Investment In Bank of Rio Vista

9 Months Ended

Sep. 30, 2018

Investment In Bank of Rio Vista [Abstract]

8.	Investment In Bank of Rio Vista

Over the past year, Farmers & Merchants Bancorp acquired 1,586, or 39.65%, of the outstanding common shares of Bank of Rio Vista for $12.0 million.

On March 26, 2018, Farmers & Merchants Bancorp and Bank of Rio Vista announced that a definitive agreement had been signed by both parties for the acquisition of the remaining 40.35% of the outstanding common shares of Bank of Rio Vista. The transaction closed on October 10, 2018. See Note 10 – Subsequent Events for further information.

As a result of signing a definitive agreement with Bank of Rio Vista, Farmers & Merchants Bancorp is accounting for the 39.65% of the outstanding common shares of Bank of Rio Vista that it currently owns under the equity method of accounting, in accordance with ASC 323-10 effective first quarter 2018. During the nine months ended September 30, 2018, the Company’s recorded investment in Bank of Rio Vista increased by $381,000, based upon the earnings of Bank of Rio Vista that are attributed to the Company’s ownership.