Farmers & Merchants Bancorp Reports Record Second Quarter 2025 Earnings

Farmers & Merchants Bancorp, the parent company of Farmers & Merchants Bank of Central California, has released its SEC 8-K filing for the second quarter of 2025, showcasing record earnings and robust financial performance. The company, which has a long history of financial stability and consistent dividend payments, continues to demonstrate strong growth and operational efficiency.

Financial Highlights

For the second quarter of 2025, Farmers & Merchants Bancorp reported a net income of $23.1 million, marking a 5.9% increase compared to the same period in 2024. The diluted earnings per share (EPS) rose by 12.1% to $32.94. Over the trailing twelve months, the diluted EPS was $126.87, up 7.8% from the previous year. The company's net interest income for the quarter was $53.9 million, a 6.1% increase from the second quarter of 2024, with a net interest margin of 4.07%.

Business and Operational Highlights

The company's tangible book value per share increased by 9.7% to $835.33. The return on average assets was 1.65%, and the return on average equity was 15.09%. The efficiency ratio improved to 44.88%, reflecting continued cost discipline. The liquidity position remains strong with $291.8 million in cash and $1.3 billion in investment securities, of which $573.0 million are available-for-sale. The company has no borrowings and a borrowing capacity of $2.1 billion as of June 30, 2025.

Strategic Initiatives and Corporate Developments

During the quarter, Farmers & Merchants Bancorp declared a mid-year cash dividend of $9.30 per share, a 5.7% increase over the previous year. The company has paid a cash dividend for 90 consecutive years and increased the dividend for 60 consecutive years. Additionally, the company repurchased 4,546 shares, reducing the total outstanding shares to 725,367. The company's capital ratios continue to strengthen, with a preliminary total risk-based capital ratio of 15.35% and a common equity tier 1 ratio of 13.87%.

Management's Perspective

Kent Steinwert, Chairman, President, and CEO, expressed satisfaction with the company's financial performance, highlighting the record net income and strong liquidity position. He noted that the company achieved these results while maintaining a conservative loan-to-deposit ratio of 76.38% and a solid capital position. Steinwert also mentioned the company's focus on growing deposits and maintaining credit quality, with no non-accrual loans or leases at quarter-end.

Future Outlook

The company remains optimistic about its future performance, with a strong balance sheet and a focus on maintaining high credit quality. The management's forward-looking statements indicate confidence in navigating the challenges ahead, supported by a robust financial foundation and strategic initiatives aimed at sustaining growth and profitability.

SEC Filing: FARMERS & MERCHANTS BANCORP [ FMCB ] - 8-K - Jul. 17, 2025