Farmers & Merchants Bancorp (FMCB) Authorizes a $25 Million Increase in Its Share Repurchase Program

LODI, Calif., Nov. 20, 2023 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), announced that, effective immediately, the Company is extending its existing share repurchase program through December 31, 2024 with an additional $25 million in repurchases authorized through that date.

The Company’s repurchase program was first established in 2008 and was last extended in November 2022. Since November 2022, the Company has repurchased and retired 17,126 shares, representing approximately 2.23% of total shares outstanding as of November 30, 2022. Since January 2021 the Company had a reduction of 38,551 shares or 4.88% of shares outstanding through October 31, 2023 due to share repurchases. Repurchases are made at market prices through open market purchases, trading plans established in accordance with SEC rules and privately negotiated transactions.  

Kent A. Steinwert, Chairman, President and Chief Executive Officer, stated, “Our record earnings over the past several years have allowed us to repurchase shares, increase our cash dividend payment per share, and maintain a strong capital position. Share repurchases provide an important tool for managing capital levels, improving shareholder returns through the concentration of ownership, and providing additional liquidity for shareholders to sell shares.”

The Company’s tier 1 leverage capital ratio was 10.22% at September 30, 2023, while the common equity tier 1 ratio (CET1) was 12.48% and the total capital ratio was 13.97%, resulting in the highest possible regulatory classification of “well capitalized.”

About Farmers & Merchants Bancorp
Farmers & Merchants Bancorp, trades 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, which proudly serves California through 32 convenient locations. F&M Bank is financially strong, with over $5.4 billion in assets, and is consistently recognized as one of the nation's safest banks by national bank rating firms. The Bank has maintained a 5-Star rating from BauerFinancial for 31 consecutive years, longer than any other commercial bank in the State of California.