FMCB packages a record quarter for investors as deposits slip 2.41% from June

Farmers & Merchants Bancorp furnished an investor presentation to the Securities and Exchange Commission on October 21, 2026, one day after the Lodi, California, bank holding company reported record third-quarter net income of $25.1 million. The filing is a Regulation FD disclosure of the deck management intends to use in investor communications and conferences, not a results release: the numbers it packages were published the previous day, when net income rose 5.75% from a year earlier and the net interest margin reached 4.24%.

The presentation sits on top of a quarter the company had already reported, so the filing's news value is what it says about how management intends to present the franchise rather than any new profit figure. TickerGrove reported those results on October 20 in *Farmers & Merchants Bancorp's record $25.1 million profit leans on a $5.0 million tax benefit*, which traced the increase to the tax line; what follows keeps only the figures needed to read the filing.

The deck trails a record quarter by one day

The presentation is dated October 21, 2026 and was furnished under Item 7.01 of Form 8-K; the results it summarizes arrived on October 20 in a separate current report. Net income for the quarter ended September 30, 2026 was $25.1 million, “up $1.4 million or 5.75% compared to the third quarter of 2025”, diluted earnings per common share were $36.75, annualized return on average assets was 1.75% and annualized return on average equity was 14.74%. Net interest income of $58.3 million was $2.9 million higher than a year earlier, and the tax-equivalent net interest margin widened to 4.24% from 4.16%.

Brokered deposits leave as loans keep growing

Total deposits were $4.97 billion at September 30, 2026, against $5.09 billion at June 30, a 2.41% decline, and against $4.89 billion a year earlier. The release accounts for part of that move: it reports “no brokered deposits as of September 30, 2026 compared to $80 million as of June 30, 2026 and zero as of September 30, 2025”. Checking accounts supplied 47.23% of deposits, down from 48.89% at June 30.

The loan book grew while the balance sheet shrank. Loans and leases held for investment rose $40.49 million to $3.74 billion from $3.7 billion at June 30. Cash and cash equivalents fell $106.67 million to $171.97 million from $278.64 million, and total assets declined to $5.7 billion from $5.84 billion. The release does not describe the sequential funding mix. Its only statement on the ratio is year over year: the loan-to-deposit ratio “was 75.70% as of September 30, 2026, up from 74.16% as of September 30, 2025, as loan growth outpaced deposit growth”; the balance-sheet table shows 73.07% at June 30.

A $5.0 million tax benefit carries profit past higher costs

Non-interest expense climbed $6.9 million to $35.8 million from $28.9 million a year earlier, “primarily due to an increase in salaries and employee benefits, consulting and professional fees”, and the efficiency ratio rose to 55.49% from 46.48% a year earlier and 45.11% in the second quarter. With expense growth outrunning the $2.9 million gain in net interest income, income before taxes fell to $27.24 million from $32.64 million. Net income still rose because income tax expense dropped $6.8 million to $2.2 million, a figure that includes a $5.0 million benefit “from the reversal of amounts associated with items previously treated as non-deductible for income tax purposes”. The effective tax rate was 7.93% against 27.33% a year earlier.

Unrealized securities losses take $33.0 million out of equity

Shareholders’ equity ended at $663.1 million, $15.9 million below June 30, because profit was “offset by an increase in accumulated other comprehensive loss of $33.0 million” as rising rates deepened unrealized losses on the investment portfolio. Tangible book value per common share was $932.14, up 6.27% from $877.13 a year earlier but down from $963.82 at June 30. The company bought back 4,714 shares for $6.7 million in the quarter, paid $3.6 million of dividends and had $23.4 million left under a program expiring December 31, 2027. Preliminary capital ratios were 16.39% total risk-based, 14.91% common equity tier 1 and 12.05% tier 1 leverage.

The exhibit is a slide set, not a second set of statements

The 8-K discloses materials rather than results. Its exhibit list describes a presentation dated October 21, 2026, the deck is built from 25 slide images, and the filing states that “the Company makes no admission as to the materiality of any information in this Form 8-K, including Exhibit 99.1, that is required to be disclosed solely by Regulation FD.” Because the slides are images, no figure printed on them can be checked against machine-readable text, so the numbers above come from the October 20 earnings release rather than from the deck. The earnings release offers no fourth-quarter or full-year guidance and carries no consensus estimate, and the slide deck could not be read, so nothing in the filing establishes a beat or a miss. Kent Steinwert, the chairman, president and chief executive, said in the release: “Our Company remains in excellent financial condition at quarter-end and should be well positioned to navigate the challenges ahead as we have for the past 110 years.” The next dated document is the quarterly report on Form 10-Q for the period ended September 30, 2026, which would carry the full financial statements behind the release.