Dividends and Basic Earnings Per Common Share

3 Months Ended

Mar. 31, 2017

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. No cash dividends were declared during the first quarter of 2017 or 2016.

Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The Company has no securities or other contracts, such as stock options, that could require the issuance of common stock.   Accordingly, diluted earnings per share are not presented. The following table calculates the basic earnings per common share for the three months ended March 31, 2017 and 2016.

(net income in thousands)	2017		2016
Net Income	$	7,821	$	7,172
Weighted Average Number of Common Shares Outstanding		807,986		791,895
Basic Earnings Per Common Share Amount	$	9.68	$	9.06