EXHIBIT 99

[COMPANY LOGO]
                                                      NEWS
                                                      RELEASE

FOR IMMEDIATE RELEASE                                 CONTACT:
JANUARY 2, 2008                                       LYDIA A. HUBER
                                                      CORPORATE SECRETARY
                                                      (419) 446-2501

     FARMERS & MERCHANTS BANCORP, INC. COMPLETES ACQUISITION OF KNISELY BANK

ARCHBOLD, OHIO January 2, 2008 -- Farmers & Merchants Bancorp, Inc. (OTC
Bulletin Board: FMAO) (the "Company) announced today that on December 31, 2007,
it consummated the acquisition of Knisely Bank as a result of the merger of
Knisely Bank with and into The Farmers & Merchants State Bank, the Company's
wholly owned subsidiary bank. Knisely Bank had been a subsidiary of Knisely
Financial Corp., a privately held bank holding company based in Butler, Indiana.
The transaction at closing was valued at approximately $10.4 million. Knisely
Bank, reported balance sheet assets of approximately $46.7 million at September
30, 2007. Following the acquisition, the assets of the Farmers & Merchants
Bancorp, Inc. total in excess of $790 million. Knisely Bank's locations in
Butler and Auburn will operate as branches of The Farmers & Merchants State Bank
and a new ATM facility will be installed at Knisely Bank's former St. Joe,
Indiana branch site.

"The expanded number of F&M locations will allow us to efficiently serve our new
customers in Northeastern, Indiana," said Paul Siebenmorgen, President and CEO
of the Company and The Farmers & Merchants State Bank. "They complement and
enhance F&M's Ohio-based locations". In addition to giving F&M two new full
service branch locations, the Knisely Bank acquisition should facilitate
operating efficiencies, generate economies of scale, create higher loan limits
and new loan products that could lead to increased lending opportunities for the
areas previously served by Knisely Bank, noted Siebenmorgen.

ABOUT FARMERS & MERCHANTS BANCORP, INC.

With assets in excess of $790 million as of December 31, 2007, Farmers &
Merchants Bancorp, Inc. is a bank holding company, whose banking subsidiary The
Farmers & Merchants State Bank, provides commercial banking, retail banking and
other financial services through its now 18 offices with locations in Fulton,
Williams, Henry, Defiance, Lucas and Wood counties of Northwest Ohio and DeKalb
County, Indiana.

SAFE HARBOR STATEMENT

      Farmers & Merchants Bancorp, Inc. ("F&M") wishes to take advantage of the
Safe Harbor provisions included in the Private Securities Litigation Reform Act
of 1995. Statements by F&M, including management's expectations and comments,
may not be based on historical facts and are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as



amended and Section 21B of the Securities Act of 1934, as amended. Actual
results could vary materially depending on risks and uncertainties inherent in
general and local banking conditions, competitive factors specific to markets in
which F&M and its subsidiaries operate, future interest rate levels, legislative
and regulatory decisions or capital market conditions. F&M assumes no
responsibility to update this information. For more details, please refer to
F&M's SEC filings, including its most recent Annual Report on Form 10-K and
quarterly reports on Form 10-Q. Such filings can be viewed at the SEC's website,
www.sec.gov.