F&M Bank Extends 110-Year Dividend Streak with $28 Payout

LONG BEACH, CA – February 23, 2026 – Farmers & Merchants Bank of Long Beach (OTCQX: FMBL) has once again affirmed its century-long commitment to shareholder returns, declaring a regular quarterly cash dividend of $28 per share. The move, announced today, marks the bank’s 536th consecutive dividend payment, extending an extraordinary and unbroken streak of annual payouts that began in 1916.

The dividend is payable on March 31, 2026, to shareholders of record as of March 13, 2026. More than just a routine financial distribution, the declaration underscores a corporate philosophy of stability and prudent management that has allowed the institution to navigate more than a century of economic shifts, market turmoil, and industry evolution without ever decreasing its quarterly dividend value. This remarkable consistency sets F&M Bank apart in a financial sector often characterized by volatility.

A Legacy of Unwavering Shareholder Returns

Founded in 1907 by C.J. Walker, Farmers & Merchants Bank has built its identity on a foundation of conservative banking principles. Its dividend history is a direct reflection of this long-standing ethos. While countless financial institutions have adjusted, suspended, or eliminated dividends in response to economic downturns like the Great Depression, the dot-com bust, or the 2008 financial crisis, F&M Bank’s record remains unblemished.

This 110-year history of not only paying but also never decreasing its quarterly dividend is a rare feat in American corporate history. It speaks to a long-term strategic vision that prioritizes sustainable growth and consistent value creation over short-term gains. The bank’s leadership has often pointed to its "legacy of financial strength, values and prudent fiscal management" as the cornerstone of its success, a philosophy that appears deeply ingrained in its operational DNA since its early days in Long Beach. This steadfast approach has cultivated deep-seated confidence among its investors, many of whom are long-term holders who value stability and reliability.

The Financial Bedrock of Consistency

The bank's ability to maintain such a consistent dividend is not a matter of tradition alone; it is supported by robust and improving financial performance. Recent earnings reports paint a picture of a healthy, well-capitalized institution with strong growth metrics.

For the full year 2025, the bank reported net income of $68.3 million, a significant jump from the $44.9 million earned in 2024. This momentum continued into the new year, with first-quarter 2026 net income already at $18.9 million. A key driver of this profitability has been an expanding net interest margin (NIM), which climbed to 2.71% in the first quarter of 2026, up from 2.44% for the full year 2025 and 2.00% in 2024.

Furthermore, F&M Bank maintains capital ratios that are substantially above regulatory requirements. As of its latest reporting, its total risk-based capital ratio stood at 19.65%, far exceeding the 10.00% threshold for a "well-capitalized" institution. This formidable capital cushion provides a powerful buffer against economic shocks and gives the bank the flexibility to support its clients and reward its shareholders. The bank’s dividend payout ratio of approximately 14% is notably conservative, indicating that it retains the vast majority of its earnings to fuel further growth and fortify its balance sheet, ensuring the sustainability of future dividends.

'White-Glove Service' in a Competitive Arena

Operating in the highly competitive Southern California market, F&M Bank differentiates itself through a "white-glove service" model. With 27 branches stretching from San Clemente to Santa Barbara, the institution has cultivated a strong community presence and a reputation for personalized client relationships. This focus on service extends across its comprehensive offerings, which include commercial and small business banking, home loans, and a full suite of consumer retail products.

This customer-centric approach appears to be a key component of its financial strength. By building long-term relationships, the bank has fostered a loyal customer base, resulting in a stable and substantial deposit foundation. As of March 31, 2026, total deposits stood at a formidable $8.94 billion. Notably, nearly 35% of these were noninterest-bearing deposits, a low-cost source of funding that contributes directly to the bank's profitability and its healthy net interest margin. This stable deposit base, coupled with a robust loan portfolio of $6.34 billion, demonstrates a thriving core banking business rooted in community trust.

A Bellwether for Southern California's Economy

In a complex economic environment, the consistent performance of a long-standing regional bank can serve as a valuable indicator of local economic health. F&M Bank’s unwavering dividend and strong financial results may be interpreted as a signal of resilience within the Southern California economy it serves. The bank's ability to grow its loan portfolio suggests that local businesses and consumers continue to invest and transact with confidence.

This positive outlook was recently bolstered by a significant external vote of confidence. In late 2025, F&M Bank secured a $200 million equity investment from a large financial services company. Such a substantial investment not only strengthens the bank's capital position for future growth but also reflects an investor's belief in the bank's management, its strategic direction, and the economic vitality of its operating region.

As the bank prepares to issue its 536th dividend payment, the action represents more than just a financial distribution. It is a testament to a business model that has weathered over a century of change, a quiet affirmation of strength in the Southern California economy, and the continuation of a promise made to shareholders 110 years ago.