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Farmers & Merchants Bancorp (FMCB) Reports Record Fourth Quarter and Annual 2025 Financial Results

FMCB
  • Farmers & Merchants Bancorp reported a record 2025 net income of $93.6 million, an 11.52% increase from 2024, with diluted earnings per share of $133.96, up 10.69%.
  • The fourth quarter of 2025 yielded net income of $23.8 million, up 9.05% from the prior year quarter, with diluted earnings per share of $34.29.
  • Return on average assets reached 1.67% and return on average equity was 15.11% for the full year.
  • Total assets grew 5.96% to $5.7 billion, while total deposits increased 5.93% to $4.98 billion without using brokered deposits.
  • Net interest margin expanded to 4.15% on a tax-equivalent basis, driven by higher investment yields of 3.44% and a lower cost of deposits at 1.22%.
  • The efficiency ratio improved to 45.52%, down from 46.24% in 2024, as revenue growth outpaced expense increases.
  • Total investment securities surged 35.3% to $1.7 billion, while gross loans and leases decreased slightly by 0.62% to $3.7 billion.
  • The company maintained strong liquidity with $1.8 billion in cash and securities and $2.1 billion in borrowing capacity, with no outstanding borrowings.
  • Capital ratios strengthened, with a total risk-based capital ratio of 15.29%, a common equity tier 1 ratio of 13.81%, and a tangible common equity ratio of 11.15%.
  • Credit quality remained resilient with a net charge-off ratio of 0.05%, a non-accrual loan ratio of 0.02%, and an allowance for credit losses at 2.08% of loans.
  • Dividends totaled $19.35 per share for 2025, representing a 6.9% increase, as the company shifted to a quarterly payment schedule.
  • The company repurchased 33,562 shares for $34.7 million in 2025, reducing outstanding shares to 697,904, with $30.3 million remaining in the repurchase authorization.
  • F&M Bank was ranked #19 largest bank lender to agriculture in the US as of September 30, 2025, by the American Bankers Association.
  • The bank received a 5-Star rating from BauerFinancial for 35 consecutive years, recognized as the longest streak for a California commercial bank.
  • FMCB was named #38 on the OTCQX "Best 50" list for 2026 based on total return and volume growth.