<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>k04730e10vq.txt
<DESCRIPTION>QUARTERLY REPORT FOR PERIOD ENDED 03/31/2006
<TEXT>
<PAGE>
                       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, 2006

                                       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)

<TABLE>
<S>                                                          <C>
                     OHIO                                         34-1469491
       (State or other jurisdiction of                         (I.R.S Employer
        incorporation or organization)                       Identification No.)
</TABLE>

<TABLE>
<S>                                                               <C>
307-11 North Defiance Street, Archbold, Ohio                        43502
  (Address of principal executive offices)                        (Zip Code)
</TABLE>

                                 (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 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 checkmark whether the registrant is an accelerated filer, or a
non-accelerated filer. See definition of "accelerated filer and large
accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):
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:

<TABLE>
<S>                                             <C>
Common Stock, No Par Value                                  1,299,624
           Class                                Outstanding as of April 26, 2006
</TABLE>

<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10Q

                        FARMERS & MERCHANTS BANCORP, INC.
                                      INDEX

<TABLE>
<CAPTION>
Form 10-Q Items                                                             Page
---------------                                                            -----
<S>                                                                        <C>
PART I.     FINANCIAL INFORMATION

Item 1.     Financial Statements (Unaudited)

            Condensed Consolidated Balance Sheets-
               March 31, 2006, December 31, 2005                             1

            Condensed Consolidated Statements of Net Income-
               Three Months Ended March 31, 2006 and March 31, 2005          2

            Condensed Consolidated Statements of Cash Flows-
               Three Months Ended March 31, 2006 and March 31, 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.     Quantitative and Qualitative Disclosures About Market Risk       7

Item 4.     Controls and Procedures                                          8

PART II.    OTHER INFORMATION

Item 1.     Legal Proceedings                                                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
</TABLE>

<PAGE>

ITEM 1 FINANCIAL STATEMENTS

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

<TABLE>
<CAPTION>
                                                       Mar 31, 2006   Dec 31, 2005
                                                       ------------   ------------
<S>                                                    <C>            <C>
ASSETS:
Cash and due from banks                                  $ 14,123       $ 20,056
Interest bearing deposits with banks                          297          2,533
Federal funds sold                                          1,682              0
Investment Securities:
   U.S. Treasury                                            2,359          2,355
   U.S. Government                                        129,436        138,358
   State & political obligations                           57,634         62,891
   All others                                               3,892          3,838
Loans and leases (Net of reserve for loan losses of
   $5,344 and $5,388  respectively)                       472,831        458,704
Bank premises and equipment-net                            14,657         14,874
Accrued interest and other assets                          16,076         17,336
                                                         --------       --------
      TOTAL ASSETS                                       $712,987       $720,945
                                                         ========       ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
   Deposits:
      Noninterest bearing                                $ 49,202       $ 64,791
      Interest bearing                                    514,281        511,506
   Federal funds purchased and securities
      sold under agreement to repurchase                   25,436         21,158
   Other borrowed money                                    34,758         34,952
   Accrued interest and other liabilities                   5,537          5,950
                                                         --------       --------
      Total Liabilities                                   629,214        638,357
SHAREHOLDERS' EQUITY:
   Common stock, no par value - authorized 1,500,000
      shares; issued 1,300,000 shares                      12,677         12,677
   Treasury Stock - 376 shares, Unearned stock
      awards 980 shares                                      (148)          (115)
   Undivided profits                                       73,301         71,933
   Accumulated other comprehensive income (expense)        (2,057)        (1,907)
                                                         --------       --------
      Total Shareholders' Equity                           83,773         82,588
LIABILITIES AND SHAREHOLDERS' EQUITY                     $712,987       $720,945
                                                         ========       ========
</TABLE>

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

<PAGE>

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

<TABLE>
<CAPTION>
                                                            Three Months Ended
                                                         -----------------------
                                                           Mar 31,      Mar 31,
                                                            2006         2005
                                                         ----------   ----------
<S>                                                      <C>          <C>
INTEREST INCOME:
   Loans and leases                                      $    8,088   $    7,724
   Investment Securities:
      U.S. Treasury securities                                   18           35
      Securities of U.S. Government agencies                  1,250          932
      Obligations of states and political subdivisions          581          504
      Other                                                      58           40
   Federal funds                                                 69            1
   Deposits in banks                                              3           49
                                                         ----------   ----------
      Total Interest Income                                  10,067        9,285
INTEREST EXPENSE:
   Deposits                                                   3,569        2,682
   Borrowed funds                                               591          336
                                                         ----------   ----------
      Total Interest Expense                                  4,160        3,018
                                                         ----------   ----------
NET INTEREST INCOME BEFORE
   PROVISION FOR LOAN LOSSES                                  5,907        6,267
PROVISION FOR LOAN LOSSES                                       (50)          96
                                                         ----------   ----------
NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                                  5,957        6,171
OTHER INCOME:
   Service charges                                              794          687
   Other                                                        610          592
   Net securities gains                                          20           --
                                                         ----------   ----------
                                                              1,424        1,279
OTHER EXPENSES:
   Salaries and wages                                         2,000        2,047
   Pension and other employee benefits                          629          537
   Occupancy expense (net)                                      135          163
   Other operating expenses                                   1,852        1,958
                                                         ----------   ----------
                                                              4,616        4,705
                                                         ----------   ----------
INCOME BEFORE FEDERAL INCOME TAX                              2,765        2,745
FEDERAL INCOME TAXES                                            747          712
                                                         ----------   ----------
NET INCOME                                                    2,018        2,033
                                                         ==========   ==========
OTHER COMPREHENSIVE INCOME (NET OF TAX):
   Unrealized gains (losses) on securities                     (150)      (1,475)
COMPREHENSIVE INCOME (EXPENSE)                           $    1,868   $      558
NET INCOME PER SHARE                                     $     1.55         1.56
   Based upon average weighted shares outstanding of:     1,298,980    1,300,000
DIVIDENDS DECLARED                                       $     0.50   $     0.45
</TABLE>

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

<PAGE>

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

<TABLE>
<CAPTION>
                                                              Three Months Ended
                                                             -------------------
                                                              Mar 31,    Mar 31,
                                                               2006       2005
                                                             --------   --------
<S>                                                          <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                $  2,018   $  2,033
   Adjustments to Reconcile Net Income to Net
      Cash Provided by Operating Activities:
         Depreciation and amortization                            276        302
         Premium amortization                                     228        314
         Discount amortization                                    (81)       (25)
         Provision for loan losses                                (50)        96
         Provision (Benefit) for deferred income taxes             77        760
         Gain (Loss) on sale of fixed assets                      (32)         4
         Gain on sale of investment securities                    (20)        --
         Changes in Operating Assets and Liabilities:
            Accrued interest receivable and other assets        1,452       (699)
            Accrued interest payable and other liabilities       (413)      (295)
                                                             --------   --------
      Net Cash Provided by Operating Activities                 3,455      2,490
CASH FLOWS FROM INVESTING ACTIVITIES
   Capital expenditures                                           (27)      (212)
   Net (increase) decrease in Federal Funds Sold               (1,682)
   Proceeds from sale of fixed assets                                         --
   Proceeds from maturities of investment securities:          14,106      4,870
   Proceeds from sale of investment securities:                 4,777         --
   Purchase of investment securities                           (5,114)   (12,565)
   Net (increase) decrease in loans and leases                (14,077)     3,204
                                                             --------   --------
      Net Cash Provided (Used) by Investing Activities         (2,017)    (4,703)
CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease) in deposits                        (12,814)    (3,268)
   Net change in short-term borrowings                          4,278       (248)
   Increase in long-term borrowings                                --         --
   Payments on long-term borrowings                              (194)      (211)
   Purchase of Treasury Stock                                     (33)        --
   Payments of dividends                                         (844)      (715)
                                                             --------   --------
      Net Cash Provided (Used) by Financing Activities         (9,607)    (4,442)
                                                             --------   --------
Net change in cash and cash equivalents                        (8,169)    (6,655)
Cash and cash equivalents - Beginning of year                  22,589     24,256
                                                             --------   --------
CASH AND CASH EQUIVALENTS - END OF THE YEAR                  $ 14,420   $ 17,601
                                                             ========   ========
RECONCILIATION OF CASH AND CASH EQUIVALENTS:
   Cash and cash due from banks                              $ 14,123   $ 14,843
   Interest bearing deposits                                      297      2,758
                                                             --------   --------
                                                             $ 14,420   $ 17,601
                                                             ========   ========
</TABLE>

See Notes to Condensed Consolidated Unaudited Financial Statements.


                                        3

<PAGE>

                        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, 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.

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

<PAGE>

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

     The bank experienced an improvement in loan growth during the first quarter
     with loans increasing approximately $14.1 million. The loan increase was
     funded by utilizing cash of $6.5 million and decreasing the investment
     portfolio by $14 million. The loan to deposit ratio increased to 83.9% at
     quarter end from 82.1% as of December 31, 2005. Both sides of the
     percentage were impacted - one, the loan growth and the other, a decrease
     in deposits of almost $13 million during the first quarter.

     Loan growth was accomplished through an increase in purchased
     participations with other banks and a renewed focus on the bank's customer
     calling program. Loan quality remained strong, evidenced by the decreased
     need for additional loan provision due to improved past due ratios and
     decreased non-performing loans. The largest area of growth occurred in the
     commercial real estate portfolio, growing well over $26.5 million in the
     first quarter, to a quarter ending balance of $140 million. This
     represented new loans through the participations and a couple of the Bank's
     customers expanding their operations through construction of additional
     facilities. The next largest area of fluctuataion was in the consumer real
     estate which decreased by $11.8 million in the first quarter. Though the
     bank has increased the volume of home equity loans, the balances have not
     been utilized. Customers have looked to lock in rates, moving from variable
     to fixed rates loans in the secondary market. The remainder of the loan
     portfolio experienced only minor fluctuations.

     The decrease in deposits was expected as the bank had a large customer
     balance during the fourth quarter of 2005 that was known to be temporary.
     The largest decrease shows in the transaction accounts of $10 million.
     Certificates of deposit also decreased $5.5 million as the bank offered
     only promotional CD's. This strategy was used to lessen the increased cost
     of funds being driven by the Federal Reserve Federal Funds rate increases.
     The flat yield curve has also made deposit pricing difficult.

     The tightening of the net interest rate margin during the first quarter has
     caused the bank to look closely at its operating efficiency. With net
     interest income decreasing, as the cost of funds have increased higher than
     the yield on the earning assets, non-interest items are coming under
     scrutiny. The success of the addition of non-interest income in 2005 was
     accomplished by providing Overdraft Privilege. The Company continues to
     look for opportunities to provide services our customers want that aid in
     the profitability of the Company also. The bank has also focused its
     attention on the non-interest expense side of the income statement.


                                       5

<PAGE>

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

     MATERIAL CHANGES IN RESULTS OF OPERATIONS

     Management has reviewed allocation of staff and has accomplished reduction
     through normal attrition. In March, the transaction accounts were
     restructured to add simplicity to the portfolio. Types of checking accounts
     have been decreased from fifteen to a basic four. This aids in customer
     understanding and improves the marketing of the accounts. A conversion on
     existing accounts takes place during April.

     The income statement shows the effects of the tightening of our interest
     margin and decrease in asset size. Net interest income is lower by $360
     thousand for the three months ended March 2006 compared to March 2005. The
     tightening of the margin has mirrored the interest rate risk testing done
     throughout 2005 and 2006.

     The Company's net income after tax shows a slight decrease of $15 thousand
     from same period last year. A $50 thousand reversal in the loan loss
     provision for 2006 creates a $146 thousand swing to income as March 2005
     had a $96 thousand expense. The Company does not foresee the reversals
     continuing in 2006 to the extent that it had in 2005 ($425 thousand for the
     full year). An increase in the allowance due to loan growth is expected to
     outpace any reduction in the allowance caused from asset quality
     improvement.

     The Company purchased 356 shares of stock during the first quarter,
     impacting the outstanding shares during the quarter. Additional purchases
     are planned to provide the Company share to use for the employee stock
     award plan. The Board of Directors had approved additional purchases up to
     5,000 shares.

     The company continues to be well-capitalized as the capital ratios below
     show:

<TABLE>
<S>                                 <C>
Primary Ratio                       12.84%
Tier I Leverage Ratio               11.97%
Risk Based Capital Tier 1           16.73%
Total Risk Based Capital            17.94%
Stockholders' Equity/Total Assets   11.75%
</TABLE>


                                       6

<PAGE>

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT 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

<TABLE>
<CAPTION>
Net Interest     % Change to      Rate        Rate       Cumulative    % Change to
Margin (Ratio)    Flat Rate    Direction   Changes by   Total ($000)    Flat Rate
--------------   -----------   ---------   ----------   ------------   -----------
<S>              <C>           <C>         <C>          <C>            <C>
     3.69%         -6.059%      Rising        3.000%        6,537        -5.868%
     3.77%         -4.044%      Rising        2.000%        6,673        -3.913%
     3.85%         -2.058%      Rising        1.000%        5,806        -1.986%
     3.93%          0.000%      Flat          0.000%        6,944         0.000%
     3.95%          0.685%      Falling      -1.000%        6,978         0.481%
     3.89%         -0.868%      Falling      -2.000%        6,849        -1.374%
     3.82%         -2.653%      Falling      -3.000%        6,700        -3.522%
</TABLE>

     With the Federal Reserve Federal Funds rate increases over the last year,
     the rates have risen high enough that the Bank shows an improvement in the
     shock report should rates fall 100 basis points. This is because more
     liabilities could actually adjust down 100 basis points than before. A 200
     basis point negative swing however, is still more of a swing than the rate
     on many of the liabilities. There can be no adjustment below paying 0% on a
     deposit. The Company can afford to take some additional risk with minimal
     consequences as the chart shows. The concern lies in the flat rate
     continuing to decrease as compared to previous quarters. The previous shock
     reports have consistantly shown a tightening of the Company margin would
     occur as rates increased. With the current outlook for additional rate
     increases by the Federal Reserve, the Company will continue to loose net
     interest income. Net interest margin shows 3.93% as of end of quarter
     compared to showing 4.04% as of December 31, 2005 in the predicted flat
     rate environment.

     The net interest margin represents the forecasted twelve month margin. The
     predictions to the effect of an interest rate increase in the short term
     have occurred. The current margin has tightened throughout 2005 and 2006.
     The Company is incorporating a strategy to improve the profitability (net
     interest margin) through growth.


                                       7
<PAGE>

ITEM 4 CONTROLS AND PROCEDURES

     As of March 31, 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 March 31, 2006.
     There have been no significant changes in the Company's internal controls
     that occurred for the quarter ended March 31, 2006.

PART II

ITEM 1 LEGAL PROCEEDINGS

     None

     1A RISK FACTORS

     None

ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

<TABLE>
<CAPTION>
                                                       (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
 ------    -------------------   -----------------   -----------------------------   -------------------------------
<S>        <C>                   <C>                 <C>                             <C>
03/01/06
   to              356                 $91.50                     356                             4,644
03/31/06
</TABLE>

     The Board of Directors approved the repurchase of 5,000 shares of its
     outstanding shares of common stock on December 19, 2005. The purchases can
     be conducted throughout 2006.

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  Articles of Incorporation of the Registrant (incorporated by reference
          to Registrant's Quarterly Report on Form 10-Q filed with the
          Commission on May 10, 2004)

     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

<PAGE>

                                   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: April 26, 2006                    By: /s/ Paul S. Siebenmorgen
                                            ------------------------------------
                                            Paul S. Siebenmorgen
                                            President and CEO


Date: April 26,2006                     By: /s/ Barbara J. Britenriker
                                            ------------------------------------
                                            Barbara J. Britenriker
                                            Exec. Vice-President and CFO


                                        9

<PAGE>

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT NO.                           EXHIBIT DESCRIPTION
-----------                           -------------------
<S>           <C>
     3.1      Articles of Incorporation of the Registrant (incorporated by
              reference to Registrant's Quarterly Report on Form 10-Q filed with
              the Commission on May 10, 2004)
     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
</TABLE>
</TEXT>
</DOCUMENT>
