Business Description

Organizational Structure Farmers & Merchants Bancorp (the “Company” or “FMCB”) is a Delaware registered bank holding company organized in 1999. As a registered bank holding company, FMCB is subject to regulation, supervision, and examination by the Board of Governors of the Federal Reserve System (“Federal Reserve”) and by the California Department of Financial Protection and Innovation (“DFPI”). The Company’s principal business is to serve as a holding company for Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”) and for other banking or banking related subsidiaries, which the Company may establish or acquire. As a legal entity separate and distinct from its subsidiary, the Company’s principal source of funds is, and will continue to be, dividends paid by and other funds received from the Bank. Legal limitations are imposed on the amount of dividends that may be paid and loans that may be made by the Bank to the Company. See “Supervision and Regulation - Dividends and Other Transfer of Funds.” The Company’s outstanding common stock as of December 31, 2025, consisted of 697,904 shares of common stock, $0.01 par value. No shares of preferred stock were issued or outstanding as of December 31, 2025. The Company operates all financial service activities through its wholly-owned banking subsidiary, Farmers & Merchants Bank of Central California, which was organized in 1916. The Bank was incorporated under the laws of the State of California as a non-Federal Reserve member, California state-chartered bank subject to primary regulation, supervision and examination by the Federal Deposit Insurance Corporation (“FDIC”) and by the DFPI. The Bank’s two wholly-owned subsidiaries are Farmers & Merchants Investment Corporation and Farmers/Merchants Corporation. Farmers & Merchants Investment Corporation was dormant as of December 31, 2025, and Farmers/Merchants Corporation acts as trustee on deeds of trust originated by the Bank. The Bank’s deposit accounts are insured under the Federal Deposit Insurance Act, as amended (“FDIA”), up to applicable limits. See “Supervision and Regulation – Deposit Insurance.” In March 2002, F&M Bancorp, Inc. was created to protect the name “F&M Bank.” During 2002, the Company completed a fictitious business name filing in California to begin using the streamlined name, “F&M Bank,” as part of a larger effort to enhance the Company’s image and build brand name recognition. Since 2002, the Company has converted all of its daily operating and image advertising to the “F&M Bank” name and the Company’s logo, slogan and signage were redesigned to incorporate the trade name, “F&M Bank.” In 2003, the Company formed a wholly-owned Connecticut statutory business trust, FMCB Statutory Trust I, for the sole purpose of issuing trust-preferred securities. See Note 9 “Long-Term Subordinated Debentures”, located in Item 8 “Financial Statements and Supplementary Data” in this Form 10-K. Market Area The Company’s primary service area is the mid Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus and Merced counties, and the east region of the San Francisco Bay Area, including Napa, Alameda, and Contra Costa counties. The Company operates 30 full-service branches and 3 stand-alone ATMs. The following statistical data, for the counties in our market area, as of the most recent date available, are set forth below: • Sacramento County, with branches in Sacramento, Elk Grove, Galt and Walnut Grove. This county had a Population of 1.6 million and a Median Household Income of approximately $92,175. Significant employment sectors include the following: government, education & health trade, and transportation & utilities. Unemployment was at 5.2%. • San Joaquin County with branches in Lodi, Linden, Stockton, Lockeford, and Manteca. This county had a Population of 0.8 million and a Median Household Income of approximately $92,179. Significant employment sectors include the following: trade, transportation & utilities, government, and education & health services. Unemployment was at 6.5%. 4 Table of Contents • Solano County, with a branch in Rio Vista. This county had a Population of 0.45 million and a Median Household Income of approximately $100,401. Significant employment in the following industries: education and health services, trade, transportation and utilities, and government.…