Farmers & Merchants Bancorp reported record second quarter net income of $23.1 million, or $32.94 per diluted common share, for Q2 2025. This compares to $21.8 million, or $29.39 per diluted common share, for the second quarter of 2024. Net income for the first six months of 2025 reached $46.1 million, marking the best-performing six-month period in company history.
Net interest income for the quarter ended June 30, 2025, was $53.9 million, an increase from $50.8 million in the same quarter of 2024. The net interest margin for the first six months of 2025 increased to 4.13% from 4.02% in the prior year period, primarily driven by a decrease in deposit costs. The expense efficiency ratio for the second quarter was 44.88%.
The company maintained a strong liquidity position, with total cash and cash equivalents at $291.8 million, after repaying all $250.0 million in brokered deposits during the quarter. Total deposits decreased by $217.6 million to $4.76 billion due to this repayment, but excluding brokered deposits, core deposits increased by $32.4 million. Total loans and leases outstanding increased by $40.3 million, or 1.1%, from March 31, 2025.
Credit quality remained solid with no non-accrual loans and leases as of June 30, 2025. A provision for credit losses of $1.4 million was recorded in Q2 2025. Capital ratios continued to strengthen, with a total risk-based capital ratio of 15.35% and a common equity tier 1 capital ratio of 13.87%, comfortably exceeding regulatory requirements.
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