EX-99 2 fmao-ex99.htm EX-99 EX-99

Exhibit 99

img27245342_0.jpg 

Post Office Box 216

307 North Defiance Street

Archbold, Ohio 43502

NEWS RELEASE

 

Company Contact:

Investor and Media Contact:

Lars B. Eller

President and Chief Executive Officer

Farmers & Merchants Bancorp, Inc.

(419) 446-2501

leller@fm.bank

Andrew M. Berger

Managing Director

SM Berger & Company, Inc.

(216) 464-6400

andrew@smberger.com

 

Farmers & Merchants Bancorp, Inc. Reports

2024 Second-Quarter and Year-to-Date Financial Results

 

ARCHBOLD, OHIO, August 1, 2024, Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 second quarter and year-to-date ended June 30, 2024.

2024 Second Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

85 consecutive quarters of profitability
Net income was $5.7 million, or $0.42 per basic and diluted share
Proceeds from collateral sales of $6.4 million were received from an agricultural based relationship. The proceeds enabled paydowns and payoffs on nonaccrual loans during the second quarter that included $5.3 million in principal paydown, and $1.0+ million pre-tax benefit to interest and fee income
Net interest income after provision for credit losses increased 6.8% from December 31, 2023, primarily due to a stabilizing net interest margin, solid asset quality and the collection of a nonaccrual loan
Net interest margin, adjusted for the collection of a nonaccrual loan, improved 2 basis points from the 2024 first quarter
Total loans increased 1.75% to $2.56 billion at June 30, 2024
Total cash and cash equivalents increased by $121.9 million, or 171% to $193.1 million
Total assets increased 5.6% to a record $3.32 billion
Deposits increased 7.0% to a record $2.64 billion
F&M joins OHIO HOMEBUYER PLUS Saver program, helping perspective Ohio home buyers save for a home purchase over the next five years by offering a higher than market interest rate to qualified depositors
Stockholders’ equity increased 5.9% to a record $322.7 million
Asset quality at historically strong levels with nonperforming loans of only $2.5 million at June 30, 2024, compared to $19.4 million at March 31, 2024 and $6.3 million at June 30, 2023
Allowance for credit losses was 1,016% of nonperforming loans

Lars B. Eller, President and Chief Executive Officer, stated, “Our second quarter results reflect the talent of our associates, as we continue to work hard to drive operating improvements at F&M, serve our local Ohio, Indiana, and Michigan communities, and position F&M for long-term success. As a result, F&M produced its 85thconsecutive quarter of profitability, ended the quarter with a historically low level of nonperforming loans, and we are on pace to pay a record amount of dividends per share in 2024.”

Mr. Eller continued, “As expected, profitability and asset quality benefited during the second quarter from a refinance and paydown on a $16.2 million agricultural based relationship that was in nonaccrual status. Even without this added benefit, core levels of profitability, including our net interest margin, improved over the past three months as we remain focused on maintaining excellent underwriting standards, managing our cost of funds, and controlling operating


expenses. In addition, I am encouraged by the year-over-year and sequential improvement in our efficiency ratio as we continue to pursue opportunities that manage operating costs and expand productivity.”

Income Statement

Net income for the 2024 second quarter ended June 30, 2024, was $5.7 million, compared to $6.0 million for the same period last year. Net income per basic and diluted share for the 2024 second quarter was $0.42, compared to $0.44 for the same period last year. Net income for the 2024 first half ended June 30, 2024, was $11.0 million, compared to $12.5 million for the same period last year. Net income per basic and diluted share for the 2024 first half was $0.81, compared to $0.92 for the same period last year.

“I am pleased with the progress we are making in a difficult operating environment managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the December 31, 2023 quarter, our yield on earning assets has increased by 29 basis points, compared to a 16 basis point increase in our cost of interest bearing liabilities. In fact, over the past three consecutive quarters, our yield on earning assets has outpaced our cost of interest bearing liabilities. We expect this trend will continue as more of our loan portfolio reprices in 2024. In addition, with expected flat loan growth in 2024, we continue to enhance liquidity levels and at June 30, 2024, we had $193.1 million in cash and cash equivalents, compared to $71.2 million at June 30, 2023. We also continue to make progress growing deposits with a prudent focus on managing the interest rates on deposit accounts. On a year-over-year basis, total deposits increased 7.0% to a record $2.64 billion,” continued Mr. Eller.

Deposits

At June 30, 2024, total deposits were $2.64 billion, an increase of 7.0% from June 30, 2023. The Company’s cost of interest-bearing liabilities was 3.18% for the quarter ended June 30, 2024, compared to 2.35% for the quarter ended June 30, 2023, and 3.02% for the 2023 fourth quarter ended December 31, 2023.

Loan Portfolio and Asset Quality

Mr. Eller concluded, “Our asset quality remains at historically strong levels, with only $2.5 million of nonperforming assets, compared to total assets of $3.32 billion at June 30, 2024. With nonperforming assets at unprecedented low levels, we expect trends to normalize in the coming quarters, especially as economic uncertainty remains elevated. In addition, we are starting to see some early signs of stress within our consumer lending and home loan portfolios, as higher insurance premiums and larger property taxes compound inflationary trends that have impacted consumers over the past several years. We continue to proactively monitor our loan portfolio for any signs of stress, including engaging independent third parties to review our loan portfolio. Overall, F&M is in a strong financial and operating position that we believe is well positioned to create lasting value for our communities, customers, team members, and shareholders.”

Total loans, net at June 30, 2024, increased 1.75%, or by $43.9 million to $2.56 billion, compared to $2.52 billion at June 30, 2023. The year-over-year improvement resulted from the contribution of continued organic loan growth.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $2.5 million, or 0.10% of total loans at June 30, 2024, compared to $6.3 million, or 0.25% of total loans at June 30, 2023, and $22.4 million, or 0.87% at December 31, 2023. As expected, one large relationship in nonaccrual status last quarter was made current in the second quarter, resulting in a $5.3 million paydown in principal on the relationship, with another $3.8 million in principal balances expected to be retired in the third quarter.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 50.9% of the Company’s total loan portfolio at June 30, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.3% of the Company's total loan portfolio at June 30, 2024, with a weighted average loan-to-value of approximately 63.1% and an average loan of approximately $900,000.

 

 


F&M’s CRE portfolio included the following categories at June 30, 2024:

CRE Category

 

Dollar
Balance

 

 

Percent of
CRE
Portfolio

 

 

Percent of
Total Loan
Portfolio

 

Industrial

 

$

261,436

 

 

 

20.1

%

 

 

10.2

%

Multi-family

 

 

225,638

 

 

 

17.3

%

 

 

8.8

%

Retail

 

 

221,011

 

 

 

17.0

%

 

 

8.6

%

Hotels

 

 

144,548

 

 

 

11.1

%

 

 

5.6

%

Office

 

 

135,607

 

 

 

10.4

%

 

 

5.3

%

Gas Stations

 

 

63,077

 

 

 

4.8

%

 

 

2.5

%

Food Service

 

 

45,976

 

 

 

3.5

%

 

 

1.8

%

Development

 

 

34,757

 

 

 

2.7

%

 

 

1.4

%

Senior Living

 

 

30,050

 

 

 

2.3

%

 

 

1.2

%

Auto Dealers

 

 

25,025

 

 

 

1.9

%

 

 

1.0

%

Other

 

 

116,473

 

 

 

8.9

%

 

 

4.5

%

Total CRE

 

$

1,303,598

 

 

 

100.0

%

 

 

50.9

%

* Numbers have been rounded

 

At June 30, 2024, the Company’s allowance for credit losses to nonperforming loans was 1,016%, compared to 395.71% at June 30, 2023, and 111.95% at December 31, 2023. The allowance to total loans was 0.99% at June 30, 2024, compared to 0.99% at June 30, 2023. Including accretable yield adjustments, associated with the Company’s recent acquisitions, F&M’s allowance for credit losses to total loans was 1.10% at June 30, 2024, compared to 1.20% at June 30, 2023.

Stockholders’ Equity and Dividends

Total stockholders’ equity increased 5.9% to $322.7 million at June 30, 2024, from $304.7 million at June 30, 2023. At June 30, 2024, the Company had a Tier 1 leverage ratio of 8.02%, compared to 9.85% at June 30, 2023.

Based on a regulatory basis, tangible stockholders’ equity increased to $259.9 million at June 30, 2024, compared to $248.3 million at June 30, 2023. On a per share basis, tangible stockholders’ equity at June 30, 2024, was $19.00 per share, compared to $18.21 per share at June 30, 2023.

For the six months ended June 30, 2024, the Company has declared cash dividends of $0.44 per share, which is a 4.8% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 29 consecutive years. For the six months ended June 30, 2024, the dividend payout ratio was 53.89% compared to 45.44% for the same period last year.

About Farmers & Merchants State Bank:

Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement

Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s


SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures

This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME

(Unaudited) (in thousands of dollars, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June
 30, 2024

 

 

March
 31, 2024

 

 

December
 31, 2023

 

 

September
 30, 2023

 

 

June
 30, 2023

 

 

June
 30, 2024

 

 

June
 30, 2023

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

36,593

 

 

$

35,200

 

 

$

34,493

 

 

$

33,783

 

 

$

31,365

 

 

$

71,793

 

 

$

61,068

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and
   government
   agencies

 

 

1,148

 

 

 

1,045

 

 

 

987

 

 

 

1,005

 

 

 

1,030

 

 

 

2,193

 

 

 

2,098

 

Municipalities

 

 

389

 

 

 

394

 

 

 

397

 

 

 

392

 

 

 

401

 

 

 

783

 

 

 

809

 

Dividends

 

 

327

 

 

 

333

 

 

 

365

 

 

 

246

 

 

 

148

 

 

 

660

 

 

 

271

 

Federal funds sold

 

 

7

 

 

 

7

 

 

 

8

 

 

 

6

 

 

 

9

 

 

 

14

 

 

 

30

 

Other

 

 

2,702

 

 

 

1,675

 

 

 

2,020

 

 

 

927

 

 

 

424

 

 

 

4,377

 

 

 

903

 

Total interest income

 

 

41,166

 

 

 

38,654

 

 

 

38,270

 

 

 

36,359

 

 

 

33,377

 

 

 

79,820

 

 

 

65,179

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

16,488

 

 

 

15,279

 

 

 

15,015

 

 

 

13,323

 

 

 

10,434

 

 

 

31,767

 

 

 

18,585

 

Federal funds purchased
   and securities sold
   under agreement to
   repurchase

 

 

276

 

 

 

284

 

 

 

293

 

 

 

349

 

 

 

427

 

 

 

560

 

 

 

832

 

Borrowed funds

 

 

2,742

 

 

 

2,689

 

 

 

2,742

 

 

 

2,741

 

 

 

2,113

 

 

 

5,431

 

 

 

3,393

 

Subordinated notes

 

 

285

 

 

 

284

 

 

 

285

 

 

 

284

 

 

 

285

 

 

 

569

 

 

 

569

 

Total interest
   expense

 

 

19,791

 

 

 

18,536

 

 

 

18,335

 

 

 

16,697

 

 

 

13,259

 

 

 

38,327

 

 

 

23,379

 

Net Interest Income -
   Before Provision for
   Credit Losses

 

 

21,375

 

 

 

20,118

 

 

 

19,935

 

 

 

19,662

 

 

 

20,118

 

 

 

41,493

 

 

 

41,800

 

Provision for Credit
   Losses - Loans

 

 

605

 

 

 

(289

)

 

 

278

 

 

 

460

 

 

 

143

 

 

 

316

 

 

 

960

 

Provision for Credit
   Losses - Off Balance
   Sheet Credit Exposures

 

 

(18

)

 

 

(266

)

 

 

189

 

 

 

(76

)

 

 

(129

)

 

 

(284

)

 

 

(67

)

Net Interest Income
   After Provision for
   Credit Losses

 

 

20,788

 

 

 

20,673

 

 

 

19,468

 

 

 

19,278

 

 

 

20,104

 

 

 

41,461

 

 

 

40,907

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

189

 

 

 

598

 

 

 

415

 

 

 

248

 

 

 

369

 

 

 

787

 

 

 

669

 

Other service charges
   and fees

 

 

1,085

 

 

 

1,057

 

 

 

1,090

 

 

 

1,133

 

 

 

1,092

 

 

 

2,142

 

 

 

2,120

 

Interchange income

 

 

1,330

 

 

 

1,429

 

 

 

1,310

 

 

 

1,266

 

 

 

1,323

 

 

 

2,759

 

 

 

2,742

 

Loan servicing income

 

 

513

 

 

 

539

 

 

 

666

 

 

 

502

 

 

 

1,179

 

 

 

1,052

 

 

 

3,237

 

Net gain on sale of loans

 

 

314

 

 

 

107

 

 

 

230

 

 

 

294

 

 

 

108

 

 

 

421

 

 

 

175

 

Increase in cash surrender
   value of bank owned
   life insurance

 

 

236

 

 

 

216

 

 

 

216

 

 

 

221

 

 

 

201

 

 

 

452

 

 

 

397

 

Net loss on sale of
   available-for-sale
   securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(891

)

Total noninterest
   income

 

 

3,667

 

 

 

3,946

 

 

 

3,927

 

 

 

3,664

 

 

 

4,272

 

 

 

7,613

 

 

 

8,449

 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (continued)

(Unaudited) (in thousands of dollars, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June
 30, 2024

 

 

March
 31, 2024

 

 

December
 31, 2023

 

 

September
 30, 2023

 

 

June
 30, 2023

 

 

June
 30, 2024

 

 

June
 30, 2023

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

7,589

 

 

 

7,846

 

 

 

6,981

 

 

 

6,777

 

 

 

6,500

 

 

 

15,435

 

 

 

13,157

 

Employee benefits

 

 

2,112

 

 

 

2,171

 

 

 

1,218

 

 

 

2,066

 

 

 

2,071

 

 

 

4,283

 

 

 

4,236

 

Net occupancy expense

 

 

999

 

 

 

1,027

 

 

 

1,187

 

 

 

950

 

 

 

840

 

 

 

2,026

 

 

 

1,696

 

Furniture and equipment

 

 

1,407

 

 

 

1,353

 

 

 

1,370

 

 

 

1,189

 

 

 

1,211

 

 

 

2,760

 

 

 

2,463

 

Data processing

 

 

448

 

 

 

500

 

 

 

785

 

 

 

840

 

 

 

796

 

 

 

948

 

 

 

1,522

 

Franchise taxes

 

 

265

 

 

 

555

 

 

 

308

 

 

 

434

 

 

 

379

 

 

 

820

 

 

 

745

 

ATM expense

 

 

397

 

 

 

473

 

 

 

665

 

 

 

640

 

 

 

683

 

 

 

870

 

 

 

1,306

 

Advertising

 

 

519

 

 

 

530

 

 

 

397

 

 

 

865

 

 

 

830

 

 

 

1,049

 

 

 

1,344

 

Net (gain) loss on sale
   of other assets owned

 

 

(49

)

 

 

-

 

 

 

86

 

 

 

49

 

 

 

-

 

 

 

(49

)

 

 

-

 

FDIC assessment

 

 

507

 

 

 

580

 

 

 

594

 

 

 

586

 

 

 

496

 

 

 

1,087

 

 

 

802

 

Servicing rights
   amortization - net

 

 

187

 

 

 

168

 

 

 

182

 

 

 

106

 

 

 

164

 

 

 

355

 

 

 

323

 

Loan expense

 

 

251

 

 

 

229

 

 

 

246

 

 

 

241

 

 

 

233

 

 

 

480

 

 

 

568

 

Consulting fees

 

 

198

 

 

 

186

 

 

 

192

 

 

 

179

 

 

 

231

 

 

 

384

 

 

 

461

 

Professional fees

 

 

527

 

 

 

445

 

 

 

331

 

 

 

358

 

 

 

325

 

 

 

972

 

 

 

741

 

Intangible asset
   amortization

 

 

444

 

 

 

445

 

 

 

446

 

 

 

445

 

 

 

444

 

 

 

889

 

 

 

889

 

Other general and
   administrative

 

 

1,495

 

 

 

1,333

 

 

 

1,532

 

 

 

1,319

 

 

 

1,641

 

 

 

2,828

 

 

 

3,522

 

Total noninterest
   expense

 

 

17,296

 

 

 

17,841

 

 

 

16,520

 

 

 

17,044

 

 

 

16,844

 

 

 

35,137

 

 

 

33,775

 

Income Before Income
   Taxes

 

 

7,159

 

 

 

6,778

 

 

 

6,875

 

 

 

5,898

 

 

 

7,532

 

 

 

13,937

 

 

 

15,581

 

Income Taxes

 

 

1,477

 

 

 

1,419

 

 

 

1,332

 

 

 

1,121

 

 

 

1,531

 

 

 

2,896

 

 

 

3,114

 

Net Income

 

 

5,682

 

 

 

5,359

 

 

 

5,543

 

 

 

4,777

 

 

 

6,001

 

 

 

11,041

 

 

 

12,467

 

Other Comprehensive
   Income (Loss) (Net of
   Tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain
   (loss) on available-
   for-sale securities

 

 

2,531

 

 

 

(1,995

)

 

 

13,261

 

 

 

(4,514

)

 

 

(5,996

)

 

 

536

 

 

 

2,034

 

Reclassification
   adjustment for realized
   loss on sale of
   available-for-sale
   securities

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

891

 

Net unrealized gain
   (loss) on available-
   for-sale securities

 

 

2,531

 

 

 

(1,995

)

 

 

13,261

 

 

 

(4,514

)

 

 

(5,996

)

 

 

536

 

 

 

2,925

 

Tax expense (benefit)

 

 

531

 

 

 

(418

)

 

 

2,784

 

 

 

(947

)

 

 

(1,260

)

 

 

113

 

 

 

614

 

Other comprehensive
   income (loss)

 

 

2,000

 

 

 

(1,577

)

 

 

10,477

 

 

 

(3,567

)

 

 

(4,736

)

 

 

423

 

 

 

2,311

 

Comprehensive Income

 

$

7,682

 

 

$

3,782

 

 

$

16,020

 

 

$

1,210

 

 

$

1,265

 

 

$

11,464

 

 

$

14,778

 

Basic Earnings
   Per Share

 

$

0.42

 

 

$

0.39

 

 

$

0.41

 

 

$

0.35

 

 

$

0.44

 

 

$

0.81

 

 

$

0.92

 

Diluted Earnings
   Per Share

 

$

0.42

 

 

$

0.39

 

 

$

0.41

 

 

$

0.35

 

 

$

0.44

 

 

$

0.81

 

 

$

0.92

 

Dividends Declared

 

$

0.22

 

 

$

0.22

 

 

$

0.22

 

 

$

0.21

 

 

$

0.21

 

 

$

0.44

 

 

$

0.42

 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in thousands of dollars, except share data)

 

 

 

June
 30, 2024

 

 

March
 31, 2024

 

 

December
 31, 2023

 

 

September
 30, 2023

 

 

June
 30, 2023

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

191,785

 

 

$

186,541

 

 

$

140,917

 

 

$

151,711

 

 

$

69,760

 

Federal funds sold

 

 

1,283

 

 

 

1,241

 

 

 

1,284

 

 

 

1,471

 

 

 

1,433

 

Total cash and cash equivalents

 

 

193,068

 

 

 

187,782

 

 

 

142,201

 

 

 

153,182

 

 

 

71,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing time deposits

 

 

3,221

 

 

 

2,735

 

 

 

2,740

 

 

 

2,989

 

 

 

3,485

 

Securities - available-for-sale

 

 

365,209

 

 

 

347,516

 

 

 

358,478

 

 

 

348,255

 

 

 

363,225

 

Other securities, at cost

 

 

14,721

 

 

 

14,744

 

 

 

17,138

 

 

 

16,995

 

 

 

17,535

 

Loans held for sale

 

 

1,628

 

 

 

2,410

 

 

 

1,576

 

 

 

1,039

 

 

 

1,459

 

Loans, net of allowance for credit losses of $25,270
  6/30/24 and $25,024 12/31/23

 

 

2,534,468

 

 

 

2,516,687

 

 

 

2,556,167

 

 

 

2,504,329

 

 

 

2,490,883

 

Premises and equipment

 

 

34,507

 

 

 

35,007

 

 

 

35,790

 

 

 

31,723

 

 

 

30,398

 

Construction in progress

 

 

38

 

 

 

9

 

 

 

8

 

 

 

3,044

 

 

 

2,290

 

Goodwill

 

 

86,358

 

 

 

86,358

 

 

 

86,358

 

 

 

86,358

 

 

 

86,358

 

Loan servicing rights

 

 

5,504

 

 

 

5,555

 

 

 

5,648

 

 

 

5,687

 

 

 

5,635

 

Bank owned life insurance

 

 

34,359

 

 

 

34,123

 

 

 

33,907

 

 

 

33,691

 

 

 

33,470

 

Other assets

 

 

49,552

 

 

 

54,628

 

 

 

43,218

 

 

 

47,388

 

 

 

41,512

 

Total Assets

 

$

3,322,633

 

 

$

3,287,554

 

 

$

3,283,229

 

 

$

3,234,680

 

 

$

3,147,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

479,069

 

 

$

510,731

 

 

$

528,465

 

 

$

505,358

 

 

$

488,678

 

Interest-bearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

 

 

821,145

 

 

 

829,236

 

 

 

816,790

 

 

 

778,133

 

 

 

770,113

 

Savings

 

 

673,284

 

 

 

635,430

 

 

 

599,191

 

 

 

591,344

 

 

 

581,192

 

Time

 

 

667,592

 

 

 

645,985

 

 

 

663,017

 

 

 

700,445

 

 

 

628,757

 

Total deposits

 

 

2,641,090

 

 

 

2,621,382

 

 

 

2,607,463

 

 

 

2,575,280

 

 

 

2,468,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities
   sold under agreements to repurchase

 

 

27,218

 

 

 

28,218

 

 

 

28,218

 

 

 

30,527

 

 

 

51,567

 

Federal Home Loan Bank (FHLB)
   advances

 

 

266,102

 

 

 

256,628

 

 

 

265,750

 

 

 

266,286

 

 

 

266,818

 

Subordinated notes, net of unamortized
   issuance costs

 

 

34,759

 

 

 

34,731

 

 

 

34,702

 

 

 

34,673

 

 

 

34,644

 

Dividend payable

 

 

2,975

 

 

 

2,975

 

 

 

2,974

 

 

 

2,838

 

 

 

2,834

 

Accrued expenses and other liabilities

 

 

27,825

 

 

 

25,930

 

 

 

27,579

 

 

 

21,892

 

 

 

18,177

 

Total liabilities

 

 

2,999,969

 

 

 

2,969,864

 

 

 

2,966,686

 

 

 

2,931,496

 

 

 

2,842,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock - No par value 20,000,000
   shares authorized; issued and outstanding
   14,564,425 shares 6/30/24 and 12/31/23

 

 

135,829

 

 

 

135,482

 

 

 

135,515

 

 

 

135,171

 

 

 

135,647

 

Treasury stock - 884,481 shares 6/30/24
   and 899,784 shares 12/31/23

 

 

(11,006

)

 

 

(10,851

)

 

 

(11,040

)

 

 

(11,008

)

 

 

(11,298

)

Retained earnings

 

 

226,430

 

 

 

223,648

 

 

 

221,080

 

 

 

218,510

 

 

 

216,236

 

Accumulated other comprehensive
   loss

 

 

(28,589

)

 

 

(30,589

)

 

 

(29,012

)

 

 

(39,489

)

 

 

(35,922

)

Total stockholders' equity

 

 

322,664

 

 

 

317,690

 

 

 

316,543

 

 

 

303,184

 

 

 

304,663

 

Total Liabilities and Stockholders' Equity

 

$

3,322,633

 

 

$

3,287,554

 

 

$

3,283,229

 

 

$

3,234,680

 

 

$

3,147,443

 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

SELECT FINANCIAL DATA

 

 

 

For the Three Months Ended

 

 

 

For the Six Months Ended

 

Selected financial data

 

June
30, 2024

 

 

March
31, 2024

 

 

December
31, 2023

 

 

September
30, 2023

 

 

June
30, 2023

 

 

 

June
30, 2024

June
30, 2023

 

Return on average assets

 

 

 

0.69

%

 

 

 

0.66

%

 

 

 

0.67

%

 

 

 

0.59

%

 

 

 

0.77

%

 

 

 

0.67

%

 

 

0.81

%

Return on average equity

 

 

 

7.13

%

 

 

 

6.76

%

 

 

 

7.27

%

 

 

 

6.26

%

 

 

 

7.84

%

 

 

 

6.94

%

 

 

8.21

%

Yield on earning assets

 

 

 

5.22

%

 

 

 

5.00

%

 

 

 

4.93

%

 

 

 

4.79

%

 

 

 

4.53

%

 

 

 

5.11

%

 

 

4.47

%

Cost of interest bearing
  liabilities

 

 

 

3.18

%

 

 

 

3.06

%

 

 

 

3.02

%

 

 

 

2.82

%

 

 

 

2.35

%

 

 

 

3.12

%

 

 

2.10

%

Net interest spread

 

 

 

2.04

%

 

 

 

1.94

%

 

 

 

1.91

%

 

 

 

1.97

%

 

 

 

2.18

%

 

 

 

1.99

%

 

 

2.37

%

Net interest margin

 

 

 

2.71

%

 

 

 

2.60

%

 

 

 

2.57

%

 

 

 

2.59

%

 

 

 

2.73

%

 

 

 

2.66

%

 

 

2.87

%

Efficiency

 

 

 

69.03

%

 

 

 

74.08

%

 

 

 

69.23

%

 

 

 

73.07

%

 

 

 

69.06

%

 

 

 

71.50

%

 

 

66.04

%

Dividend payout ratio

 

 

 

52.35

%

 

 

 

55.52

%

 

 

 

54.23

%

 

 

 

60.07

%

 

 

 

47.22

%

 

 

 

53.89

%

 

 

45.44

%

Tangible book value
   per share
(1)

 

 

 

19.00

 

 

 

 

18.75

 

 

 

 

18.60

 

 

$

 

18.36

 

 

$

 

18.21

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

 

8.02

%

 

 

 

8.40

%

 

 

 

8.20

%

 

 

 

8.02

%

 

 

 

9.85

%

 

 

 

 

 

 

 

Average shares outstanding

 

 

 

13,681,501

 

 

 

 

13,671,166

 

 

 

 

13,665,773

 

 

 

 

13,650,823

 

 

 

 

13,632,440

 

 

 

 

13,676,333

 

 

 

13,624,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Tangible Equity = Stockholder Equity less goodwill, other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities) plus CECL adjustment

 

 

 

 

 

 

 

 

 

 

Loans

 

June
 30, 2024

 

 

March
 31, 2024

 

 

December
 31, 2023

 

 

September
 30, 2023

 

 

June
 30, 2023

 

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

 

1,303,598

 

 

$

 

1,304,400

 

 

$

 

1,337,766

 

 

$

 

1,304,118

 

 

$

 

1,280,902

 

Agricultural real estate

 

 

 

222,558

 

 

 

 

227,455

 

 

 

 

223,791

 

 

 

 

225,672

 

 

 

 

230,837

 

Consumer real estate

 

 

 

525,902

 

 

 

 

525,178

 

 

 

 

521,895

 

 

 

 

512,973

 

 

 

 

506,866

 

Commercial and industrial

 

 

 

268,426

 

 

 

 

256,051

 

 

 

 

254,935

 

 

 

 

250,891

 

 

 

 

253,444

 

Agricultural

 

 

 

142,909

 

 

 

 

127,670

 

 

 

 

132,560

 

 

 

 

123,735

 

 

 

 

128,344

 

Consumer

 

 

 

70,918

 

 

 

 

74,819

 

 

 

 

79,591

 

 

 

 

83,024

 

 

 

 

88,312

 

Other

 

 

 

26,449

 

 

 

 

26,776

 

 

 

 

30,136

 

 

 

 

31,083

 

 

 

 

28,996

 

  Less: Net deferred loan fees
      costs andd other
(2)

 

 

 

(1,022

)

 

 

 

(982

)

 

 

 

517

 

 

 

 

(1,890

)

 

 

 

(1,908

)

Total loans, net

 

$

 

2,559,738

 

 

$

 

2,541,367

 

 

$

 

2,581,191

 

 

$

 

2,529,606

 

 

$

 

2,515,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes carrying value adjustments of $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans

 

 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

SELECT FINANCIAL DATA (continued)

 

Asset quality data

 

June
30, 2024

 

 

March
31, 2024

 

 

December
31, 2023

 

 

September
30, 2023

 

 

June
30, 2023

 

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

 

2,487

 

 

$

 

19,391

 

 

$

 

22,353

 

 

$

 

22,447

 

 

$

 

6,295

 

90 day past due and accruing

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

Nonperforming loans

 

$

 

2,487

 

 

$

 

19,391

 

 

$

 

22,353

 

 

$

 

22,447

 

 

$

 

6,295

 

Other real estate owned

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

 

$

 

-

 

Nonperforming assets

 

$

 

2,487

 

 

$

 

19,391

 

 

$

 

22,353

 

 

$

 

22,447

 

 

$

 

6,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

 

25,270

 

 

$

 

24,680

 

 

$

 

25,024

 

 

$

 

25,277

 

 

$

 

24,910

 

Allowance for unfunded

 

 

 

1,928

 

 

 

 

1,946

 

 

 

 

2,212

 

 

 

 

2,023

 

 

 

 

2,099

 

Total allowance for
   credit losses

 

$

 

27,198

 

 

$

 

26,626

 

 

$

 

27,236

 

 

$

 

27,300

 

 

$

 

27,009

 

Allowance for credit losses/
   total loans

 

 

 

0.99

%

 

 

 

0.97

%

 

 

 

0.97

%

 

 

 

1.00

%

 

 

 

0.99

%

Adjusted credit losses with
   accretable yield/total loans

 

 

 

1.10

%

 

 

 

1.11

%

 

 

 

1.13

%

 

 

 

1.18

%

 

 

 

1.20

%

Net charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Quarter-to-date

 

$

 

15

 

 

$

 

55

 

 

$

 

454

 

 

$

 

93

 

 

$

 

(133

)

   Year-to-date

 

$

 

70

 

 

$

 

55

 

 

$

 

551

 

 

$

 

97

 

 

$

 

(73

)

Net charge-offs to average loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Quarter-to-date

 

 

 

0.00

%

 

 

 

0.00

%

 

 

 

0.02

%

 

 

 

0.00

%

 

 

 

-0.01

%

   Year-to-date

 

 

 

0.00

%

 

 

 

0.00

%

 

 

 

0.02

%

 

 

 

0.00

%

 

 

 

0.00

%

Nonperforming loans/total loans

 

 

 

0.10

%

 

 

 

0.76

%

 

 

 

0.87

%

 

 

 

0.89

%

 

 

 

0.25

%

Allowance for credit losses/
   nonperforming loans

 

 

 

1016.08

%

 

 

 

127.28

%

 

 

 

111.95

%

 

 

 

112.61

%

 

 

 

395.71

%

NPA coverage ratio

 

 

 

1016.08

%

 

 

 

127.28

%

 

 

 

111.95

%

 

 

 

112.61

%

 

 

 

395.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES

(in thousands of dollars, except percentages)

 

 

 

For the Three Months Ended

 

 

For the Three Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

Interest Earning Assets:

 

Average
Balance

 

 

Interest/
Dividends

 

 

Annualized
Yield/Rate

 

 

Average
Balance

 

 

Interest/
Dividends

 

 

Annualized
Yield/Rate

 

Loans

 

$

2,556,417

 

 

$

36,593

 

 

 

5.73

%

 

$

2,476,795

 

 

$

31,365

 

 

 

5.07

%

Taxable investment securities

 

 

391,439

 

 

 

1,782

 

 

 

1.82

%

 

 

399,257

 

 

 

1,486

 

 

 

1.49

%

Tax-exempt investment securities

 

 

20,907

 

 

 

82

 

 

 

1.99

%

 

 

24,259

 

 

 

93

 

 

 

1.94

%

Fed funds sold & other

 

 

187,682

 

 

 

2,709

 

 

 

5.77

%

 

 

49,160

 

 

 

433

 

 

 

3.52

%

Total Interest Earning Assets

 

 

3,156,445

 

 

$

41,166

 

 

 

5.22

%

 

 

2,949,471

 

 

$

33,377

 

 

 

4.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonearning Assets

 

 

156,239

 

 

 

 

 

 

 

 

 

169,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

3,312,684

 

 

 

 

 

 

 

 

$

3,119,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings deposits

 

$

1,492,831

 

 

$

10,193

 

 

 

2.73

%

 

$

1,356,798

 

 

$

6,238

 

 

 

1.84

%

Other time deposits

 

 

668,583

 

 

 

6,295

 

 

 

3.77

%

 

 

612,929

 

 

 

4,196

 

 

 

2.74

%

Other borrowed money

 

 

265,229

 

 

 

2,742

 

 

 

4.14

%

 

 

215,884

 

 

 

2,113

 

 

 

3.92

%

Fed funds purchased & securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  sold under agreement to repurchase

 

 

27,721

 

 

 

276

 

 

 

3.98

%

 

 

39,966

 

 

 

427

 

 

 

4.27

%

Subordinated notes

 

 

34,740

 

 

 

285

 

 

 

3.28

%

 

 

34,625

 

 

 

285

 

 

 

3.29

%

Total Interest Bearing Liabilities

 

$

2,489,104

 

 

$

19,791

 

 

 

3.18

%

 

$

2,260,202

 

 

$

13,259

 

 

 

2.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Liabilities

 

 

504,821

 

 

 

 

 

 

 

 

 

552,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

$

318,759

 

 

 

 

 

 

 

 

$

306,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income and
   Interest Rate Spread

 

 

 

 

$

21,375

 

 

 

2.04

%

 

 

 

 

$

20,118

 

 

 

2.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

2.71

%

 

 

 

 

 

 

 

 

2.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

 


 

 


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

 

 

 

For the Six Months Ended

 

 

For the Six Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

Interest Earning Assets:

 

Average
Balance

 

 

Interest/
Dividends

 

 

Annualized
Yield/Rate

 

 

Average
Balance

 

 

Interest/
Dividends

 

 

Annualized
Yield/Rate

 

Loans

 

$

2,566,765

 

 

$

71,793

 

 

 

5.60

%

 

$

2,437,148

 

 

$

61,068

 

 

 

5.01

%

Taxable investment securities

 

 

388,225

 

 

 

3,468

 

 

 

1.79

%

 

 

398,383

 

 

 

2,985

 

 

 

1.50

%

Tax-exempt investment securities

 

 

21,196

 

 

 

168

 

 

 

2.01

%

 

 

25,303

 

 

 

193

 

 

 

1.93

%

Fed funds sold & other

 

 

149,035

 

 

 

4,391

 

 

 

5.89

%

 

 

58,853

 

 

 

933

 

 

 

3.17

%

Total Interest Earning Assets

 

 

3,125,221

 

 

$

79,820

 

 

 

5.11

%

 

 

2,919,687

 

 

$

65,179

 

 

 

4.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonearning Assets

 

 

157,510

 

 

 

 

 

 

 

 

 

174,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

3,282,731

 

 

 

 

 

 

 

 

$

3,094,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings deposits

 

$

1,467,669

 

 

$

19,600

 

 

 

2.67

%

 

$

1,378,518

 

 

$

11,181

 

 

 

1.62

%

Other time deposits

 

 

659,581

 

 

 

12,167

 

 

 

3.69

%

 

 

596,168

 

 

 

7,404

 

 

 

2.48

%

Other borrowed money

 

 

264,217

 

 

 

5,431

 

 

 

4.11

%

 

 

174,171

 

 

 

3,393

 

 

 

3.90

%

Fed funds purchased & securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  sold under agreement to repurchase

 

 

28,089

 

 

 

560

 

 

 

3.99

%

 

 

39,409

 

 

 

832

 

 

 

4.22

%

Subordinated notes

 

 

34,726

 

 

 

569

 

 

 

3.28

%

 

 

34,610

 

 

 

569

 

 

 

3.29

%

Total Interest Bearing Liabilities

 

$

2,454,282

 

 

$

38,327

 

 

 

3.12

%

 

$

2,222,876

 

 

$

23,379

 

 

 

2.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Liabilities

 

 

510,453

 

 

 

 

 

 

 

 

 

567,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

$

317,996

 

 

 

 

 

 

 

 

$

303,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income and
   Interest Rate Spread

 

 

 

 

$

41,493

 

 

 

1.99

%

 

 

 

 

$

41,800

 

 

 

2.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

2.66

%

 

 

 

 

 

 

 

 

2.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

 

 


 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

 

 

 

For the Three Months Ended

 

 

For the Three Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

As Reported

 

Excluding Accretion/Amortization

Difference

 

 

As Reported

 

Excluding Accretion/Amortization

Difference

 

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

36,593

 

 

 

5.73

%

 

$

35,914

 

 

 

5.62

%

 

$

679

 

 

 

0.11

%

 

$

31,365

 

 

 

5.07

%

 

$

30,697

 

 

 

4.96

%

 

$

668

 

 

 

0.11

%

Taxable investment securities

 

 

1,782

 

 

 

1.82

%

 

 

1,782

 

 

 

1.82

%

 

 

-

 

 

 

0.00

%

 

 

1,486

 

 

 

1.49

%

 

 

1,486

 

 

 

1.49

%

 

 

-

 

 

 

0.00

%

Tax-exempt investment securities

 

 

82

 

 

 

1.99

%

 

 

82

 

 

 

1.99

%

 

 

-

 

 

 

0.00

%

 

 

93

 

 

 

1.94

%

 

 

93

 

 

 

1.94

%

 

 

-

 

 

 

0.00

%

Fed funds sold & other

 

 

2,709

 

 

 

5.77

%

 

 

2,709

 

 

 

5.77

%

 

 

-

 

 

 

0.00

%

 

 

433

 

 

 

3.52

%

 

 

433

 

 

 

3.52

%

 

 

-

 

 

 

0.00

%

 Total Interest Earning Assets

 

 

41,166

 

 

 

5.22

%

 

 

40,487

 

 

 

5.13

%

 

 

679

 

 

 

0.09

%

 

 

33,377

 

 

 

4.53

%

 

 

32,709

 

 

 

4.44

%

 

 

668

 

 

 

0.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings deposits

 

$

10,193

 

 

 

2.73

%

 

$

10,193

 

 

 

2.73

%

 

$

-

 

 

 

0.00

%

 

$

6,238

 

 

 

1.84

%

 

$

6,238

 

 

 

1.84

%

 

$

-

 

 

 

0.00

%

Other time deposits

 

 

6,295

 

 

 

3.77

%

 

 

6,295

 

 

 

3.77

%

 

 

-

 

 

 

0.00

%

 

 

4,196

 

 

 

2.74

%

 

 

4,291

 

 

 

2.80

%

 

 

(95

)

 

 

-0.06

%

Other borrowed money

 

 

2,742

 

 

 

4.14

%

 

 

2,747

 

 

 

4.14

%

 

 

(5

)

 

 

0.00

%

 

 

2,113

 

 

 

3.92

%

 

 

2,130

 

 

 

3.95

%

 

 

(17

)

 

 

-0.03

%

Fed funds purchased and securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  sold under agreement to repurchase

 

 

276

 

 

 

3.98

%

 

 

276

 

 

 

3.98

%

 

 

-

 

 

 

0.00

%

 

 

427

 

 

 

4.27

%

 

 

427

 

 

 

4.27

%

 

 

-

 

 

 

0.00

%

Subordinated notes

 

 

285

 

 

 

3.28

%

 

 

285

 

 

 

3.28

%

 

 

-

 

 

 

0.00

%

 

 

285

 

 

 

3.29

%

 

 

285

 

 

 

3.29

%

 

 

-

 

 

 

0.00

%

 Total Interest Bearing Liabilities

 

 

19,791

 

 

 

3.18

%

 

 

19,796

 

 

 

3.18

%

 

 

(5

)

 

 

0.00

%

 

 

13,259

 

 

 

2.35

%

 

 

13,371

 

 

 

2.37

%

 

 

(112

)

 

 

-0.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest/Dividend income/yield

 

 

41,166

 

 

 

5.22

%

 

 

40,487

 

 

 

5.13

%

 

 

679

 

 

 

0.09

%

 

 

33,377

 

 

 

4.53

%

 

 

32,709

 

 

 

4.44

%

 

 

668

 

 

 

0.09

%

Interest Expense / yield

 

 

19,791

 

 

 

3.18

%

 

 

19,796

 

 

 

3.18

%

 

 

(5

)

 

 

0.00

%

 

 

13,259

 

 

 

2.35

%

 

 

13,371

 

 

 

2.37

%

 

 

(112

)

 

 

-0.02

%

Net Interest Spread

 

 

21,375

 

 

 

2.04

%

 

 

20,691

 

 

 

1.95

%

 

 

684

 

 

 

0.09

%

 

 

20,118

 

 

 

2.18

%

 

 

19,338

 

 

 

2.07

%

 

 

780

 

 

 

0.11

%

Net Interest Margin

 

 

 

 

 

2.71

%

 

 

 

 

 

2.62

%

 

 

 

 

 

0.09

%

 

 

 

 

 

2.73

%

 

 

 

 

 

2.63

%

 

 

 

 

 

0.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

 

 

 

 

 

 


 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

 

 

 

For the Six Months Ended

 

 

For the Six Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

As Reported

 

Excluding Accretion/Amortization

Difference

 

 

As Reported

 

Excluding Accretion/Amortization

Difference

 

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

 

$

 

 

Yield

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

71,793

 

 

 

5.60

%

 

$

70,439

 

 

 

5.49

%

 

$

1,354

 

 

 

0.11

%

 

$

61,068

 

 

 

5.01

%

 

$

59,733

 

 

 

4.90

%

 

$

1,335

 

 

 

0.11

%

Taxable investment securities

 

 

3,468

 

 

 

1.79

%

 

 

3,468

 

 

 

1.79

%

 

 

-

 

 

 

0.00

%

 

 

2,985

 

 

 

1.50

%

 

 

2,985

 

 

 

1.50

%

 

 

-

 

 

 

0.00

%

Tax-exempt investment securities

 

 

168

 

 

 

2.01

%

 

 

168

 

 

 

2.01

%

 

 

-

 

 

 

0.00

%

 

 

193

 

 

 

1.93

%

 

 

193

 

 

 

1.93

%

 

 

-

 

 

 

0.00

%

Fed funds sold & other

 

 

4,391

 

 

 

5.89

%

 

 

4,391

 

 

 

5.89

%

 

 

-

 

 

 

0.00

%

 

 

933

 

 

 

3.17

%

 

 

933

 

 

 

3.17

%

 

 

-

 

 

 

0.00

%

 Total Interest Earning Assets

 

 

79,820

 

 

 

5.11

%

 

 

78,466

 

 

 

5.03

%

 

 

1,354

 

 

 

0.08

%

 

 

65,179

 

 

 

4.47

%

 

 

63,844

 

 

 

4.38

%

 

 

1,335

 

 

 

0.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings deposits

 

$

19,600

 

 

 

2.67

%

 

$

19,600

 

 

 

2.67

%

 

$

-

 

 

 

0.00

%

 

$

11,181

 

 

 

1.62

%

 

$

11,181

 

 

 

1.62

%

 

$

-

 

 

 

0.00

%

Other time deposits

 

 

12,167

 

 

 

3.69

%

 

 

12,167

 

 

 

3.69

%

 

 

-

 

 

 

0.00

%

 

 

7,404

 

 

 

2.48

%

 

 

7,958

 

 

 

2.67

%

 

 

(554

)

 

 

-0.19

%

Other borrowed money

 

 

5,431

 

 

 

4.11

%

 

 

5,454

 

 

 

4.13

%

 

 

(23

)

 

 

-0.02

%

 

 

3,393

 

 

 

3.90

%

 

 

3,428

 

 

 

3.94

%

 

 

(35

)

 

 

-0.04

%

Fed funds purchased and securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  sold under agreement to repurchase

 

 

560

 

 

 

3.99

%

 

 

560

 

 

 

3.99

%

 

 

-

 

 

 

0.00

%

 

 

832

 

 

 

4.22

%

 

 

832

 

 

 

4.22

%

 

 

-

 

 

 

0.00

%

Subordinated notes

 

 

569

 

 

 

3.28

%

 

 

569

 

 

 

3.28

%

 

 

-

 

 

 

0.00

%

 

 

569

 

 

 

3.29

%

 

 

569

 

 

 

3.29

%

 

 

-

 

 

 

0.00

%

 Total Interest Bearing Liabilities

 

 

38,327

 

 

 

3.12

%

 

 

38,350

 

 

 

3.13

%

 

 

(23

)

 

 

-0.01

%

 

 

23,379

 

 

 

2.10

%

 

 

23,968

 

 

 

2.16

%

 

 

(589

)

 

 

-0.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest/Dividend income/yield

 

 

79,820

 

 

 

5.11

%

 

 

78,466

 

 

 

5.03

%

 

 

1,354

 

 

 

0.08

%

 

 

65,179

 

 

 

4.47

%

 

 

63,844

 

 

 

4.38

%

 

 

1,335

 

 

 

0.09

%

Interest Expense / yield

 

 

38,327

 

 

 

3.12

%

 

 

38,350

 

 

 

3.13

%

 

 

(23

)

 

 

-0.01

%

 

 

23,379

 

 

 

2.10

%

 

 

23,968

 

 

 

2.16

%

 

 

(589

)

 

 

-0.06

%

Net Interest Spread

 

 

41,493

 

 

 

1.99

%

 

 

40,116

 

 

 

1.90

%

 

 

1,377

 

 

 

0.09

%

 

 

41,800

 

 

 

2.37

%

 

 

39,876

 

 

 

2.22

%

 

 

1,924

 

 

 

0.15

%

Net Interest Margin

 

 

 

 

 

2.66

%

 

 

 

 

 

2.57

%

 

 

 

 

 

0.09

%

 

 

 

 

 

2.87

%

 

 

 

 

 

2.74

%

 

 

 

 

 

0.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

 

 

 

 

 


 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION OF TANGIBLE BOOK VALUE

 

 

 

Actual End of Period

 

 

 

Regulatory End of Period

 

Non-GAAP Reconciliation of Tangible Book Value

 

Year to Date

 

 

 

Year to Date

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

 

 

 

 

 

 

Shares Outstanding

 

 

13,679,944

 

 

 

13,634,912

 

 

 

 

13,679,944

 

 

 

13,634,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

  Equity

 

$

322,664

 

 

$

304,663

 

 

 

$

322,664

 

 

$

304,663

 

  Goodwill

 

 

86,358

 

 

 

86,358

 

 

 

 

86,358

 

 

 

86,358

 

  Other Intangible

 

 

6,658

 

 

 

8,437

 

 

 

 

6,658

 

 

 

8,437

 

Comprehensive Loss Adjustment*

 

 

-

 

 

 

-

 

 

 

 

28,589

 

 

 

35,922

 

CECL Adjustment**

 

 

-

 

 

 

-

 

 

 

 

1,685

 

 

 

2,528

 

Tangible Equity

 

$

229,648

 

 

$

209,868

 

 

 

$

259,922

 

 

$

248,318

 

Shares Outstanding

 

 

13,680

 

 

 

13,635

 

 

 

 

13,680

 

 

 

13,635

 

Tangible Book Equity per Share

 

$

16.79

 

 

$

15.39

 

 

 

$

19.00

 

 

$

18.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual Average

 

 

 

Regulatory Average

 

 

 

Year to Date

 

 

 

Year to Date

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

11,041

 

 

$

12,467

 

 

 

$

11,041

 

 

$

12,467

 

Acquisition Costs - Tax Adjusted

 

 

-

 

 

 

147

 

 

 

 

-

 

 

 

147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding

 

 

13,676,333

 

 

 

13,624,094

 

 

 

 

13,676,333

 

 

 

13,624,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Tangible Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

  Average Equity

 

$

317,996

 

 

$

303,635

 

 

 

$

317,996

 

 

$

303,635

 

  Average Goodwill

 

 

86,358

 

 

 

86,358

 

 

 

 

86,358

 

 

 

86,358

 

  Average Other Intangible

 

 

7,167

 

 

 

8,942

 

 

 

 

7,167

 

 

 

8,942

 

Average Comprehensive Loss Adjustment*

 

 

-

 

 

 

-

 

 

 

 

31,346

 

 

 

34,921

 

Average CECL Adjustment**

 

 

-

 

 

 

-

 

 

 

 

1,685

 

 

 

2,528

 

Average Tangible Equity

 

$

224,471

 

 

$

208,335

 

 

 

$

257,501

 

 

$

245,784

 

Average Shares Outstanding

 

 

13,676

 

 

 

13,624

 

 

 

 

13,676

 

 

 

13,624

 

Average Tangible Book Equity per Share

 

$

16.41

 

 

$

15.29

 

 

 

$

18.83

 

 

$

18.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Tangible Equity

 

 

9.84

%

 

 

11.97

%

 

 

 

8.58

%

 

 

10.14

%

Return on Average Tangible Equity w/o Acquisition

 

 

9.84

%

 

 

12.11

%

 

 

 

8.58

%

 

 

10.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*The Bank has adopted the Accumulated Other Comprehensive Income (AOCI) opt out election which removed AOCI from the calculation of tangible equity for regulatory purposes.

 

 

 

**ASU 2016-13 adopted during the first quarter of 2023. The Bank has elected to spread the capital adjustment over three years. The first year permits 75% of the capital adjustment and the second year permits 50% of the capital adjustment to be removed from the calculation of tangible equity for regulatory purposes.