[Request] Farmers & Merchants Bancorp

Farmers & Merchants Bancorp [OTCPK:FMCB]


“FMCB’s shareholder returns have shown consistent positive growth over the five years ending 2020. Indeed, this trend is longer as the bank has paid dividends for at least 86 consecutive years. Income growth is anchored in strong cost and risk management practices that have seen FMCB create a robust loan book. COVID-19, arguably the strongest economic test in recent years, does not appear to have shaken the soundness of FMCB’s lending practices. It can be expected that FMCB’s profit run will extend into the foreseeable future as it is driven by prudency in cost and risk management. Consequently, a buy investment decision is recommended,” wrote Siva Kumar Raju Kolaru from Seeking Alpha on March 20th 2021

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides a range of banking services primarily in the mid Central Valley of California. The company accepts various deposit instruments, such as checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products, including commercial, commercial real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products comprising term loans, leases, lines of credit, other working capital financing, as well as letters of credit; and financing products that include automobile financing, residential real estate loans, home improvement loans, and home equity lines of credit to individuals. In addition, the company provides various services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers by way of domestic and international wire and automated clearinghouse. Further, it offers investment products, including mutual funds and annuities; and online banking services for business and personal accounts. The company serves customers through twenty-eight branches, as well as 3 stand-alone automated teller machine. Farmers & Merchants Bancorp was founded in 1916 and is headquartered in Lodi, California.

As this is an OTC Markets stock, don’t expect :freetrade: to have this anytime soon. I’d like to be wrong, but it could be years. I’d be shocked if it was less than a year, given that OTC Markets stock can’t be held in an ISA. Freetrade wants to encourage longer-term investing and these types of stocks aren’t generally seen as stable.


I am surprised because FMCB are listed on the dividend kings, and ought to be good for long term investors seeking dividend payments. Like me.

I use the Freetrade GIA for divs.

my ISA is with HL (for now and shall be transferred to a cheaper broker again each year, but this is another topic).

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I imagine some stable, slowly growing companies list and stay on OTC Markets. It’s entirely possible that the OTC shares that I typically see people requesting here and big institutions supposedly not investing there has unfairly impacted my judgement of those companies.

I’d love to be wrong about all of my points. With :freetrade: having the European expansion on their road map and other markets being highly desired, I think those will come first. Again, I’d be happy to be wrong.