FARMERS & MERCHANTS BANCORP
                     REPORTS RECORD SECOND QUARTER EARNINGS

     Kent A. Steinwert, President and Chief Executive Officer of Farmers &
Merchants Bancorp, announced today record net income for the second quarter and
six month periods ending June 30, 2003. The results represented the 22nd
consecutive quarter that the Company's net income increased over the same period
the prior year.

         Farmers & Merchants Bancorp reported record net income for the six
month period ending June 30, 2003, of $7,045,000, which equated to earnings per
share of common stock outstanding of $9.19, up 11.9% over the same period in
2002. Steinwert attributed Farmers & Merchants Bancorp's improved financial
performance to the Bank's $90 million or 13.7% growth of loans outstanding, $78
million or 10% increase in total deposits, and $983,000 or 19.1% jump in
non-interest income over the same period last year. Return on average assets was
1.34% for the six month period. Return on average equity (net of accumulated
other comprehensive income) was 13.54% for the period ending June 30, 2003, up
46 basis points over the same period the prior year. "We are extremely grateful
to our customers for allowing us to serve their banking needs and immensely
appreciative of our employees' hard work and dedication," Steinwert noted.

         Farmers & Merchants Bancorp also reported record net income of
$3,644,000 for the quarter ending June 30, 2003. Earnings per share of common
stock outstanding for the second quarter were $4.76, up 10.7% from the second
quarter of the prior year. Since the same period in 2002, loans outstanding grew
by 13.7%, total deposits expanded by 10%, and total assets increased by 17.8% to
$1,095,616,000. Return on average assets for the quarter exceeded 1.34%. Return
on average equity for the quarter (net of accumulated other comprehensive
income) improved by 21 basis points to 13.8% in comparison to the prior year.

         Steinwert further stated, "All of us at Farmers & Merchants Bancorp are
extremely grateful to the communities we serve for their tremendous support of
the Bank. In return, Farmers & Merchants Bancorp continues to be committed to
its longstanding financial and volunteer support of the many community-based
service organizations, whose missions of mercy are helping to improve the
overall quality of life throughout California's Great Central Valley."

         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 17 branch offices conveniently located from Sacramento to
Turlock.