Farmers & Merchants Bancorp announces stock buyback program

ARCHBOLD, OH—Farmers & Merchants Bancorp (NASDAQ:MBIN), Inc. (NASDAQ:FMAO), a federally chartered savings institution, has announced that its Board of Directors has authorized a share repurchase program. The company stated on Tuesday that it may buy back up to 650,000 shares, which represents approximately 4.8% of its outstanding common stock.

The repurchase plan is set to commence immediately and will remain in effect until December 31, 2025. The company has empowered its officers to conduct these repurchases through open market transactions or in privately negotiated deals, depending on market conditions and other factors. InvestingPro analysis indicates the company maintains a FAIR financial health score, suggesting stable operational performance.

Share repurchase programs are a common way for companies to return value to shareholders, as they can potentially help to increase earnings per share and the value of remaining shares by reducing the number of shares outstanding. However, the announcement does not obligate Farmers & Merchants Bancorp to acquire any particular number of shares, and the program may be suspended, modified, or discontinued at any time.

This information is based on a recent SEC filing by Farmers & Merchants Bancorp, Inc. and provides shareholders and the public with the latest developments in the company’s financial management strategies.

In other recent news, Farmers & Merchants Bancorp, the parent company of F&M Bank, has seen significant shifts in its leadership and operations. Director Eugene Burkholder recently retired, ending his 12-year tenure on the board. This departure reduces the board’s size to 11 members, with no immediate plans to fill Burkholder’s position.

In financial updates, the company reported a slight increase in its quarterly cash dividend to $0.22125 per share, marking 30 years of continuous dividend growth. This growth reflects the company’s consistent performance and strong capital levels.

On the leadership front, Kevin Frey has joined the Board of Directors, replacing retiring member Dr. K. Brad Stamm. Concurrently, the company renewed its employment agreement with President and CEO, Lars B. Eller, for another three years.

In an operational shift, Farmers & Merchants Bancorp announced a change in its independent registered public accounting firm. Plante & Moran, PLLC will take over audit responsibilities from Forvis Mazars, LLP starting from the year ending December 31, 2025. Lastly, Piper Sandler recently gave the company a ’Neutral’ rating, acknowledging its robust risk management practices and strategic growth initiatives.

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