1

                        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 March 31, 1999

                                       OR
                  Transition Report Pursuant to Section 13 or 15(d)
             ----      of the Securities Exchange Act of 1934

               For the transition period from        to
                                             --------   --------

                          Commission 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.)

  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 Section 15(d) of the Securities Exchange Act of
1934 during the preceeding 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 the number of shares of each of the issuers classes of common stock, as
of the latest practicable date:

       
      Common Stock, No Par Value                                         1,300,000
- --------------------------------------------            -----------------------------------------
               Class                                         Outstanding as of April 1, 1999

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                       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-
                         March 31, 1999, December 31, 1998 and March 31, 1998                         1

                   Condensed Consolidated Statements of Net Earnings-
                         Three Months Ended March 31, 1999 and March 31, 1998                         2

                   Condensed Consolidated Statements of Cash Flows-
                         Three Months Ended March 31, 1999 and March 31, 1998                         3

                   Notes to Condensed Financial Statements                                            4

         Item 2.   Management's Discussion and Analysis of Financial Condition                      
                         and Results of Operations                                                    5

         PART II.  OTHER INFORMATION

         Item 6.   Exhibits and Reports on form 8K                                                    6

         Signatures                                                                                   7

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                                       1

                        FARMERS & MERCHANTS BANCORP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                            (in thousands of dollars)

                                                               March 31, 1999         December 31, 1998     March 31, 1998
                                                                                                      
ASSETS:
Cash and due from banks                                             $  13,407            $  18,549              $  14,502
Interest bearing deposits with banks                                      100                  100                    100
Federal funds sold                                                          0               19,045                  2,495
Investment Securities:
   U.S. Treasury                                                       15,096               17,112                 22,541
   U.S. Government                                                     54,298               49,567                 30,103
   State & political obligations                                       34,485               35,520                 26,241
   All others                                                          24,135               21,712                 14,749
Loans and leases                                                      411,580              407,721                407,606
Bank premises and equipment-net                                         9,644                9,430                  7,772
Accrued interest and other assets                                       8,009                7,113                  7,314
          TOTAL ASSETS                                              $ 570,754            $ 585,869              $ 533,423

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
    Deposits:
          Demand                                                    $  41,699            $  52,631              $  40,400
          Time and savings                                            450,104              459,552                424,243
   Federal funds purchased and securities
     sold under agreement to repurchase                                 7,994                2,916                  2,566
   Other borrowed money                                                11,044               11,240                 11,108
   Accrued interest and other liabilities                               4,268                4,180                  4,561
        Total Liabilities                                             515,109              530,519                482,878

SHAREHOLDERS' EQUITY:
   Common stock, no par value - authorized 1,500,000
          shares; issued  1,300,000 shares                             12,677               12,677                 12,677
   Undivided profits                                                   42,111               41,002                 36,897
   Accumulated other comprehensive income                                 857                1,671                    971
        Total Shareholders' Equity                                     55,645               55,350                 50,545

LIABILITIES AND SHAREHOLDERS' EQUITY                                $ 570,754            $ 585,869              $ 533,423

See Notes to Condensed Consolidated Unaudited Financial Statements.
Note: The December 31, 1997 Balance Sheet has been derived from the audited 
financial statements of that date.

  
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                                         2

                        FARMERS & MERCHANTS BANCORP, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                            (in thousands of dollars)

                                                                                              Three Months Ended
                                                                                       March 31, 1999       March 31, 1998
                                                                                                                
INTEREST INCOME:
   Loans and leases                                                                          $ 8,502             $ 8,909
   Investment Securities:
          U.S. Treasury securities                                                               245                 340
          Securities of U.S. Government agencies                                                 803                 482
          Obligations of states and political subdivisions                                       426                 338
          Other                                                                                  480                 373
   Federal funds                                                                                  66                  59
   Deposits in banks                                                                               1                   1
            Total Interest Income                                                             10,523              10,502
INTEREST EXPENSE:
   Deposits                                                                                    5,172               5,218
   Borrowed funds                                                                                226                 219
            Total Interest Expense                                                             5,398               5,437
NET INTEREST INCOME BEFORE
     PROVISION FOR LOAN LOSSES                                                                 5,125               5,065
PROVISION FOR LOAN LOSSES                                                                        416                 139
NET INTEREST INCOME AFTER
     PROVISION FOR LOAN LOSSES                                                                 4,709               4,926
OTHER INCOME:
   Service charges                                                                               316                 297
   Other                                                                                         515                 734
   Net securities gains (losses)                                                                   0                   -
                                                                                                 831               1,031
OTHER EXPENSES:
   Salaries and wages                                                                          1,463               1,274
   Pension and other employee benefits                                                           359                 297
   Occupancy expense (net)                                                                       133                 121
   Other operating expenses                                                                    1,542               1,269
                                                                                               3,497               2,961
INCOME BEFORE FEDERAL INCOME TAX                                                               2,043               2,996
FEDERAL INCOME TAXES                                                                             545                 875
NET INCOME                                                                                     1,498               2,121
OTHER COMPREHENSIVE INCOME (NET OF TAX):
   Unrealized gains (losses) on securities                                                      (814)                (32)
COMPREHENSIVE INCOME                                                                         $   684             $ 2,089
NET INCOME PER SHARE (Based upon
     weighted average number of shares outstanding of 1,300,000                              $  1.15             $  1.63
DIVIDENDS DECLARED                                                                           $  0.30             $  0.30

See Notes to Condensed Consolidated Unaudited Financial Statements.

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                                        3

                        FARMERS & MERCHANTS BANCORP, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                            (in thousands of dollars)

                                                                                                Three Months Ended
                                                                                       March 31, 1999       March 31, 1998
                                                                                                                
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                                             $  1,498               $  2,121
   Adjustments to Reconcile Net Income to Net
          Cash Provided by Operating Activities:
                Depreciation and amortization                                                  304                    171
                Premium amortization                                                             8                    116
                Discount amortization                                                           34                    (35)
                Provision for loan losses                                                      416                    139
                Provision for deferred income taxes                                             (9)                    (8)
                (Gain) loss on sale of fixed assets                                              -                      8
                (Gain) loss on sale of investment securities                                     -                      -
                Changes in Operating Assets and Liabilities:
                     Accrued interest receivable and other assets                             (887)                  (189)
                     Accrued interest payable and other liabilities                             88                    320
          Net Cash Provided by Operating Activities                                          1,452                  2,643
CASH FLOWS FROM INVESTING ACTIVITIES
   Capital expenditures                                                                       (518)                  (286)
   Proceeds from sale of fixed assets                                                            -                      -
   Proceeds from maturities of investment securities:                                       20,137                 41,558
   Proceeds from sale of investment securities:                                                  -                      -
   Purchase of investment securities-                                                      (25,092)               (35,155)
   Net increase in loans and leases                                                         (4,275)               (16,939)
          Net Cash Used by Investing Activities                                             (9,748)               (10,822)
CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits                                                                (20,380)                 3,344
   Net change in short-term borrowings                                                       5,078                    (32)
   Increase in long-term borrowings                                                              -                      -
   Payments on long-term borrowings                                                           (196)                  (184)
   Payments of dividends                                                                      (390)                  (650)
          Net Cash Provided by Financing Activities                                        (15,888)                 2,478
Net change in cash and cash equivalents                                                    (24,184)                (5,701)
Cash and cash equivalents - Beginning of year                                               37,694                 22,798
CASH AND CASH EQUIVALENTS - END OF THE YEAR                                               $ 13,510               $ 17,097

RECONCILIATION OF CASH AND CASH EQUIVALENTS:
  Cash and cash due from banks                                                            $ 13,407               $ 14,502
  Interest bearing deposits                                                                    100                    100
  Federal funds sold                                                                             -                  2,495
                                                                                          $ 13,507               $ 17,097

See Notes to Condensed Consolidated Unaudited Financial Statements.

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                                        4

                        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 three months ended March 31, 1999
                    are not necessarily indicative of the results that are
                    expected for the year ended December 31, 1999. 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, 1998.

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                                       5

ITEM        2      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
                   AND RESULTS OF OPERATIONS

                   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 AND CAPITAL RESOURCES

                   Liquidity for the nine months ended March 31, 1999 comes
                   primarily from net income from operations of $1.5 million.
                   This compares with net income of $2.1 million for the same
                   period in 1998. In addition the excess in Federal Funds
                   sold was used to help fund the additional loan growth.

                   The principal uses of these funds were for granting loans.
                   Loans as of March 31, 1999 were $411.5 million compared to
                   $407.7 million as of December 31, 1998, a $3.8 million or
                   1% increase after reclassification of $1.7 million of
                   commercial paper from the loan category to other
                   investments. December 31, 1998 and March 30, 1998 loans and
                   investments have been restated to reflect this change in
                   classification.

                   Capital expenditures amounted to $243 million for the first
                   three months of 1999.

                   The following is a summary of five capital ratios as they are
                   calculated from the March 31, 1999 financial statements:

                                                                           
                             Primary Ratio                               10.71%
                             Total Capital Ratio                         12.62%
                             Risk Based Capital Tier 1                   13.92%
                             Risk Based Capital Tier 2                   18.22%
                             Stockholders' Equity/Total Assets            9.75%

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                                        6

                                     PART II

ITEM 6        EXHIBIT AND REPORTS ON FORM 8-K

              (A)    The following documents are filed as part of this report:

                         Exhibit No.                       Description
                            27                       Financial Data Schedule

              (B)    Reports on Form 8-K

                     No reports on Form 8-K were filed by the registrant during
                     the quarter ended March 31, 1998.

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                                       7

                                   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:       May 10, 1999                     By:  /s/ Joe E. Crossgrove
                                                  Joe E. Crossgrove
                                                  President and Cashier

Date:       May 10, 1999                     By:  /s/ Randal H. Schroeder
                                                  Randal H. Schroeder
                                                  Asst. Vice-President
                                                  and Chief Operating Officer

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                                  EXHIBIT INDEX

EXHIBIT NO.                                     DESCRIPTION
   27                                      Financial Data Schedule

  

 9
 1,000

                   6-MOS
                          DEC-31-1998
                             JAN-01-1998
                               JUN-30-1998
                                          13,407
                             100
                                     0
                                     0
                    128,014
                               0
                                 0
                                        411,580
                                      6,140
                                 570,754
                                     491,803
                                     7,994
                              4,268
                                     11,044
                                0
                                          0
                                        12,677
                                      42,968
                 570,754
                                  8,502
                                1,954
                                    67
                                10,523
                               5,172
                                 226
                            5,125
                                      416
                                   0
                                  3,497
                                  2,043
                       1,498
                                      0
                                            0
                                     1,498
                                     1.15
                                     1.15
                                       0
                                      7,731
                                     6,222
                                     0
                                 13,953
                                 5,850
                                    1,324
                                       709
                                5,651
                             5,651
                                  0
                              0