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GlobeNewswire
Farmers & Merchants Bancorp announces year-end cash dividend increase
LODI, Calif., November 13, 2020 (GLOBE NEWSWIRE) – The Board of Directors of Farmers & Merchants Bancorp (OTCQX: FMCB), a banking holding company based in Lodi, California, has declared a year-end cash dividend of $ 7, 50 per share of common stock, an increase of 4.90% over the cash dividend declared in November 2019. The cash dividend will be paid on January 2, 2021 to registered shareholders on December 9, 2020. Cash dividend payments declared in the past annual total of $ 14.75 per share. Kent A. Steinwert, President, President and Chief Executive Officer said: “We are delighted that Farmers & Merchants Bancorp’s record financial performance in the third quarter and beginning of the year 2020 has enabled them to increase the cash dividend while ensuring a level capital retention supports the Company’s growth plans. Although the low market interest rates and economic slowdown caused by the COVID-19 health crisis are negatively affecting the performance of many financial institutions, we remain cautiously optimistic about the outlook for financial institutions. Financial results of Farmers & Merchants Bancorp for the remainder of 2020. This year marks the 86th consecutive year that Farmers & Merchants Bancorp has paid cash dividends and the 56th consecutive year the dividends have been increased. reliability of our cash dividends for many decades, we remain a member of a select group or only 30 listed companies called Dividend Kings “. Farmers & Merchants Bancorp earned a record net income of $ 14.8 million in the third quarter of 2020 and $ 43.2 million for the nine months ending September 30, 2020, representing increases of 7.8% and 4 , 5% compared to the same periods of the previous year. Earnings per share of common stock outstanding for the third quarter was $ 18.66, compared to $ 17.45 in the third quarter of 2019, and for the nine-month period it was $ 54.49, compared with $ 52.64 from the previous year. Additionally, the Company’s net income for the past twelve months was $ 57.9 million ($ 73.03 per share as reported), compared with $ 54.4 million for the same period last year. The average return on assets for the third quarter was 1.40% and for the nine months it was 1.44% and the average return on equity was 14.40% for the third quarter and the 14.54% for the nine months. Total assets at the end of the quarter were $ 4.3 billion, up 20.5% from the third quarter of 2019. As of September 30, 2020, the Company’s credit quality remained strong, with only $ 498,000 in non-performing loans and leasing and a very 0.04% default ratio. The Company’s tier 1 leverage ratio was 9.5% as of 30 September 2020 and the total capital ratio was 13.12%, resulting in the highest possible regulatory classification of “well capitalized”. Had the Company not participated in the SBA’s Salary Protection Program, the net result would have been an improvement of 86 basis points from the Level 1 leverage ratio as of September 30, 2020, increasing the ratio to 10.36%. Bancorp, listed on the OTCQX under the symbol FMCB, is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, proudly serving California across 32 convenient locations. We are the 13th largest agriculture banker in the United States and the largest community agriculture banker west of the Rocky Mountains. In 2013, the bank initiated an expansion in the San Francisco Bay Area with new full-service branches in Walnut Creek and Concord. A loan production office was opened in Napa in early 2018 and converted to a full service branch in September 2018. The Bank offers businesses a full range of loan, deposit, equipment leasing and treasury management products as well as a full suite. of consumer banking products. The FDIC awarded F&M Bank the highest possible score of “Outstanding” in its CRA rating. Farmers & Merchants Bancorp has paid dividends for 86 consecutive years and we have increased dividends for 56 consecutive years. As a result, we are members of a select group of only 30 publicly traded companies called “Dividend Kings”. Additionally, the bank has maintained a 5-star rating from BauerFinancial for 29 consecutive years, longer than any other commercial bank in the state of California. For more information on Farmers & Merchants Bancorp and F&M Bank, please visit fmbonline.com Forward-Looking Statements Statements regarding future performance, developments or events, growth expectations and income forecasts and any other guidance on future periods constitute forward-looking statements which are subject to a number of risks and uncertainties, including the continuing impact of COVID-19. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, budget management, net interest margin levels, ability to control costs and expenses, changes in interest rates, competitive environment, financial policies and government regulations. United States, water management problems in California and general economic conditions. Further information on these and other factors that could affect financial results is included in our Securities and Exchange Commission documents. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments. President and Chief Financial Officer [email protected]
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