Farmers & Merchants Bancorp (FMCB) Announces Quarterly Dividend

Core Viewpoint - Farmers & Merchants Bancorp reported a record annual net income of $93.6 million for 2025, reflecting strong financial performance and a commitment to returning value to shareholders through increased dividends [2][3]. Financial Performance - The company declared a quarterly cash dividend of $5.10 per share, an increase from $5.05 in the previous quarter, marking the 91st consecutive year of cash dividends and the 61st consecutive year of dividend increases [1][3]. - Annual net income for 2025 was $93.6 million, up from $88.5 million in 2024, with diluted earnings per share at $133.96, a 10.7% increase from $121.02 in 2024 [2]. - For the quarter ended December 31, 2025, net income was $23.8 million, or $34.29 per diluted common share, representing a 10.2% increase over the prior year [2]. - The return on average assets was 1.67% and return on average equity was 15.11% for the year ended December 31, 2025 [2]. Credit Quality and Capital Ratios - The company's credit quality remained strong, with an allowance for credit losses on loans and leases at 2.08%, a net charge-off ratio of 0.05%, and a non-accrual loan and leases ratio of 0.02% as of December 31, 2025 [2]. - The common equity tier 1 ratio was 13.81% and the total risk-based capital ratio was 15.29%, exceeding regulatory requirements for being classified as "well-capitalized" [2]. Recognition and Rankings - F&M Bank was ranked 5th on Forbes Magazine's list of "America's Best Banks" for 2025 and 1st in California [7]. - The company was also recognized as one of the "Best 50 OTCQX 2026," ranking 38 based on total return and average daily dollar volume growth [7]. - In July 2025, Farmers & Merchants Bancorp was named the 3 best-performing bank in the nation across all asset categories by Bank Director's Magazine [8]. Historical Context - Farmers & Merchants Bancorp has a long history of financial stability, having paid dividends for 91 consecutive years and increased dividends for 61 consecutive years, placing it among the "Dividend Kings" [6]. - The bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, indicating its strong financial health [5].