Farmers & Merchants Bancorp (FMCB) lifts dividend 4.7% on record Q2 profit
Rhea-AI Filing Summary
Farmers & Merchants Bancorp declared a higher quarterly cash dividend of $5.60 per share, a 4.7% increase from $5.35 in the prior quarter. The dividend is payable on October 1, 2026 to shareholders of record on September 11, 2026, and represents a 15.4% payout ratio.
Over the trailing twelve months, net income was $96.3 million and diluted EPS was $139.94, up 10.30% year over year. For the quarter ended June 30, 2026, the company reported record net income of $24.7 million and EPS of $36.39, with ROAA of 1.71%, ROAE of 14.84%, total assets of $5.8 billion, strong credit metrics, and total risk-based capital of 16.04%.
Positive
- Quarterly dividend increased 4.7% to $5.60 per share while maintaining a low 15.4% payout ratio.
- Trailing twelve-month diluted EPS rose 10.30% to $139.94, with net income up to $96.3 million.
- Company reported record quarterly net income of $24.7 million and strong profitability metrics (ROAA 1.71%, ROAE 14.84%).
- Credit quality appears robust, with allowance for credit losses at 2.08%, delinquency ratio at 0.1%, and very low net charge-offs of $165,000 (0.005%).
- Regulatory capital ratios are high, including total risk-based capital of 16.04% and CET1 of 14.56%, all above “well-capitalized” thresholds.
Negative
- None.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Quarterly dividend per share: $5.60
Prior quarterly dividend per share: $5.35
Dividend increase: 4.7%
+5 more
8 metrics
Quarterly dividend per share
$5.60
Declared cash dividend payable October 1, 2026
Prior quarterly dividend per share
$5.35
Previous quarter dividend paid July 1, 2026
Dividend increase
4.7%
Increase from prior quarterly dividend
TTM net income
$96.3 million
Trailing twelve months through June 30, 2026
TTM diluted EPS
$139.94
Trailing twelve months through June 30, 2026
Q2 2026 net income
$24.7 million
Quarter ended June 30, 2026, record result
Total assets
$5.8 billion
As of June 30, 2026
Total risk-based capital ratio
16.04%
Company ratio at June 30, 2026
Key Terms
allowance for credit losses, special mention loans, Dividend Kings, common equity tier 1 ratio, +1 more
5 terms
allowance for credit losses financial
"The Company’s credit quality remained solid with an allowance for credit losses on loans"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
special mention loans financial
"Total special mention loans and substandard loans were $17.6 million and $3.1 million"
Loans placed on “special mention” are credit accounts a bank flags because they show early signs of potential trouble—such as slipping payments, weaker borrower cash flow, or collateral issues—but are not yet officially delinquent. Think of them as a yellow-flagged item on a checklist: they warn investors the lender’s loan book may weaken and could require higher provisions or future write-downs, so tracking their size and trend helps assess credit risk and earnings vulnerability.
Dividend Kings financial
"a select group of only 58 publicly traded companies referred to as “Dividend Kings”"
common equity tier 1 ratio financial
"the common equity tier 1 ratio was 14.56%"
The common equity tier 1 ratio is a measure of a bank's financial strength, showing how much high-quality core capital it has compared to its total risk-weighted assets. Think of it as a safety buffer or cushion that helps ensure the bank can withstand economic shocks. For investors, a higher ratio indicates a stronger, more resilient bank, making it a key indicator of its financial health.
Community Reinvestment Act financial
"the highest possible rating of “Outstanding” in their last Community Reinvestment Act"
A federal law that requires banks to help meet the credit needs of the neighborhoods where they operate, especially low- and moderate-income areas. It matters to investors because regulators grade banks on this performance like a report card, and those grades can influence approvals for mergers, regulatory scrutiny, reputational risk and future lending patterns—factors that affect a bank’s growth prospects and stock value.
FAQ
What dividend did Farmers & Merchants Bancorp (FMCB) declare for the latest quarter?
Farmers & Merchants Bancorp declared a quarterly cash dividend of $5.60 per share, up from $5.35 in the prior quarter. It will be paid on October 1, 2026 to shareholders of record on September 11, 2026.
How did Farmers & Merchants Bancorp (FMCB) perform over the last twelve months?
Over the trailing twelve months, FMCB generated $96.3 million in net income and diluted EPS of $139.94. This represents a 10.30% increase in diluted EPS compared with $126.87 for the same trailing period a year earlier.
What were Farmers & Merchants Bancorp’s (FMCB) key results for Q2 2026?
For the quarter ended June 30, 2026, FMCB reported record net income of $24.7 million, or $36.39 per diluted share. The bank posted an annualized ROAA of 1.71%, ROAE of 14.84%, and total assets of $5.8 billion.
How strong is Farmers & Merchants Bancorp’s (FMCB) credit quality?
Credit quality appears strong, with an allowance for credit losses on loans and leases of 2.08% and a delinquency ratio of 0.1%. Net charge-offs in Q2 2026 were $165,000, or 0.005% of average loans and leases, down from the prior year.
What are Farmers & Merchants Bancorp’s (FMCB) regulatory capital ratios?
At June 30, 2026, FMCB reported a total risk-based capital ratio of 16.04% and a common equity tier 1 ratio of 14.56%. Management states all F&M Bank capital ratios exceed regulatory requirements to be classified as “well-capitalized.”
How consistent is Farmers & Merchants Bancorp’s (FMCB) dividend track record?
FMCB has paid cash dividends for 91 consecutive years and increased them for 61 consecutive years. This record places the company among “Dividend Kings,” a group of 58 publicly traded companies with at least 50 years of consecutive dividend increases.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 12, 2026
(Exact name of registrant as specified in its charter)
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Registrant’s telephone number, including area code: (209 ) 367-2300
Former name or former address, if changed since last report
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Other Events
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On August 12, 2026, Farmers & Merchants Bancorp announced the Board of Directors’ declaration of a quarterly cash dividend, a
copy of which is included as Exhibit 99 and incorporated herein by reference.
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Financial Statements and Exhibits
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Press release announcing the Board of Directors of Farmers & Merchants Bancorp’s declaration of a quarterly cash dividend, a copy of which is included as Exhibit 99 and incorporated herein by reference. | |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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FARMERS & MERCHANTS BANCORP
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By
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/s/ Bart R. Olson
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Bart R. Olson
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Executive Vice President & Chief Financial Officer
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Date: August 12, 2026
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Exhibit 99
Farmers & Merchants Bancorp (FMCB)
Announces Increase in Quarterly Dividend
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”), declared a quarterly cash dividend of $5.60
per share, up 4.7% from $5.35 for the previous quarter which was paid on July 1, 2026. The cash dividend is payable on October 1, 2026, to shareholders of record on September 11, 2026. Based on the Company’s financial performance through June 30,
2026, net income over the trailing twelve months was $96.3 million compared with $90.0 million for the same trailing period a year earlier. Diluted earnings per share over the trailing twelve months totaled $139.94, up 10.30% compared with $126.87
for the same trailing period a year ago. This dividend represents a 15.4% payout ratio. This year marks the 91st consecutive year that the Company has paid cash dividends and the 61st consecutive year the
Company has increased dividends. As a result of the consistency of the Company’s cash dividends over many decades, the Company remains a member of a select group of only 58 publicly traded companies referred to as “Dividend Kings” by Sure Dividend
where the Company is currently ranked 17th.
For the quarter ended June 30, 2026, Farmers & Merchants Bancorp reported record
net income of $24.7 million, or $36.39 per diluted common share, a 10.47% increase over the prior year. For the second quarter of 2026, annualized return on average assets was 1.71% and return on average equity was 14.84%. Total assets at quarter-end were $5.8 billion. The Company’s credit quality remained solid with an allowance for credit losses on loans and leases at quarter-end of 2.08% and a negligible
delinquency ratio of 0.1% of gross loans and leases as of June 30, 2026. Total special mention loans and substandard loans were $17.6 million and $3.1 million as of June 30, 2026 compared to $29.1 million and $1.4 million as of June 30, 2025,
respectively. Net charge-offs were $165,000 or 0.005% of average loans and leases in the second quarter of 2026 compared to net charge-offs of $544,000 or 0.015% for the second quarter of 2025. The Company’s regulatory capital ratios continued to
strengthen during the second quarter of 2026. At June 30, 2026, the Company’s total risk-based capital ratio was 16.04% and the common equity tier 1 ratio was
14.56% . All F&M Bank capital ratios exceeded the regulatory requirements to be classified as “well-capitalized” at June 30, 2026. For further details on our second quarter results, please see our press release dated July 20, 2026.
Kent A. Steinwert, Chairman, President and CEO noted, “The Board is very pleased with the Company’s strong financial results during the second quarter of 2026 and as a
result, on August 11, 2026, the Board unanimously approved our fifth quarterly cash dividend since the Company moved from a semi-annual dividend to a quarterly dividend in August 2025.”
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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 $5.8 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 36 consecutive years, longer than any other commercial bank in the State of California.
Farmers & Merchants Bancorp has paid dividends for 91 consecutive years and has increased dividends for 61 consecutive years. As a result, Farmers & Merchants
Bancorp is a member of a select group of only 58 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 increases.
In February 2026, F&M Bank was ranked 5th on Forbes Magazine’s list of “America’s Best Banks” for 2025 and was ranked 1st in California. In
April 2024, F&M Bank was ranked 6th on Forbes Magazine’s list of “America’s Best Banks” for 2023.
In July 2026, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #7 best-performing bank in the nation across all asset categories in their
annual “Ranking Banking” study of the top performing banks. Farmers & Merchants Bancorp ranked #3 in 2025, #2 in 2024, and #1 in 2023.
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 the Company’s financial condition, competitive positioning, and expectations regarding
future performance and results. 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;
financial and regulatory policies of the United States government; political and economic uncertainty, including any decline in global, domestic or local economic conditions or the stability of credit and financial markets and the impact of tariffs
and the conflict in Iran and the Middle East; 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.