Full Yr 2025 Highlights
- Report annual web earnings of $93.6 million, a rise of $5.1 million in comparison with 2024; fundamental earnings per frequent share of $134.96, up 11.52% from the prior yr; and diluted earnings per frequent share of $133.96, up 10.69% from the prior yr;
- Report fourth quarter web earnings of $23.8 million, up 9.05% from $21.8 million within the fourth quarter of 2024; fundamental earnings per frequent share of $34.79, up 11.83% from the fourth quarter 2024; and diluted earnings per frequent share of $34.29, up 10.22% from the fourth quarter 2024;
- Achieved return on common property of 1.67% and return on common fairness of 15.11%;
- Tangible e book worth per share of $907.24, up from $800.52 or 13.33%, year-over-year;
- Internet curiosity margin (tax equal foundation) of 4.15%, up from 4.05% in 2024; mortgage yield of 6.06%, down from 6.08% in 2024; and price of common whole deposits of 1.22%, down from 1.35% in 2024;
- Successfully managed working bills with an effectivity ratio of 45.52%, down from 46.24% in 2024;
- Whole property at year-end grew to $5.7 billion from $5.4 billion, or 5.96%, year-over-year;
- Whole deposits at year-end grew to $5.0 billion; up $278.7 million, or 5.93%, year-over-year;
- Loans and leases held for funding at year-end have been $3.7 billion; down barely, or 0.62%, year-over-year;
- Whole funding securities at year-end grew to $1.7 billion from $1.2 billion, or 35.3%, year-over-year;
- Sturdy liquidity place as of December 31, 2025, with $1.8 billion in money and funding securities, of which $951.2 million have been available-for-sale securities; and a borrowing capability of $2.1 billion with no excellent borrowings;
- Sturdy capital place as of December 31, 2025, with a complete risk-based capital ratio of 15.29%, frequent fairness tier 1 ratio of 13.81%, tier 1 leverage ratio of 11.00% and a tangible frequent fairness ratio of 11.15%; all will increase from the prior year-end;
- Credit score high quality remained resilient with an allowance for credit score losses on loans and leases at year-end of two.08%; a web charge-off ratio of 0.05% at year-end; and a non-accrual mortgage and lease ratio of 0.02% at year-end.
LODI, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) — Farmers & Retailers Bancorp (OTCQX: FMCB) (the “Firm” or “FMCB”), the guardian firm of Farmers & Retailers Financial institution of Central California (the “Financial institution” or “F&M Financial institution”), reported document annual web earnings of $93.6 million for 2025, or $133.96 per diluted frequent share, in comparison with web earnings of $88.5 million in 2024, or $121.02 per diluted frequent share. For the yr ended December 31, 2025, return on common property was 1.67% and return on common fairness was 15.11%.
CEO Commentary
Kent Steinwert, Farmers & Retailers Bancorp’s Chairman, President, and Chief Government Officer, acknowledged, “We’re very happy to announce one other document setting yr with document web earnings of $93.6 million, up practically 6% from 2024 and earnings per diluted frequent share of $133.96, up 10.69% from 2024. We achieved these spectacular outcomes whereas persevering with to take care of a powerful liquidity place and steadiness sheet at year-end with $1.8 billion in money and funding securities, of which $951.2 million have been available-for-sale securities, no borrowings and entry to $2.1 billion in borrowing capability, all whereas sustaining a conservative loan-to-deposit ratio of slightly below 74% at year-end. We have been pleased with our means to develop deposits year-over-year, by practically 6% with out the usage of brokered deposits, regardless of a reducing rate of interest setting within the second half of 2025. Our continued give attention to delivering customized and premier providers to our longstanding consumer relationships, whereas creating new consumer relationships, stays our primary precedence. Gross loans and leases have been $3.7 billion at year-end, down $22.9 million or 0.62% from December 31, 2024, as we continued to prioritize danger applicable mortgage pricing and mortgage construction over mortgage development. Available in the market, mortgage pricing continues to not adequately compensate for general and period danger on loans. Mortgage development within the fourth quarter was up $44.7 million or 1.2% in comparison with the top of the third quarter of 2025 and the mortgage pipeline is powerful as we start 2026. Our price of common whole deposits throughout 2025 decreased from 1.35% in 2024 to 1.22% in 2025. This, mixed with a rise in our common funding yield from 2.79% to three.44%, enabled us to develop the web curiosity margin from 4.05% in 2024 to 4.15% in 2025.”
Mr. Steinwert continued, “Our technique of specializing in our consumer relationships, regular disciplined development, along with an emphasis on effectivity and profitability continued to drive our efficiency. Our web earnings and earnings per diluted frequent share have elevated in every of the final eight years, and through these eight years, web earnings has grown from $28.4 million in 2017 to $93.6 million in 2025, a rise of 230%, whereas earnings per diluted frequent share have grown from $35.03 in 2017 to $133.96 in 2025, a rise of 282%. Our Firm stays in glorious monetary situation and is properly positioned as we start 2026 to fulfill any challenges forward as now we have for the previous 109 years.”
Earnings
Internet curiosity earnings for the yr ended December 31, 2025 was $219.2 million, a rise of $12.5 million, or 6.04%, when in comparison with $206.7 million for the yr ended December 31, 2024. The Firm’s web curiosity margin elevated to 4.15% in 2025, one of many strongest within the trade. The rise was primarily as a result of a rise in curiosity earnings (tax equal foundation) from $272.6 million in 2024 to $280.4 million in 2025, as the common funding yield elevated from 2.79% in 2024 to three.44% in 2025 as common funding balances elevated from $1.1 billion in 2024 to $1.4 billion in 2025. The rise within the web curiosity margin additionally benefited from a lower in curiosity expense from $65.3 million in 2024 to $60.3 million in 2025 as the price of common whole deposits decreased from 1.35% in 2024 to 1.22% in 2025 whereas common whole deposits elevated from $4.70 billion for 2024 to $4.86 billion in 2025. For the month of December 2025, our price of common whole deposits was 1.16%.
Non-interest earnings elevated $2.9 million from $20.7 million in 2024 to $23.6 million in 2025. This enhance was a results of the Firm recording $1.3 million in web positive factors on leases that paid off early, a $1.4 million web achieve on deferred compensation advantages, and a $0.3 million achieve on fairness investments, offset by a discount of $0.7 million in web positive factors on the sale of funding securities from a web achieve of $743,000 in 2024 in comparison with a $44,000 web achieve in 2025.
Non-interest expense elevated $5.4 million from $105.1 million in 2024 to $110.5 million in 2025 primarily on account of a rise in whole worker compensation and advantages of $1.7 million, a rise in deferred compensation advantages of $1.4 million, a rise of $1.3 million in different working bills, and a rise in knowledge processing of $0.9 million. The Firm’s expense effectivity ratio decreased to 45.52% from 46.24% in 2024 as the rise in revenues outpaced the rise in bills.
Stability Sheet
Whole property grew 5.96% to $5.7 billion as of December 31, 2025 in comparison with $5.4 billion as of December 31, 2024. Whole money and money equivalents decreased $67.7 million from $212.6 million as of December 31, 2024 to $144.9 million as of December 31, 2025 as administration proactively moved extra money into available-for-sale securities in anticipation of decrease market charges within the second half of 2025, which occurred between September 2025 and December 2025. Gross loans and leases decreased $22.9 million from $3.69 billion as of December 31, 2024 to $3.67 billion as of December 31, 2025. Whole investments elevated $435.9 million from $1.23 billion as of December 31, 2024 to $1.67 billion as of December 31, 2025. Whole deposits at December 31, 2025 have been $4.98 billion, a rise of $278.7 million, or 5.93%, in contrast with $4.70 billion at December 31, 2024. Whole demand deposits have been $2.44 billion at December 31, 2025, in comparison with $2.40 billion as of December 31, 2024. At December 31, 2025, whole demand deposits comprised 49.11% of whole deposits.
Credit score High quality
Loans and leases held for funding decreased $29.4 million, or 0.80%, to $3.65 billion at December 31, 2025, in contrast with $3.68 billion at December 31, 2024. Non-performing loans and leases have been $0.8 million at December 31, 2025 in comparison with $0.9 million at December 31, 2024. Non-performing loans and leases to whole loans and leases have been 0.02% as of December 31, 2025 in comparison with 0.03% as of December 31, 2024. The Firm had no different actual property owned property at December 31, 2025, in comparison with $0.9 million at December 31, 2024. Non-performing property to whole property have been 0.02% at December 31, 2025 in comparison with 0.03% at December 31, 2024.
The Firm recorded web charge-offs of $1.8 million in 2025 in comparison with $0.7 million in 2024. Provision for credit score losses have been $3.5 million in 2025, comprised of $2.9 million for the availability for credit score losses on loans and leases and $0.6 million for the availability for credit score losses on unfunded commitments, in comparison with no provision for credit score losses in 2024. The allowance for credit score losses on loans and leases elevated by $1.1 million to $76.4 million, or 2.08% of whole loans and leases as of December 31, 2025, in contrast with $75.3 million or 2.04% of whole loans and leases as of December 31, 2024. The allowance for credit score losses on loans and leases and unfunded commitments totaled $79.7 million or 2.17% as of December 31, 2025, in comparison with $78.0 million or 2.11% as of December 31, 2024. The will increase in web charge-offs, the availability for credit score losses and the allowance for credit score losses mirrored the continued financial stress in sure agricultural sectors. The Firm’s sturdy credit score tradition and give attention to longstanding consumer relationships each contributed to the Firm’s means to mitigate the danger inherent to the agricultural portfolio whereas sustaining sturdy credit score high quality metrics.
Capital
The Firm’s regulatory capital ratios continued to strengthen throughout 2025. At December 31, 2025, the Firm’s whole risk-based capital ratio was 15.29%, the frequent fairness tier 1 capital ratio was 13.81% and the tier 1 leverage capital ratio was 11.00%, a rise from 14.52%, 13.04% and 10.95%, respectively, as of December 31, 2024. The Firm’s and Financial institution’s regulatory capital ratios remained sturdy and met the best potential regulatory classification of “well-capitalized” as of December 31, 2025. At December 31, 2025, the tangible frequent fairness ratio was 11.15%, a rise of 69 foundation factors from 10.46% at December 31, 2024. Tangible e book worth per share elevated to $907.24 per share at December 31, 2025, up 13.33% in contrast with $800.52 at December 31, 2024.
The expansion in capital was pushed by web earnings of $93.6 million partially offset by inventory repurchases of $34.7 million and money dividends paid on frequent shares of $13.8 million. On August 13, 2025, the Firm introduced that it modified its dividend coverage associated to the frequency of money dividend funds from semi-annually to quarterly. The primary quarterly dividend was declared on August 12, 2025 and paid on October 1, 2025, whereas the latest quarterly dividend was declared on December 4, 2025 and paid on January 2, 2026. The full dividends per share for 2025 have been $19.35 per share, up 6.9% when in comparison with $18.10 per share for 2024. The Firm repurchased 33,562 shares of its frequent inventory throughout 2025, which diminished whole excellent shares to 697,904 as of year-end 2025. On August 14, 2025, the Firm introduced the Board of Administrators’ authorization of a rise of $45.0 million to the present share repurchase program together with an extension of this system via December 31, 2027. As of December 31, 2025, there remained $30.3 million licensed for repurchases below the Board-approved inventory repurchase plan.
About Farmers & Retailers Bancorp
Farmers & Retailers Bancorp trades on the OTCQX below the image FMCB, and is the guardian firm of Farmers & Retailers Financial institution of Central California, also called F&M Financial institution. Based in 1916, F&M Financial institution is a regionally owned and operated group financial institution, which proudly serves California via 33 handy areas. F&M Financial institution is financially sturdy, with $5.7 billion in property, and is constantly acknowledged as one of many nation’s most secure banks by nationwide financial institution score companies. The Financial institution has maintained a 5-Star score from BauerFinancial for 35 consecutive years, longer than some other business financial institution within the State of California.
Farmers & Retailers Bancorp has paid dividends for 90 consecutive years and has elevated dividends for 60 consecutive years. In consequence, Farmers & Retailers Bancorp is a member of a choose group of solely 57 publicly traded firms known as “Dividend Kings,” and is ranked 17th in that group based mostly on consecutive years of dividend will increase. A “Dividend King” is a inventory with 50 or extra consecutive years of dividend will increase.
In January 2026, Farmers & Retailers Bancorp was named by the OTCQX as one of many “Finest 50 OTCQX 2026” record, rating #38 on this record which relies on whole return and common every day greenback quantity development. The Firm additionally made this record in 2023.
In July 2025, Farmers & Retailers Bancorp was named by Financial institution Director’s Journal because the #3 best-performing financial institution within the nation throughout all asset classes of their annual “Rating Banking” research of the highest performing banks for 2024. In July 2024, Farmers & Retailers Bancorp was named by Financial institution Director’s Journal because the #2 best-performing financial institution within the nation throughout all asset classes of their annual “Rating Banking” research of the highest performing banks for 2023. In July 2023, the Financial institution was named by Financial institution Director’s Journal because the #1 best-performing financial institution within the nation throughout all asset classes of their annual “Rating Banking” research of the highest performing banks for 2022.
In April 2024, F&M Financial institution was ranked 6th on Forbes Journal’s record of “America’s Finest Banks” in 2023. Forbes’ annual “America’s Finest Banks” record appears to be like at ten metrics measuring development, credit score high quality, profitability, and capital for the 2023 calendar yr, in addition to inventory efficiency within the 12 months via March 18, 2024.
In December 2023, F&M Financial institution was ranked 4th on S&P International Market Intelligence’s “Prime 50 Checklist of Finest-Performing Neighborhood Banks” within the US with property between $3.0 billion and $10.0 billion for 2023. S&P International Market Intelligence ranks monetary establishments based mostly on a number of key elements together with monetary returns, development, and steadiness sheet danger profile.
In October 2021, F&M Financial institution was named the “Finest Neighborhood Financial institution in California” by Newsweek journal. Newsweek’s rating acknowledges these monetary establishments that greatest serve their clients’ wants in every state. This recognition speaks to the superior customer support the F&M Financial institution workforce members present to its shoppers.
F&M Financial institution was ranked the 19th largest financial institution lender to agriculture in america as of September 30, 2025, by American Bankers Affiliation. F&M Financial institution operates within the mid-Central Valley of California, together with Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east area of the San Francisco Bay Space, together with Napa, Alameda and Contra Costa counties.
F&M Financial institution was inducted into the Nationwide Agriculture Science Heart’s “Ag Corridor of Fame” on the finish of 2021 for offering sources, monetary recommendation, steerage, and help to the agribusiness communities in addition to to college students within the subsequent era of agribusiness workforce. F&M Financial institution is devoted to serving to California stay the premier agricultural area on the earth and can proceed to work with the following era of farmers, ranchers, and processors. F&M Financial institution stays dedicated to servicing the wants of agribusiness in California as has been the case since its founding over 109 years in the past.
F&M Financial institution affords a full complement of mortgage, deposit, tools leasing and treasury administration merchandise to companies, in addition to a full suite of shopper banking merchandise. The FDIC awarded F&M Financial institution the best potential score of “Excellent” of their final Neighborhood Reinvestment Act (“CRA”) analysis.
Ahead-Trying Statements
This press launch could include sure forward-looking statements which might be based mostly on administration’s present expectations concerning the Firm’s monetary efficiency. Ahead-looking statements may be recognized by the truth that they don’t relate strictly to historic or present details. They typically embody phrases corresponding to “consider,” “anticipate,” “intend,” “estimate” or phrases of comparable that means, or future or conditional verbs corresponding to “will,” “would,” “ought to,” “may” or “could.” Ahead-looking statements on this press launch embody, with out limitation, statements concerning the Firm’s strategic focus and priorities, disciplined development, and emphasis on effectivity and profitability, and the anticipated outcomes therefrom, mortgage pricing and danger, and the Firm’s mortgage pipeline, aggressive positioning, and skill to mitigate danger in its agricultural portfolio. Ahead-looking statements on this earnings launch embody issues that contain recognized and unknown dangers, uncertainties and different elements which will trigger precise outcomes to vary materially from outcomes expressed or implied by such forward-looking statements. Such danger elements embody, amongst others: the results of and modifications in financial and financial insurance policies, together with the rate of interest insurance policies of the Federal Reserve Board and their results on inflation danger; monetary and regulatory insurance policies of america authorities; political and financial uncertainty, together with any decline in world, home or native financial situations or the soundness of credit score and monetary markets and the influence of tariffs; and different related dangers detailed within the Firm’s Kind 10-Okay, Kind 10-Qs, and varied different securities legislation filings made periodically by the Firm, copies of which can be found from the Firm’s web site. All such elements are tough to foretell and are past the Firm’s means to regulate or predict. There additionally could also be extra dangers that the Firm doesn’t presently know, or that the Firm presently believes to be immaterial, that might additionally trigger precise outcomes to vary materially and adversely from these contained in these forward-looking statements. The Firm undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new info, future occasions or circumstances after the date of this press launch or in any other case, besides as could also be required by relevant legislation.
For extra details about Farmers & Retailers Bancorp and F&M Financial institution, go to fmbonline.com.
Investor Relations Contact
Farmers & Retailers Bancorp
Bart R. Olson
Government Vice President and Chief Monetary Officer
Cellphone: 209-367-2485
| FINANCIAL HIGHLIGHTS | ||||||||||
| For the Yr-Ended | ||||||||||
| ({dollars} in hundreds, besides share and per share knowledge) | December 31, 2025 |
December 31, 2024 |
||||||||
| Earnings and Profitability: | ||||||||||
| Curiosity earnings | $ | 279,492 | $ | 271,977 | ||||||
| Curiosity expense | 60,332 | 65,301 | ||||||||
| Internet curiosity earnings | 219,160 | 206,676 | ||||||||
| Provision for credit score losses | 3,500 | – | ||||||||
| Noninterest earnings | 23,633 | 20,700 | ||||||||
| Noninterest expense | 110,517 | 105,132 | ||||||||
| Revenue earlier than taxes | 128,776 | 122,244 | ||||||||
| Revenue tax expense | 35,171 | 33,787 | ||||||||
| Internet earnings | $ | 93,605 | $ | 88,457 | ||||||
| Fundamental earnings per frequent share | $ | 134.96 | $ | 121.02 | ||||||
| Diluted earnings per frequent share | $ | 133.96 | $ | 121.02 | ||||||
| Weighted common shares excellent – Fundamental | 693,589 | 730,914 | ||||||||
| Weighted common shares excellent – Diluted | 698,768 | 730,914 | ||||||||
| Frequent shares excellent | 697,904 | 699,798 | ||||||||
| Return on common property | 1.67 | % | 1.64 | % | ||||||
| Return on common fairness | 15.11 | % | 15.49 | % | ||||||
| Mortgage yield | 6.06 | % | 6.08 | % | ||||||
| Price of common whole deposits | 1.22 | % | 1.35 | % | ||||||
| Internet curiosity margin – tax equal | 4.15 | % | 4.05 | % | ||||||
| Efficient tax charge | 27.31 | % | 27.64 | % | ||||||
| Effectivity ratio | 45.52 | % | 46.24 | % | ||||||
| Ebook worth per frequent share(1) | $ | 924.93 | $ | 818.91 | ||||||
| Tangible e book worth per frequent share(2)(a) | $ | 907.24 | $ | 800.52 | ||||||
| Stability Sheet: | ||||||||||
| Whole property | $ | 5,690,110 | $ | 5,370,196 | ||||||
| Money and money equivalents | 144,864 | 212,563 | ||||||||
| of which held at Fed | 84,242 | 141,505 | ||||||||
| Whole funding securities | 1,669,795 | 1,233,857 | ||||||||
| of which available-for-sale | 951,154 | 464,414 | ||||||||
| of which held-to-maturity | 718,641 | 769,443 | ||||||||
| Gross loans and leases | 3,667,325 | 3,690,221 | ||||||||
| Allowance for credit score losses – loans and leases | 76,375 | 75,283 | ||||||||
| Whole deposits | 4,977,826 | 4,699,139 | ||||||||
| Subordinated debentures | 10,310 | 10,310 | ||||||||
| Whole shareholders’ fairness | $ | 645,514 | $ | 573,072 | ||||||
| Mortgage-to-deposit ratio | 73.67 | % | 78.53 | % | ||||||
| Proportion of checking deposits to whole deposits | 49.11 | % | 51.08 | % | ||||||
| Capital Ratios (Bancorp) | ||||||||||
| Frequent fairness tier 1 capital to risk-weighted property | 13.81 | % | 13.04 | % | ||||||
| Tier 1 capital to risk-weighted property | 14.04 | % | 13.26 | % | ||||||
| Threat-based capital to risk-weighted property | 15.29 | % | 14.52 | % | ||||||
| Tier 1 leverage capital ratio | 11.00 | % | 10.95 | % | ||||||
| Tangible frequent fairness ratio(3)(a) | 11.15 | % | 10.46 | % | ||||||
| (a) Non-GAAP measurement | ||||||||||
| Non-GAAP Measurement Reconciliation: | ||||||||||
| ({Dollars} in hundreds) | December 31, 2025 |
December 31, 2024 |
||||||||
| Shareholders’ fairness | $ | 645,514 | $ | 573,072 | ||||||
| Much less: Intangible property | 12,348 | 12,870 | ||||||||
| Tangible frequent fairness | $ | 633,166 | $ | 560,202 | ||||||
| Whole property | $ | 5,690,110 | $ | 5,370,196 | ||||||
| Much less: Intangible property | 12,348 | 12,870 | ||||||||
| Tangible property | $ | 5,677,762 | $ | 5,357,326 | ||||||
| Tangible frequent fairness ratio(3) | 11.15 | % | 10.46 | % | ||||||
| (1) Whole frequent fairness divided by frequent shares excellent | ||||||||||
| (2) Tangible frequent fairness divided by frequent shares excellent | ||||||||||
| (3) Tangible frequent fairness divided by tangible property | ||||||||||
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