FARMERS & MERCHANTS BANCORP 10-K

Item 9A. Controls and Procedures Evaluation of Disclosure Controls and Procedures An evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the disclosure controls and procedures (as required by Exchange Act Rules 240.13a-15(b) and 15d-14(a)). Based on that evaluation, the CEO and CFO have concluded that as of the end of the period covered by this Report, the disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed by the Company in reports that are filed or submitted under the Exchange Act are recorded, processed, summarized and timely reported as provided in the SEC’s rules and forms. REPORT OF MANAGEMENT To the Board of Directors and Shareholders of Farmers & Merchants Bancorp The management of Farmers & Merchants Bancorp (the “Company”) is responsible for the preparation, integrity, and fair presentation of its published financial statements and all other information presented in this annual report. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and, as such, include amounts based on informed judgments and estimates made by management. In the opinion of management, the financial statements and other information herein present fairly the financial condition and operations of the Company at the dates indicated in conformity with accounting principles generally accepted in the United States of America. Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. The internal control system is augmented by written policies and procedures and by audits performed by an internal audit staff (assisted in certain instances by outside third-party audit resources other than the independent registered public accounting firm), which reports to the Audit & Risk Committee of the Board of Directors. Internal auditors monitor the operation of the internal and external control system and report findings to management and the Audit & Risk Committee. When appropriate, corrective actions are taken to address identified control deficiencies and other opportunities for improving the system. The Audit & Risk Committee provides oversight to the financial reporting process. There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and circumvention or overriding of controls. Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of an internal control system may vary over time. The Audit & Risk Committee of the Board of Directors is comprised entirely of outside directors who are independent of the Company’s management. The Audit & Risk Committee is responsible for the selection of the independent registered public accounting firm. It meets periodically with management, the independent auditors and the internal auditors to ensure that they are carrying out their responsibilities. The Audit & Risk Committee is also responsible for performing an oversight role by reviewing and monitoring the financial, accounting, and auditing procedures of the Company in addition to reviewing the Company’s financial reports. The independent auditors and the internal auditors have full and free access to the Audit & Risk Committee, with or without the presence of management, to discuss the adequacy of the internal control structure for financial reporting and any other matters, which they believe should be brought to the attention of the Committee. /s/ Kent A. Steinwert /s/ Bart R. Olson Kent A. Steinwert Bart R. Olson Chairman, President, and Chief Executive Officer Executive Vice President and Chief Financial Officer 129 Table of Contents MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Farmers & Merchants Bancorp management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. The Company’s internal control over financial reporting is designed by, or under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer and effected by management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s internal control over financial reporting includes those policies and procedures that: (1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. There are inherent limitations in any internal control, no matter how well designed and misstatements due to error or fraud may occur and not be detected, including the possibility of circumvention or overriding of controls. Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of an internal control system may vary over time. Management assessed the effectiveness of the internal control structure over financial reporting as of December 31, 2025. This assessment was based on criteria for effective internal control over financial reporting set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management believes that the Company’s internal control over financial reporting is effective as of December 31, 2025. The Company’s independent registered public accounting firm has audited the consolidated financial statements for the year ended December 31, 2025, has issued an audit report on the Company’s internal control over financial reporting. Such audit report expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board as of December 31, 2025 that appears on page 74. Changes in Internal Controls There have been no material changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the year ended December 31, 2025, to which this report relates that have materially affected, or are reasonably likely to materially affect the Company’s internal control over financial reporting. Item 9B. Other Information During the quarter ended December 31, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not Applicable 130 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance Information regarding “Directors and Executive Officers” is set forth under the headings “Annual Meeting Business Matters – Proposal No. 1 – Election of Directors” and “Executive Compensation – Compensation Discussion and Analysis – Executive Officers Who Are Not Directors” of the Company’s 2026 Annual Meeting Proxy Statement (“Proxy Statement”) and is incorporated herein by reference. Information regarding “Delinquent Section 16(a) Reports” is set forth under the section “Other Matters – Delinquent Section 16(a) Reports” of the Company’s Proxy Statement and is incorporated herein by reference. The information required by Item 10 regarding our insider trading policies is incorporated by reference from the information under the caption “Corporate Governance – Code of Ethics and Insider Trading Policy” in our Proxy Statement. A copy of our insider trading policy is filed as Exhibit 19 to this Form 10-K. Information regarding the Company’s corporate governance and board committees is set forth under the heading “Corporate Governance – Board of Directors Meetings” and “– Committees of the Board” in the Company’s Proxy Statement and is incorporated herein by reference. Consistent with the requirements of the Sarbanes-Oxley Act, the Company has a Code of Conduct applicable to senior financial officers including the principal executive officer, principal financial officer and principal accounting officer. The Company will provide, without charge, upon request, a copy of the Code of Conduct to any stockholder by mail. Requests should be sent to the Company’s address, Attention: Shareholders Relations. The Company intends to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding amendments to and waivers of the Code of Conduct by posting such information on its website, at www.fmbonline.com . Item 11. Executive Compensation Information regarding “Executive Compensation” is set forth under the headings “Director Compensation” and “Executive Compensation” of the Company’s Proxy Statement and is incorporated herein by reference. The Proxy Statement for the 2026 Annual Stockholders Meeting will include important and detailed information about the Company’s Executive Compensation, including changes during 2025. Effective November 29, 2024, the Company’s long-standing non-qualified deferred compensation plans were terminated and frozen. On November 25, 2024, the Company’s stockholders approved the 2025 Restricted Stock Retirement Plan (the “2025 Plan”), which became effective on January 1, 2025, and which replaced the non-qualified deferred compensation plans. The 2025 Plan permits stock-based compensation awards to employees, officers and directors of the Company and its subsidiaries and affiliates. The 2025 Plan authorized awards up to 80,000 shares. Understanding the changes in the structure of the Executive Compensation is important. Key to this is the fact that the Summary Compensation Table of the Proxy Statement will include a column reporting the grant date fair value of the restricted stock awards under the 2025 Plan; however, those amounts are not compensation that the named executive officer actually received in 2025. The reporting requirements require that the fair value of the grant be reported in the year the award was made; however, as described in more detail below, the grant is not earned until the participant meets the service conditions and the grant is vested, which will not occur until the future vesting dates (which range from February 2026 to February 2028 for the named executive officers). In addition, if the participant does not meet the service conditions, all unvested shares are forfeited for no consideration. Again, amounts shown in the Summary Compensation Table under the column “Restricted Stock Award Grant Date Fair Value” were not received by the named executive officers in 2025 but should be earned over the next two to three years. On February 3, 2025, each of our named executive officers was granted Restricted Stock Awards (“RSAs”) under the 2025 Plan. The RSAs that were granted to the named executive officers and other eligible employees are subject to one of the following three vesting schedules: (i) ratable vesting over the two-year period following the applicable vesting commencement date; (ii) ratable vesting over the three-year period following the applicable vesting commencement date; or (iii) ratable vesting over the four-year period following the applicable vesting commencement date. Importantly, a grant award is not earned income to the grant recipients until the vesting date of the RSA. The awards contain a service condition, which requires the employees to provide services during the applicable vesting periods. The other terms and conditions, in addition to the applicable vesting schedule and vesting commencement date, of the RSAs are as set forth in the notice of restricted stock award and restricted stock award agreement entered into by and between the Company and each named executive officer, which are substantially in the form of the notice of restricted stock award and restricted stock award agreement that was previously approved by our Board and was filed with the SEC as Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated January 14, 2025. The RSAs granted in February 2025 were designed to replace the compensation awarded in previous years under the non-qualified deferred compensation plans that were terminated effective November 29, 2024. As a result, no contributions to the non-qualified deferred compensation plans were made after this date. The RSAs granted in February 2025 to the named executive officers and other eligible employees were structured such that the amount of the grant that would vest in each vesting period was commensurate with what the eligible employee generally received on a yearly basis in the previous year under the non-qualified deferred compensation plans. No shares of restricted stock vested during the year ended December 31, 2025. Information regarding “Compensation Committee Interlocks and Insider Participation” is set forth under such heading under “Executive Compensation” in the Company’s Proxy Statement and is incorporated herein by reference. Information regarding the “Compensation Committee Report” is set forth under the heading “Report of the Personnel Committee of the Board of Directors on Executive Compensation” under “Executive Compensation” in the Company’s Proxy Statement and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information regarding “Security Ownership of Certain Beneficial Owners and Management” is set forth under such heading of the Company’s Proxy Statement and is incorporated herein by reference. Information regarding “Equity Compensation Plan Information” is set forth under the heading “Executive Compensation – Compensation Discussion and Analysis – Qualified and Non-Qualified Retirement Programs” of the Company’s Proxy Statement and is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence Information regarding “Certain Relationships and Related Transactions, and Director Independence” is set forth under the heading “Corporate Governance – Certain Relationships and Related Person Transactions” and “ Annual Meeting Business Matters – Proposal No. 1 – Election of Directors” of the Company’s Proxy Statement and is incorporated herein by reference. 131 Table of Contents Item 14. Principal Accountant Fees and Services Information regarding “Principal Accountant Fees and Services” is set forth under the heading “Fees and Services of Independent Registered Public Accounting Firm” of the Company’s Proxy Statement and is incorporated herein by reference. PART IV Item 15. Exhibits and Financial Statement Schedules List of Financial Statements and Financial Statement Schedules (a) The following documents are filed as a part of this Form 10-K: (1) Financial Statements and (2) Financial Statement schedules required to be filed by Item 8 of this Form 10-K. (3) The following exhibits are required by Item 601 of Regulation S-K and are included as part of this Form 10-K: Exhibit Number Description 3.1 Amended and Restated Certificate of Incorporation filed on Registrant’s Form 10-K for the year ended December 31, 2022, and incorporated herein by reference. 3.2 Amended By-Laws , as amended February 11, 2025, filed as Exhibit 3.1 to the Registrant’s Form 8-K filed on February 13, 2025, and incorporated herein by reference. 3.3 Certificate of Designation for the Series A Junior Participating Preferred Stock (included as Exhibit A to the Rights Agreement between Farmers & Merchants Bancorp and Registrar and Transfer Company, dated as of August 5, 2008, filed as Exhibit 4.1 below), filed on the Registrant’s Form 10-Q for the quarter ended June 30, 2008, is incorporated herein by reference. 4.1 Amended and Restated Rights Agreement , dated as of April 5, 2024, between the Company and Computershare Trust, N.A., a federally chartered, limited purpose trust company (as successor to Registrar and Transfer Company), as Rights Agent, incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on April 5, 2024. 4.2 Description of F&M Bancorp Capital Stock , filed on Registrant’s Form 10-K for the year ended December 31, 2019. 10.1 Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Kent A. Steinwert , filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024, is incorporated herein by reference.** 10.2 Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Bart R. Olson , filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024, is incorporated herein by reference. ** 10.3 Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and Ryan J. Misasi , filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024, is incorporated herein by reference. ** 10.4 Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and David M. Zitterow , filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024, is incorporated herein by reference. ** 10.5 Amended and Restated Employment Agreement effective April 1, 2024, between Farmers & Merchants Bank of Central California and John W. Weubbe , filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024, is incorporated herein by reference. ** 10.6 Employment Agreement effective April 22, 2024, between Farmers & Merchants Bank of Central California and Thomas Bennett , filed on Registrant’s Form 10-Q for the quarter ended March 31, 2024, is incorporated herein by reference. ** 132 Table of Contents 10.7 Employment Agreement effective December 9, 2024, between Farmers & Merchants Bank of Central California and Troy D. Harper , filed on Registrant’s Form 10-K for the year ended December 31, 2024, is incorporated herein by reference.** 10.8 Executive Retirement Plan – Performance Component as amended on November 5, 2010, filed on Registrant’s Form 10-Q for the period ended September 30, 2010, is incorporated herein by reference. ** 10.9 Executive Retirement Plan – Retention Component as amended on November 5, 2010, filed on Registrant’s Form 10-Q for the period ended September 30, 2010, is incorporated herein by reference. ** 10.10 Executive Retirement Plan – Salary Component , amended and restated on November 29, 2014, filed on Registrant’s Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. ** 10.11 Executive Retirement Plan – Equity Component , amended and restated on November 29, 2014, filed on Registrant’s Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. ** 10.12 Senior Management Retention Plan , amended and restated on November 29, 2014, filed on Registrant’s Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. ** 10.13 Farmers & Merchants Bancorp 2025 Restricted Stock Retirement Plan , filed on Registrant’s Form 8-K filed on December 2, 2024, is incorporated herein by reference. ** 10.14 Farmers & Merchants Bancorp 2025 Restricted Stock Award Agreement , filed on Registrant’s Form 8-K filed on January 16, 2025, is incorporated herein by reference. ** 19 Insider Trading Policy , filed on Registrant’s Form 10-K for the year ended December 31, 2024, is incorporated herein by reference. 21 Subsidiaries of the Registrant , filed on Registrant’s Form 10-K for the year ended December 31, 2003, is incorporated herein by reference. 23.1 Consent of Independent Registered Public Accounting Firm (Crowe LLP)* 23.2 Consent of Independent Registered Public Accounting Firm (Eide Bailly LLP)* 31(a) Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* 31(b) Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* 32 Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* 101.INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) * Filed herewith ** Management contract or compensatory plan or arrangement Item 16. Form 10-K Summary None 133 Table of Contents 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 on March 13, 2026. FARMERS & MERCHANTS BANCORP /s/ Kent A. Steinwert Kent A. Steinwert Director, Chairman, President and Chief Executive Officer (Principal Executive Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on March 13, 2026, by the following persons on behalf of the registrant and in the capacities indicated. /s/ Kent A. Steinwert Director, Chairman, President and Chief Executive Officer Kent A. Steinwert (Principal Executive Officer) /s/ Bart R. Olson Executive Vice President and Chief Financial Officer Bart R. Olson (Principal Financial and Accounting Officer) /s/ Edward Corum, Jr. Director Edward Corum, Jr. /s/ Stephenson K. Green Director Stephenson K. Green /s/ Craig James Director Craig James /s/ Gary Long Director Gary Long /s/ Kevin Sanguinetti Director Kevin Sanguinetti /s/ Deborah E. Skinner Director Deborah E. Skinner 134