Farmers & Merchants Bancorp (FMCB) Reports Record Second Quarter 2025 Earnings
Farmers & Merchants Bancorp (OTCQX: FMCB) reported exceptional second quarter 2025 financial results, with record net income of $23.1 million, up 5.9% year-over-year. The bank achieved diluted earnings per share of $32.94, representing a 12.1% increase from Q2 2024.
Key performance metrics include a return on average assets of 1.65%, return on average equity of 15.09%, and an improved efficiency ratio of 44.88%. The bank maintained strong liquidity with $291.8 million in cash and $1.3 billion in investment securities. Total deposits reached $4.8 billion, while maintaining a conservative loan-to-deposit ratio of 76.38%.
The company declared a mid-year cash dividend of $9.30 per share, marking its 90th consecutive year of dividend payments and 60th consecutive year of dividend increases. Credit quality remained exceptional with no non-accrual loans and a minimal delinquency ratio of 0.03%.
Farmers & Merchants Bancorp (OTCQX: FMCB) ha riportato risultati finanziari eccezionali per il secondo trimestre 2025, con un utile netto record di 23,1 milioni di dollari, in crescita del 5,9% rispetto all'anno precedente. La banca ha registrato un utile diluito per azione di 32,94 dollari, segnando un aumento del 12,1% rispetto al secondo trimestre 2024.
Le principali metriche di performance includono un rendimento medio degli attivi del 1,65%, un rendimento medio del capitale proprio del 15,09% e un miglioramento del rapporto di efficienza al 44,88%. La banca ha mantenuto una solida liquidità con 291,8 milioni di dollari in contanti e 1,3 miliardi di dollari in titoli di investimento. I depositi totali hanno raggiunto 4,8 miliardi di dollari, mantenendo un prudente rapporto prestiti/depositi del 76,38%.
L'azienda ha dichiarato un dividendo in contanti di metà anno di 9,30 dollari per azione, segnando il 90° anno consecutivo di distribuzione di dividendi e il 60° anno consecutivo di aumento dei dividendi. La qualità del credito è rimasta eccellente, senza prestiti non produttivi e con un tasso di insolvenza minimo dello 0,03%.
Farmers & Merchants Bancorp (OTCQX: FMCB) reportó resultados financieros excepcionales en el segundo trimestre de 2025, con un ingreso neto récord de 23,1 millones de dólares, un aumento del 5,9% interanual. El banco logró un beneficio diluido por acción de 32,94 dólares, lo que representa un incremento del 12,1% respecto al segundo trimestre de 2024.
Las métricas clave incluyen un retorno sobre activos promedio del 1,65%, retorno sobre el capital promedio del 15,09% y una mejorada relación de eficiencia del 44,88%. El banco mantuvo una sólida liquidez con 291,8 millones de dólares en efectivo y 1,3 mil millones de dólares en valores de inversión. Los depósitos totales alcanzaron 4,8 mil millones de dólares, manteniendo una ratio conservadora de préstamos a depósitos del 76,38%.
La compañía declaró un dividendo en efectivo de mitad de año de 9,30 dólares por acción, marcando su 90º año consecutivo de pagos de dividendos y 60º año consecutivo de incrementos en los dividendos. La calidad crediticia se mantuvo excepcional, sin préstamos en mora y con una tasa mínima de morosidad del 0,03%.
Farmers & Merchants Bancorp (OTCQX: FMCB)는 2025년 2분기에 기록적인 순이익 2,310만 달러를 보고하며 전년 대비 5.9% 증가한 뛰어난 재무 성과를 발표했습니다. 은행은 희석주당순이익 32.94달러를 달성하여 2024년 2분기 대비 12.1% 상승했습니다.
주요 성과 지표로는 평균 자산 수익률 1.65%, 평균 자기자본 수익률 15.09%, 그리고 개선된 효율성 비율 44.88%가 포함됩니다. 은행은 2억 9,180만 달러의 현금과 13억 달러의 투자 증권으로 강력한 유동성을 유지했습니다. 총 예금은 48억 달러에 달했으며, 보수적인 대출 대비 예금 비율은 76.38%를 유지했습니다.
회사는 주당 9.30달러의 중간 현금 배당금을 선언했으며, 이는 90년 연속 배당 지급과 60년 연속 배당 증가를 의미합니다. 신용 품질은 우수하게 유지되어 비수익 대출이 없고 연체율은 0.03%에 불과했습니다.
Farmers & Merchants Bancorp (OTCQX: FMCB) a annoncé des résultats financiers exceptionnels pour le deuxième trimestre 2025, avec un bénéfice net record de 23,1 millions de dollars, en hausse de 5,9 % par rapport à l'année précédente. La banque a enregistré un bénéfice dilué par action de 32,94 dollars, soit une augmentation de 12,1 % par rapport au deuxième trimestre 2024.
Les indicateurs clés de performance comprennent un rendement moyen des actifs de 1,65 %, un rendement moyen des capitaux propres de 15,09 % et un ratio d'efficacité amélioré de 44,88 %. La banque a maintenu une forte liquidité avec 291,8 millions de dollars en liquidités et 1,3 milliard de dollars en titres d'investissement. Les dépôts totaux ont atteint 4,8 milliards de dollars, tout en conservant un ratio prêt/dépôt prudent de 76,38 %.
La société a déclaré un dividende en espèces de mi-année de 9,30 dollars par action, marquant sa 90e année consécutive de versement de dividendes et sa 60e année consécutive d'augmentation des dividendes. La qualité du crédit est restée exceptionnelle, sans prêts non productifs et avec un taux de délinquance minimal de 0,03 %.
Farmers & Merchants Bancorp (OTCQX: FMCB) meldete herausragende Finanzergebnisse für das zweite Quartal 2025 mit einem rekordverdächtigen Nettogewinn von 23,1 Millionen US-Dollar, was einem Anstieg von 5,9 % im Jahresvergleich entspricht. Die Bank erzielte ein verwässertes Ergebnis je Aktie von 32,94 US-Dollar, was eine Steigerung von 12,1 % gegenüber dem zweiten Quartal 2024 darstellt.
Wichtige Leistungskennzahlen umfassen eine Rendite auf durchschnittliche Vermögenswerte von 1,65 %, eine Eigenkapitalrendite von 15,09 % sowie eine verbesserte Effizienzquote von 44,88 %. Die Bank hielt eine starke Liquidität mit 291,8 Millionen US-Dollar in bar und 1,3 Milliarden US-Dollar in Wertpapieren. Die Gesamteinlagen erreichten 4,8 Milliarden US-Dollar, wobei ein konservatives Kredit-zu-Einlagen-Verhältnis von 76,38 % beibehalten wurde.
Das Unternehmen erklärte eine Zwischen-Cash-Dividende von 9,30 US-Dollar pro Aktie, was das 90. aufeinanderfolgende Jahr mit Dividendenausschüttungen und das 60. aufeinanderfolgende Jahr mit Dividendenerhöhungen markiert. Die Kreditqualität blieb außergewöhnlich mit keinen notleidenden Krediten und einer minimalen Delinquenzquote von 0,03 %.
- Record Q2 net income of $23.1 million, up 5.9% year-over-year
- Diluted EPS increased 12.1% to $32.94 compared to Q2 2024
- Strong liquidity position with $291.8 million cash and $2.1 billion borrowing capacity
- 90 consecutive years of dividend payments with 60 years of consecutive increases
- Excellent credit quality with zero non-accrual loans and 0.03% delinquency ratio
- Improved net interest margin to 4.13% for H1 2025
- Strong capital position with 15.35% total risk-based capital ratio
- Total loans decreased $54.4 million or 1.5% from December 31, 2024
- Return on average equity declined to 15.09% from 15.33% in Q2 2024
- Efficiency ratio increased to 44.88% from 43.86% in Q1 2025
Second Quarter 2025 Highlights
- Net income of
$23.1 million , an increase of$1.3 million or5.9% compared to the second quarter of 2024; - Basic earnings per share of
$33.06 and diluted earnings per share of$32.94 ; diluted earnings per share up12.1% compared to the second quarter of 2024; - Diluted earnings per share of
$126.87 over the trailing twelve months, up7.8% compared to$117.73 over the same trailing period a year ago and15.2% compared to$110.10 for the same period two years ago; - Tangible book value per share increased
9.7% to$835.33 compared to$761.62 as of June 30, 2024; - Achieved a return on average assets of
1.65% and a return on average equity of15.09% ; - Net interest income of
$53.9 million , up$3.1 million or6.1% compared to$50.8 million in the second quarter of 2024; net interest margin (tax equivalent basis) of4.07% , up from3.91% in the second quarter of 2024; - Continued cost discipline resulted in an efficiency ratio of
44.88% ; - Liquidity position remains strong with
$291.8 million in cash,$1.3 billion in investment securities, of which$573.0 million are available-for-sale, no borrowings and a borrowing capacity of$2.1 billion as of June 30, 2025; - Continued to grow our solid capital position with a preliminary total risk-based capital ratio of
15.35% , common equity tier 1 ratio of13.87% , tier 1 leverage ratio of11.18% and a tangible common equity ratio of11.08% ; - Credit quality remains resilient with an allowance for credit losses on loans and leases of
2.09% ; net charge-off ratio of0.02% for the quarter and no non-accrual loans or leases at quarter-end.
LODI, Calif., July 17, 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”), reported record second quarter net income of
Net income over the trailing twelve months was
During the quarter, the Company declared a mid-year cash dividend of
CEO Commentary
Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are very pleased with the Company’s financial performance in the second quarter of 2025, highlighted by record second quarter net income of
Mr. Steinwert continued, “I am pleased to announce that Bank Director Magazine just released their annual ranking of the top performing banks for 2024 and Farmers & Merchants Bancorp was ranked the #3 bank in the nation across all asset categories. This follows our #2 ranking for 2023 and #1 ranking for 2022. Bank Director’s recognition of our performance over the last three years validates the success of our strategy and commitment to our clients, employees, shareholders and communities.”
Earnings
Net interest income for the quarter ended June 30, 2025 was
Balance Sheet
Total assets at quarter-end were
Credit Quality
The Company’s credit quality remained solid with no non-accrual loans and leases as of June 30, 2025 and a negligible delinquency ratio of
Capital
The Company’s and Bank’s regulatory capital ratios continued to strengthen during the second quarter of 2025. The growth in capital was driven by net income of
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
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 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 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
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 18th 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 earnings 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
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||
| Three-Months Ended | Six-Months Ended | |||||||||||||||||||||
| (dollars in thousands, except per share amounts) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||||||
| Earnings and Profitability: | ||||||||||||||||||||||
| Interest income | $ | 70,061 | $ | 67,138 | $ | 69,831 | $ | 137,199 | $ | 136,472 | ||||||||||||
| Interest expense | 16,193 | 13,997 | 19,050 | 30,190 | 33,978 | |||||||||||||||||
| Net interest income | 53,868 | 53,141 | 50,781 | 107,009 | 102,494 | |||||||||||||||||
| Provision for credit losses | 1,400 | 300 | - | 1,700 | - | |||||||||||||||||
| Noninterest income | 5,519 | 5,021 | 4,767 | 10,540 | 9,842 | |||||||||||||||||
| Noninterest expense | 26,651 | 25,509 | 25,422 | 52,160 | 50,943 | |||||||||||||||||
| Income before taxes | 31,336 | 32,353 | 30,126 | 63,689 | 61,393 | |||||||||||||||||
| Income tax expense | 8,281 | 9,344 | 8,359 | 17,625 | 16,903 | |||||||||||||||||
| Net income | $ | 23,055 | $ | 23,009 | $ | 21,767 | $ | 46,064 | $ | 44,490 | ||||||||||||
| Basic earnings per share | $ | 33.06 | $ | 32.88 | $ | 29.39 | $ | 65.94 | $ | 59.95 | ||||||||||||
| Diluted earnings per share | $ | 32.94 | $ | 32.86 | $ | 29.39 | $ | 65.80 | $ | 59.95 | ||||||||||||
| Weighted Average Shares Outstanding - Basic | 697,332 | 699,736 | 740,752 | 698,527 | 742,150 | |||||||||||||||||
| Weighted Average Shares Outstanding - Diluted | 699,852 | 700,215 | 740,752 | 700,102 | 742,150 | |||||||||||||||||
| Return on average assets | 1.65 | % | 1.70 | % | 1.58 | % | 1.67 | % | 1.65 | % | ||||||||||||
| Return on average equity | 15.09 | % | 15.65 | % | 15.33 | % | 15.37 | % | 15.82 | % | ||||||||||||
| Loan yield | 6.08 | % | 6.07 | % | 6.13 | % | 6.07 | % | 6.11 | % | ||||||||||||
| Cost of average total deposits | 1.31 | % | 1.17 | % | 1.51 | % | 1.25 | % | 1.39 | % | ||||||||||||
| Net interest margin - tax equivalent | 4.07 | % | 4.20 | % | 3.91 | % | 4.13 | % | 4.02 | % | ||||||||||||
| Effective tax rate | 26.43 | % | 28.88 | % | 27.75 | % | 27.67 | % | 27.53 | % | ||||||||||||
| Efficiency ratio | 44.88 | % | 43.86 | % | 45.77 | % | 44.37 | % | 45.35 | % | ||||||||||||
| Book value per share | $ | 852.72 | $ | 825.18 | $ | 779.40 | $ | 852.72 | $ | 779.40 | ||||||||||||
| Tangible book value per share | $ | 835.33 | $ | 843.33 | $ | 761.62 | $ | 835.33 | $ | 761.62 | ||||||||||||
| Balance Sheet: | ||||||||||||||||||||||
| Total assets | $ | 5,478,773 | $ | 5,680,024 | $ | 5,267,485 | $ | 5,478,773 | $ | 5,267,485 | ||||||||||||
| Cash and cash equivalents | 291,752 | 607,254 | 295,936 | 291,752 | 295,936 | |||||||||||||||||
| of which held at Fed | 178,999 | 515,758 | 225,676 | 178,999 | 225,676 | |||||||||||||||||
| Total investment securities | 1,321,812 | 1,255,204 | 1,046,210 | 1,321,812 | 1,046,210 | |||||||||||||||||
| of which available-for-sale | 572,951 | 495,433 | 251,413 | 572,951 | 251,413 | |||||||||||||||||
| of which held-to-maturity | 748,861 | 759,771 | 794,797 | 748,861 | 794,797 | |||||||||||||||||
| Gross loans and leases | 3,635,831 | 3,595,511 | 3,692,237 | 3,635,831 | 3,692,237 | |||||||||||||||||
| Allowance for credit losses - loans and leases | 76,169 | 75,423 | 74,432 | 76,169 | 74,432 | |||||||||||||||||
| Total deposits | 4,760,364 | 4,977,968 | 4,597,055 | 4,760,364 | 4,597,055 | |||||||||||||||||
| Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||||
| Total shareholders' equity | $ | 618,532 | $ | 602,306 | $ | 576,220 | $ | 618,532 | $ | 576,220 | ||||||||||||
| Loan-to-deposit ratio | 76.38 | % | 72.23 | % | 80.32 | % | 76.38 | % | 80.32 | % | ||||||||||||
| Percentage of checking deposits to total deposits | 49.23 | % | 50.79 | % | 48.60 | % | 49.23 | % | 48.60 | % | ||||||||||||
| Capital ratios (Bancorp) (1) | ||||||||||||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 13.87 | % | 13.75 | % | 13.09 | % | 13.87 | % | 13.09 | % | ||||||||||||
| Tier 1 capital to risk-weighted assets | 14.09 | % | 13.97 | % | 13.32 | % | 14.09 | % | 13.32 | % | ||||||||||||
| Risk-based capital to risk-weighted assets | 15.35 | % | 15.23 | % | 14.58 | % | 15.35 | % | 14.58 | % | ||||||||||||
| Tier 1 leverage capital ratio | 11.18 | % | 11.32 | % | 10.66 | % | 11.18 | % | 10.66 | % | ||||||||||||
| Tangible common equity ratio (2) | 11.08 | % | 10.40 | % | 10.72 | % | 11.08 | % | 10.72 | % | ||||||||||||
| (1) Capital information is preliminary for June 30, 2025 | ||||||||||||||||||||||
| (2) Non-GAAP measurement | ||||||||||||||||||||||
| Non-GAAP measurement reconciliation: | ||||||||||||||||||||||
| (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||||||||||||
| Shareholders' equity | $ | 618,532 | $ | 602,306 | $ | 576,220 | ||||||||||||||||
| Less: Intangible assets | 12,609 | 12,740 | 13,145 | |||||||||||||||||||
| Tangible common equity | $ | 605,923 | $ | 589,566 | $ | 563,075 | ||||||||||||||||
| Total assets | $ | 5,478,773 | $ | 5,680,024 | $ | 5,267,485 | ||||||||||||||||
| Less: Intangible assets | 12,609 | 12,740 | 13,145 | |||||||||||||||||||
| Tangible assets | $ | 5,466,164 | $ | 5,667,284 | $ | 5,254,340 | ||||||||||||||||
| Tangible common equity ratio (1) | 11.08 | % | 10.40 | % | 10.72 | % | ||||||||||||||||
| (1) Tangible common equity divided by tangible assets | ||||||||||||||||||||||
FAQ
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