Farmers & Merchants Bancorp (FMCB) AI Stock Analysis

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Farmers & Merchants Bancorp

(Other OTC:FMCB)

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Rating:80Outperform

Price Target:$1,689.00▲(14.90% Upside)

Action:reiterated

Date:11/13/26

FMCB earns a strong score driven primarily by an outstanding financial profile: uninterrupted earnings growth since 2021, net margins near 31%, an unusually thick 12% equity-to-assets capital cushion, and essentially no borrowings outside deposits, with cash flow closely tracking reported profits. Valuation is supportive at a P/E of about 10 for a bank generating mid-teens ROE, supplemented by a 1.44% dividend that was most recently reaffirmed by the board. Technicals are constructive, with the price above all major moving averages and positive MACD momentum while RSI remains neutral. The main limitations are decelerating revenue growth, ongoing margin compression from higher funding costs, flat asset growth that could cap earnings expansion, and a modest dividend yield for the sector.

Positive Factors

Sustained profitabilityConsistently high net and operating margins indicate that FMCB converts revenue into earnings efficiently across multiple periods. This profitability provides internal capital to support lending, absorb normal business fluctuations, and maintain competitive strength over the next several quarters.

Negative Factors

Decelerating revenue growthThe clear slowdown in revenue growth reduces the pace at which FMCB can expand its earnings base and may make future performance more dependent on margin discipline. Sustained mid-single-digit growth would limit operating leverage and require continued execution to maintain returns.

Farmers & Merchants Bancorp (FMCB) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.02B
Dividend Yield: 1.44%
Average Volume (3M): 148
Price to Earnings (P/E): 10.2
Beta (1Y): 0.19
Revenue Growth: 5.77%
EPS Growth: 10.19%
Country: US
Employees: 383
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp functions as the holding company for Farmers & Merchants Bank of Central California, offering a broad spectrum of banking and financial services to both business and individual customers. Its array of deposit products enco...

How the Company Makes Money

FMCB primarily makes money through its banking subsidiary by earning net interest income and generating noninterest income. Net interest income is the spread between (a) interest and fees earned on interest-earning assets—primarily commercial loans,...

Farmers & Merchants Bancorp Financial Statement Overview

Summary

Financial quality is the standout strength. Net income has risen every year since 2021 to roughly $98M TTM on revenue of about $315M, with a net margin near 31% and operating margin around 40%. The balance sheet is exceptionally conservative: equity of about $663M against $5.7B of assets (roughly 12% equity-to-assets), borrowings of only about $10M (debt-to-equity of 0.02), and ROE consistently in the 14%-16% range. Cash flow confirms earnings quality, with free cash flow of roughly $111M converting at about 87% of net income. Offsetting these strengths are steady margin compression from higher funding costs, revenue growth decelerating from about 30% in 2023 to under 5% in 2025, and relatively flat asset growth that may cap future earnings expansion.

Income Statement

81Very Positive

Balance Sheet

85Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	314.99M	303.13M	289.41M	265.69M	204.14M	183.71M
Gross Profit	251.18M	239.29M	224.11M	217.92M	192.85M	177.47M
EBITDA	128.11M	131.84M	125.18M	119.04M	102.17M	90.95M
Net Income	97.71M	93.61M	88.46M	88.31M	75.09M	66.34M
Balance Sheet
Total Assets	5.70B	5.69B	5.37B	5.31B	5.33B	5.18B
Cash, Cash Equivalents and Short-Term Investments	1.72B	152.45M	676.98M	593.15M	741.12M	986.22M
Total Debt	10.31M	10.31M	10.31M	10.31M	10.31M	10.31M
Total Liabilities	5.04B	5.04B	4.80B	4.76B	4.84B	4.71B
Stockholders Equity	663.10M	645.51M	573.07M	549.75M	485.31M	463.14M
Cash Flow
Free Cash Flow	111.35M	96.62M	101.34M	88.38M	97.59M	57.89M
Operating Cash Flow	127.83M	104.19M	103.73M	93.35M	101.78M	59.96M
Investing Cash Flow	-153.44M	-402.01M	-274.58M	-146.55M	-315.30M	-296.15M
Financing Cash Flow	25.01M	230.12M	-27.23M	-124.42M	86.32M	567.81M

Farmers & Merchants Bancorp Technical Analysis

Technical Analysis SentimentPositive

Last Price1470.00

Price Trends

50DMA1449.93Positive

100DMA1409.60Positive

200DMA1315.02Positive

Market Momentum

MACD4.77Negative

RSI55.67Neutral

STOCH52.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMCB, the sentiment is Positive. The current price of 1470.00 is above the 20-day moving average (MA) of 1457.64, above the 50-day MA of 1449.93, and above the 200-day MA of 1315.02, indicating a bullish trend. The MACD of 4.77 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 52.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMCB.

Farmers & Merchants Bancorp Risk Analysis

Farmers & Merchants Bancorp disclosed 36 risk factors in its most recent earnings report. Farmers & Merchants Bancorp reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

2 New Risks

1.We depend on the accuracy and completeness of information about clients and counterparties, and our financial condition, operations, financial reporting and reputation could be negatively affected if this information is materially misleading, false, inaccurate or fraudulent.Q4, 2023

2.Catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, floods, prolonged drought, and pandemics may adversely affect the general economy, financial and capital markets, specific industries, and the Bank.Q4, 2023

Farmers & Merchants Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

FMCB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRC	85Outperform	$462.41M	6.75	17.18%	3.51%	-18.89%	-221.07%
RCBC	83Outperform	$836.22M	9.44	15.71%	0.34%	―	―
BSRR	82Outperform	$545.37M	10.82	13.89%	2.51%	-1.49%	34.62%
FMCB	80Outperform	$1.02B	10.16	14.78%	1.44%	5.77%	10.19%
WABC	75Outperform	$1.38B	12.79	12.80%	3.19%	-4.35%	1.06%
OVLY	72Outperform	$291.08M	12.25	11.29%	2.18%	5.39%	-1.97%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

FMCB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FMCB	Farmers & Merchants Bancorp	1470.00	462.32	45.88%
BMRC	Bank Of Marin	28.50	4.04	16.53%
OVLY	Oak Valley Bancorp [ca]	34.42	6.86	24.89%
BSRR	Sierra Bancorp	42.19	14.30	51.26%
WABC	Westamerica Bancorp	59.47	14.59	32.52%
RCBC	River City Bank	58.71	19.38	49.26%

Farmers & Merchants Bancorp Corporate Events

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance

Farmers & Merchants Bancorp Updates Investor Presentation Disclosure

Neutral

Oct 21, 2026

Farmers & Merchants Bancorp operates in the banking and financial services industry, providing traditional banking products and services to its customers while communicating regularly with investors about its financial position, business activities,...

Dividends

Farmers & Merchants Bancorp Declares Quarterly Cash Dividend

Positive

Aug 13, 2026

On August 12, 2026, Farmers & Merchants Bancorp announced that its Board of Directors declared a quarterly cash dividend for shareholders, underscoring the bank’s continued practice of returning capital to investors. The move reflected the company’s...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 13, 2026

Farmers & Merchants Bancorp AI Stock Analysis