FMCB - Farmers & Merchants Bancorp: Looking Interesting For Long-Term Investors (Rating Upgrade)
2024-03-29 09:36:47 ET
Summary
- Notwithstanding some headwinds from funding cost pressure, Farmers & Merchants Bancorp continues to enjoy stable earnings and profitability.
- Non-interest-bearing deposits have stabilized, while interest-bearing deposit cost growth is likewise moderating. Credit quality remains excellent.
- With the shares now below 1.4x tangible book value, the stock trades at its lowest premium in a long time, excluding COVID-hit 2020.
Tucked away on the pink sheets with pretty thin trading volume, life can often move quite slowly for the shares of Farmers & Merchants Bancorp (FMCB). Indeed, just as this California-based lender avoided the sell-off that hit other regional banks in the early part of 2023, it also missed out on the end-of-year rally, ultimately resulting in around 20ppt of underperformance since my last update in September....
Farmers & Merchants Bancorp: Looking Interesting For Long-Term Investors (Rating Upgrade)