LODI, Calif., Oct. 12, 2018 — Farmers & Merchants Bancorp (OTCQX: FMCB), a bank holding company headquartered in Lodi, California, completed the previously announced acquisition of the Bank of Rio Vista, headquartered in Rio Vista, California, on October 10, 2018.
Farmers & Merchants Bancorp’s Chairman, President and CEO Kent Steinwert said, “We are pleased to announce that Bank of Rio Vista is now part of F&M Bank. We believe this transaction will benefit clients of both banks, as well as the local delta and river communities. Our new clients will receive a broader array of sophisticated banking products while receiving F&M Bank’s community banking style of service. Both banks share a passion for supporting the communities in which they operate, and we look forward to continuing that commitment. The acquisition provides F&M Bank entry into both Rio Vista and Walnut Grove, while enhancing our market share in Lodi.”
Mr. Steinwert continued, “We are also pleased to announce that Craig James, a current member of the Bank of Rio Vista Board of Directors has been elected to join the Board of Farmers & Merchants Bank. Craig is very active in the Rio Vista and surrounding communities and will be a great addition to F&M Bank’s Board. He is a seasoned bank director with a penchant for serving customers, shareholders and our communities. F&M Bank will also establish an advisory board for the Rio Vista market area, which may include representation from former Bank of Rio Vista directors.”
In the transaction, the shareholders of Bank of Rio Vista owning 2,414 shares, or 60.35% of the outstanding common shares, received $28.7 million in cash. 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. As a result, the total price paid for all common shares of Bank of Rio Vista is $40.7 million, or approximately 1.5 times Bank of Rio Vista’s September 30, 2018 book value. Farmers & Merchants Bancorp expects the acquisition to be accretive to earnings in 2019, the first full year of combined operations.
After the acquisition, Farmers & Merchants Bancorp has approximately $3.4 billion in total assets, with 30 locations serving California’s Central Valley and San Francisco East Bay Area regions.
About Farmers & Merchants Bancorp Farmers & Merchants Bancorp, traded on the OTCQX under the symbol FMCB, is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, which proudly serves California through 30 convenient locations. In 2013, the Bank began an expansion into the San Francisco Bay Area with new full-service branches in Walnut Creek and Concord. In early 2018, a loan production office opened in Napa and was converted to a full-service branch in September 2018. The Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of “Outstanding” in their CRA evaluation. Farmers & Merchants Bancorp has paid dividends for 83 consecutive years and we have increased dividends for 53 consecutive years. As a result, we are a member of a select group of only 25 publicly traded companies referred to as “Dividend Kings.” For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.