Dividends and Basic and Diluted Earnings Per Common Share

6 Months Ended

Jun. 30, 2021

Dividends and Basic and Diluted Earnings Per Common Share [Abstract]

Dividends and Basic and Diluted Earnings Per Common Share

9. Dividends and Basic and Diluted Earnings Per Common Share

Farmers & Merchants Bancorp common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. However, trades are reported on the OTCQX under the symbol “FMCB”.

On May 13, 2021, the Board of Directors declared a mid-year cash dividend of $7.50 per share, a 3.4% increase over the $7.25 per share paid on July 1, 2020. The cash dividend was paid on July 1, 2021, to shareholders of record on June 11, 2021.

Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The Company has no securities or other contracts, such as stock options, that could require the issuance of additional common stock. Accordingly, diluted earnings per share are equal to basic earnings per share.

The following table calculates the basic earnings per common share for the three and six months ended June 30, 2021 and 2020.

	Three Months Ended June 30,				Six Months Ended June 30,
(net income in thousands)	2021		2020		2021		2020
Net Income	$	16,153	$	14,309	$	32,866	$	28,431
Weighted Average Number of Common Shares Outstanding		789,646		793,556		789,646		793,530
Basic and Diluted Earnings Per Common Share	$	20.45	$	18.03	$	41.62	$	35.83