Dividends and Basic Earnings Per Common Share

6 Months Ended

Jun. 30, 2014

Dividends and Basic Earnings Per Common Share [Abstract]

Dividends and Basic Earnings Per Common Share

6. Dividends and Basic Earnings Per Common Share

Farmers & Merchants Bancorp common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. On May 19, 2014, the Board of Directors of Farmers & Merchants Bancorp announced a mid-year cash dividend of $6.30 per share, a 1.6% increase over the $6.20 per share paid on July 1, 2013. The cash dividend was paid on July 1, 2014, to shareholders of record on June 9, 2014.

Basic earnings per share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The following table calculates the basic earnings per share for the three and six months ended June 30, 2014 and 2013.

	Three Months				Six Months
	Ended June 30				Ended June 30,
(net income in thousands)	2014		2013		2014		2013
Net Income	$	6,104	$	5,565	$	12,386	$	11,816
Average Number of Common Shares Outstanding		777,882		777,882		777,882		777,882
Basic Earnings Per Common Share	$	7.84	$	7.15	$	15.92	$	15.19