Farmers & Merchants Bancorp Declares Significant Dividend Increase

Farmers & Merchants Bancorp Highlights Year-End Cash Dividend

Farmers & Merchants Bancorp (OTCQX: FMCB), the parent of Farmers & Merchants Bank of Central California, has made headlines with its announcement of a year-end cash dividend of $9.30 per share. This marks a notable increase of 5.68% from the dividends declared previously in the year. Scheduled for distribution on January 2, 2025, this dividend will be available to shareholders on record as of December 4, 2024. In total, Farmers & Merchants Bancorp achieved a 5.85% increase in its cash dividends within the year 2024, raising the total to $18.10 per share compared to $17.10 in 2023.

Financial Performance Reflects Robust Growth

In a demonstration of resilience, Farmers & Merchants Bancorp reported a net income of $118.46 per share for the trailing twelve months. This figure represents a 3.79% increase over the same period last year, leading to a dividend payout ratio of 15.28%. Such performance showcases the bank's ability to generate substantial returns for its shareholders even amid fluctuating market conditions.

Impact of Stock Repurchase Programs

In addition to its attractive dividends, the company continues to enhance shareholder value through its share repurchase program. To date in 2024, Farmers & Merchants Bancorp has repurchased and retired approximately 47,989 shares, totaling about $45.4 million. This initiative has reduced the total number of outstanding shares by 6.42% since the end of 2023, effectively increasing the ownership percentage for existing shareholders.

Leadership Insights on Financial Performance

Kent A. Steinwert, the Chairman, President, and Chief Executive Officer, expressed satisfaction with the company’s robust performance. He remarked that the record third-quarter results and the ongoing strong financial health have provided the foundation for this year's dividend increase, all while maintaining a solid capital position.

Commitment to Shareholders and Community

Farmers & Merchants Bancorp’s impressive performance is highlighted by its $22.1 million net income for the three months ending in September 2024, alongside $66.6 million for the nine-month period. Earnings per common share recorded a rise to $29.96 and $89.91 for these respective periods, marking an increase of 2.50% and 2.10% over the prior year. This consistent growth underpins the organization’s dedication to delivering value to its shareholders.

Strong Asset Management and Capital Ratios

The company’s total assets demonstrated growth, increasing by $150.6 million, or 2.8%, to reach $5.4 billion compared to the previous quarter. Notably, asset quality and liquidity remain strong, with $1.5 billion held in cash and investments. Moreover, the company’s total risk-based capital ratio stands at a robust 14.95%, qualifying it as “well-capitalized,” according to regulatory classifications.

Recognitions and Accolades

Farmers & Merchants Bancorp has a remarkable history of consistent dividend payments, having maintained dividends for an astonishing 89 consecutive years and increased them for 59 consecutive years. These factors solidify its membership in the prestigious group of “Dividend Kings,” a title earned by companies with a robust record of dividend growth.

Performance Rankings and Awards

In various rankings, Farmers & Merchants Bancorp has demonstrated superior performance. Recently, it was recognized as the second-best performing bank in the nation across all asset categories by a leading financial publication. Additionally, it has achieved a high rating from Forbes, being listed among America’s Best Banks for evaluating outstanding financial institutions based on numerous performance metrics.

Support to Agricultural Communities

Farmers & Merchants Bank has established itself as a significant lender in the agriculture sector, being ranked as the 15th largest bank lender to this industry in the U.S. Operating chiefly in California’s Central Valley and the Bay Area, the bank remains committed to supporting agribusiness and fostering financial literacy among upcoming agricultural professionals.

Comprehensive Financial Solutions

The bank offers a comprehensive suite of financial services, from lending and treasury management products to consumer banking solutions. Recognized for its outstanding community service, Farmers & Merchants Bank was awarded the highest ''Outstanding'' rating in its last Community Reinvestment Act evaluation by the FDIC.

Frequently Asked Questions

What dividend did Farmers & Merchants Bancorp declare?

The company declared a year-end cash dividend of $9.30 per share, reflecting a 5.68% increase over previous distributions.

How has Farmers & Merchants Bancorp performed financially?

For the trailing twelve months, the company reported a net income of $118.46 per share, marking a 3.79% increase from the prior year.

What is the share repurchase program about?

The company repurchased and retired approximately 47,989 shares, amounting to $45.4 million to increase shareholder value.

What accolades has Farmers & Merchants Bancorp received recently?

The bank was recognized as the second-best performing bank in the nation across various categories and received a positive ranking from Forbes.

How does Farmers & Merchants Bancorp support agriculture?

It is recognized as the 15th largest bank lender in the agriculture sector in the U.S. and provides financial support and education to agribusinesses.

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