FARMERS & MERCHANTS BANCORP (FMCB) REPORTS RECORD SECOND QUARTER AND YEAR-TO-DATE EARNINGS

(Lodi, California, July 26, 2021) – Farmers & Merchants Bancorp (OTCQX: FMCB) today announced
record net income for the second quarter and first half of 2021.

For the quarter ended June 30, 2021, Farmers & Merchants Bancorp reported net income of $16.2
million, an increase of 12.9% from net income of $14.3 million in the second quarter of 2020. On a per
share basis, earnings were $20.45, up 13.4% when compared to $18.03 per weighted average share
of common stock outstanding in the second quarter of 2020. Additionally, the Company’s net income
over the trailing twelve months was $63.2 million ($79.83 per share as reported), as compared to $56.8
million ($71.82 per share as reported) for the same period in the prior year.

Net interest income for the quarter ended June 30, 2021 was $39.8 million, up 12.5% over the same
quarter in 2020. The Company’s net interest margin on a tax equivalent basis was 3.52% in the second
quarter of 2021, compared to 3.78% in the second quarter of 2020. The net interest margin in the
second quarter of 2021 continued to be impacted by the overall decline in market interest rates. Return
on average assets for the second quarter of 2021 was 1.34%, and return on average equity was
14.91%. During the quarter the Company declared a dividend of $7.50 per share or $5.9 million, an
increase over the $7.25 per share paid in the same period of 2020. The Company has now paid a
dividend for 86 consecutive years and has increased the dividend for 56 consecutive years. Farmers
& Merchants Bancorp remains one of only 32 publicly traded companies designated as a Dividend King
by Sure Dividend.

Total assets at quarter-end were $4.9 billion, up 15.7% from the second quarter of 2020. Total loans
and leases outstanding reached $3.0 billion at June 30, 2021, and excluding SBA PPP loans, grew
$148.4 million, or 5.5%, since the end of second quarter 2020. Importantly, the Company has been
successful in substantially replacing forgiven and repaid SBA PPP loans with new, higher yielding loans.
Total deposits of $4.4 billion increased 16.7% from June 30, 2020. At quarter-end, total checking
deposits represented 60.0% of total deposits compared to 55.3% at June 30, 2020.

The Company’s tier 1 leverage capital ratio was 9.00% at June 30, 2021, and the total capital ratio was
13.25%, resulting in the highest possible regulatory classification of “well capitalized.” Had the Company
not participated in the SBA PPP program, the net result would have been a 41 basis point improvement
to the June 30, 2021 tier 1 leverage capital ratio, increasing the ratio to 9.41%. The Company’s credit
quality remained strong with only $548,000 of non-performing loans and leases at June 30, 2021 and
a negligible delinquency ratio of only 0.019% of total loans and leases. Of the $278.1 million of loans
we restructured under the CARES Act guidelines, only $176,400 has not yet returned to payment status,
whether interest-only or full principal and interest. The Company’s allowance for credit losses was $60.2
million, or 1.99% of total loans and leases (2.10% exclusive of government fully guaranteed loans issued
under the SBA’s Paycheck Protection Program).

Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer,
stated, “We are very pleased with the Company’s record second quarter net income of $16.2 million in 2021. We remain focused on generating high quality loan growth while at the same time protecting loan
pricing. These efforts have paid-off handsomely, as our core loan portfolio (exclusive of SBA PPP
loans) grew 5.5% year-over-year, something that very few banks can report. Additionally, our efforts to
protect our net interest margin in what is a very difficult interest rate and competitive environment, when
combined with continued strong credit quality and careful expense control, allowed us to report strong
financial results.

During this difficult time, we have kept all of our branches open and maintained regular business hours.
Our staffing levels have remained stable during the COVID-19 crisis, due to our rigorous adherence to
the California public health guidelines.

We continued to participate in the federal government’s Small Business Administration’s Paycheck
Protection Program (“PPP”), having funded $494.9 million of loans for over 2,000 customers since the
program’s inception (as of June 30, 2021, $167.7 million of these loans remain outstanding). We have
generated $17.9 million of fees for originating these loans, and as of June 30, 2021, $6.2 million of
these fees remain to be accreted to income.

From a financial perspective, as reflected by the following June 30, 2021 measures, we remain in a
strong financial position as we face this period of ongoing economic uncertainty:
 ROAA of 1.34% and ROAE of 14.91% in second quarter 2021;
 Liquidity of $1.6 billion consisting of Fed Funds Sold and high quality Investment Securities;
 Strong Asset Quality as reflected by only $548,000 of non-performing loans, and a negligible
delinquency ratio of 0.019% of total loans;
 Allowance for Credit Losses of $60.2 million or 1.99% of total loans and leases (2.10%
exclusive of government fully guaranteed loans issued under the SBA’s Paycheck Protection
Program); and
 Risk Based Capital Ratio of 13.25%.

Despite current low market interest rates and the potential for continuing economic impacts caused by
the COVID-19 health crisis, we remain cautiously optimistic about the outlook for Farmers & Merchants
Bancorp’s financial results in 2021. With increasing vaccination levels in our communities we are
hopeful that the worst of COVID-19 is behind us and that all of our market segments will once again
grow and prosper economically. Importantly, we remain cautious and will continue to provide support
and assistance to our employees, shareholders, customers and communities during this difficult time.”