Farmers & Merchants Bancorp (OTCQX: FMCB), the parent company of Farmers & Merchants Bank of Central California, continues its long tradition of rewarding shareholders by raising its cash dividend for the 60th consecutive year. The mid-year dividend of $9.30 per share, payable July 1, 2025 to shareholders of record as of June 10, represents a 5.7% increase over last July’s payout.
This milestone cements FMCB’s status among an elite group of only 55 publicly traded companies known as “Dividend Kings,” which have increased dividends for at least 50 consecutive years. FMCB currently ranks 17th on that list, reflecting its consistency and commitment to shareholder returns.
The latest financial results show that FMCB’s steady approach continues to deliver. For the first quarter of 2025, the company reported net income of $23.0 million, or $32.86 per diluted share, up from $22.7 million, or $30.56 per diluted share, in the same period last year. Over the trailing twelve months, net income reached $88.7 million, compared to $87.5 million a year earlier. Diluted earnings per share for the trailing twelve months climbed nearly 6% to $123.32 from $116.37.
Return metrics remain healthy with an annualized return on average assets for the first quarter of 1.70%, and return on average equity of 15.65%. As of March 31, 2025, total assets stood at $5.7 billion, with $3.6 billion in loans and leases and $5.0 billion in total deposits.
Credit quality is a particular strength for FMCB. Non-accrual loans and leases totaled just $193,000 at the end of March, with a delinquency ratio of only 0.01%-a negligible figure in the banking sector. The allowance for credit losses was $75.4 million, or 2.10% of total loans and leases, providing a solid buffer.
Capital ratios also reflect a conservative and stable approach. The company’s common equity tier 1 ratio was 13.75%, and the total risk-based capital ratio was 15.23% at quarter-end, both comfortably above regulatory minimums for “well-capitalized” banks.
FMCB’s disciplined performance has not gone unnoticed. In August 2024, Bank Director’s Magazine named Farmers & Merchants Bancorp the #2 best performing bank in the nation across all asset categories for 2023, following a #1 ranking the previous year. Forbes ranked F&M Bank 6th on its 2023 “America’s Best Banks” list, which evaluates banks on growth, credit quality, profitability, and capital. S&P Global Market Intelligence placed the bank 4th among the top 50 best-performing community banks in the US with assets between $3.0 billion and $10.0 billion for 2023.
The bank’s reputation for safety is also well established, with a 5-Star rating from BauerFinancial for 35 consecutive years, longer than any other commercial bank in California. In 2021, Newsweek named F&M Bank the “Best Community Bank in California,” highlighting its strong customer service and community focus.
Founded in 1916, F&M Bank has deep roots in California’s Central Valley, operating 33 locations across key agricultural counties. The bank is the 15th largest lender to agriculture in the United States and was inducted into the National Agriculture Science Center’s “Ag Hall of Fame” in 2021 for its ongoing support of the region’s farmers and agribusinesses.
F&M Bank offers a full suite of business and consumer banking products, including loans, deposits, equipment leasing, and treasury management. Its most recent Community Reinvestment Act evaluation from the FDIC awarded the bank the highest possible rating of “Outstanding,” reflecting its commitment to serving local needs.
With a track record of 90 consecutive years of dividend payments and 60 years of dividend increases, Farmers & Merchants Bancorp stands out for its stability and reliability. The company’s strong capital position, conservative lending, and continued profitability position it to navigate changing market conditions while maintaining its focus on supporting California’s communities and rewarding its shareholders.
