Farmers & Merchants Bancorp shifts from semi-annual to quarterly dividends

Published 13/08/2025, 14:38
Farmers & Merchants Bancorp shifts from semi-annual to quarterly dividends

LODI, Calif. - Farmers & Merchants Bancorp (OTCQX:FMCB) announced Wednesday it is changing its dividend payment frequency from semi-annual to quarterly, aligning more closely with banking industry practices.

The company’s board of directors unanimously approved the change after a thorough analysis of FMCB’s financial condition and performance. In conjunction with this policy shift, the board declared a quarterly cash dividend of $5.00 per share, payable October 1 to shareholders of record on September 11. The bank maintains a strong financial position, earning a "GREAT" overall health score from InvestingPro’s comprehensive analysis.

The company previously paid a semi-annual cash dividend of $9.30 on July 1.

"Given the Company’s consistent and reliable earnings performance over many years, [the board] decided it was an appropriate time to move to a quarterly cash dividend," said Kent A. Steinwert, Chairman, President and CEO, in a press release statement.

FMCB reported net income of $23.1 million, or $32.94 per diluted common share, for the quarter ended June 30. Trading at an attractive P/E ratio of 8.2, the stock currently appears undervalued according to InvestingPro’s Fair Value analysis. The company’s annualized return on average assets was 1.65% and return on average equity was 15.09% for the second quarter.

Total assets at quarter-end were $5.5 billion. The company maintained solid credit quality with no non-accrual loans and leases as of June 30, while maintaining an allowance for credit losses of $76.2 million, representing 2.09% of total loans and leases.

The parent company of Farmers & Merchants Bank of Central California noted this marks its 90th consecutive year of paying cash dividends and 60th consecutive year of increasing dividends.

The company’s common equity tier 1 ratio stood at 13.88% and total risk-based capital ratio at 15.36% as of June 30, with all capital ratios exceeding regulatory requirements to be classified as well-capitalized.

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