Farmers & Merchants Bancorp (FMCB) Authorizes $45 Million Increase to Share Repurchase Program

Rhea-AI Summary

Farmers & Merchants Bancorp (OTCQX: FMCB) has authorized a $45 million increase to its share repurchase program, bringing the total to $57.6 million, with an extension through December 31, 2027. Since January 2021, FMCB has repurchased 97,376 shares, representing approximately 12.3% of outstanding shares.

The company maintains strong capital positions with a tier 1 leverage ratio of 11.18%, CET1 ratio of 13.88%, and total capital ratio of 15.36% as of June 30, 2025. The total allowance for credit losses stands at 2.09%. The expanded program reflects FMCB's robust financial performance and aims to enhance shareholder returns through ownership concentration while providing additional liquidity.

Positive

• Significant $45 million increase to share repurchase program, totaling $57.6 million
• Strong track record of share repurchases with 12.3% of shares bought back since January 2021
• Robust capital position with 'well capitalized' regulatory classification
• Record earnings enabling share repurchases while maintaining strong dividend payments

Negative

• None.

LODI, Calif., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), announced that, effective immediately, the Company has authorized an increase of $45.0 million to the existing share repurchase program along with an extension of the program through December 31, 2027. The increase will bring the total of the share repurchase program to $57.6 million.

The Company has utilized a share repurchase program for many years. Just since January 2021 the Company has repurchased 97,376 shares or approximately 12.3% of the shares outstanding through August 12, 2025. Repurchases are made from time to time at market prices through open market purchases, trading plans established in accordance with SEC rules and privately negotiated transactions.  

Kent A. Steinwert, Chairman, President and Chief Executive Officer stated, “Our record earnings over the past several years have allowed us to repurchase shares, increase our cash dividend payment per share, and maintain a strong capital position. Share repurchases provide an important tool for managing capital levels, improving shareholder returns through the concentration of ownership, and providing additional liquidity for shareholders to sell shares. The increase and extension of our existing program provides the opportunity to repurchase additional shares over the next two years and highlights the Company’s strong financial performance and capital position.”

The Company’s tier 1 leverage capital ratio was 11.18% at June 30, 2025, while the common equity tier 1 ratio (CET1) was 13.88% and the total capital ratio was 15.36%, resulting in the highest possible regulatory classification of “well capitalized.” In addition, our total allowance for credit losses was 2.09% as of June 30, 2025.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp, trades on the OTCQX under the symbol FMCB, and is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, which proudly serves California through 33 convenient locations. F&M Bank is financially strong, with $5.5 billion in assets, and is consistently recognized as one of the nation's safest banks by national bank rating firms. The Bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, longer than any other commercial bank in the State of California.

Farmers & Merchants Bancorp has paid dividends for 90 consecutive years and has increased dividends for 60 consecutive years. As a result, Farmers & Merchants Bancorp is a member of a select group of only 55 publicly traded companies referred to as “Dividend Kings,” and is ranked 17^th in that group based on consecutive years of dividend increases. A “Dividend King” is a stock with 50 or more consecutive years of dividend increase.

In July 2025, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #3 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2024. In July 2024, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #2 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2023. In July 2023, the Bank was named by Bank Director’s Magazine as the #1 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2022.

In April 2024, F&M Bank was ranked 6^th on Forbes Magazine’s list of "America’s Best Banks" in 2023. Forbes’ annual “America’s Best Banks” list looks at ten metrics measuring growth, credit quality, profitability, and capital for the 2023 calendar year, as well as stock performance in the 12 months through March 18, 2024.

In December 2023, F&M Bank was ranked 4^th on S&P Global Market Intelligence's “Top 50 List of Best-Performing Community Banks” in the US with assets between $3.0 billion and $10.0 billion for 2023. S&P Global Market Intelligence ranks financial institutions based on several key factors including financial returns, growth, and balance sheet risk profile.

In October 2021, F&M Bank was named the “Best Community Bank in California” by Newsweek magazine. Newsweek’s ranking recognizes those financial institutions that best serve their customers’ needs in each state. This recognition speaks to the superior customer service the F&M Bank team members provide to its clients.

F&M Bank is the 18^th largest bank lender to agriculture in the United States. F&M Bank operates in the mid-Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east region of the San Francisco Bay Area, including Napa, Alameda and Contra Costa counties.

F&M Bank was inducted into the National Agriculture Science Center’s “Ag Hall of Fame” at the end of 2021 for providing resources, financial advice, guidance, and support to the agribusiness communities as well as to students in the next generation of agribusiness workforce. F&M Bank is dedicated to helping California remain the premier agricultural region in the world and will continue to work with the next generation of farmers, ranchers, and processors. F&M Bank remains committed to servicing the needs of agribusiness in California as has been the case since its founding over 109 years ago.

F&M Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of "Outstanding" in their last Community Reinvestment Act (“CRA”) evaluation.

Forward-Looking Statements

This press release may contain certain forward-looking statements that are based on management's current expectations regarding the Company’s financial performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements in this press release include, without limitation, statements regarding earnings performance and the frequency and amount of future dividend payments (if any). Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from results expressed or implied by such forward-looking statements. Such risk factors include, among others: the effects of and changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board and their effects on inflation risk; political and economic uncertainty, including any decline in global, domestic or local economic conditions or the stability of credit and financial markets; and other relevant risks detailed in the Company’s Form 10-K, Form 10-Qs, and various other securities law filings made periodically by the Company, copies of which are available from the Company’s website. All such factors are difficult to predict and are beyond the Company's ability to control or predict. There also may be additional risks that the Company does not presently know, or that the Company currently believes to be immaterial, that could also cause actual results to differ materially and adversely from those contained in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release or otherwise, except as may be required by applicable law.

For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.

Investor Relations Contact

Farmers & Merchants Bancorp
Bart R. Olson
Executive Vice President and Chief Financial Officer

Phone: 209-367-2485
bolson@fmbonline.com

FAQ

What is the new total amount of FMCB's share repurchase program?

FMCB's share repurchase program total has increased to $57.6 million after a $45 million addition to the existing program.

How long will FMCB's share repurchase program run?

The share repurchase program has been extended through December 31, 2027.

What percentage of shares has FMCB repurchased since January 2021?

FMCB has repurchased 97,376 shares, representing approximately 12.3% of outstanding shares since January 2021.

What are FMCB's current capital ratios as of June 2025?

As of June 30, 2025, FMCB maintained a tier 1 leverage ratio of 11.18%, CET1 ratio of 13.88%, and total capital ratio of 15.36%.

How will FMCB execute its share repurchase program?

FMCB will execute repurchases through open market purchases, trading plans in accordance with SEC rules, and privately negotiated transactions at market prices.