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Shareholders' Equity
 12 Months Ended
Dec. 31, 2021
Shareholders' Equity [Abstract]  
Shareholders' Equity
Note 11—Shareholders’ Equity
The Company and the Bank are subject to various federal regulatory capital requirements under the Basel III Capital Rules. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
The Company believes that it is currently in compliance with all of these capital requirements and that they will not result in any restrictions on the Company’s business activity.
Management believes that the Company and the Bank meet the requirements to be categorized as “well capitalized” under the FDIC regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables.

The Company’s actual and required capital amounts and ratios are as follows:

    December 31, 2021  
  
  
Actual
    
Minimum Capital Requirement
    
Well Capitalized
Requirment
  
(Dollars in thousands)
  
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
Farmers & Merchants Bancorp
                                    
CET1 capital to risk-weighted assets
  
$
450,687
      
11.68
%
  
$
173,674
      
4.50
%
  
N/A
      
N/A
Tier 1 capital to risk-weighted assets
    
460,687
      
11.94
%
    
231,566
      
6.00
%
    
N/A
      
N/A
Risk-based capital to risk-weighted assets
    
509,091
      
13.19
%
    
308,755
      
8.00
%
    
N/A
      
N/A
Tier 1 leverage capital ratio
    
460,687
      
8.92
%
    
206,606
      
4.00
%
    
N/A
      
N/A
  
 
                                                
Farmers & Merchants Bank
                                                
CET1 capital to risk-weighted assets
  
$
459,813
      
11.91
%
  
$
173,664
      
4.50
%
  
$
250,847
      
6.50
%
Tier 1 capital to risk-weighted assets
    
459,813
      
11.91
%
    
231,551
      
6.00
%
    
308,735
      
8.00
%
Risk-based capital to risk-weighted assets
    
508,215
      
13.17
%
    
308,735
      
8.00
%
    
385,919
      
10.00
%
Tier 1 leverage capital ratio
    
459,813
      
8.91
%
    
206,426
      
4.00
%
    
258,033
      
5.00
%
 
  
  
December 31, 2020
  
  
  
Actual
    
Minimum Capital Requirement
    
Well Capitalized
Requirment
  
(Dollars in thousands)
  
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
Farmers & Merchants Bancorp
                                    
CET1 capital to risk-weighted assets
  
$
395,941
      
11.05
%
  
$
161,178
      
4.50
%
  

N/A
      
N/A
Tier 1 capital to risk-weighted assets
    
405,941
      
11.33
%
    
214,904
      
6.00
%
    
N/A
      
N/A
Risk-based capital to risk-weighted assets
    
450,890
      
12.59
%
    
286,539
      
8.00
%
    
N/A
      
N/A
Tier 1 leverage capital ratio
    
405,941
      
9.13
%
    
177,820
      
4.00
%
    
N/A
      
N/A
  
 
                                                
Farmers & Merchants Bank
                                                
CET1 capital to risk-weighted assets
  
$
401,313
      
11.21
%
  
$
161,135
      
4.50
%
  
$
232,750
      
6.50
%
Tier 1 capital to risk-weighted assets
    
401,313
      
11.21
%
    
214,846
      
6.00
%
    
286,462
      
8.00
%
Risk-based capital to risk-weighted assets
    
446,251
      
12.46
%
    
286,462
      
8.00
%
    
358,077
      
10.00
%
Tier 1 leverage capital ratio
    
401,313
      
9.04
%
    
177,605
      
4.00
%
    
222,006
      
5.00
%

Basic and dilluted earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period.

Earnings per common share have been computed based on the following:


  
Year Ended December 31,
  
(Dollars in thousands, except share and per share amounts)
  
2021
    
2020
    
2019
  
Numerator
                  
Net income
  
$
66,336
    
$
58,734
    
$
56,036
  
 
                        
Denominator
                        
Weighted average number of common shares outstanding
    
789,646
      
793,337
      
787,227
  
Weighted average number of dilutive shares outstanding
    
789,646
      
793,337
      
787,227
  
 
                        
Basic earnings per common share
  
$
84.01
    
$
74.03
    
$
71.18
  
Diluted earning per commons share
  
$
84.01
    
$
74.03
    
$
71.18
  

The Company’s Board of Directors may declare cash or stock dividends out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations.