Executive Summary

FMCB delivered record Q4 2024 net income of $21.8 million and $31.11 diluted EPS, up modestly year over year, with FY 2024 ROA 1.64% and ROE 15.49% .
Operating momentum continued through 2H: deposit costs fell and loan yields rose versus 1H, supporting a full-year net interest margin of 4.05% despite rate headwinds .
Balance sheet remains conservative: $5.37B assets, $4.70B deposits (51.08% checking), and no brokered deposits at year-end; tangible common equity ratio 10.46% and CET1 13.02% .
Capital return reinforced: dividend increased to $9.30 per share at year-end (+5.68%), and ~$35.1M repurchases under the $55M program in 2024, with $19.9M capacity remaining .
No Q4 earnings call transcript or published Wall Street consensus estimates were available; near-term stock catalysts hinge on continued deposit cost relief, credit stability, and capital deployment . Wall Street consensus via S&P Global was unavailable.

What Went Well and What Went Wrong

Record quarter and year: “another record setting year with record net income of $88.5 million and earnings per diluted share of $121.02, up 3.78% from 2023” and record Q4 net income $21.8M and $31.11 EPS .
Funding discipline: Reduced average total deposit cost to 1.35% for FY 2024 and operated with no brokered deposits, supported by strong client franchise .
Margin resilience: Increased average loan yield from 5.84% to 6.08% alongside a FY NIM of 4.05% due to mix shift to variable-rate and <5-year fixed loans .

Higher interest expense: Interest expense rose sharply (from $37.5M to $63.4M), compressing NIM vs prior year despite improvements in loan yield .
Efficiency ratio edged up: The expense efficiency ratio increased to 46.24% from 45.31% as revenue contracted slightly, despite tight OpEx control .
Slight credit normalization: Net charge-offs of $0.7M versus net recoveries in 2023; non-performing loans/leases rose to $0.9M (0.03% of loans) — still low, but a move off zero .

Metric	Q4 2023	Q3 2024	Q4 2024
Net Income ($USD Millions)	$21.4	$22.121	$21.8
Diluted EPS ($USD)	$28.55	$29.96	$31.11

KPI	Q2 2024	Q3 2024	FY 2024
Net Interest Margin (%)	3.91	4.07	4.05
Loan Yield (%)	6.13	6.13	6.08
Cost of Avg Total Deposits (%)	1.51	1.39	1.35
ROA (%)	1.58	1.65	1.64
ROE (%)	15.33	15.03	15.49
Efficiency Ratio (%)	45.77	47.63	46.24

Balance Sheet	FY 2023	FY 2024
Total Assets ($USD Billions)	$5.31	$5.37
Total Deposits ($USD Billions)	$4.668	$4.699
Gross Loans + Leases ($USD Billions)	$3.665	$3.690
Securities ($USD Billions)	$1.000	$1.234
CET1 (%)	12.30	13.02
Tangible Common Equity Ratio (%)	10.13	10.46
Checking Deposits (% of total)	51.76%	51.08%

Notes:

FMCB does not provide a segment breakdown; KPIs highlight margin/funding/capital quality .

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share (year-end)	Payable Jan 2, 2025	$8.80 (mid-year 2024)	$9.30	Raised
Total cash dividends in year	FY 2024	$17.10 (FY 2023)	$18.10	Raised
Share Repurchase Program	Through Dec 31, 2026	$25M program canceled (Sep 10, 2024)	New $55M program; $35.1M executed; $19.9M remaining	Increased capacity

Management did not issue formal revenue, margin, OpEx, OI&E, tax rate, or segment guidance in Q4 materials .

No Q4 2024 earnings call transcript was available.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Deposit cost trajectory	Cost of deposits rose YoY but remained below peers; 1.39% in 1H; NIM 4.02%	Cost of deposits fell to 1.39% in Q3; NIM up to 4.07%	Full-year cost of deposits 1.35%; supports FY NIM 4.05%	Improving
Loan pricing and duration focus	Emphasis on variable-rate and <5-year fixed to manage duration risk	Continued focus; loan growth modest; credit quality strong	Strategy reiterated; average loan yield up to 6.08% for FY	Steady execution
Credit quality	No non-accruals; net recoveries; ACL ~2.13%	Very low non-accruals ($0.677M); ACL ~2.11%	NPL/leases $0.9M (0.03%); net charge-offs $0.7M; ACL ~2.11%	Slight normalization, still strong
Capital & TCE	CET1 13.09%; TCE 10.72%	CET1 13.47%; TCE 10.91%	CET1 13.02%; TCE 10.46%; TBV $800.52	Stable at high levels
Shareholder returns	Mid-year dividend increased; ongoing buybacks	Continued buybacks; pro forma capital solid	YE dividend raised to $9.30; $35.1M buybacks in 2024; $19.9M capacity left	Accretive capital return

“We are pleased to announce another record setting year with record net income of $88.5 million and earnings per diluted share of $121.02, up 3.78% from 2023... The Company’s strong client base and deposit franchise allowed us to reduce our cost of total average deposits... enabled us to achieve a net interest margin of 4.05% for the year” — Kent Steinwert, Chairman, President & CEO .
Strategy focus: “We focused our loan growth on variable rate loans and fixed rate loans under five years... As rates on the longer end... did not offer attractive loan pricing” .
Long-term execution: “Our net income and earnings per share have increased in each of the last seven years... earnings per share have grown from $74.03 in 2020 to $121.02 in 2024, an increase of 63.5%” .

No Q4 2024 earnings call transcript was located; therefore Q&A themes and clarifications are unavailable.

S&P Global/Capital IQ Wall Street consensus for Q4 2024 EPS and revenue was not available at the time of analysis; comparison to estimates cannot be provided. Values retrieved from S&P Global were unavailable due to data limits.

Earnings durability: Record Q4 and FY results with disciplined funding and pricing suggest resilient core profitability into 2025 as deposit costs ease and loan yields remain firm .
Margin setup: Lower deposit costs (1.35% FY) and higher loan yields (6.08% FY) underpin NIM stability despite elevated industry funding costs; watch for further relief from rate cuts .
Credit intact: Slight normalization off zero NPLs but absolute levels remain de minimis (0.03% of loans); reserve coverage robust (~2.11%) .
Capital deployment: Elevated capital ratios with increased buyback capacity and raised dividend support total shareholder return and TBV growth .
Liquidity and funding quality: Strong liquidity and no brokered deposits reduce earnings volatility risk; deposit mix (51% checking) supports funding cost control .
Operating efficiency: Efficiency ratio remains mid-40s% range; continued process and technology investments likely needed to offset higher regulatory and insurance costs .
Monitoring points: Near-term drivers include deposit pricing trends, loan demand in a lower-rate path, and discipline in asset duration; lack of formal guidance raises importance of quarterly disclosures .