Farmers & Merchants Bank of Long Beach (OTCQX: FMBL) has once again demonstrated its commitment to shareholders by declaring a second-quarter cash dividend of $28 per share. The dividend will be paid on June 30, 2025, to shareholders of record as of June 13, 2025. This decision marks the 532nd consecutive dividend payment for the bank, a streak that stretches back to 1916.
Few banks can match the dividend consistency of Farmers & Merchants Bank. Since its founding in 1907 by C.J. Walker, the bank has not only paid a dividend every year since 1916, but it has also never reduced the value of its quarterly dividend. This long-standing record is especially notable in an industry where economic cycles and market volatility often force banks to adjust or suspend dividend payments. For shareholders, this consistency offers a rare sense of stability and reliability.
Farmers & Merchants Bank is deeply rooted in Southern California. With 27 branches stretching from San Clemente to Santa Barbara, the bank has built a reputation for providing attentive, personalized service to its clients. While it maintains a traditional presence with physical branches, the bank has also adapted to modern banking needs, offering online and mobile banking platforms alongside its in-person services.
The bank’s range of services includes commercial and small business banking, business loan programs, home loans, and a suite of consumer banking products such as checking, savings, and youth accounts. This broad offering positions F&M as a full-service bank for both individuals and businesses in the region.
As a California state-chartered bank, Farmers & Merchants Bank is insured by the Federal Deposit Insurance Corporation (FDIC) and is an Equal Housing Lender. Its community focus is reflected in its “white-glove” approach to customer service, which has helped the bank maintain strong relationships with local businesses and families for generations.
The steady dividend policy is part of a broader strategy to deliver value to shareholders while supporting the bank’s long-term growth. By maintaining a conservative approach to risk and a focus on customer service, F&M has weathered financial crises and economic downturns that have challenged many of its peers.
The share dividend serves as a reminder of the bank’s disciplined financial management. While the dividend yield will vary depending on the share price, the absolute dividend amount is significant, especially given the bank’s history of never reducing its payout.
While not as widely followed as some of the larger national banks, F&M’s stability and consistent dividend record make it an interesting option for investors seeking exposure to the U.S. banking sector with a focus on reliability and community banking.
Farmers & Merchants Bank’s ability to maintain its dividend through more than a century of economic ups and downs speaks to the strength of its business model and its commitment to both customers and shareholders. As the bank continues to serve Southern California, its focus on stability, service, and conservative financial management will likely remain central to its strategy.
