FMCB

FARMERS & MERCHANTS BANCORP

OTC · FINANCIALS · NATIONAL COMMERCIAL BANKS

1,440.00

+5.00 +0.35%

USD · close Oct 30

A free account adds a watchlist, alerts when insiders, Congress or short sellers move on your tickers, and a morning brief. Sign up

Work order

FLAG · shorts 0

Insiders, 90 days

no open-market filings in 90 days

Congress, 90 days

0 / 0

no disclosures naming it

Big money

0 / 15

none of the tracked funds disclose it

Calls on record

nobody we score has called it yet

MKT CAP $996.4MP/E 10.3DIV YIELD 1.42%FCF YIELD 9.99%REV TTM —NET INCOME $96.3M +7.0%NET CASH —52W 1,005.01 – 1,505.00SEC XBRL · TTM TO Invalid Date

How FMCB rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

77%

of sentences unchanged

Added

new sentences

Dropped

sentences removed

Length

+154

words, now 10,804

New in FY2025

Despite four rate cuts by the Federal Reserve between September and December 2024, and three consecutive 25 basis point rate cuts in late 2025, the Federal Reserve has signaled caution in easing monetary policy.
At its January 2026 meeting, the Federal Reserve, citing continued elevated uncertainty about the economic outlook, low job gains, and inflation that remains somewhat elevated, determined to maintain the target range for the federal funds rate at 3.50% to 3.75% percent.
During his second term, President Trump has regularly pushed for the Federal Reserve to cut short-term interest rates, threatened to fire the Federal Reserve Chairman, and taken steps to remove another member of the Federal Reserve’s governing board, and, in January 2026, the U.S. attorney’s office in the District of Columbia opened a criminal investigation into the Federal Reserve Chairman over the central bank’s renovation of its Washington headquarters.
These actions have the potential to threaten the independence of the Federal Reserve, and the outcome of these actions, and their impact on interest rates, financial markets, borrowing costs and the U.S. economy in general, cannot be predicted at this time.
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including the recent military actions in Iran and the Middle East, escalating military tension between Russia and Ukraine, terrorism and other geopolitical events.
Although only 3.5% of our loan portfolio consisted of real estate construction, and acquisition and land development loans as of December 31, 2025, such loans generally have a higher degree of risk than long-term financing of existing properties because repayment depends on the completion of the project and usually on the sale or long term financing of the property.
As of December 31, 2025, our ratio of the sum of CRE and ADC loans to total risk-based capital was 172% and our ratio of ADC loans to total risk-based capital was 20.12%.
In February 2025, the current Trump Administration announced that it would be imposing increases in tariffs on goods imported to the U.S. from Canada, Mexico, and China and, and, in April 2025, the Administration announced the imposition of increased tariffs on goods imported to the U.S. from other countries.
As a consequence, other countries, in retaliation to the U.S.’s announced tariff measures, announced the imposition of increased levels of tariffs on goods exported to such countries by companies in the U.S.
Since imposing these tariffs, the President has issued several increases, reductions and modifications, and the Trump Administration has announced agreements in principle regarding tariffs with certain significant trading partners of the United States, including (among others) the European Union, the United Kingdom, Japan, and South Korea.
It remains uncertain whether such agreements in principle will lead to definitive agreements with such trading partners and, if so, on what terms and whether agreements with other trading partners will eventually be consummated.
President Trump imposed many of these tariffs by invoking authority under the International Emergency Economic Powers Act (IEEPA).
Supreme Court ruled that President Trump could not invoke the IEEPA to unilaterally set tariffs on imports, thereby invalidating those tariffs implemented using IEEPA.
The Trump Administration responded by announcing the imposition of new tariffs under alternative legal authorities to replace the IEEPA tariffs, including an executive order imposing a global surcharge (tariff) of 10% on most imports, effective for 150 days.
While the President, on February 21, 2026, announced that the tariff rate would be increased to the maximum tariff rate of 15%, U.S.
Customs and Border Protection issued guidance on February 23, 2026, confirming that the tariff rate is 10%.
The tariff environment continues to remain highly dynamic, and the specific tariffs applicable to goods imported into the U.S. continue to evolve, as do import tariffs charged by other countries.
These tariffs could be of particular concern to U.S. companies operating in the agricultural sector who export agricultural goods to other countries.
The Company’s customers include a number of agricultural businesses, which could be affected, but to what extent remains uncertain.
As a result of these changes to U.S. and foreign government trade policies, there may be changes to existing trade agreements, greater restrictions on free trade generally, the imposition of or significant further increases in tariffs on goods imported into the U.S., and adverse responses by foreign governments to U.S. trade policies, among other possible changes.
The extent and duration of any tariffs, and the resulting impact on global, national and state economic conditions generally, and on our customers’ businesses in particular, are uncertain and depend on various factors, such as negotiations between the U.S. and other countries, the responses of such countries, and exemptions or exclusions that may be granted.
A significant trade disruption or the establishment or further increase of any tariffs, trade protection measures or restrictions could result in lost sales, adversely impacting our banking customers and their businesses, including our agricultural business customers.
Impacts to the general economic conditions, such as a heightened risk of a recession caused by lower GDP, higher unemployment and/or changes in the interest rate environment, could adversely impact our business.
In addition, international trade disputes, including those related to tariffs, could result in inflationary pressures and/or adversely impact global supply chains, which could increase the costs of doing business for our banking customers.
Changes in U.S. social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the countries where our banking customers currently sell products, including agricultural products, and any resulting negative sentiments towards the U.S. and U.S. businesses as a result of such changes, could also have a material adverse effect on our banking customers’ business, financial condition, results of operations and cash flows.
If these events negatively affect our banking clients, or general economic conditions nationally, in California, or in our local markets, our business, financial condition and results of operations could be adversely affected.
The target range remained unchanged through much of 2025 until the FOMC decreased the rate 75 basis points during the last four months of the year.
As of December 31, 2025, the federal funds rate decreased to 3.75%.
As noted previously, the current Trump Administration has taken steps to increase tariffs on goods imported to the U.S. from certain countries.
Customs and Border Protection issued guidance on February 23, 2026, confirming that the tariff rate is 10%.The impact of these developments on the business of our clients and on our business cannot be predicted with certainty but could present challenges in 2026 and beyond.
In 2025, the OCC announced its conditional approval of five national trust bank charter applications to either newly charter or convert existing institutions into national trust banks that propose to offer digital asset products and services.
While national trust banks generally do not take insured deposits or engage in commercial lending, the proposed activities of the five institutions include digital asset custody, settlement, clearing, transfer, escrow, staking, trade execution, and brokerage services; fiduciary, exchange, and payment agent services; stablecoin issuance; and the provision of services, including reserve asset custody, to affiliated stablecoin issuers.
These new non-traditional trust banks offer deposit-like products, although lacking FDIC insurance and core consumer protections, and they are not subject to the same capital, liquidity or supervisory standards as banks.
Emerging technologies, such as artificial intelligence (including machine learning and generative artificial intelligence) and quantum computing, have the potential to intensify competition and accelerate disruption in the financial services industry.
Although the Company’s loan portfolio is believed to be well diversified, at various times during 2025 a significant portion of the Company’s loans (as much as 28.9%) were outstanding to agricultural borrowers.
California has experienced drought conditions at times over the past several years.
At December 31, 2025, we had no investment securities that were impaired.
We have consistently declared an annual cash dividend for the last 90 years.
The rapid contraction of the money supply in 2022 and the first quarter of 2023 materially impacted liquidity levels at many financial institutions.
Information security risks for financial institutions have increased recently in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions, and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists, nation-state adversaries, and others any of which may see their effectiveness increase as a result of artificial intelligence, including the use of generative AI to conduct more sophisticated social engineering attacks on us or our clients, further increasing risks in this area, including by making fraud detection more difficult.

and 3 more.

Gone since FY2024

Despite rate cuts by the Federal Reserve between September and December 2024, the Federal Reserve has signaled caution in easing monetary policy citing strong economic performance, robust GDP growth, and persistent inflation as reasons to move slowly with any further rate cuts.
Although only 5.3% of our loan portfolio consisted of real estate construction, and acquisition and land development loans as of December 31, 2024, such loans generally have a higher degree of risk than long-term financing of existing properties because repayment depends on the completion of the project and usually on the sale or long term financing of the property.
As of December 31, 2024, our ratio of the sum of CRE and ADC loans to total risk-based capital was 172% and our ratio of ADC loans to total risk-based capital was 31.26%.
We could suffer material credit losses if the overall economy and/or a particular industry suffers an economic recession and we do not appropriately manage our credit risk.
There are risks inherent in making any loan, including risks in dealing with individual clients, risks of non-payment, risks resulting from uncertainties as to the future value of collateral and risks resulting from changes in economic and industry conditions.
Changes in the economy may cause the assumptions that we made at origination to change and may cause clients to be unable to make payments on their loans.
There is no assurance that our credit risk monitoring and loan approval procedures are or will be adequate to address the inherent risks associated with lending.
Any failure to manage such risks may materially adversely affect our financial condition and results of operations.
In February 2025, the new Trump Administration announced that it would be imposing increases in tariffs on goods imported to the U.S. from Canada, Mexico, and China and has also indicated that tariffs may be imposed at increased levels on imports to the U.S. from other countries.
If other countries, in retaliation to the U.S.’s tariff measures, were to impose increased levels of tariffs on goods exported to such countries by companies in the U.S. such tariff increases may negatively impact companies in the U.S. whose business involves exports to other countries.
This could be of particular concern to U.S. companies operating in the agricultural sector who export to other countries.
The Company’s customers included a number of agricultural business, which could be negatively affected.
Preliminary indications have been that the new Trump Administration tariff increases to Canada and Mexico may be delayed or decreased if such countries adopt various policies urged by the U.S., such as enhanced border security and control measures.
The outcome of this process cannot be predicted with any certainty at this time.
As of December 31, 2024, the federal funds rate decreased to 4.50%.
As noted previously, the new Trump Administration has taken steps to increase tariffs on goods imported to the U.S. from certain countries.
Retaliation by such countries through the imposition of higher tariffs on exports from the U.S. appears to be a possibility.
The impact of these developments on the business of our clients and on our business cannot be predicted with certainty but could present challenges in 2025 and beyond.
Beginning in 2021, the U.S. economy began to reflect relatively rapid rates of increase in the consumer price index, inflation rates, and other economic indices; a prolonged elevated rate of inflation could present risks for the U.S. banking industry and our business.
During the latter part of 2021 and into 2023, the U.S. economy exhibited relatively rapid rates of increase in the consumer price index, inflation rate, and other economic indices.
If the U.S. economy encounters a significant, prolonged rate of inflation, this could pose higher relative risks to the banking industry and our business.
Such inflationary periods have historically corresponded with relatively weaker earnings and higher loan losses for banks.
In the past, inflationary environments have caused financing conditions to tighten and have increased borrowing costs for some marginal borrowers, which, in turn, has impacted bank credit quality and loan growth.
Additionally, a sustained period of inflation could prompt broad-based selling of longer-duration, fixed-rate debt, which could have negative implications for equity and real estate markets.
Small businesses and leveraged loan borrowers can be challenged in a materially higher-rate environment.
Higher interest rates can also present challenges for commercial real estate projects, pressuring valuations and loan-to-value ratios.
In addition, the conflict between Russia and Ukraine and global reactions thereto have increased U.S. domestic and global energy prices.
Oil supply disruptions related to the Russia-Ukraine conflict, and sanctions and other measures taken by the U.S. or its allies, have led to higher costs for gas, food and goods in the U.S. and exacerbated the inflationary pressures on the economy, with potentially adverse impacts on our customers and on our business, results of operations and financial condition.
Although the Company’s loan portfolio is believed to be well diversified, at various times during 2024 a significant portion of the Company’s loans (as much as 29.2%) were outstanding to agricultural borrowers.
Commitments are well diversified across various commodities, including dairy, grapes, walnuts, almonds, cherries, apples, pears, and various row crops.
Additionally, many individual borrowers are themselves diversified across commodity types, reducing their exposure, and therefore the Company’s, to cyclical downturns in any one commodity.
Despite the fact that 2024 had above-average levels of precipitation in California, the State has experienced severe drought conditions at times over the past several years.
On October 24, 2023, the FDIC, the OCC and the Federal Reserve jointly finalized principles for climate-related financial risk management for national banks with more than $100 billion in total assets.
Although these risk management principles do not apply to the Bank directly based upon our current size, the FDIC has indicated that all banks, regardless of their size, may have material exposures to climate-related financial and other risks that require prudent management.
At December 31, 2024, we had no investment securities that were impaired.
We have consistently declared an annual cash dividend for 89 years.
The rapid contraction of the M1 and M2 money supply in 2022 and the first quarter of 2023 materially impacted liquidity levels at many financial institutions.
Information security risks for financial institutions have increased recently in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions, and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists, nation-state adversaries, and others.
In addition to cyber-attacks or other security breaches involving the theft of sensitive and confidential information, hackers recently have engaged in attacks against large financial institutions, particularly denial of service and ransomware attacks that are designed to disrupt key business services, such as client-facing websites.
New and future rulemaking by the CFPB and other regulators, as well as enforcement of existing consumer protection laws, may have a material effect on our operations and operating costs.

and 12 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

Watch FMCB. Know when insiders buy.

One email the day a filing lands. Free.