ARCHBOLD, Ohio - Farmers & Merchants Bancorp (NASDAQ:MBIN), Inc. (NASDAQ:FMAO), the holding company for F&M Bank, announced a slight increase in its quarterly cash dividend, continuing a three-decade tradition of annual dividend growth. The new dividend of $0.22125 per share, up from the previous $0.22, will be payable on October 20, 2024, to shareholders of record as of October 4, 2024.
This increment marks the 30th consecutive year that the Ohio-based community bank has raised its dividend. President and CEO Lars B. Eller expressed pride in the bank's consistent performance, stating that the increase reflects the company's growth, solid capital levels, and profitable operations. He highlighted the bank's ability to return capital to shareholders through various economic cycles.
Since 2004, the annual dividend has grown from $0.2375 to $0.8825 in 2024, representing a compound annual growth rate of 6.8%. This steady increase underscores the financial institution's commitment to shareholder returns.
Farmers & Merchants Bancorp, with assets totaling $3.32 billion as of June 30, 2024, operates F&M Bank, which has served local communities since 1897. The bank offers commercial and retail banking services across multiple counties in Ohio, Northeast Indiana, and Michigan, with additional loan production offices in Ohio and Indiana.
The announcement is based on a press release statement from Farmers & Merchants Bancorp, Inc. The company wishes to highlight that forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. These statements are protected under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are directed to the company's SEC filings for a more detailed understanding of its financial performance and the risks it faces. These filings are available on the SEC's website or through F&M Bank's website.
The modest dividend increase signals the bank's confidence in its financial health and its commitment to rewarding shareholders, even as it navigates the complexities of the current economic environment.
In other recent news, Farmers & Merchants Bancorp has renewed its employment agreement with President and CEO, Lars B. Eller. The new three-year contract, effective from September 1, 2024, maintains Eller's annual base salary at $504,686, with potential increases and various employee benefit plans. The company also reported a 4.8% increase in its quarterly cash dividend to $0.22 per share, following an increase in its total assets to $3.28 billion.
Furthermore, Farmers & Merchants Bancorp is switching its auditor to Plante & Moran, PLLC, effective from the year ending December 31, 2025. The previous auditor, Forvis Mazars, LLP, will complete the audit for fiscal year 2024.
Additionally, the company has announced a 4.8% increase in its quarterly cash dividend to $0.22 per share, reflecting its commitment to shareholder value. Piper Sandler recently initiated coverage on Farmers & Merchants Bancorp with a 'Neutral' rating, citing the bank's robust risk management practices and strategic growth initiatives. These developments highlight the recent activities within Farmers & Merchants Bancorp.
InvestingPro Insights
Amid a modest uptick in its quarterly cash dividend, Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) has shown a pattern of rewarding its shareholders consistently. An InvestingPro Tip highlights that FMAO has not only raised its dividend for 14 consecutive years but has actually maintained dividend payments for an impressive 28 consecutive years. This sustained return to shareholders aligns with the company's recent announcement and underscores its historical commitment to shareholder value.
InvestingPro Data further reveals a strong performance with a high return over the last year, as the one-year price total return stands at 62.99%. Additionally, the company's share price is currently at 95.44% of its 52-week high, reflecting investor confidence and a robust market valuation.
On the operational front, FMAO's gross profit margins have been identified as a point of weakness. However, the company's overall profitability is not in question, with analysts predicting profitability for the current year, supported by a solid operating income margin of 31.35% over the last twelve months as of Q2 2024.
For investors seeking deeper analysis, InvestingPro offers additional insights including more InvestingPro Tips, with a total of 9 listed for FMAO, which can be found at https://www.investing.com/pro/FMAO. These tips and data metrics provide a comprehensive view of the company's financial health and market performance, aiding investors in making informed decisions.
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