Farmers & Merchants Bancorp (FMCB: OTCQX U.S. Premier) | Farmers & Merchants Bancorp Announces Increase in the Year-End Cash Dividend


Farmers Merchants Bancorp Announces Increase in the Year-End Cash Dividend

Nov 17, 2017

OTC Disclosure News Service

Farmers Merchants Bancorp (OTCQX: FMCB) (the Company) announced that
the Board of Directors declared a year-end cash dividend of $5.52
million or $6.80 per share of common stock, an increase of 4.5% over the
cash dividend declared in November of 2016. The cash dividend will be
paid on January 2, 2018, to shareholders of record on December 1, 2017.
Cash dividend payments declared over the past year total $13.55 per

Kent A. Steinwert, Chairman, President and Chief Executive Officer
stated, “We are pleased that Farmers Merchants Bancorp’s record third
quarter and year-to-date 2017 financial performance allowed for
increasing the cash dividend while still providing a level of capital
retention that supports the Company’s expansion plans. This year marks
the 83rd consecutive year that Farmers Merchants Bancorp has paid cash
dividends and the 53rd consecutive year dividends have been increased.
As a result of the reliability of our cash dividends over many decades,
we remain a member of a select group of only 23 publicly traded
companies referred to as “Dividend Kings”. Importantly, the Company’s
record performance in the third quarter and year-to-date 2017 continues
to build upon record profit years in 2012, 2013, 2014, 2015 and 2016.
The Board of Directors and executive management are optimistic about the
Company’s outlook for the remainder of 2017 and into 2018.”

Farmers Merchants Bancorp earned record net income of $8.6 million in
the third quarter of 2017 and $24.6 million for the nine months ending
September 30, 2017, representing increases of 13.8% and 11.6% over the
same periods the prior year. Earnings per share of common stock
outstanding for the third quarter were $10.59, up from $9.51 in the
third quarter of 2016, and for the nine-month period were $30.39, up
from $27.82 the prior year. Return on average assets for the third
quarter was 1.13%, and for the nine months was 1.10%, and return on
average equity was 11.54% for the third quarter and 11.28% for the nine
months. Total assets at quarter-end were $3.1 billion, up 12.62% from
the third quarter of 2016. The Company’s credit quality remained strong,
as there were no non-performing loans and leases as of September 30,
2017. In addition, the Company’s allowance for credit losses was $50.7
million, or 2.29% of total loans and leases. The Company’s tier 1
leverage capital ratio was 10.20% at September 30, 2017, and the total
capital ratio was 13.19%, resulting in the highest possible regulatory
classification of “well capitalized”.

About Farmers Merchants Bancorp

Farmers Merchants Bancorp, traded on the OTCQX under the symbol FMCB,
is the parent company of Farmers Merchants Bank of Central California,
also known as FM Bank. Founded in 1916, FM Bank is a locally owned and
operated community bank, which proudly serves California through 27
convenient locations. In 2013, the Bank began an expansion into the Bay
Area with new full service branches in Walnut Creek and Concord. The
Bank offers a full complement of loan, deposit, equipment leasing and
treasury management products to businesses, as well as a full suite of
consumer banking products. Recently, the FDIC awarded FM Bank the
highest possible rating of “Outstanding” in their CRA Evaluation. For
more information about Farmers Merchants Bancorp and FM Bank visit

Forward-Looking Statements

Statements concerning future performance, developments or events,
expectations for growth and income forecasts, and any other guidance on
future periods, constitute forward-looking statements that are subject
to a number of risks and uncertainties. Actual results may differ
materially from stated expectations. Specific factors include, but are
not limited to, loan production, balance sheet management, levels of net
interest margin, the ability to control costs and expenses, interest
rate changes, the competitive environment, financial and regulatory
policies of the United States government, water management issues in
California and general economic conditions. Additional information on
these and other factors that could affect financial results are included
in our Securities and Exchange Commission filings. The Company disclaims
any obligation to update any such factors or to publicly announce the
results of any revisions to any forward-looking statements contained
herein to reflect future events or developments.

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