Farmers & Merchants Bancorp Raises Quarterly Dividend 4.67%

Farmers & Merchants Bancorp (OTCQX: FMCB) raised its quarterly dividend to $5.60 per share from $5.35, an increase of 4.67%. The shares traded ex-dividend on Sept. 11, 2026.

At the new rate, the annualized dividend is $22.40 per share. That equates to a forward annual yield of 1.56% based on a share price of $1,442.32. The California bank holding company has a market capitalization of $998,004,608.

Earnings and dividend context

The increase follows a strong start to 2026 for Farmers & Merchants. The company reported record first-quarter net income and said net interest income benefited from improved yields on its investment portfolio. Management also reported no borrowings, strong liquidity and regulatory capital ratios above the thresholds required for its banking subsidiary to be classified as well-capitalized. Farmers & Merchants Bancorp first-quarter earnings release

Farmers & Merchants is the parent of Farmers & Merchants Bank of Central California, a community bank founded in 1916. The bank serves several markets in California’s Central Valley and the eastern San Francisco Bay Area through 33 locations, offering commercial and consumer banking, equipment leasing and treasury-management services. Farmers & Merchants Bancorp first-quarter earnings release

The company changed its dividend-payment schedule from semiannual to quarterly in August 2025. Its annual report notes that dividends paid by the banking subsidiary are the holding company’s principal source of cash and remain subject to regulatory restrictions. Farmers & Merchants Bancorp 2025 Form 10-K

The supplied dividend record identifies a prior reduction in 2025 and lists the current consecutive-growth streak as zero. Accordingly, the latest increase represents a higher quarterly payment but does not establish an active multiyear growth streak.

What it means for income investors

For shareholders, the increase raises prospective annual cash income to $22.40 per share if the new quarterly rate is maintained. The 1.56% forward yield is relatively modest despite the high per-share payment because FMCB’s share price is also high. The supplied dividend-safety score is 61 out of 100, corresponding to a C grade; that research measure should not be confused with the bank’s regulatory capital classification or a credit rating.