Farmers & Merchants reports Q1 EPS 70c, consensus 68c

Net charge-offs to average loans of 0.01%. Tier 1 leverage ratio was 9.02%. Cost of interest-bearing liabilities improved to 2.54%, from 2.76%. Net interest margin increased by 39 basis points to 3.42%. Efficiency ratio improved to 60.08%, compared to 66.79%. Lars B. Eller, President and CEO, stated, “We are off to an outstanding start in 2026, delivering 37.8% year-over-year earnings growth driven by a 39-basis point expansion in net interest margin, strong levels of noninterest income, and solid balance sheet management. Our ability to generate this level of growth in profitability while maintaining excellent credit quality and disciplined expense management underscores the strength of our core franchise. We are seeing meaningful operating leverage across the business, and believe this momentum positions us well for continued earnings expansion and long-term shareholder value creation.”