Farmers & Merchants Bancorp (FMCB) Reports Record Second Quarter 2025 Earnings

Financial Performance - Farmers & Merchants Bancorp reported record second quarter net income of $23.1 million, or $32.94 per diluted common share, representing a 5.9% increase from $21.8 million, or $29.39 per diluted common share, in the same quarter of 2024 [2][6] - Annualized return on average assets was 1.65% and return on average equity was 15.09% for the second quarter of 2025, compared to 1.58% and 15.33% for the same quarter in 2024 [2][6] - Net interest income for the quarter was $53.9 million, up 6.1% from $50.8 million in the second quarter of 2024, with a net interest margin of 4.07% [6][8] Dividend and Recognition - The Company declared a mid-year cash dividend of $9.30 per share, totaling $6.5 million, a 5.7% increase from the $8.80 per share dividend in 2024 [4] - Farmers & Merchants Bancorp has paid dividends for 90 consecutive years and increased dividends for 60 consecutive years, ranking 17th among "Dividend Kings" [4][14] - The Company was ranked the 3 best performing bank in the nation across all asset categories by Bank Director Magazine for 2024, following a 2 ranking in 2023 and 1 in 2022 [15] Balance Sheet and Capital - Total assets at quarter-end were $5.5 billion, with total deposits increasing by $61.2 million, or 1.3%, to $4.8 billion compared to December 31, 2024 [9][7] - The preliminary total risk-based capital ratio was 15.35% and the common equity tier 1 ratio was 13.87%, both exceeding regulatory requirements for "well-capitalized" banks [12] - The tangible book value per share increased by 9.7% to $835.33 compared to $761.62 as of June 30, 2024 [6][8] Credit Quality - The Company maintained solid credit quality with no non-accrual loans and a negligible delinquency ratio of 0.03% of total loans and leases [10] - The allowance for credit losses on loans and leases was $79.0 million, with a provision of $1.4 million recorded during the second quarter of 2025 [10][11]