SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 2006
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ________ to ________
Commision File Number 0-14492
FARMERS & MERCHANTS BANCORP, INC.
(Exact name of registrant as specified in its charter)
OHIO 34-1469491
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
307-11 North Defiance Street, Archbold, Ohio 43502
(Address of principal executive offices) (Zip Code)
(419) 446-2501
Registrant's telephone number, including area code
________________________________________________________________________________
(Former name, former address and former fiscal year, if changed since
last report.)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the
Exchange Act).
Large accelerated filer Accelerated filer X Non-accelerated filer
--- --- ---
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes No X
--- ---
Indicate the number of shares of each of the issuers classes of common stock, as
of the latest practicable date:
Common Stock, No Par Value 5,176,000
Class Outstanding as of October 25, 2006
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
FARMERS & MERCHANTS BANCORP, INC.
INDEX
Form 10-Q Items Page
--------------- -----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets-
Sept 30, 2006, December 31, 2005 1
Condensed Consolidated Statements of Net Income-
Three Months and Nine Months Ended Sept 30, 2006 and Sept 30, 2005 2
Condensed Consolidated Statements of Cash Flows-
Nine Months Ended Sept 30, 2006 and Sept 30, 2005 3
Notes to Condensed Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 4-6
Item 3. Market Risk 7
Item 4. Controls and Procedures 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 1A. Risk Factors 8
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 8
Item 3. Defaults Upon Senior Securities 8
Item 4. Submission of Matters to a Vote of Security Holders 8
Item 5. Other Information 8
Item 6. Exhibits 8
Signatures 9
Certifications Under Section 302 10-11
Exhibit 32. Additional Exhibit - Certifications Under Section 906 12
ITEM 1 FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands of dollars)
Sept 30, 2006 Dec 31, 2005
------------- ------------
ASSETS:
Cash and due from banks $ 15,652 $ 20,056
Interest bearing deposits with banks 306 2,533
Federal funds sold 512 0
Investment Securities:
U.S. Treasury 2,382 2,355
U.S. Government 113,558 138,358
State & political obligations 50,892 62,891
All others 4,004 3,838
Loans and leases (Net of reserve for loan losses of
$5,716 & $5,388 respectively) 490,787 458,704
Bank premises and equipment-net 14,314 14,874
Accrued interest and other assets 16,042 17,336
-------- --------
TOTAL ASSETS $708,449 $720,945
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest bearing $ 50,889 $ 64,791
Interest bearing 505,733 511,506
Federal funds purchased and securities
sold under agreement to repurchase 30,844 21,158
Other borrowed money 28,963 34,952
Accrued interest and other liabilities 5,432 5,950
-------- --------
Total Liabilities 621,861 638,357
SHAREHOLDERS' EQUITY:
Common stock, no par value - authorized 6,500,000
shares; issued 5,176,000 shares 12,677 12,677
Treasury Stock - 24,000 shares, Unearned stock awards 9,720 shares
and for Dec. 31, 2005 - 80 shares, Unearned stock 3,920 shares (569) (115)
Undivided profits 75,830 71,933
Accumulated other comprehensive income (expense) (1,350) (1,907)
-------- --------
Total Shareholders' Equity 86,588 82,588
LIABILITIES AND SHAREHOLDERS' EQUITY $708,449 $720,945
======== ========
See Notes to Condensed Consolidated Unaudited Financial Statements.
Note: The December 31, 2005 Balance Sheet has been derived from the audited
financial statements of that date.
1
FARMERS & MERCHANTS BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands of dollars, except per share data)
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
Sept 30, 2006 Sept 30, 2005 Sept 30, 2006 Sept 30, 2005
------------- ------------- ------------- -------------
INTEREST INCOME:
Loans and leases $ 9,035 $ 7,794 $ 25,778 $ 23,133
Investment Securities:
U.S. Treasury securities 19 34 56 100
Securities of U.S. Government agencies 1,045 960 3,404 2,857
Obligations of states and political subdivisions 515 508 1,633 1,521
Other 57 46 166 130
Federal funds 57 -- 158 1
Deposits in banks 3 42 10 132
---------- ---------- ---------- ----------
Total Interest Income 10,731 9,384 31,205 27,874
INTEREST EXPENSE:
Deposits 4,126 3,058 11,427 8,537
Borrowed funds 711 384 1,955 1,083
Total Interest Expense 4,837 3,442 13,382 9,620
NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES 5,894 5,942 17,823 18,254
PROVISION FOR LOAN LOSSES 652 (352) 617 (461)
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 5,242 6,294 17,206 18,715
OTHER INCOME:
Service charges 977 1,041 2,723 2,706
Other 651 624 1,958 1,904
Net securities gains (losses) (1) 5 (9) 5
---------- ---------- ---------- ----------
1,627 1,670 4,672 4,615
OTHER EXPENSES:
Salaries and wages 2,093 2,197 6,194 6,391
Pension and other employee benefits 599 585 1,832 1,685
Occupancy expense (net) 192 157 486 486
Other operating expenses 1,079 1,976 5,005 5,968
---------- ---------- ---------- ----------
3,963 4,915 13,517 14,530
---------- ---------- ---------- ----------
INCOME BEFORE FEDERAL INCOME TAX 2,906 3,049 8,361 8,800
FEDERAL INCOME TAXES 789 821 2,257 2,336
---------- ---------- ---------- ----------
NET INCOME 2,117 2,228 6,104 6,464
========== ========== ========== ==========
OTHER COMPREHENSIVE INCOME (NET OF TAX):
Unrealized gains (losses) on securities 1,331 (449) 557 (1,090)
COMPREHENSIVE INCOME (EXPENSE) $ 3,448 $ 1,779 $ 6,661 $ 5,374
NET INCOME PER SHARE $ 0.41 $ 0.43 $ 1.18 $ 1.24
Based upon average weighted shares outstanding of: 5,185,883 5,198,956 5,191,832 5,199,648
DIVIDENDS DECLARED $ 0.15 $ 0.12 $ 0.43 $ 0.34
No disclosure of diluted earnings per share is required as shares are
antidiluted as of quarter end.
See Notes to Condensed Consolidated Unaudited Financial Statements.
2
FARMERS & MERCHANTS BANCORP, INC.
CONDENSED CONSOLIDATED STATMENTS OF CASH FLOWS
(Unaudited)
(in thousands of dollars)
Nine Months Ended
-----------------------------
Sept 30, 2006 Sept 30, 2005
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 6,104 $ 6,464
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and amortization 839 910
Premium amortization 535 890
Discount amortization (211) (99)
Provision for loan losses 617 (461)
Provision (Benefit) for deferred income taxes -- 561
(Gain) Loss on sale of fixed assets 26 38
(Gain) Loss on sale of investment securities 9 (5)
Changes in Operating Assets and Liabilities:
Accrued interest receivable and other assets 1,061 (1,412)
Accrued interest payable and other liabilities (517) 1,079
-------- --------
Net Cash Provided by Operating Activities 8,463 7,965
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (305) (472)
Net (increase) decrease in Federal Funds Sold (512) --
Proceeds from sale of fixed assets -- --
Proceeds from maturities of investment securities: 37,457 25,118
Proceeds from sale of investment securities: 19,006 --
Purchase of investment securities (19,336) (38,679)
Net (increase) decrease in loans and leases (32,700) 12,378
-------- --------
Net Cash Provided (Used) by Investing Activities 3,610 (1,655)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits (19,675) (10,219)
Net change in short-term borrowings 9,686 1,957
Increase in long-term borrowings -- 5,000
Payments on long-term borrowings (5,989) (1,041)
Purchase of Treasury stock (454) --
Payments of dividends (2,272) (1,885)
-------- --------
Net Cash Provided (Used) by Financing Activities (18,704) (6,188)
-------- --------
Net change in cash and cash equivalents (6,631) 122
Cash and cash equivalents - Beginning of year 22,589 24,256
-------- --------
CASH AND CASH EQUIVALENTS - END OF THE YEAR $ 15,958 $ 24,378
======== ========
RECONCILIATION OF CASH AND CASH EQUIVALENTS:
Cash and cash due from banks $ 15,652 $ 15,181
Interest bearing deposits 306 9,197
-------- --------
$ 15,958 $ 24,378
======== ========
See Notes to Condensed Consolidated Unaudited Financial Statements.
3
FARMERS & MERCHANTS BANCORP, INC.
Notes to Condensed Consolidated Unaudited Financial Statements
NOTE 1 BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions for Form 10Q and Rule 10-01 of
Regulation S-X; accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments, consisting
of normal recurring accruals, considered necessary for a fair presentation have
been included. Operating results for the nine months ended September 30, 2006
are not necessarily indicative of the results that are expected for the year
ended December 31, 2006. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended December 31, 2005.
The Company's Board of Directors declared a 4 for 1 stock split effective May
12, 2006. Therefore, all references in the financial statements and other
disclosures related to the number of shares and per share amounts of the
Company's stock have been retroactively restated to reflect the increased number
of shares outstanding.
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS
Statements contained in this portion of the Company's report may be
forward-looking statements, as that term is defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified by
the use of words such as "intend," "believe," "expect," "anticipate," "should,"
"planned," "estimated," and "potential." Such forward-looking statements are
based on current expectations, but may differ materially from those currently
anticipated due to a number of factors, which include, but are not limited to,
factors discussed in documents filed by the Company with the Securities and
Exchange Commission from time to time. Other factors which could have a material
adverse effect on the operations of the company and its subsidiaries which
include, but are not limited to, changes in interest rates, general economic
conditions, legislative and regulatory changes, monetary and fiscal policies of
the U.S. Government, including policies of the U.S. Treasury and the Federal
Reserve Board, the quality and composition of the loan or investment portfolios,
demand for loan products, deposit flows, competition, demand for financial
services in the Bank's market area, changes in relevant accounting principles
and guidelines and other factors over which management has no control. The
forward-looking statements are made as of the date of this report, and the
Company assumes no obligation to update the forward-looking statements or to
update the reasons why actual results differ from those projected in the
forward-looking statements.
CRITICAL ACCOUNTING POLICY AND ESTIMATES
The Company's consolidated financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, and
the Company follows general practices within the industries in which it
operates. At times the application of these principles requires Management to
make assumptions estimates and judgments that affect the amounts reported in the
financial statements. These assumptions, estimates and judgments are based on
information available as of the date of the financial statements. As this
information changes, the financial statements could reflect different
assumptions, estimates and judgments. Certain policies inherently have a greater
reliance on assumptions, estimates and judgments and as such have a greater
possibility of producing results that could be materially different than
originally reported. Examples of critical assumptions, estimates and judgments
are when assets and liabilities are required to be recorded at fair value, when
a decline in the value of an asset not required to be recorded at fair value
warrants an impairment write-down or valuation reserve to be established, or
when an asset or liability must be recorded contingent upon a future event.
Based on the valuation techniques used and the sensitivity of financial
statement amounts to assumptions, estimates, and judgments underlying those
amounts, management has identified the determination of the Allowance for Loan
and Lease Losses (ALLL) and the valuation
4
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS (Continued)
of its Mortgage Servicing Rights as the accounting areas that requires the most
subjective or complex judgments, and as such could be the most subject to
revision as new information becomes available.
The ALLL represents management's estimate of credit losses inherent in the
Bank's loan portfolio at the report date. The estimate is composite of a variety
of factors including past experience, collateral value and the general economy.
ALLL includes a specific portion, a formula driven portion, and a general
nonspecific portion.
Farmers & Merchants Bancorp, Inc. was incorporated on February 25, 1985, under
the laws of the State of Ohio. Farmers & Merchants Bancorp, Inc., and its
subsidiaries The Farmers & Merchants State Bank and Farmers & Merchants Life
Insurance Company are engaged in commercial banking and life and disability
insurance, respectively. The executive offices of Farmers & Merchants Bancorp,
Inc. are located at 307-11 North Defiance Street, Archbold, Ohio 43502.
LIQUIDITY, CAPITAL RESOURCES AND MATERIAL CHANGES IN FINANCIAL CONDITION
Commercial loans grew again in the third quarter 2006 by $2.6 million from the
second quarter which showed a $13 million improvement over the first quarter of
2006. Commercial real estate grew $4.1 million in the third quarter 2006 which
reflects a steady improvement also, as the second quarter also improved by $3.9
million. The agricultural portfolio regained $1.8 million of the $3.2 million
decline experienced in the second quarter 2006 period. Consumer loans slid
downward by $1.0 million which was very similar to the second quarter decline of
$1.2 million. Despite some declines quarter over quarter the total loan
portfolio increased by $5.6 million which improves the year to date increase by
$31.6 million for the year. The bank's goal is still to improve the total loan
portfolio with quality loans. The average year to date loan to deposit ratio at
third quarter end was 85.2 %, second quarter was at 83.6 %, first quarter was at
81.3 % and December 2005 was at 82.1% respectfully.
The past due ratios by quarter ends were September 0.80 %, for June at 0.73 %,
for March at 1.16 % and month ended December 2005 at 1.37% respectfully. This
continuous improvement in past due ratios reflects the importance of making good
quality loans while increasing the loan portfolio mentioned above.
The bank was less aggressive in lowering the total securities portfolio in the
third quarter with only a $311 thousand change in the quarter. The second
quarter decreased by $22 million combined with the $14 million first quarter for
a total year to date amount of $36.3 million to help to fund loan growth. This
was a better alternative than raising more expensive money in the CD markets.
The bank's assets grew by $5.9 million over the second quarter but are still
$11.5 million lower than at year end December 2005.
Deposit production reversed direction in the third quarter increasing by $13.3
million while the second quarter decreased by $20 million and the first quarter
was down $13 million. The bank did not want to see any further CD monies leaving
the bank as was experienced in the prior quarters. The bank continued to carry
"special CD promotion programs" throughout the quarter. The bank focused on
having or establishing a relationship (check) account tied to these CD programs.
The net interest margin for September was 3.68 %, June was 3.70 %, March dropped
to 3.66 % and December 2005 was at 3.79 % respectfully. The Federal Reserve has
chosen to not increase their rate and it is hoped that this trend will continue
out into the future for awhile. The bank continues to focus it's attention on
non-interest income and ways to reduce the non-interest expense side.
At the annual meeting in April of 2005 the stockholders approved a long term
stock incentive plan for some of the employees of the bank. In September 2005
there was a Treasury stock award of a total 1000 shares (before stock split 4:1
or equivalent to 4000 shares after) made under the provisions of the plan. In
September 2006 there was a second award of 6000 shares to some employees, again
based on the provision of the plan. The awards carry a three year cliff vesting
stipulation and the employees also receive dividend equivalent compensation over
that time period on their portion of stock awards.
5
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS (Continued)
MATERIAL CHANGES IN RESULTS OF OPERATIONS
The income statement shows the effects of the tightening of the interest margin.
Interest income for the nine months ended September 2006 was $31.2 million while
the nine months ended September 2005 was $27.9 million. The $3.3 million
increase reflects the increase in the loan portfolio balances and repricing with
higher loan rates. This is however off set by increased interest rates on
deposits of $3.7 million for a net interest decrease of $400 thousand over the
nine months ended September year to year.
Total non interest income reflects a 2.5% increase over the nine months of
September 2006 and September 2005. The primary contributions to the $120
thousand increase were in customer service fees, overdraft checking charges and
gain on sale of assets.
The total non interest expense reflects only a 0.7% increase or $102 thousand
for the nine months ended September 2006 to September 2005 time frames. Employee
fringe benefit costs increased by $147 thousand, primarily in the employee
health expenses. Consulting fees on the overdraft checking program are higher
for the nine months ended September 2006 compared to September 2005. Auditing &
examinations were $104 thousand lower in the quarter ended September 2006 when
compared to September 2005 which included additional costs related to the
implementation of internal control over financial reporting requirements
mandated by the Sarbanes-Oxley Act. FDIC assessments were $91
thousand less due to lower rates in the current year.
A refinement in the methodology for the Allowance for Credit Losses has been
adopted and implemented in the September financials. The end result was an entry
to decrease the unfunded allowance (representing income) and an increase to the
allowance for loan loss (representing an expense). The allowance for overdraft
losses methodology remained unchanged. Year to date the net impact to the
allowance for credit losses running through the income statement has been an
increase to income of $75 thousand.
The company continues to be well-capitalized as the capital ratios below show:
Primary Ratio 13.24%
Tier I Leverage Ratio 12.41%
Risk Based Capital Tier 1 16.53%
Total Risk Based Capital 17.63%
Stockholders' Equity/Total Assets 12.22%
6
ITEM 3 MARKET RISK
Market risk is the exposure to loss resulting from changes in interest rates and
equity prices. The primary market risk to which the Company is subject is
interest rate risk. The majority of the Company's interest rate risk arises,
from the instruments, positions and transactions entered into for the purposes,
other than trading, such as loans, available for sale securities, interest
bearing deposits, short term borrowings and long term borrowings. Interest rate
risk occurs when interest bearing assets and liabilities reprice at different
times as market interest rates change. For example, if fixed rate assets are
funded with variable rate debt, the spread between asset and liability rates
will decline or turn negative if rates increase.
Interest rate risk is managed within an overall asset/liability framework for
the Company. The principal objectives of asset/liability management are to
manage sensitivity of net interest spreads and net income to potential changes
in interest rates. Funding positions are kept within predetermined limits
designed to ensure that risk-taking is not excessive and that liquidity is
properly managed. The Company employs a sensitivity analysis in the form of a
net interest rate shock as shown in the table following.
Interest Rate Shock on Interest Rate Shock on
Net Interest Margin Net Interest Income
Net Interest % Change to Rate Rate Cumulative % Change to
Margin (Ratio) Flat Rate Direction Changes by Total ($000) Flat Rate
-------------- ---------- --------- ---------- ------------ ----------
3.57% -10.979% Rising 3.000% 19,301 -9.895%
3.72% -7.283% Rising 2.000% 20,012 -6.577%
3.86% -3.623% Rising 1.000% 20,719 -3.279%
4.01% 0.000% Flat 0.000% 21,421 0.000%
4.07% 1.476% Falling -1.000% 21,640 1.024%
4.10% 2.398% Falling -2.000% 21,545 0.580%
4.12% 2.731% Falling -3.000% 21,311 -0.515%
Loan growth during the quarter of over $6 million was funded with certificate of
deposit money of over $13 million, lowering the net interest margin at the flat
rate to 4.01% compared to 4.08% at end of June 2006. Growth in the certificate
of deposit market coupled with repricing increased the cost of funds greater
than the increase on the earning. assets. The risk for rising rates is slightly
greater than the gain represented from rates being lowered. The shock report
actually shows improvement to earnings in two scenarios of decreasing rates. The
prime rate remained unchanged during the third quarter and the interest rate
shown in the flat rate environment represents an improvement over the 12 month
period as compared to the current net interest margin.
The net interest margin represents the forecasted twelve month margin. The
predicted rates are higher than the current net interest margin in the flat and
25 basis point adjustment buckets indicating the bank should continue to see
improvement in the net interest margin. Overall, the risk to the bank is within
policy at all shock levels. The Company remains committed to improve
profitability through growth, both within the loan portfolio and in core
deposits. Changing the mix and yields to improve profitability is the strategy
the Company will continue to follow for the reaminder of the year.
7
ITEM 4 CONTROLS AND PROCEDURES
As of September 30, 2006, an evaluation was performed under the supervision and
with the participation of the Company's management including the CEO and CFO, of
the effectiveness of the design and operation of the Company's disclosure
controls and procedures. Based on that evaluation, the Company's management,
including the CEO and CFO, concluded that the Company's disclosure controls and
procedures were effective as of September 30, 2006. There have been no
significant changes in the Company's internal controls that occurred for the
quarter ended September 30, 2006.
PART II
ITEM 1 LEGAL PROCEEDINGS
None
ITEM 1A There have been no material changes in the risk factors disclosed by
Registrant in its Report on Form 10-K for the fiscal year ended December
31, 2005.
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(c) Total Number of Shares (d) Maximum Number of Shares
(a) Total Number (b) Average Price Purchased as Part of Publicly that may yet be purchased under
Period of Shares Purchased Paid per Share Announced Plan or Progams the Plans or Programs
------ ------------------- ----------------- ----------------------------- -------------------------------
7/1/2006
to
7/30/2006 -- -- -- 13,000
8/01/2006
to
8/31/2006 2,500 $23.25 2,500 10,500
9/01/2006
to
9/30/2006 10,500 $22.13 10,500 0
------ ------ ------ ------
Total 13,000 $22.35 13,000(1) 0(2)
====== ====== ====== ======
(1) The Company purchased these shares pursuant to a stock repurchase program
publicly announced on December 19, 2005. On that date, the Board of
Directors authorized the repurchase of 5,000 common shares between January
1, 2006 and December 31, 2006.
(2) The four-for one stock split effected by the Board of Directors on May 12,
2006 effectively increased the aggregate number of shares authorized for
repurchase to 20,000.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None
ITEM 5 OTHER INFORMATION
ITEM 6 EXHIBITS
3.1 Amended Articles of Incorporation of the Registrant (incorporated by
reference to Registrant's Quarterly Report on Form 10-Q filed with the
Commission on August 1, 2006)
3.2 Code of Regulations of the Registrant (incorporated by reference to
Registrant's Quarterly Report on Form 10-Q filed with the Commission
on May 10, 2004)
31.1 Rule 13-a-14(a) Certification -CEO
31.2 Rule 13-a-14(a) Certification -CFO
32.1 Section 1350 Certification - CEO
32.2 Section 1350 Certification - CFO
8
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Farmers & Merchants Bancorp, Inc.,
Date: October 25, 2006 By: /s/ Paul S. Siebenmorgen
------------------------------------
Paul S. Siebenmorgen
President and CEO
Date: October 25, 2006 By: /s/ Barbara J. Britenriker
------------------------------------
Barbara J. Britenriker
Exec. Vice-President and CFO
9
Exhibit Index
Exhibit No. Description
----------- -----------
3.1 Amended Articles of Incorporation of the Registrant (incorporated
by reference to Registrant's Quarterly Report on Form 10-Q filed
with the Commission on August 1, 2006)
3.2 Code of Regulations of the Registrant (incorporated by reference
to Registrant's Quarterly Report on Form 10-Q filed with the
Commission on May 10, 2004)
31.1 Rule 13-a-14(a) Certification -CEO
31.2 Rule 13-a-14(a) Certification -CFO
32.1 Section 1350 Certification - CEO
32.2 Section 1350 Certification - CFO