Farmers & Merchants Bancorp: A Great Small-Cap Banking Secret

Farmers & Merchants Bancorp remains a Buy, supported by robust operational metrics, conservative lending, and exceptional credit quality. FMCB's Q1 2026 results showed 7.6% EPS growth, a 15% tangible book value increase, and strong capital ratios, outpacing peers. The bank's disciplined loan-to-deposit ratio (71%) and low deposit costs underpin superior net interest margin and profitability.