Farmers & Merchants Bancorp Completes Acquisition of Bank of Rio Vista

 

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.”

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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.

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