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    FARMERS & MERCHANTS BANCORP (FMCB)

    Q2 2025 Earnings Summary

    Reported on Jan 1, 1970 (Before Market Open)
    Pre-Earnings Price$994.60Last close (Jul 16, 2025)
    Post-Earnings Price$992.22Open (Jul 17, 2025)
    Price Change
    $-2.38(-0.24%)
    MetricYoY ChangeReason

    Total Revenue (Q1 2024 vs Q1 2023)

    Net Interest Income decreased 7.19% (from $55.7m to $51.7m) while Non‑interest Income increased 46.68% (from $3.5m to $5.1m)

    The decline in net interest income resulted from a lower net interest margin (dropping from 4.55% to 4.14%) due to rising deposit costs outpacing loan yield gains, partially offset by a recovery in non‑interest income after eliminating prior losses on investment securities and a non‑recurring BOLI gain.

    Total Revenue (Q1 2025 vs Q1 2024)

    Interest income increased by 0.75% (from $66.6m to $67.1m) and Net Interest Income rose 2.76% (from $51.7m to $53.1m), while Non‑interest Income saw a marginal decrease

    Though explicit total revenue figures were not detailed, the components indicate a modest revenue improvement driven primarily by higher interest earnings from increased yields on investment securities, with a slight offset from a decrease in non‑interest income.

    Net Income (Q1 2024 vs Q1 2023)

    Decreased by 3.50% (from $23.5m to $22.7m)

    The decline in net income was mainly due to a 7.19% drop in net interest income coupled with a significant rise in income tax expense (up $2.6m or 43.55%, partly due to the loss of non‑taxable benefits in Q1 2023), despite partly benefiting from improved non‑interest income and lower non‑interest expense.

    Net Income (Q1 2025 vs Q1 2024)

    Increased by approximately $0.3m (from $22.7m to $23.0m)

    The improvement was driven primarily by a $1.4m (2.76%) increase in net interest income, which more than offset the $0.3m provision for credit losses and an increase of $0.8m in income tax expense compared to Q1 2024.

    Cash Flow (Q1 2024 vs Q1 2023)

    Operating cash flow declined from $41.7m to $34.8m, yet overall cash increased by a net $327.8m compared to a prior decrease of $58.7m

    Operating cash flow dropped due to lower net income and the absence of a prior provision for credit losses ($1.5m in Q1 2023), while significant changes in investing (increased purchases of securities and outflows in loans) and a strong turnaround in financing activities (including a $291.5m increase in deposits and $100m in Federal Home Loan Bank advances) led to an overall boost in cash.

    Cash Flow (Q1 2025 vs Q1 2024)

    Operating cash flow increased from $34.8m to $39.6m; Investing cash flow shifted from a -$93.1m outflow to a $77.0m inflow

    The improvement in Q1 2025 cash flow was driven by stronger operating performance, a turnaround in investing activities highlighted by a $94.1m net decrease in loans and leases and higher proceeds from investment securities, and robust financing activity with deposits rising by $278.8m, despite a minor stock repurchase.

    Balance Sheet Metrics (Q1 2024 vs Q1 2023)

    Total assets increased 7.64% (from $5.3B to $5.7B) with deposits up $291.5m (6.24%), loans increased by $41.6m (1.14%), and investment securities by $46.6m

    The Q1 2024 balance sheet saw growth driven by an expansion in cash, loans, and investment securities. Deposits increased due to strong client relationships, while additional borrowings (Federal Home Loan Bank advances) and improved retained earnings bolstered shareholders’ equity.

    Balance Sheet Metrics (Q1 2025 vs Q1 2024)

    Total assets remained around $5.7B; however, Cash & Cash Equivalents surged by $394.7m (from $212.6m to $607.3m), Loans declined by $94.7m (2.57%), and Deposits rose by $278.8m with the LDR improving from 78.53% to 72.23%

    In Q1 2025, the bank’s balance sheet was rebalanced through a significant increase in cash resulting mostly from brokered and interest-bearing deposits, a conservative reduction in loans driven by seasonality and cautious underwriting, and an increase in available-for-sale investment securities which, together, improved the loan-to-deposit ratio.

    Research analysts covering FARMERS & MERCHANTS BANCORP.