EXHIBIT 99.1


                           FARMERS & MERCHANTS BANCORP
                             DECLARES CASH DIVIDEND

The  Board  of  Directors  of  Farmers  &  Merchants Bancorp has declared a cash
dividend  of  $4.80 per share, a 6.7% increase over the $4.50 per share declared
in  December  of  2005.  The  cash  dividend will be paid on January 2, 2007, to
stockholders  of  record  on  December  15, 2006.  Total cash dividends declared
during  the  past 12 months were $6,965,738, or $8.55 per share of common stock,
an  increase of 9.6% over dividends per share declared in 2005. This is the 72nd
consecutive  year that the Company has declared cash dividend payments to common
shareholders.

"Farmers  &  Merchants  Bank's  strong  third  quarter  financial  performance
represented  the  35th  consecutive  quarter  that  net income exceeded the same
quarter  of  the prior year. Management and the Board of Directors are extremely
pleased  with  year-to-date  results  and unanimously approved the cash dividend
with  an  increase  over the prior year. This is the ninth consecutive year that
the  year-end  cash  dividend  has  been  increased" said Kent A. Steinwert, the
Bank's  President  and  Chief  Executive  Officer.

In  October,  the Company reported record third quarter net income of $5,333,000
or  $6.54  per  share of common stock which represents a 12.3% increase over the
same  period  in  2005. In addition, loans outstanding grew 9.6%, total deposits
increased 6.5%, and total assets were $1.42 billion up 9.4% over September 2005.
Return on Average Assets for the quarter was 1.54%. Return on Average Equity was
16.81%  for  the  quarter,  an  improvement  of  108 basis points over the third
quarter  of  the  prior  year.

Farmers & Merchants Bancorp is the parent of Farmers & Merchants Bank of Central
California,  also  known  as F&M Bank. Founded in 1916, and celebrating its 90th
anniversary,  F&M  Bank  is  a  full  service community bank that proudly serves
California's Great Central Valley through 21 branch offices conveniently located
from  Sacramento  to  Turlock.