Farmers & Merchants Bancorp (FMCB) Announces Increase in the Year-End Cash Dividend

LODI, Calif., Nov. 15, 2023 (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”), declared a year-end cash dividend of $8.80 per share, an increase of 6.02% over the cash dividends declared in May of 2023 and November of 2022. The cash dividend will be payable on January 2, 2024 to shareholders of record as of December 6, 2023. Total cash dividends declared in 2023 increased 5.88% to $17.10 per share compared with $16.15 declared in 2022. The Company’s trailing twelve months net income through the 3^rd quarter of 2023 was $114.13 per share, up 25.83% over the same period a year earlier and results in a dividend payout ratio of 15.0%. In addition to the $17.10 per share in cash dividends paid to shareholders over the past year, the Company has further concentrated the shareholders’ ownership percentage by repurchasing and retiring 17,126 shares, or approximately 2.23% of outstanding shares at November 30, 2022.

Kent A. Steinwert, Chairman, President and Chief Executive Officer, stated, “We are pleased that Farmers & Merchants Bancorp’s record third quarter and year-to-date 2023 financial performance allowed us to increase the year-end cash dividend while maintaining a strong capital position.”
        
Farmers & Merchants Bancorp earned record net income of $22.0 million and $66.9 million for the three and nine months ended September 30, 2023, respectively. This represents an increase of 12.8% and 21.5% over the same respective periods a year earlier. Earnings per common share were $29.23 and $88.06 for the three and nine months ended September 30, 2023, respectively. This represents an increase of 16.0% and 25.0% over the same respective periods a year earlier.

The Company’s net income over the trailing twelve months was $86.9 million, or $114.13 per share, up 22.4% compared with $71.0 million, or $90.70 per share, for the same trailing twelve months a year ago. Return on average assets was 1.65%, and 1.70% for the three and nine months ended September 30, 2023, respectively. Return on average equity was 16.80% and 17.43% for the same respective periods.

Total assets at quarter-end grew by $125.0 million, or 2.4%, to $5.4 billion compared to June 30, 2023. Asset quality and liquidity remained strong at the end of the third quarter 2023. The Company held $1.6 billion in cash and investment securities; grew its allowance for credit losses to $74.2 million, or 2.08% of total loans and leases held for investment at September 30, 2023; while total non-performing loans and leases were $4.5 million and delinquent loans to total loans were 0.19%.