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

Financial Performance - The company reported record third quarter net income of $23.7 million, or $33.92 per diluted common share, compared to $22.1 million, or $29.96 per diluted common share, for the same quarter in 2024, marking a 7.22% increase [2][5] - The annualized return on average assets was 1.70% and return on average equity was 15.10% for the third quarter of 2025, compared to 1.65% and 15.03% for the same quarter in 2024 [2][5] - Net interest income for the quarter was $55.4 million, up 6.6% from $52.0 million in the third quarter of 2024 [5][7] Earnings and Shareholder Value - Over the trailing twelve months, net income was $91.6 million, an increase from $88.0 million for the same period a year earlier [3] - Diluted earnings per share over the trailing twelve months totaled $130.83, up 10.4% compared to $118.46 for the same period a year ago [3][5] - The tangible book value per share increased by 9.8% to $877.13 compared to $799.04 as of September 30, 2024 [5][7] Balance Sheet and Liquidity - Total assets at quarter-end were $5.6 billion, up from $5.4 billion as of December 31, 2024 [8] - Total deposits increased by $185.9 million, or 4.0%, to $4.9 billion at September 30, 2025, compared to December 31, 2024 [6][8] - The company maintained a strong liquidity position with $172.6 million in cash and $1.6 billion in investment securities [4][5] Credit Quality - The company's credit quality remained solid with only $1.0 million, or 0.03%, in non-accrual loans and leases as of September 30, 2025 [9] - The allowance for credit losses on loans and leases was 2.10% as of September 30, 2025, with a net charge-off ratio of 0.03% for the quarter [9][10] Capital Ratios - The company's preliminary total risk-based capital ratio was 15.76% and the common equity tier 1 ratio was 14.28% as of September 30, 2025, both exceeding regulatory requirements for "well-capitalized" banks [10][11] - The company announced a change in its dividend policy from semi-annual to quarterly payments, with the first quarterly dividend declared on August 12, 2025 [10][11]