Farmers & Merchants Bancorp reported a record second-quarter net income of $24.7 million, or $36.39 per diluted common share, up 10.47% year-over-year. The company posted an annualized return on average assets of 1.71% and return on average equity of 14.84% for the quarter. Total deposits grew 7.0% to $5.09 billion and tangible book value per share rose to $963.82 as of June 30, 2026.

Financial Highlights

  • Net income: $24.7 million for Q2 2026; $48.8 million for the six months ended June 30, 2026; $96.3 million over the trailing twelve months.
  • Diluted earnings per common share: $36.39 for Q2 2026; $139.94 over the trailing twelve months.
  • Net interest income: $57.35 million for Q2 2026; net interest margin (tax equivalent) 4.20% for Q2 2026 and 4.22% for the six months ended June 30, 2026.
  • Total deposits: $5.092963 billion as of June 30, 2026, a 7.0% increase year-over-year; loan-to-deposit ratio 73.07% at quarter-end.
  • Capital and book values: tangible book value per common share $963.82 (up 15.38% YoY); total risk-based capital ratio 16.04%; common equity tier 1 ratio 14.56%; tier 1 leverage ratio 11.68%.

Business Highlights

  • Balance sheet growth: total assets $5.835459 billion as of June 30, 2026, up 6.5% from a year earlier; total investment securities increased to $1.629242 billion.
  • Loan and deposit growth: gross loans and leases $3.721425 billion with loans and leases held for investment, net $3.703857 billion; loans grew $80.2 million (2.2% YoY) while deposits increased $332.6 million (7.0% YoY).
  • Liquidity and funding: cash and cash equivalents of $278.6 million and access to $2.1 billion in borrowing capacity with no borrowings at quarter-end.
  • Credit quality and provisioning: allowance for credit losses on gross loans and leases 2.08%; non-accrual loans $2.7 million at quarter-end; net charge-offs $165,000 for the quarter; provision for credit losses $500,000 in Q2 2026.
  • Operational recognition and footprint: continued local community banking operations across 33 locations in California and sustained external rankings and ratings noting safety and performance.

Original SEC Filing:

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