Farmers & Merchants Bancorp boosts share repurchase program by $45 million

LODI, Calif. - Farmers & Merchants Bancorp (OTCQX:FMCB) announced Thursday it has authorized a $45 million increase to its existing share repurchase program and extended the program through December 31, 2027.

The expansion brings the total repurchase program to $57.6 million, according to a company press release. Since January 2021, the bank holding company has repurchased 97,376 shares, representing approximately 12.3% of outstanding shares through August 12, 2025. InvestingPro analysis confirms management’s aggressive share buyback strategy, with the stock showing remarkably low price volatility and trading below its Fair Value.

Kent A. Steinwert, Chairman, President and Chief Executive Officer of FMCB, said the program enhancement reflects the company’s financial strength and provides additional liquidity for shareholders.

"Share repurchases provide an important tool for managing capital levels, improving shareholder returns through the concentration of ownership, and providing additional liquidity for shareholders," Steinwert said.

The company reported a tier 1 leverage capital ratio of 11.18% as of June 30, 2025, with a common equity tier 1 ratio of 13.88% and total capital ratio of 15.36%. These metrics qualify the bank for "well capitalized" regulatory classification. InvestingPro data reveals an impressive overall financial health score of "GREAT," with particularly strong marks in profitability and cash flow metrics. Subscribers can access 12 additional key financial health indicators.

Farmers & Merchants Bancorp is the parent company of Farmers & Merchants Bank of Central California, which operates 33 locations throughout California’s Central Valley and parts of the San Francisco Bay Area. The bank reported $5.5 billion in assets as of its most recent financial disclosure.

The company has paid dividends for 90 consecutive years and increased dividends for 60 consecutive years, earning it recognition as a "Dividend King" - a designation for companies with at least 50 years of consecutive dividend increases. The stock currently offers a dividend yield of 1.79%, with a sustainable 5.68% dividend growth rate over the last twelve months. InvestingPro subscribers can access detailed dividend analysis and growth projections.

Repurchases will be conducted through open market purchases, trading plans established under SEC rules, and privately negotiated transactions, according to the company statement.

In other recent news, Farmers & Merchants Bancorp has announced a change in its dividend payment schedule, moving from a semi-annual to a quarterly distribution. This decision was unanimously approved by the company’s board of directors following a comprehensive review of its financial status and performance. The board has declared a quarterly cash dividend of $5.00 per share, with the payment set for October 1 to shareholders who were on record as of September 11. This shift aligns Farmers & Merchants Bancorp more closely with common practices in the banking industry. The adjustment in dividend frequency reflects the company’s strategic approach to financial management and shareholder engagement. This development comes as part of the company’s ongoing efforts to optimize its financial operations.

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