Farmers & Merchants Bancorp (OTCQX: FMCB) has announced record-breaking earnings for the third quarter of 2025, marking the highest quarterly net income in the company’s history. The locally operated bank holding company, headquartered in Lodi, California, reported net income of $23.7 million for the quarter, translating to diluted earnings per share of $33.92. This represents a notable 13.22% increase in diluted earnings per share compared to the same period last year. Over the trailing twelve months, diluted earnings per share rose by 10.4% to $130.83, reinforcing steady growth for this century-old business.
At its core, Farmers & Merchants Bancorp serves as the parent for Farmers & Merchants Bank of Central California, also known as F&M Bank, which delivers community banking services across 33 locations in California. The bank’s offerings are varied, including deposit accounts, commercial and residential loans, equipment leasing, and treasury management products. Additionally, the bank caters to agricultural clients, providing specialized financial solutions in one of the U.S.’s richest farming regions. Founded in 1916, the bank has a rich history of fostering local relationships and sustaining long-term financial health.
This latest quarter’s results reflect a combination of disciplined financial management and strategic focus. Net interest income climbed 6.6% year-over-year to $55.4 million, aided by a slight improvement in net interest margin that benefited from lower deposit costs. Meanwhile, total deposits grew by 4.0% to reach $4.9 billion, underlining continued confidence from both existing and new clients. The loan portfolio experienced a modest contraction compared to year-end 2024, but that reduction was part of a cautious approach emphasizing loan quality and risk-adjusted pricing rather than raw growth.
Capital strength is another hallmark of Farmers & Merchants Bancorp’s current profile. Regulatory capital ratios continue to improve, placing the company comfortably above the thresholds required for classification as a well-capitalized bank. Capital growth was supported by solid earnings, share repurchases, and dividends, with the recent shift from semi-annual to quarterly dividend payments reflecting management’s confidence in ongoing profitability. The bank’s dividend-paying track record is impressive, having raised dividends for 60 consecutive years, making it one of the rare Dividend Kings in the public markets today.
Over the years, Farmers & Merchants Bancorp has steadily earned recognition in industry rankings. It was ranked the third best-performing bank nationally in 2024 by Bank Director’s Magazine, a consistent top-tier placement following prior year accolades. Forbes Magazine also ranked F&M Bank sixth among America’s Best Banks in 2023, factoring in growth and credit quality metrics. Such honors validate a century-plus legacy of conservative banking paired with measured innovation.
Kent Steinwert, the company’s Chairman, President, and CEO, emphasized their commitment to balanced growth. Steinwert pointed out that the bank has maintained a conservative loan-to-deposit ratio of 74.16% and prefers investing in safer government-backed securities amid current market uncertainties. He also highlighted the company’s focus on serving the agricultural sector as a key pillar of its community commitment, noting the bank’s induction into the National Agriculture Science Center’s Ag Hall of Fame for supporting agribusiness and future workforce development.
In addition to traditional banking services, F&M Bank provides a comprehensive suite of electronic banking options, including online access, wire transfers, and investment products. The bank’s 5-Star rating from BauerFinancial for 35 consecutive years underlines its strong financial health, making it one of California’s safest banks by independent assessment.
The consistency in performance demonstrated by Farmers & Merchants Bancorp shows how a regional community-focused bank can thrive over decades through careful stewardship, strong customer relationships, and prudent financial strategies.
