LODI – The Farmers and Merchants Bancorp board of directors in mid-May declared a mid-year cash dividend of $5.90, a 4.4 percent increase over the $5.65 per share paid a year ago.
The cash dividend will be paid on July 2 to shareholders of record as of June 20, according to a statement from F&M Bancorp.
“The board is extremely pleased with the company’s full year 2011 and year-to-date 2012 financial results and unanimously approved the cash dividend,” Kent Steinwert, chairman, president and chief executive officer, said in a statement. “While many banks continue to limit their dividend payouts as a result of the difficult economic environment, this is the 15th consecutive year that Farmers and Merchants Bancorp increased the mid-year cash dividend.”
Farmers and Merchants Bancorp earned record net income of $6.2 million for the quarter ending March 31. Earnings per share of common stock outstanding for the first quarter were $7.94, up from $7.86 for the first quarter of the prior year.
Return on average assets for the quarter was 1.29 percent and return on average equity was 12.8 percent. With non-performing loans representing only 0.32 percent of total loans at March 31, the company’s loan quality improved when compared to year-end 2011 and remains strong compared to the overall banking industry at the present time. In addition, the company’s loan loss reserve was 2.84 percent of loans.
Farmers and Merchants Bancorp is the parent of Farmers and Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, the institution is a full service, locally owned and operated, community bank which proudly serves California’s Great Central Valley through 24 convenient locations from Sacramento to Merced.