Farmers & Merchants Bancorp (FMCB) Increases Cash Dividend for the 60th Consecutive Year

Rhea-AI Summary

Farmers & Merchants Bancorp (OTCQX: FMCB) has announced a mid-year cash dividend increase of 5.7% to $9.30 per share, payable on July 1, 2025. The company reported strong financial results with net income of $23.0 million for Q1 2025, or $32.86 per diluted share, up from $22.7 million in Q1 2024. The trailing twelve-month net income reached $88.7 million with diluted EPS of $123.32, marking a 5.97% increase year-over-year.

The bank demonstrated solid credit quality with only $193,000 in non-accrual loans and a 0.01% delinquency ratio. Total assets stood at $5.7 billion, with a common equity tier 1 ratio of 13.75%. This marks FMCB's 60th consecutive year of dividend increases and 90th consecutive year of paying cash dividends, maintaining its status as a "Dividend King" ranked 17th among 55 companies.

Positive

• Increased dividend by 5.7% to $9.30 per share
• Net income grew to $88.7 million in trailing twelve months, up from $87.5 million
• Diluted EPS increased 5.97% to $123.32 in trailing twelve months
• Strong credit quality with minimal non-accrual loans ($193,000) and 0.01% delinquency ratio
• Well-capitalized with 13.75% common equity tier 1 ratio

Negative

• None.

LODI, Calif., May 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”), the Board of Directors declared a mid-year cash dividend of $9.30 per share, an increase of 5.7% over the $8.80 per share paid in July of 2024. The cash dividend is payable on July 1, 2025, to shareholders of record on June 10, 2025. Net income over the trailing twelve months was $88.7 million compared with $87.5 million for the same trailing period a year earlier. Diluted earnings per share over the trailing twelve months totaled $123.32, up 5.97% compared with $116.37 for the same trailing period a year ago.

For the quarter ended March 31, 2025, Farmers & Merchants Bancorp reported net income of $23.0 million, or $32.86 per diluted common share, compared with $22.7 million, or $30.56 per diluted common share for the first quarter of 2024. Annualized return on average assets for the first quarter of 2025 was 1.70% and return on average equity was 15.65%. Total assets at quarter-end were $5.7 billion. The Company’s credit quality remained solid with only $193,000 in non-accrual loans and leases as of March 31, 2025 and a negligible delinquency ratio of 0.01% of total loans and leases. At quarter-end, the Company’s allowance for credit losses was $75.4 million, or 2.10% of total loans and leases. The Company’s common equity tier 1 ratio was 13.75% at March 31, 2025, and the total risk-based capital ratio was 15.23%. All F&M Bank capital ratios exceeded the regulatory requirements to be classified as “well-capitalized”. For further details on our first quarter results please see our press release dated April 16, 2025.

Kent A. Steinwert, Chairman, President and CEO noted, “The Board is very pleased with the Company’s strong first quarter 2025 and record full-year 2024 financial results and unanimously approved the cash dividend. This year marks the 90^th consecutive year that Farmers & Merchants Bancorp has paid cash dividends and the 60^th consecutive year we have increased dividends. As a result of the reliability of our cash dividends over many decades, we remain a member of a select group of only 55 publicly traded companies designated as “Dividend Kings” by Sure Dividend where Farmers & Merchants Bancorp is currently ranked 17^th.”

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 $5.7 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 17th 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 August 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 August 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 6th 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 4th 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 15th 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 loan and deposit production levels of net interest margin, the ability to control costs and expenses, the competitive environment, financial and regulatory policies of the United States government, general economic conditions, inflation, recessions, tariffs, economic uncertainty in the United States, and changes in interest rates. 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 FMCB's new dividend amount and when is it payable?

FMCB's new mid-year cash dividend is $9.30 per share, payable on July 1, 2025, to shareholders of record on June 10, 2025.

How did Farmers & Merchants Bancorp (FMCB) perform in Q1 2025?

FMCB reported Q1 2025 net income of $23.0 million ($32.86 per diluted share), with a 1.70% return on average assets and 15.65% return on average equity.

What is FMCB's track record for dividend payments?

FMCB has paid cash dividends for 90 consecutive years and increased dividends for 60 consecutive years, earning its status as a 'Dividend King' ranked 17th among 55 companies.

What is Farmers & Merchants Bancorp's current credit quality?

FMCB maintains strong credit quality with only $193,000 in non-accrual loans, a 0.01% delinquency ratio, and an allowance for credit losses of $75.4 million (2.10% of total loans).

What are FMCB's current capital ratios?

As of March 31, 2025, FMCB's common equity tier 1 ratio was 13.75% and total risk-based capital ratio was 15.23%, exceeding 'well-capitalized' regulatory requirements.