trade measures, economic sanctions and other restrictions on international trade, could disrupt energy, commodity and supply chains; increase the costs of fuel, transportation, raw materials and other goods; contribute to inflation and interest-rate volatility; and reduce consumer spending, business investment and demand for credit. These effects could be particularly significant for our borrowers operating in agriculture, food processing and manufacturing. …”see in full comparison
“A meaningful portion of our lending activities consists of agricultural real estate and operating loans to crop and livestock producers and businesses that depend upon the agricultural sector. …”see in full comparison
“Geopolitical instability, terrorist attacks, military conflicts, natural disasters, severe weather, widespread health emergencies and other catastrophic events could materially adversely affect our business. Tensions between China and the United States, the conflicts involving Russia and Ukraine and Israel and Hamas, the conflict involving Iran, and actual or threatened disruptions to shipping through the Strait of Hormuz could escalate or result in broader regional or global conflicts.”see in full comparison
“Reduced or volatile foreign demand, including demand from China for United States soybeans and other agricultural products, and increased competition from producers in other countries could place downward pressure on commodity prices and reduce the revenues and cash flows of borrowers in our markets. In addition, disruptions or threatened disruptions to shipping through the Strait of Hormuz could increase the cost or reduce the availability of fuel, fertilizer and fertilizer-production inputs, including sulfur. …”see in full comparison
“Global Economic and Geopolitical Instability, Trade Policy and Inflationary Risks”see in full comparison
“Agricultural operating loans may be unsecured or secured by farm equipment, livestock, crops or other collateral that may depreciate rapidly, fluctuate in value or be subject to damage or loss. As a result, the value of collateral available following a borrower default may be insufficient to repay the outstanding loan balance.”see in full comparison
Full comparison: every changed paragraph (8)
Global Economic and Geopolitical Instability, Trade Policy and Inflationary Risks
Geopolitical instability, terrorist attacks, military conflicts, natural disasters, severe weather, widespread health emergencies and other catastrophic events could materially adversely affect our business. Tensions between China and the United States, the conflicts involving Russia and Ukraine and Israel and Hamas, the conflict involving Iran, and actual or threatened disruptions to shipping through the Strait of Hormuz could escalate or result in broader regional or global conflicts.
These conditions, together with fiscal and monetary policies, tariffs, retaliatory trade measures, economic sanctions and other restrictions on international trade, could disrupt energy, commodity and supply chains; increase the costs of fuel, transportation, raw materials and other goods; contribute to inflation and interest-rate volatility; and reduce consumer spending, business investment and demand for credit. These effects could be particularly significant for our borrowers operating in agriculture, food processing and manufacturing. If these developments place financial strain on our borrowers, we could experience reduced loan demand, increased credit risk, higher loan delinquencies and additional provisions for credit losses. Although we monitor these developments, we may not be able to anticipate or fully mitigate their effects on our business, financial condition and results of operations.
Adverse Conditions in the Agricultural Economy Could Adversely Affect Our Agricultural Borrowers and Our Credit Quality
A meaningful portion of our lending activities consists of agricultural real estate and operating loans to crop and livestock producers and businesses that depend upon the agricultural sector. Repayment of these loans depends largely on the successful operation and cash flow of the borrower’s agricultural business, which may be affected by commodity prices, weather conditions, foreign demand for United States agricultural products, competition from foreign producers, tariffs and trade restrictions, government agricultural programs, interest rates and the costs and availability of fertilizer, fuel, seed, feed, equipment and labor.
Agricultural operating loans may be unsecured or secured by farm equipment, livestock, crops or other collateral that may depreciate rapidly, fluctuate in value or be subject to damage or loss. As a result, the value of collateral available following a borrower default may be insufficient to repay the outstanding loan balance.
Reduced or volatile foreign demand, including demand from China for United States soybeans and other agricultural products, and increased competition from producers in other countries could place downward pressure on commodity prices and reduce the revenues and cash flows of borrowers in our markets. In addition, disruptions or threatened disruptions to shipping through the Strait of Hormuz could increase the cost or reduce the availability of fuel, fertilizer and fertilizer-production inputs, including sulfur. Lower commodity prices combined with elevated fertilizer, fuel and other input costs could compress agricultural borrowers’ operating margins, increase their need for operating credit and reduce their ability to repay existing indebtedness. These conditions could result in increased loan modifications or restructurings; higher levels of past-due, criticized, classified or nonaccrual loans; reduced agricultural collateral values; and increased provisions for credit losses and charge-offs.
Many of our agricultural borrowers use crop insurance, which may provide protection based on reduced crop yields, reduced revenues or both, and may use hedging strategies to manage commodity-price and input-cost risks. However, the availability, scope and amount of such protection may vary and may not fully protect our borrowers or us from losses arising from adverse agricultural conditions.
Management's Discussion & Analysis (MD&A)
New heading “Comparison of Results of Interest Earnings and Expenses for six month periods ended June 30, 2026 and 2025”
New heading “Interest Expense”
New heading “Net Interest Income”
New heading “Comparison of Noninterest Results of Operations for six month periods ended June 30, 2026 and 2025”
New heading “Provision Expense”
New heading “Noninterest Income”
New heading “Noninterest Expense”
Removed heading “Interest Income”
Largest changes
“FDIC assessments decreased $128 thousand in 2026 from 2025 due to a decrease in the quarterly assessment multiplier. Servicing rights amortization included $396 thousand for impairment of agricultural loan servicing rights in the six months ended June 30,2026. Loan expense included a one-time payment of $169 thousand related to an acquired loan during the second quarter of 2026. …”see in full comparison
“Total provision for credit losses decreased $610 thousand for the six months ended June 30, 2026 as compared to the same period in 2025. Management continues to monitor asset quality, making adjustments to the provision as necessary, in accordance with the Bank's chosen CECL methodology. The impact of higher interest rates and inflation are taken into consideration when reviewing qualitative factors. Loan charge-offs were $60 thousand lower during the six months ended June 30, 2026 than the same period in 2025. …”see in full comparison
“Comparison of Results of Interest Earnings and Expenses for six month periods ended June 30, 2026 and 2025”see in full comparison
“Comparison of Noninterest Results of Operations for six month periods ended June 30, 2026 and 2025”see in full comparison
“FDIC assessments decreased $59 thousand in 2026 from 2025 due to a decrease in the quarterly assessment multiplier. Servicing rights amortization included $92 thousand for impairment of agricultural loan servicing rights in the three months ended June 30, 2026. Loan expense included a one-time payment of $169 thousand related to an acquired loan during the second quarter of 2026. …”see in full comparison
“Consulting fees decreased $491 thousand over the same period in 2025 attributable to non-recurring fees related to assistance with negotiations for the data processing contract. Data processing expenses and ATM expense increased a combined $522 thousand. First quarter 2026 included a smaller amount of flex credits utilized as compared to first quarter 2025. General and administrative expense increased $207 thousand. …”see in full comparison
Full comparison: every changed paragraph (124)
The Company continues to realize the benefits of being disciplined in the execution of our strategic plan. The largest benefit evident is the improvement in overall profitability. Net income is up 45.79% or over $6.7 million year to date compared to year-to-date 2025. On a quarterly basis, net income is up 23.17% compared to 1st quarter 2026 and 53.01% compared to same quarter last year. In comparing year-to-date June 30, 2026, to June 30, 2025, both aspects of net interest income have improved due to our pricing discipline – interest income is up $4.45 million and interest expense decreased by $2.29 million. Interest income from loans benefited with a higher average balance and a higher yield in comparing both the second quarters and the six months of 2026 to 2025.
Total deposits also grew in comparisons of the two periods, mainly in money market and certificate of deposit balances. Interest expense decreased in comparing 2026 to 2025 in both second quarter and year-to-date performances. Deposit growth enabled FHLB borrowings to be paid off along with the continuing paydown of the amortized borrowings. This all culminated with net interest margin for the 2nd quarter 2026 at 3.48% compared to 3.22% for the same period a year ago and year-to-date at 3.45% compared to 3.13% a year ago. We expect the net interest margin to continue to improve with the percentage of favorable repricing in the loan portfolio in the next 18 months.
A portion of our strategic plan focuses on improvement in noninterest income while controlling noninterest expense. Noninterest income has favorable comparisons in the quarter’s performance and year-to-date. In terms of dollars, it is higher than first quarter 2026, second quarter 2025 and year-to-date as of June 30th comparisons. The largest contributors to this success are gain on sale of loans and our restructure of our Bank Owned Life Insurance “BOLI” portfolio. Gain on sale of loans originates out of three real estate portfolios, 1-4 family, agricultural and small business. The improvement in gain on sale for 2026 is driven mostly by the agricultural real estate portfolio where we sell 90% of the loan and maintain 10% and receive servicing income for the life of the loan.
Operating expenses are up slightly due mainly to employee expenses, as we accrue with higher performance payouts. In comparing the first half of 2026 to the first half of 2025, furniture and equipment include our newest office in 2026 that was not added until the second half of 2025. Consulting fees are also considerably lower in 2026 versus 2025 which included one-time fees associated with data processing. A couple of upcoming projects will increase consulting fees in the second half.
Overall, we have seen improvement in our past due loans and nonaccrual/nonperforming loan balances. The Bank is back to a more normal range of 0.34% of loans past due, following a couple quarters with higher levels of past due loans. Consumer, Home Loans and Commercial loan past due percentages are all well below last year’s averages. Agricultural Real Estate past due loans includes one loan of $3.8 million as of June 2026. Nonaccrual loan balances are down 33.31% from last quarter; however, remain 97.14% higher when compared to second quarter 2025. Agricultural Real Estate nonaccrual loans remain higher than other loan segments primarily due to one loan that is in the work out process.
In looking at the current economy in our market areas, a great deal of attention remains on the agricultural section. For our grain farmers, the planting season was relatively timely and overall crop conditions are good in our market area. Projected margins are tight for 2026 but government subsidies have provided some support. Land values remain stable showing continued demand for land with financially able buyers. The livestock market continues to be profitable. The agricultural and grain elevator lines of credit saw increased usage in the first quarter of 2026, and we are starting to see some reductions in line usage area for the second quarter. Our agricultural equipment dealers continue to endure lower sales, but the overall performance of agricultural businesses has been acceptable.
With the first quarter of 2026 complete, the Company has seen the beginning of its new three-year strategic plan unfold. The plan is to increase loans and deposits and, in turn, earnings and market presence. The Company is also working to improve operational efficiencies and scale while continuing to provide an atmosphere of workplace excellence for its employees. It is the Company’s vision to remain community vested while helping people realize their best lives.
Fourth quarter 2025 included $180 thousand of additional loan fees related to interest rate swap transactions, while the first quarter of 2026 included no additional loan fees. This was a factor of net interest income decreasing in the first quarter of 2026 by $327 thousand as compared to the fourth quarter of 2025. Decreased interest expense on deposits was partially offset by increased interest expense from borrowed funds as compared to fourth quarter 2025. Positively, total interest expense decreased for the quarter ended March 31, 2026 as compared to fourth quarter December 31, 2025.
Comparing the quarter ended March 31, 2026 to March 31, 2025, net interest income increased $3.5 million which consisted of an improvement in interest income of $2.3 million and a reduction of interest expense of $1.2 million. We have seen improved margin, driven by asset yield improvement, and anticipate even more opportunities for improvement as loans continue to reprice. The repricing of existing loans and favorable yields on new production are contributing to the increase in yield on interest earning assets.
The largest contributor to better profitability was the increase in the net interest margin from 3.03% to 3.42%, a 39-basis point increase and net interest spread increasing 41 basis points in comparing March 31, 2026 to March 31, 2025. The loan portfolio decreased 1.2% from year end 2025. Total deposits increased 2.9% over year end. Compared to fourth quarter of 2025, net interest margin decreased 4 basis points and net interest spread decreased 2 basis points. The asset yield improved from 5.19% for quarter ended March 31, 2025 to 5.38% for the same period in 2026, a 19 basis point increase in a declining interest rate environment. The cost of interest-bearing liabilities decreased by 22 basis points for the first quarter, 2025 at 2.76% and 2026 at 2.54%, respectively.
The provision for credit losses related to loans decreased by $509 thousand from March 31, 2025. Please refer to Note 4 for further analysis of both our loan portfolio and the associated allowance for credit loss.
F&MThe Commercial Banking Division realized aflat smallgrowth decrease in overall outstandings infor the first quarterhalf of 2026. The overall driver of this decrease was some large expected payoffs that occurred in the first quarter. Loan volume in thisfirst quarterhalf was consistent with 2025previous quarters; however, the expected payoffs and normal amortization outweighed the overall production. Lending rates and overall terms remained consistent with the previous quarter, however, there are more competitive pressures on offerings as we finished the second quarter. The Iran warconflict's impact on the economy, oil and overall inflation areremained the largest concerns to commercial business in the F&M footprint inyear-to-date 2026. The commercial team continues to monitor the portfolio and borrowing bases closely for the impact fromof credit and inflationary pressures. Credit quality and past due pressures exist but remained goodsound in firstsecond quarter 2026.quarter. Collateral values and auction values are still holding consistent with previous quarters. The agricultural portfolio, which includes grain elevators, saw increased usage in 2025 and we continue to monitor those trends in 2026.
The Bank made the decision to discontinue the Indirect Lending Department as of March 2026 and directed that business to our direct consumer lending department. This contributed to a decrease in the consumer loan portfolio of 13.4% or $7.89 million as compared to year-end 2025 and 14.1% or $8.40 million as compared to June 30, 2025.
Fixed home loan originations to be sold to the secondary market experienced the highest dollar volume by quarter of the last 2 years at $16.8 million. Similarly, the same is true for the actual dollar volume of sold loans during the quarter at $15.4 million.
We continue to see home equities being the driver to higher balances in the consumer real estate portfolio segment. Home equities account for increased balances of $8.53 million since year-end 2025 and $5.39 million over first quarter of 2026, while the overall consumer real estate portfolio segment shows a smaller gain in comparison to the same time periods of $7.0 million and lower by $1.55 million, respectively.
The first quarter of the year provides the opportunity to review the financials for a large portion of our agricultural portfolio. With tighter margins we do see a trend of tighter cash flows and weaker working capital positions for some of our borrowers. Commodity prices have improved since harvest, providing an opportunity to price stored grain along with 2026 anticipated production. The war in Iran has resulted in higher fuel and fertilizer costs. Land values have remained stable, indicating financially able buyers. Line of credit utilization remains high for our grain elevators, which was a result of heavy farming selling in the fourth quarter of 2025 and the first quarter of 2026. Agriculture equipment dealers continue to feel the brunt of tighter farm margins through lower equipment sales. Credit quality continues to be monitored and has remained sound.
The Retail Lending Division saw an increase to our application activity in the first quarter of 2026 for the home loan team. This growth was attributed to the lowering of secondary markets fixed rates for a small period of time. With the war in Iran, the rates trended back up thus slowing the momentum a bit. We also saw a higher line of credit utilization with our HELOC balances as well as additional new customer growth since mortgage rates are still higher than what most borrowers have on their current mortgages. With communities still having lower inventory, we have seen more interest in construction loans. With F&M participating in the Federal Home Loan Bank’s Welcome Home grant program, we saw an increase in preapproval applications in anticipation of receiving this grant. The program opens April 6, 2026 so our results will show in the 2nd quarter. The Bank also made the decision to discontinue the Indirect Lending Department as of March 2026 but directing that business to our direct consumer lending department.
Noninterest income was $5.0 million for the quarter, which was up $838 thousand from first quarter 2025 and up $319 thousand from last quarter. Net gain on sale of loans, other service charges and fees and the increase in cash surrender values of bank owned life insurance saw the largest increases over first quarter 2025. The increase in BOLI revenue was due to additional investment dollars as well as higher earnings while the Bank is repositioning our holdings.
Noninterest expense was higher in first quarter 2026 by $1.0 million as compared to same quarter 2025 and $748 thousand higher than fourth quarter 2025. Compared to first quarter 2025, salaries and benefits were up a combined $364 thousand in 2026. Data processing and ATM expense increased by a combined $522 thousand with a lower use of flex credits utilized in 2026 as compared to 2025. The net amortization of servicing rights also increased $396 thousand over 2025 with $304 thousand attributed to the recognition of impairment on agricultural real estate loan servicing rights.
Overall, net income,income whichcontinues wasto $2.6expand millionin higher2026 at a greater percentage than firstour quarterasset growth. When comparing June 30, 2026, to June 30, 2025, laysassets thegrew groundwork4.67% forwhile anet moreincome profitablegrew 2026.45.79%. Our continued attention on maximizing revenues while limiting expenses willis helpserving driveus our financial results.well. The Company remains well-capitalizedwell capitalized with sound liquidity levels and strong asset quality.
The Bank also provides checking account services, as well as savings and time deposit services such as certificates of deposits. In addition, Automated Teller Machines (ATMs) or Interactive Teller Machines (ITMs) are provided at most branch locations along with other independent locations in the market area. ITMs operate as an ATM with the addition of remote teller access to assist the user.ATM. The Bank has custodial services for Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs). The Bank provides on-line banking access for consumer and business customers. For consumers, this includes bill-pay, on-line statement opportunities and mobile banking. For business customers, it provides the option of electronic transaction origination such as wire and Automated Clearing House (ACH) file transmittal. In addition, the Bank offers remote deposit capture or electronic deposit processing. Mobile banking has been widely accepted and used by consumers. Upgrades to our digital products and services continue to occur in both retail and business lines. The Bank continues to offer new suites of products as customer preferences change and the Bank adapts and adopts new technologies. The Bank continues to offer products that also meet the needs of our more traditional customers.
The Bank has established underwriting policies and procedures which facilitate operating in a safe and sound manner in accordance with supervisory and regulatory laws and guidance. Within this sphere of safety and soundness, the Bank's practice has been to not promote innovative, unproven credit products which may not be in the best interest of the Bank or its customers. The Bank does offer a hybrid mortgage loan. Hybrid mortgage loans are loans that start out as a fixed rate mortgage but after a set number of years automatically adjust to an adjustable rate mortgage. The Bank offers a seven and ten year fixed rate mortgage and a seven year jumbo fixed rate mortgage after which the interest rate will adjust annually for all. In order to offer longer-term fixed rate mortgages, the Bank does participate in the Freddie Mac secondary mortgage market, Farm Service Agency (FSA) guaranteed secondary agricultural market and Small Business Lending programs. The Bank also normally retains the servicing rights on these partially or 100% sold loans. In order for the customer to participate in these programs they must meet the requirements established by those agencies. In addition, the Bank does sell some of its longer term fixed rate agricultural mortgages into the secondary market with the aid of brokers. The Bank currently participates in four State of Ohio programs: Ag-Link, Grow Now, Ohio Homebuyers Plus and Buckeye Business Advantage. What allThese four of these programs have in common, is the ability to provideallow the Bank an avenue to offer a productmore thatcompetitive savesinterest bothrate theto Bank and the consumer savings over other traditional products.customers. With the acquisition of Perpetual Federal Savings Bank in the fourth quarter of 2021 and the addition of Peoples Federal Savings in the fourth quarter of 2022, the Bank saw an increase in fixed rate, long-term mortgage loans to our portfolio from that banking service area. In November 2023, the Bank began offering a home buyer mortgage program, Hometown Advantage Mortgage Program, which is available to low- and moderate-income home buyers as well as on properties located in low- and moderate-income census tracts. In the first quarter 2026, the Bank rolled out a CD/Savings secured loan product for credit building or credit repair to be secured by a time deposit or savings account with a minimum $1,000 loan amount, no origination costs, and no minimum credit score or debt-to-income requirements. This loan product is also intended to assist low- and moderate-income individuals with strengthening their credit.
Loans with LTVs above 100% are generally the result of sales tax.
At MarchJune 31,30, 2026, we had 473477 full time equivalent employees. The employees are not represented by a collective bargaining unit. We provide our employees with a comprehensive benefit program, some of which is contributory. We consider our employee relations to be good.
Equal Credit Opportunity Act (ECOA) / Section 1071 – Small Business Lending Data Collection. The CFPB’s Section 1071 rule requires covered institutions to collect and report demographic data on small business credit applications. Court injunctions originally stayed mandatory compliance for community banks, including the Bank. On May 1, 2026, the rule was finalized with an effective date of June 30, 2026 and compliance date of January 1, 2028 to begin data collection. The finalized rule revised certain provision of Regulation B, Subpart B which implements the Equal Credit Opportunity Act. Revisions included coverage of certain credit transactions and financial institutions; covered transaction thresholds for financial institutions subject to reporting; the definition of small business; and exclusion of certain data points not specifically required by Section 1071 statutory language. Initial analysis indicates the Bank may not immediately be subject to data reporting requirements as of January 1, 2028. The Bank continues to evaluate these final rules to gauge impact on small business lending operations, monitor loan volume of reportable loans, and assess these changes in connection with its fair lending program and broader compliance management system.
Equal Credit Opportunity Act / Regulation B Amendments. In April 2026, the CFPB issued final amendments to Regulation B addressing disparate impact, discouragement of applicants or prospective applicants, and special purpose credit programs. These amendments may affect fair lending compliance, credit policy administration, training, monitoring, and documentation practices. The Bank continues to evaluate these changes in connection with its fair lending program and broader consumer compliance management system.
Equal Credit Opportunity Act (ECOA) / Section 1071 – Small Business Lending Data Collection. The CFPB’s Section 1071 rule requires covered institutions to collect and report demographic data on small business credit applications. Court injunctions have stayed mandatory compliance for community banks, including the Bank. The Bank continues to monitor developments and prepare for future rulemaking.
Financial Data Transparency Act. In June 2026, multiple federal financial regulatory agencies issued final joint data standards under the Financial Data Transparency Act to promote interoperability and standardization of regulatory data. Although implementation requirements will depend on subsequent agency actions and the specific reporting obligations applicable to the Company and the Bank, these standards may affect future regulatory reporting formats, data governance, system capabilities, and internal controls over regulatory submissions. The Company and the Bank continue to monitor implementation timelines and assess potential operational impacts.
Community Bank Leverage Ratio. In April 2026, the federal banking agencies finalized revisions to the Community Bank Leverage Ratio framework, lowering the minimum leverage ratio from 9% to 8% and extending the grace period for temporary noncompliance from two quarters to four quarters, effective July 1, 2026. The change may provide qualifying community banking organizations with additional flexibility to use the simplified capital framework and reduce certain regulatory reporting and capital calculation burdens. The Company and the Bank continue to evaluate eligibility, capital planning considerations, and any related Call Report or regulatory reporting impacts.
Supervisory Ratings and Risk-Based Examination Focus. In May 2026, the federal banking agencies requested comment on proposed revisions to the Uniform Financial Institutions Rating System, commonly referred to as the CAMELS rating system. Separately, the OCC and other agencies have continued to emphasize risk-based supervision and the removal of reputation risk as a standalone supervisory consideration. These developments may affect the scope, focus, and documentation expectations for examinations, including greater emphasis on material financial risks, governance, internal controls, and risk management practices. The Bank continues to monitor these supervisory developments and assess related policy, procedure, and examination preparation impacts.
Bank Secrecy Act / Anti-Money Laundering and Sanctions Compliance. Federal banking agencies and FinCEN have continued rulemaking and guidance activity related to anti-money laundering, countering the financing of terrorism, sanctions compliance, customer identification, and customer due diligence expectations, including proposed changes to AML/CFT program requirements that would require financial institutions to maintain effective, risk-based, and reasonably designed AML/CFT programs. These developments may require updates to policies, procedures, risk assessments, customer due diligence processes, monitoring systems, training, and governance practices. The Bank continues to monitor these developments and evaluate potential implications for its BSA/AML and sanctions compliance program.
Credit Risk and Loan Portfolio Risk Management. The FDIC continues to emphasize safe and sound lending and loan portfolio risk-management practices through its Risk Management Manual of Examination Policies, including Section 3.2, Loans, which was updated in March 2026, and related examination documentation modules for loan portfolio review. These materials address lending policies, loan administration, credit risk rating or grading systems, loan review systems, underwriting, portfolio composition, problem credit management, allowance for credit losses considerations, and board and management responsibilities. In addition, the interagency guidance on credit risk review systems, which applies to FDIC-supervised depository institutions, emphasizes independent, ongoing credit review and appropriate communication to management and the board regarding loan portfolio performance. These supervisory expectations may affect the Bank’s credit policies, internal controls, loan review practices, allowance for credit losses processes, and documentation of credit risk management activities. The Bank continues to evaluate FDIC and interagency guidance in light of its loan portfolio composition and credit risk profile.
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs. Accrued interest receivable totaled $11.9$12.6 million and $11.7 million at MarchJune 31,30, 2026 and December 31, 2025, respectively, and was reported in Other Assets on the condensed consolidated balance sheets and is excluded from the estimate of credit losses.
Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation; reserves for expected credit losses for collateral-dependent loans are based on the expected shortfall of the loan based on the discounted collateral value. This specific reserve portion of the ACL was $497$211 thousand at MarchJune 31,30, 2026 and $145 thousand at December 31, 2025.
The Company continues to focus on deposit growth in both its legacy and newer markets. Core deposits may provide opportunities for additional noninterest income for the Company through the opportunity to cross-sell additional services such as treasury management services. Noninterest bearing deposits increased $18.0$8.3 million from MarchJune 31,30, 2025 to MarchJune 31,30, 2026. Interest bearing deposits also increased by $91.3$150.8 million over the same time period. This was comprised of an increase in NOWsavings accounts of $35.8$79.9 million, an increase in savingstime accountsdeposits of $56.7$71.6 million and a decrease in timeNOW depositsaccounts of $1.1$700 million.thousand.
Deposits have increased $78.9$138.7 million as of MarchJune 31,30, 2026 since December 31, 2025.2025 and $59.7 million since March 2026. Both comparisons had increases in savings accounts and time deposits with decreases in noninterest bearing accounts. Cash and cash equivalents also increased $75.8$58.7 million oversince theDecember same31, time2025; period.however, decreased $17.1 million since March 31, 2026. Although cash balances were used to decrease the net balance ofreduce FHLB borrowings and federal funds purchased,purchased as well as fund security purchases, cash balances wereincreased stilldue higher.to Paydownsloan payoffs and payoffs of loans contributed to this increasepaydowns as didwell proceedsas fromdeposit surrenders of bank owned life insurance and the increase in deposits.growth.
In addition to cash and cash equivalent balances,balance increases, the Bank has access to $213 million in unsecured Federal Funds lines for overnight funds from our correspondent banking relationships, of which includes a $50 million line of credit that was added in the fourth quarter of 2025. The Company also has a $15 million line of credit. The Bank has also established four market sources for brokered CDs.CDs as additional contingent funding resources. Lastly, the Bank’s secured borrowing capacity limits at the FHLB wouldCincinnati haveis allowed$157.7 drawsmillion based on current collateral pledgingpledging. ofAny $114.0additional million; however, any amount borrowedborrowing over $9.9$7.9 million may require additional stock purchases. Pledged collateral included eligible 1-4 family, home equity, and specific commercial and multi-family real estate loans.
At MarchJune 31,30, 2026, the investment portfolio of the Bank had $273.8$277.2 million of pledged securities with $151.2$161.4 million available toin useunpledged as collateralsecurities for future pledged borrowings. Currently, securities may be pledged to offset public deposits, our repurchase agreement portfolio or at the Federal Discount Window.
The Company continues to hold bi-weekly, what is termed “sub-ALCO”, meetings along with continuing the use of a liquidity dashboard and cashflow projection. The liquidity dashboard and the five month forward looking cashflow projection are actively managed documents which continue to be enhanced to provide the most accurate forecast of liquidity positions for the next five months.positions. The cashflow projection includes loan pipeline expectations and runoffs, and maturities of both sources and uses of funds. The Company has the tools to monitor liquidity and continues to manage the risks to ensure adequate liquidity is maintained.
In comparing to the same priorperiod yearin period,2025, the MarchJune 31,30, 2026 (at amortized cost) loan balances of $2.7 billion accounted for $100.7$79.5 million or a 3.9%3.0% increase when compared to same period 2025.increase. Commercial and industrial loans increased 11.1%14.8% while commercial real estate loans saw a decrease of 0.8%2.8% as compared to 2025. Agricultural related loans increased 20.3%19.5% year over year. Individual growth was comprised of 48.8%54.8% in non-real estate agricultural loans while agricultural real estate loans remaineddecreased relativelyby unchanged.5.8%. Within the non-real estate agricultural loan group, approximately half of the growth was related to new originations of loans while the other half was attributable to higher utilization of lines of credit. Consumer real estate loans increased by 2.3%1.9% while consumer loans decreased by 7.4%.14.1%. Other loans decreased by 9.7%.8.4%. The Company's strong team of lenders remain focused on providing customers valuable localized services and thereby increasing our market share.
The chart below shows the breakdown by portfolio segment as of MarchJune 31,30, for the last three years, at amortized cost.
The Bank maintains a well-balanced, diverse and high performing commercial real estate loan portfolio. Gross commercial real estate loans, excluding deferred loan fees and costs, represented 49.05%48.36% of the Company's total gross loan portfolio as of MarchJune 31,30, 2026. The tables below present the commercial real estate (CRE) portfolio segment by category, location and loan grade.
The following is a contractual maturity schedule by portfolio segment at amortized cost excluding fair value adjustments related to acquisitions as of MarchJune 31,30, 2026.
Management feels confident that anticipated liquidity needs can be met through additional maturities from the security portfolio, increased deposit generating efforts and additional borrowings. While the security portfolio has been utilized to fund loan growth in previous periods, additional sources have been cultivated. The security portfolio increased in the first threesix months of 2026 from year end 2025 due to purchases of $34.9$72.4 million which were partially offset by sales of $5.4 million, maturities and paydowns of $19.6$45.1 million, net accretion of $78$207 thousand and a $2.1$2.6 million increase in unrealized losses. DuringIn the currentfirst quarter,quarter 2026, sales of odd lot mortgage-backed securities were executed and generated a realized loss of $347 thousand which were replaced with purchases of higher yielding securities. During the current quarter, the security portfolio increased $11.6 million with purchases of approximately $37.6 million partially offset by maturities and paydowns of $25.5 million, net accretion of $129 thousand and a $545 thousand increase in unrealized losses. The amount of pledged investment securities increased by $7.3$10.7 million as compared to year end and increased $1.9$9 million as compared to MarchJune 31,30, 2025. As of MarchJune 31,30, 2026, pledged investment securities totaled $273.8$277.2 million. The Company plans to make additional purchases of securities the remainder of the year for the purposes of increasing our investment holdings in Community Reinvestment Act (CRA) qualifying securities,holdings, liquidity and contingency planning and as a means of balance sheet gap management.
Overall total assets increased 1.5%2.0% or $51.2$67.7 million since year end 2025.2025 and $16.5 million or 0.47% since March 31, 2026. The largest areas of growth since December 2025 occurred in the cash and due from banks and the security portfolio of $75.6$58.7 million and $19.2 million, respectively, offset by decreases in the loan portfolio of $31.9$8.9 million. Although the loan portfolio did decrease, the Bank continues to pursue loan growth with total new money funded in the six months ended June 30, 2026 of $445.6 million and $267.8 million in the quarter ended June 30, 2026. Since March 31, 20262026, the largest areas of $177.8growth million.have occurred in the loan portfolio of $22.9 million and the security portfolio of $11.6 million offset by a decrease of $17.1 million in cash and due from banks.
Total liabilities increased $46.1$53.9 million since year end 2025.2025 and $7.8 million since March 31, 2026. The largest increase was in the total deposits of $78.9$138.7 million. The mix of deposits saw increases in interest-bearing NOW accounts, savings and money market deposit accounts and time deposit accounts offset by decreases in noninterest-bearing accounts since December 31, 2025. During the first six months of 2026, FHLB advances of $58.9 million and federal funds purchased of $15 million have been repaid. Since March 31, 2026, deposit increases totaling $59.7 million have been offset with the repayment of FHLB advances of $50.5 million.
Shareholders’ equity increased by $5.1$13.9 million as of MarchJune 31,30, 2026 compared to year end 2025.2025 Earningsand exceeded$8.8 dividendmillion declarations during the three months endedsince March 31, 2026. Accumulated other comprehensive loss increased in unrealized loss position by $1.6$2.1 million from December 2025 to an unrealized loss of $13.6approximately $14 million on MarchJune 31,30, 2026. Dividends declared remained unchanged from the prior quarter at $0.23 per share and were 4.0% over firstsecond quarter 2025’s $0.22125 per share. Compared to MarchJune 31,30, 2025, shareholders’ equity increased 9.1%9.7% or $31.3$33.9 million with $6.6$5.3 million attributed to an improvement in accumulated other comprehensive loss. Net income was higher for the quartersix months ended MarchJune 2026 compared to MarchJune 2025 by $2.645.8% or $6.7 million.
Basel III regulatory capital requirements include a capital conservation buffer of 2.5%. As of MarchJune 31,30, 2026, the Company and the Bank are both positioned well above the current requirement.
While the Holding Company generally has sufficient liquidity to maintain its dividend policy without relying on the upstreaming of dividends from the Bank, the Bank declared a $6.0$6 million dividend during the firstsecond quarter of 2026. The excess of the upstreamed funds are being considered for potential sub-debt paydowns or for the repurchase of shares.
The Bank continues to be well-capitalized at MarchJune 31,30, 2026 in accordance with Federal regulatory capital requirements as the capital ratios below show:
Comparison of Results of Interest Earnings and Expenses for three month periods ended MarchJune 31,30, 2026 and 2025
Interest Income
When comparing firstsecond quarter 2026 to firstsecond quarter 2025, average loan balances grew $121.1$73.7 million, which represented a 4.7%2.8% increase. Interest income on loans increased $2.8$1.3 million or 7.4%3.3% as compared to the quarter ended MarchJune 31,30, 2025. The Company's loan portfolio is 47.3%49.8% variable rate with 31.9%32.7% of total loans subject to repricing within the next three months and 41.7%36.1% of total loans subject to repricing withinduring the nextremainder twelveof months.2026.
The available-for-sale securities portfolio decreased in average balances by $24.8$5.1 million or 5.2%1.1% when comparing to the same quarter in 2025 with the income associated with the security portfolio increasing $82$387 thousand over firstsecond quarter 2025. During the current quarter, maturities and paydowns of securities were $19.6 million, sales were $5.4$25.5 million, purchases were $34.9$37.6 million and unrealized loss increased $1.6$430 million.thousand. The additional income from the security salesportfolio generatedcan abe realizedattributed lossto the increased book yield of $3472.75% thousandas whichof isJune projected30, to be recouped2026 from security2.26% purchasesas withof aJune higher30, yield over 30.55 months.2025. Federal funds sold and interest-bearing deposits decreasedincreased in average balances by $39.1$70.5 million as compared to the same quarter in 2025 with decreasedincreased income of approximately $541$459 thousand for the current quarter. The decreasedincreased balances are primarily the result of the focus on liquidity and deposit generation offset by funding loans, purchases of available-for-sale securitiesloans and repayment of other borrowed money.
The overall total average balance of the Bank’s earning assets increased by $57.3$139.1 million and interest income for the quarter comparisons was higher for firstsecond quarter 2026 by 5.6%5.0% or $2.3approximately $2.2 million as compared to firstsecond quarter 2025. Rate changes between periods have contributed to approximately 48.4%15.3% of the growth.
Annualized yield, for the quarter ended MarchJune 31,30, 2026, was 5.38%5.48% as compared to 5.19%5.45% for the quarter ended MarchJune 31,30, 2025. The following charts demonstrate loan rate increases accounted for 36.8%15.0% of the increased loan interest income while increased loan balances accounted for the remaining 63.2%.85.0%. The yields on tax-exempt securities and the portion of the tax-exempt IDB and agricultural loans included in loans have been tax adjusted based on a 21% tax rate in the charts that follow. The tax-exempt interest income was $382$524 and $135$134 thousand for firstsecond quarter 2026 and 2025, respectively, which resulted in a federal tax savings of $80$110 and $28 thousand, respectively, less the TEFRA adjustments of $7$10 and $4 thousand, respectively.
Change in Interest Income Quarter to Date MarchJune 31,30, 2026 Compared to MarchJune 31,30, 2025
Contributing to the increased net interest income for the quarter was a decrease in interest expense of $1.2approximately $1.1 million or 7.2%5.9% compared to firstsecond quarter 2025. Since MarchJune 31,30, 2025, average interest-bearing deposit balances have increased $56.3$150.1 million or 2.6%6.7% while the Company recognized $739$381 thousand less in interest expense for the most recent quarter. In September 2025, the Federal Reserve made its first rate change to the federal funds rate for 2025 with a reduction of 25 basis points followed by reductions of 25 basis points in both October and December. There have been no changes to the federal funds rate in 2026. Deposit rates continue to be reviewed and adjusted with the rate changes. The following charts demonstrate increased average interest-bearing deposit balances accounted for 31.8%$994 thousand of additional interest-bearing deposit expense while rate decreases accounted for decreased interest-bearing deposit expense of 131.8%.$1.4 million. Noninterest-bearing deposits balances increased $20.6$20.5 million compared to firstsecond quarter 2025. The Bank continues to focus on capturing the full customer relationship; however, it has sometimes resulted in more expensive deposits being brought in.
Interest expense on borrowed funds decreased $374$517 thousand in the firstsecond quarter 2026 over the same time frame in 2025 due to the repayment of FHLB advances. During the current quarter, FHLB borrowings of $40.6$50.5 million were repaidrepaid, andfurthering proceedsthe FHLB borrowing repayment strategy from newsecond borrowingsquarter 2025 at which time $57 million were $32.2 million compared to repayment of borrowings of $585 thousand in first quarter 2025.repaid. Interest expense on federal funds purchased and securities sold under agreement to repurchase decreased $126$154 thousand compared to firstsecond quarter 2025 due to the decrease of $10.2$12.5 million in average balances. Cost of funds decreased even with growth in interest-bearing deposit balances offset by decreased borrowings and securities sold under agreement to repurchase compared to firstsecond quarter 2025. The average cost of funds decreased to 2.54%2.56% in firstsecond quarter 2026 compared to 2.76%2.83% in firstsecond quarter 2025. Interest expense due to subordinated notes was unchanged during the quarter comparisons. Refer to Note 11 for additional information on subordinated notes.
Change in Interest Expense Quarter to Date MarchJune 31,30, 2026 Compared to MarchJune 31,30, 2025
FMAO insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 1 trade date, 300 shares, about $10.3K) and open-market sales in 32 filings (2 insiders, 68 trade dates, 208,227 shares, about $6.3M; 30 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: -207,927 (purchases minus sales); net value about -$6.3M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-25 | Allen Gregory R |
Grant/award | 133 | $35.03 | $4.7K |
| 2026-09-18 | Frank Simon R. |
Grant/award | 386 | $35.67 | $13.8K |
| 2026-09-18 | Sauder Kevin J |
Grant/award | 263 | $35.67 | $9.4K |
| 2026-09-18 | Planson Steven J |
Grant/award | 351 | $35.67 | $12.5K |
| 2026-09-18 | Johnston Lori Ann |
Grant/award | 403 | $35.67 | $14.4K |
| 2026-09-18 | Boyce Ian D |
Grant/award | 176 | $35.67 | $6.3K |
| 2026-09-18 | Alomari Ahmed |
Grant/award | 176 | $35.67 | $6.3K |
| 2026-08-18 | Briggs Andrew J |
Open-market sale |
2,402 | $35.05 | $84.2K |
| 2026-08-17 | Briggs Andrew J |
Open-market sale |
3,000 | $35.11 | $105.3K |
| 2026-08-14 | Briggs Andrew J |
Open-market sale |
3,000 | $35.38 | $106.1K |
| 2026-08-13 | Briggs Andrew J |
Open-market sale |
3,000 | $35.19 | $105.6K |
| 2026-08-12 | Briggs Andrew J |
Open-market sale |
3,000 | $34.94 | $104.8K |
| 2026-08-11 | Briggs Andrew J |
Open-market sale |
3,000 | $34.46 | $103.4K |
| 2026-08-10 | Briggs Andrew J |
Open-market sale |
3,000 | $34.54 | $103.6K |
| 2026-08-07 | Briggs Andrew J |
Open-market sale |
3,000 | $34.08 | $102.2K |
| 2026-08-06 | Briggs Andrew J |
Open-market sale |
3,000 | $34.24 | $102.7K |
| 2026-08-06 | Gerken David R |
Open-market sale | 1,000 | $33.72 | $33.7K |
| 2026-08-05 | Briggs Andrew J |
Open-market sale |
3,000 | $34.76 | $104.3K |
| 2026-08-04 | Briggs Andrew J |
Open-market sale |
3,000 | $33.67 | $101.0K |
| 2026-08-03 | Briggs Andrew J |
Open-market sale |
3,000 | $33.69 | $101.1K |
| 2026-08-03 | Allen Gregory R |
Open-market purchase | 300 | $34.47 | $10.3K |
| 2026-07-31 | Briggs Andrew J |
Open-market sale |
3,000 | $33.07 | $99.2K |
| 2026-07-30 | Briggs Andrew J |
Open-market sale |
3,000 | $34.86 | $104.6K |
| 2026-07-29 | Briggs Andrew J |
Open-market sale |
3,000 | $34.48 | $103.4K |
| 2026-07-28 | Briggs Andrew J |
Open-market sale |
3,000 | $31.59 | $94.8K |
| 2026-07-27 | Briggs Andrew J |
Open-market sale |
3,000 | $30.98 | $92.9K |
| 2026-07-24 | Briggs Andrew J |
Open-market sale |
3,000 | $30.44 | $91.3K |
| 2026-07-23 | Briggs Andrew J |
Open-market sale |
3,000 | $29.95 | $89.8K |
| 2026-07-22 | Briggs Andrew J |
Open-market sale |
3,000 | $30.84 | $92.5K |
| 2026-07-21 | Briggs Andrew J |
Open-market sale |
3,000 | $30.75 | $92.2K |
| 2026-07-20 | Briggs Andrew J |
Open-market sale |
3,000 | $30.47 | $91.4K |
| 2026-07-17 | Briggs Andrew J |
Open-market sale |
3,000 | $31.06 | $93.2K |
| 2026-07-16 | Briggs Andrew J |
Open-market sale |
3,000 | $30.06 | $90.2K |
| 2026-07-15 | Briggs Andrew J |
Open-market sale |
3,000 | $29.81 | $89.4K |
| 2026-07-14 | Briggs Andrew J |
Open-market sale |
3,000 | $30.10 | $90.3K |
| 2026-07-13 | Briggs Andrew J |
Open-market sale |
3,000 | $29.77 | $89.3K |
| 2026-07-10 | Briggs Andrew J |
Open-market sale |
3,000 | $29.52 | $88.6K |
| 2026-07-09 | Briggs Andrew J |
Open-market sale |
3,000 | $29.42 | $88.3K |
| 2026-07-08 | Briggs Andrew J |
Open-market sale |
3,000 | $30.15 | $90.5K |
| 2026-07-07 | Briggs Andrew J |
Open-market sale |
3,000 | $30.72 | $92.2K |
| 2026-07-06 | Briggs Andrew J |
Open-market sale |
3,000 | $30.67 | $92.0K |
| 2026-07-02 | Briggs Andrew J |
Open-market sale |
3,000 | $31.53 | $94.6K |
| 2026-07-01 | Briggs Andrew J |
Open-market sale |
3,000 | $30.58 | $91.7K |
| 2026-06-30 | Briggs Andrew J |
Open-market sale |
3,000 | $30.46 | $91.4K |
| 2026-06-29 | Briggs Andrew J |
Open-market sale |
3,000 | $30.09 | $90.3K |
| 2026-06-26 | Briggs Andrew J |
Open-market sale |
3,000 | $29.98 | $89.9K |
| 2026-06-25 | Briggs Andrew J |
Open-market sale |
3,000 | $29.62 | $88.9K |
| 2026-06-24 | Briggs Andrew J |
Open-market sale |
3,000 | $29.17 | $87.5K |
| 2026-06-23 | Briggs Andrew J |
Open-market sale |
3,000 | $28.66 | $86.0K |
| 2026-06-22 | Briggs Andrew J |
Open-market sale |
6,000 | $28.72 | $172.3K |
| 2026-06-18 | Briggs Andrew J |
Open-market sale |
3,000 | $28.75 | $86.2K |
| 2026-06-17 | Briggs Andrew J |
Open-market sale |
3,000 | $28.63 | $85.9K |
| 2026-06-16 | Briggs Andrew J |
Open-market sale |
3,000 | $28.39 | $85.2K |
| 2026-06-15 | Briggs Andrew J |
Open-market sale |
3,000 | $28.80 | $86.4K |
| 2026-06-12 | Briggs Andrew J |
Open-market sale |
3,000 | $28.39 | $85.2K |
| 2026-06-11 | Gerken David R |
Open-market sale | 825 | $28.16 | $23.2K |
| 2026-06-11 | Briggs Andrew J |
Open-market sale |
3,000 | $28.54 | $85.6K |
| 2026-06-10 | Briggs Andrew J |
Open-market sale |
3,000 | $28.70 | $86.1K |
| 2026-06-09 | Briggs Andrew J |
Open-market sale |
3,000 | $28.23 | $84.7K |
| 2026-06-08 | Briggs Andrew J |
Open-market sale |
3,000 | $27.99 | $84.0K |
Well-known investors holding FMAO (13F)
None of the 59 investors we track reported a position in their latest 13F.