OTCPK:FMCB

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Farmers & Merchants Bancorp

Executive Summary

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides a range of banking services to businesses and individuals primarily in the mid Central Valley of California. More Details

Rewards

Trading at 34.3% below our estimate of its fair value

Earnings grew by 6.3% over the past year

Pays a reliable dividend of 2.07%

Risk Analysis

No risks detected for FMCB from our risk checks.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Farmers & Merchants Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FMCB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FMCB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

FMCB

5.7%

US Banks

2.1%

US Market


1 Year Return

-9.7%

FMCB

-17.0%

US Banks

19.8%

US Market

Return vs Industry: FMCB exceeded the US Banks industry which returned -17% over the past year.

Return vs Market: FMCB underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

FMCBIndustryMarket
7 Day-0.3%5.7%2.1%
30 Day0.4%23.3%8.1%
90 Day0.2%18.5%6.0%
1 Year-7.9%-9.7%-14.0%-17.0%22.5%19.8%
3 Year12.3%7.1%-3.3%-11.4%46.5%36.8%
5 Year50.4%37.4%40.4%22.9%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Farmers & Merchants Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Farmers & Merchants Bancorp undervalued compared to its fair value and its price relative to the market?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMCB ($725) is trading below our estimate of fair value ($1104.3)

Significantly Below Fair Value: FMCB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FMCB is good value based on its PE Ratio (9.9x) compared to the US Banks industry average (11.5x).

PE vs Market: FMCB is good value based on its PE Ratio (9.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FMCB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FMCB is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is Farmers & Merchants Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.3%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Farmers & Merchants Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Farmers & Merchants Bancorp is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Farmers & Merchants Bancorp's filings and announcementshere.
  • Explore growth companies in the Banks industry.

Past Performance

How has Farmers & Merchants Bancorp performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMCB has high quality earnings.

Growing Profit Margin: FMCB's current net profit margins (36.7%) are higher than last year (35.4%).


Past Earnings Growth Analysis

Earnings Trend: FMCB's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: FMCB's earnings growth over the past year (6.3%) is below its 5-year average (18.5% per year).

Earnings vs Industry: FMCB earnings growth over the past year (6.3%) exceeded the Banks industry -4.3%.


Return on Equity

High ROE: FMCB's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is Farmers & Merchants Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FMCB's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: FMCB has a sufficient allowance for bad loans (11405%).

Low Risk Liabilities: 98% of FMCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: FMCB has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: FMCB's Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: FMCB has an appropriate level of bad loans (0%).


Next Steps

Dividend

What is Farmers & Merchants Bancorp current dividend yield, its reliability and sustainability?

2.08%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FMCB's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FMCB's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: FMCB's dividends per share have been stable in the past 10 years.

Growing Dividend: FMCB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.7%), FMCB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Kent Steinwert (67 yo)

23.83yrs

Tenure

US$4,617,698

Compensation

Mr. Kent A. Steinwert has been the Chief Executive Officer and President of Farmers & Merchants Bank of Central California, a subsidiary of Farmers & Merchants BanCorp Since August 18, 1997. Mr. Steinwert ...


CEO Compensation Analysis

Compensation vs Market: Kent's total compensation ($USD4.62M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Kent's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kent Steinwert
Chairman23.83yrsUS$4.62m3.85%
$ 22.1m
Stephen Haley
Executive VP17.58yrsUS$1.74m0.58%
$ 3.3m
Kenneth Smith
Executive VP & Senior Credit Officer9.25yrsUS$1.43m0.44%
$ 2.5m
David Zitterow
Executive VP & Wholesale Banking Manager of Farmers & Merchants Bank of Central California3.42yrsUS$829.98k0.067%
$ 381.7k
Deborah Skinner
Chief Administrative Officer & Executive VP of Farmers & Merchants Bank of Central California19.92yrsUS$1.58m0.52%
$ 3.0m
Jay Colombini
Executive VP & Wholesale Banking Manager of Farmers & Merchants Bank of Central California7yrsUS$1.10m0.60%
$ 3.4m
Ryan Misasi
Executive VP and Retail Banking Manager of Farmers & Merchants Bank of Central California6.5yrsUS$900.10k0.24%
$ 1.4m
Charles Broom
Senior VP & Director of Human Resources2.25yrsno datano data

8.1yrs

Average Tenure

57yo

Average Age

Experienced Management: FMCB's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kent Steinwert
Chairman23.83yrsUS$4.62m3.85%
$ 22.1m
Calvin Suess
Independent Director30.83yrsUS$234.00k0.44%
$ 2.5m
Kevin Sanguinetti
Independent Director19.83yrsUS$234.60k0.95%
$ 5.4m
Edward Corum
Independent Director17.83yrsUS$281.80k0.25%
$ 1.4m
Gary Long
Independent Director6.33yrsUS$230.60k0.21%
$ 1.2m
Stephenson Green
Independent Director2.67yrsUS$236.20k0.067%
$ 383.9k
Terrence Young
Independent Director2.67yrsUS$160.60k0.051%
$ 290.8k

10.5yrs

Average Tenure

67yo

Average Age

Experienced Board: FMCB's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Farmers & Merchants Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmers & Merchants Bancorp
  • Ticker: FMCB
  • Exchange: OTCPK
  • Founded: 1916
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$572.630m
  • Shares outstanding: 793.56k
  • Website: https://www.fmbonline.com

Number of Employees


Location

  • Farmers & Merchants Bancorp
  • 111 West Pine Street
  • Lodi
  • California
  • 95240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMCBOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 1994

Biography

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides a range of banking services to businesses and individuals primarily in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:15
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.