EXHIBIT 99.1
FARMERS & MERCHANTS BANCORP
REPORTS RECORD SECOND QUARTER EARNINGS
Kent A. Steinwert, President and Chief Executive Officer of Farmers & Merchants
Bancorp, announced that the Company earned record net income for the second
quarter ending June 30, 2005. The results represented THE 30TH CONSECUTIVE
QUARTER that Farmers & Merchants Bancorp's net income increased over the same
period the prior year.
Farmers & Merchants Bancorp reported record net income of $4,589,000 for the
quarter ending June 30, 2005. Earnings per share of common stock outstanding for
the second quarter were $5.52, up 12.65% from the second quarter of the prior
year. In addition, loans outstanding grew 7.44%, total core deposits, excluding
time deposits, increased 7.79%, and total average assets were $1,249,599,000 up
6.96% over the second quarter of 2004. Return on average assets for the quarter
was 1.47%, and return on average equity was 15.17%, both representing
improvements over the second quarter of the prior year. The Company's loan
quality has remained extremely high with non-performing assets as of June 30,
2005 totaling only 0.01% of loans. In addition, the Company's loan loss reserve
remains strong at 1.98% of loans.
For the six month period ending June 30, 2005 net income was $9,020,000, an
increase of 12.7% over the same period in 2004 and earnings per share of common
stock outstanding were $10.85, an increase of 13.6% over the prior year. As a
result of rising market interest rates over the past year, the Bank's net
interest margin increased to 5.05% for the six months ending June 30, 2005 as
compared to 4.57% for the six months ended June 30, 2004.
Steinwert further stated, "We are very pleased with our financial performance
over the past six months. Our net interest margin continues to strengthen, and
when combined with our asset growth and continued high levels of loan quality,
has delivered strong earnings results. We opened our new branch in Galt Village
on July 11th, and will be working hard over the next six months to open new
branches in Sacramento, Stockton and Lodi. Additionally, our Turlock Main branch
should be relocating to its new location in late 2005 or early 2006. When
coupled with continuing economic growth in the Central
Valley of California, this branch expansion program should help position the
Bank for future growth and profitability."
Farmers & Merchants Bancorp is the parent of Farmers & Merchants Bank of Central
California, also known as F&M Bank. Founded in 1916, the institution is a full
service community bank and proudly serves California's Great Central Valley
through 19 branch offices conveniently located from Sacramento to Turlock.
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FORWARD LOOKING STATEMENTS
Statements concerning future performance, developments or events, expectations
for growth and income forecasts, and any other guidance on future periods,
constitute forward-looking statements that are subject to a number of risks and
uncertainties. Actual results may differ materially from stated expectations.
Specific factors include, but are not limited to, loan production, balance sheet
management, expanded net interest margin, the ability to control costs and
expenses, interest rate changes and financial policies of the United States
government and general economic conditions. Additional information on these and
other factors that could affect financial results are included in our Securities
and Exchange Commission filings. The Company disclaims any obligation to update
any such factors or to publicly announce the results of any revisions to any
forward-looking statements contained herein to reflect future events or
developments.