ARCHBOLD, Ohio, Feb. 13, 2024 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2023 fourth quarter and twelve months ended December 31, 2023.
2023 Fourth Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):
- 83 consecutive quarters of profitability
- Net income was $5.5 million, or $0.41 per basic and diluted share
- Asset quality remains strong as nonperforming loans were 0.87% of total loans
- Net charge-offs to average loans were 0.03%
- Allowance for credit losses was 111.95% of nonperforming loans
- Tier 1 leverage ratio was 8.20%
- Opened first bank office in Michigan and new regional headquarters in Fort Wayne, Indiana
- Added Ian D. Boyce to the Board of Directors of both the Company and the Bank
- Realigned organizational structure to support future growth and drive profitability
- Dividend raised 4.8% year-over-year, representing the 29th consecutive annual increase in the Company's regular dividend payment since 1994
2023 Full-Year Financial Highlights Include (on a year-over-year basis unless noted):
- Total loans were a record of $2.58 billion and increased 9.5% from $2.36 billion at December 31, 2022
- Total assets increased 8.9% to a record $3.28 billion
- Deposits increased to 5.6% to a record $2.61 billion
- Stockholders' equity increased 6.2% to a record $316.5 million
- Net interest income after provision for credit losses decreased 3.1% to $79.7 million
- Net income was $22.8 million, or $1.67 per basic and diluted share
- Return on average tangible equity was 12.17%
- Opened a total of four new bank offices including new offices in Ohio, Indiana and Michigan
- Successfully launched new forward-looking logo and brand-name
- Provided a record $802,000 of charitable donations to support organizations throughout Ohio and Indiana
Lars B. Eller, President and Chief Executive Officer, stated, "I am extremely proud of how F&M's team responded to the challenging operating environment in 2023 as unprecedented rate increases caused significant competition for deposits and elevated our costs of funds. While these trends impacted earnings growth in 2023, we ended the year with record total assets, loans, net, and total deposits, as well as stockholders' equity. Our ability to grow our balance sheet throughout the year is a testament to the value we provide to our Ohio, Indiana and Michigan communities and the successful execution of our growth-oriented strategic plan."
Mr. Eller continued, "As we successfully navigated the challenging macro-landscape in 2023, we simultaneously invested in our business to make sure we had the right platform in place to support F&M's current and future needs. As a result, throughout 2023 we made calculated investments to expand our office network, enhance our products, add new IT capabilities, refine our corporate organization, and redesign our brand strategy. Highlights include adding offices in new markets including Oxford, OH and Birmingham MI, as well as expanding our local presence by adding a new office in Fort Wayne and a new regional office in downtown Toledo. In addition, our brand refresh to F&M has helped differentiate the Bank in our non-legacy markets, while doubling down on the strength of the F&M brand in our existing markets. During 2023, we also made several organizational changes to our leadership structure and added new back-office capabilities that we believe can support a bank with $4 billion in assets."
Income Statement
Net income for the 2023 fourth quarter ended December 31, 2023, was $5.5 million, compared to $7.2 million for the same period last year. Net income per basic and diluted share for the 2023 fourth quarter was $0.41, compared to $0.53 for the same period last year. Net income for the 2023 twelve months ended December 31, 2023, was $22.8 million, compared to $32.5 million for the same period last year. Net income per basic and diluted share for the 2023 twelve months was $1.67, compared to $2.46 for the same period last year.
"Throughout 2023, the rapid rise in the Federal Funds Rate impacted our cost of funds and increased the competition for deposits. As a result, our cost of interest-bearing liabilities increased to 2.53% for the year ended December 31, 2023, from 0.74% last year. Our loan portfolio has also lagged in capturing sufficient yield to match the higher cost of funds mainly due to the timing to reprice our commercial real estate adjustable-rate mortgages. Approximately 25% of our loan portfolio will be subject to repricing in 2024. A challenging rate environment impacted overall profitability, as net interest income declined year-over-year by 10.7% for the fourth quarter, and by 3.1% for the full year. We are optimistic that the Federal Funds Rate has peaked and with a more stable rate environment expected in 2024, we believe we are well positioned for improved profitability this year," continued Mr. Eller.
Deposits
At December 31, 2023, total deposits were $2.61 billion, an increase of 5.6% from December 31, 2022. The Company's cost of interest-bearing liabilities was 3.02% for the quarter ended December 31, 2023, compared to 1.32% for the quarter ended December 31, 2022 and for the 2023 twelve months ended December 31, 2023 was 2.53% compared to 0.74% in the prior year.
Loan Portfolio and Asset Quality
Total loans, net at December 31, 2023, increased 9.5%, or by $224.8 million to $2.58 billion, compared to $2.36 billion at December 31, 2022. The year-over-year improvement resulted primarily 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 $22.4 million, or 0.87% of total loans at December 31, 2023, compared to $4.7 million, or 0.20% at December 31, 2022, and $22.4 million, or 0.89% at September 30, 2023. The year-over-year increase in nonperforming loans was primarily due to two agricultural relationships, representing a combined balance of $19.4 million. F&M does not foresee a loss on either loan and expects to receive settlements during the 2024 first and second quarters.
F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.8% of the Company's total loan portfolio at December 31, 2023. In addition, F&M's commercial real estate office credit exposure represented 5.3% of the Company's total loan portfolio at December 31, 2023, with a weighted average loan-to-value of approximately 63% and an average loan of $888,000.
F&M's CRE portfolio included the following categories at December 31, 2023:
| CRE Category | Dollar Balance | Percent of CRE Portfolio(*) | Percent of Total Loan Portfolio(*) | ||||
| Industrial | $ | 253,683 | 19.0% | 9.8% | |||
| Multi-family | $ | 232,776 | 17.4% | 9.0% | |||
| Retail | $ | 218,580 | 16.3% | 8.5% | |||
| Office | $ | 137,573 | 10.3% | 5.3% | |||
| Hotels | $ | 127,646 | 9.6% | 4.9% | |||
| Gas Stations | $ | 63,151 | 4.7% | 2.4% | |||
| Food Service | $ | 50,990 | 3.8% | 2.0% | |||
| Senior Living | $ | 32,290 | 2.4% | 1.3% | |||
| Auto Dealers | $ | 29,714 | 2.2% | 1.2% | |||
| Development | $ | 28,045 | 2.1% | 1.1% | |||
| Other | $ | 163,318 | 12.2% | 6.3% | |||
| Total CRE | $ | 1,337,766 | 100.0% | 51.8% | |||
| * Numbers have been rounded | |||||||
At December 31, 2023, the Company's allowance for credit losses to nonperforming loans was 111.95%, compared to 273.67% at December 31, 2022. The allowance to total loans was 0.97% at December 31, 2023, compared to 0.86% at December 31, 2022. As a result of F&M's recent acquisitions, the Company had an accretable yield adjustment of $4.0 million at December 31, 2023, which further enhances F&M's allowance, compared to $6.4 million at December 31, 2022. Including the accretable yield adjustment, F&M's allowance for credit losses to total loans was 1.13% at December 31, 2023, compared to 1.13% at December 31, 2022.
Mr. Eller concluded, "Looking to 2024 and beyond, we believe we are well positioned to support a larger and more profitable bank in the future as a result of the investments we made over the past 12 months. With strong asset quality and a more stable rate environment expected in 2024, we are focused on supporting customers across our Ohio, Indiana and Michigan communities and reaccelerating earnings growth."
Stockholders' Equity and Dividends
Total stockholders' equity increased 6.2% to $316.5 million at December 31, 2023, from $298.1 million at December 31, 2022. At December 31, 2023, the Company had a Tier 1 leverage ratio of 8.20%, compared to 8.39% at December 31, 2022.
Based on a regulatory basis, tangible stockholders' equity increased to $253.8 million at December 31, 2023, compared to $240.7 million at December 31, 2022. On a per share basis, tangible stockholders' equity at December 31, 2023, was $18.60 per share, compared to $17.69 per share at December 31, 2022.
For the twelve months ended December 31, 2023, the Company has declared cash dividends of $0.85 per share, which is a 4.6% 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 twelve months ended December 31, 2023, the dividend payout ratio was 50.65% compared to 33.06% 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 F&M has Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; 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.
| 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. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME | ||||||||||||||||||||||||||
| (Unaudited) (in thousands of dollars, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||
| Loans, including fees | $ | 34,493 | $ | 33,783 | $ | 31,365 | $ | 29,703 | $ | 27,302 | $ | 129,344 | $ | 94,264 | ||||||||||||
| Debt securities: | ||||||||||||||||||||||||||
| U.S. Treasury and government agencies | 987 | 1,005 | 1,030 | 1,068 | 1,118 | 4,090 | 4,225 | |||||||||||||||||||
| Municipalities | 397 | 392 | 401 | 408 | 420 | 1,598 | 1,415 | |||||||||||||||||||
| Dividends | 365 | 246 | 148 | 123 | 126 | 882 | 318 | |||||||||||||||||||
| Federal funds sold | 8 | 6 | 9 | 21 | 2 | 44 | 21 | |||||||||||||||||||
| Other | 2,020 | 927 | 424 | 479 | 524 | 3,850 | 906 | |||||||||||||||||||
| Total interest income | 38,270 | 36,359 | 33,377 | 31,802 | 29,492 | 139,808 | 101,149 | |||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||
| Deposits | 15,015 | 13,323 | 10,434 | 8,151 | 4,978 | 46,923 | 9,883 | |||||||||||||||||||
| Federal funds purchased and securities sold | ||||||||||||||||||||||||||
| under agreements to repurchase | 293 | 349 | 427 | 405 | 463 | 1,474 | 1,197 | |||||||||||||||||||
| Borrowed funds | 2,742 | 2,741 | 2,113 | 1,280 | 1,209 | 8,876 | 2,160 | |||||||||||||||||||
| Subordinated notes | 285 | 284 | 285 | 284 | 285 | 1,138 | 1,122 | |||||||||||||||||||
| Total interest expense | 18,335 | 16,697 | 13,259 | 10,120 | 6,935 | 58,411 | 14,362 | |||||||||||||||||||
| Net Interest Income - Before Provision for Credit Losses* | 19,935 | 19,662 | 20,118 | 21,682 | 22,557 | 81,397 | 86,787 | |||||||||||||||||||
| Provision for Credit Losses - Loans* | 278 | 460 | 143 | 817 | 755 | 1,698 | 4,600 | |||||||||||||||||||
| Provision for Credit Losses - Off Balance Sheet Credit Exposures* | 189 | (76 | ) | (129 | ) | 62 | - | 46 | - | |||||||||||||||||
| Net Interest Income After Provision for Credit Losses* | 19,468 | 19,278 | 20,104 | 20,803 | 21,802 | 79,653 | 82,187 | |||||||||||||||||||
| Noninterest Income | ||||||||||||||||||||||||||
| Customer service fees | 2,576 | 2,208 | 2,361 | 2,447 | 2,862 | 9,592 | 9,958 | |||||||||||||||||||
| Other service charges and fees | 1,121 | 1,162 | 1,803 | 2,554 | 1,115 | 6,640 | 4,226 | |||||||||||||||||||
| Net gain on sale of loans | 230 | 294 | 108 | 67 | 165 | 699 | 1,353 | |||||||||||||||||||
| Net loss on sale of available-for-sale securities | - | - | - | (891 | ) | - | (891 | ) | - | |||||||||||||||||
| Total noninterest income | 3,927 | 3,664 | 4,272 | 4,177 | 4,142 | 16,040 | 15,537 | |||||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||||||||
| Salaries and wages | 6,981 | 6,777 | 6,500 | 6,657 | 6,353 | 26,915 | 22,700 | |||||||||||||||||||
| Employee benefits | 1,218 | 2,066 | 2,071 | 2,165 | 1,911 | 7,520 | 6,903 | |||||||||||||||||||
| Net occupancy expense | 1,187 | 950 | 840 | 856 | 753 | 3,833 | 2,566 | |||||||||||||||||||
| Furniture and equipment | 1,370 | 1,189 | 1,211 | 1,252 | 1,096 | 5,022 | 4,207 | |||||||||||||||||||
| Data processing | 785 | 840 | 796 | 726 | 1,917 | 3,147 | 3,956 | |||||||||||||||||||
| Franchise taxes | 308 | 434 | 379 | 366 | (45 | ) | 1,487 | 1,384 | ||||||||||||||||||
| ATM expense | 665 | 640 | 683 | 623 | 561 | 2,611 | 2,217 | |||||||||||||||||||
| Advertising | 397 | 865 | 830 | 514 | 531 | 2,606 | 1,646 | |||||||||||||||||||
| Net (gain) loss on sale of other assets owned | 86 | 49 | - | - | 12 | 135 | (259 | ) | ||||||||||||||||||
| FDIC assessment | 594 | 586 | 496 | 306 | 250 | 1,982 | 905 | |||||||||||||||||||
| Servicing rights amortization - net | 182 | 106 | 164 | 159 | 110 | 611 | 145 | |||||||||||||||||||
| Consulting fees | 192 | 179 | 231 | 230 | 637 | 832 | 1,302 | |||||||||||||||||||
| Other general and administrative | 2,555 | 2,363 | 2,643 | 3,077 | 2,964 | 10,638 | 9,577 | |||||||||||||||||||
| Total noninterest expense | 16,520 | 17,044 | 16,844 | 16,931 | 17,050 | 67,339 | 57,249 | |||||||||||||||||||
| Income Before Income Taxes | 6,875 | 5,898 | 7,532 | 8,049 | 8,894 | 28,354 | 40,475 | |||||||||||||||||||
| Income Taxes | 1,332 | 1,121 | 1,531 | 1,583 | 1,706 | 5,567 | 7,960 | |||||||||||||||||||
| Net Income | 5,543 | 4,777 | 6,001 | 6,466 | 7,188 | 22,787 | 32,515 | |||||||||||||||||||
| Other Comprehensive Income (Loss) (Net of Tax): | ||||||||||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | 13,261 | (4,514 | ) | (5,996 | ) | 8,030 | (628 | ) | 10,781 | (44,366 | ) | |||||||||||||||
| Reclassification adjustment for realized loss on sale of available-for-sale securities | - | - | - | 891 | - | 891 | - | |||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | 13,261 | (4,514 | ) | (5,996 | ) | 8,921 | (628 | ) | 11,672 | (44,366 | ) | |||||||||||||||
| Tax expense (benefit) | 2,784 | (947 | ) | (1,260 | ) | 1,874 | (132 | ) | 2,451 | (9,317 | ) | |||||||||||||||
| Other comprehensive income (loss) | 10,477 | (3,567 | ) | (4,736 | ) | 7,047 | (496 | ) | 9,221 | (35,049 | ) | |||||||||||||||
| Comprehensive Income (Loss) | $ | 16,020 | $ | 1,210 | $ | 1,265 | $ | 13,513 | $ | 6,692 | $ | 32,008 | $ | (2,534 | ) | |||||||||||
| Basic Earnings Per Share | $ | 0.41 | $ | 0.35 | $ | 0.44 | $ | 0.47 | $ | 0.53 | $ | 1.67 | $ | 2.46 | ||||||||||||
| Diluted Earnings Per Share | $ | 0.41 | $ | 0.35 | $ | 0.44 | $ | 0.47 | $ | 0.53 | $ | 1.67 | $ | 2.46 | ||||||||||||
| Dividends Declared | $ | 0.2200 | $ | 0.2100 | $ | 0.2100 | $ | 0.2100 | $ | 0.2100 | $ | 0.8500 | $ | 0.8125 | ||||||||||||
| *ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method. | ||||||||||||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| (Unaudited) (in thousands of dollars, except share data) | ||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 140,917 | $ | 151,711 | $ | 69,760 | $ | 62,780 | $ | 83,085 | ||||||||||
| Federal funds sold | 1,284 | 1,471 | 1,433 | 1,545 | 1,324 | |||||||||||||||
| Total cash and cash equivalents | 142,201 | 153,182 | 71,193 | 64,325 | 84,409 | |||||||||||||||
| Interest-bearing time deposits | 2,740 | 2,989 | 3,485 | 4,435 | 4,442 | |||||||||||||||
| Securities - available-for-sale | 358,478 | 348,255 | 363,225 | 372,975 | 390,789 | |||||||||||||||
| Other securities, at cost | 17,138 | 16,995 | 17,535 | 11,543 | 9,799 | |||||||||||||||
| Loans held for sale | 1,576 | 1,039 | 1,459 | 951 | 827 | |||||||||||||||
| Loans, net | 2,556,167 | 2,504,329 | 2,490,883 | 2,422,018 | 2,336,074 | |||||||||||||||
| Premises and equipment | 35,790 | 31,723 | 30,398 | 28,679 | 28,381 | |||||||||||||||
| Construction in progress | 8 | 3,044 | 2,290 | 1,565 | 278 | |||||||||||||||
| Goodwill | 86,358 | 86,358 | 86,358 | 86,358 | 86,358 | |||||||||||||||
| Loan servicing rights | 5,648 | 5,687 | 5,635 | 4,985 | 3,549 | |||||||||||||||
| Bank owned life insurance | 33,907 | 33,691 | 33,470 | 33,269 | 33,073 | |||||||||||||||
| Other assets | 43,218 | 47,388 | 41,512 | 38,972 | 37,372 | |||||||||||||||
| Total Assets | $ | 3,283,229 | $ | 3,234,680 | $ | 3,147,443 | $ | 3,070,075 | $ | 3,015,351 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 528,465 | $ | 505,358 | $ | 488,678 | $ | 520,145 | $ | 532,794 | ||||||||||
| Interest-bearing | ||||||||||||||||||||
| NOW accounts | 816,790 | 778,133 | 770,113 | 800,230 | 750,887 | |||||||||||||||
| Savings | 599,191 | 591,344 | 581,192 | 590,854 | 627,203 | |||||||||||||||
| Time | 663,017 | 700,445 | 628,757 | 601,939 | 557,980 | |||||||||||||||
| Total deposits | 2,607,463 | 2,575,280 | 2,468,740 | 2,513,168 | 2,468,864 | |||||||||||||||
| Federal funds purchased and securities | ||||||||||||||||||||
| sold under agreements to repurchase | 28,218 | 30,527 | 51,567 | 30,496 | 54,206 | |||||||||||||||
| Federal Home Loan Bank (FHLB) advances | 265,750 | 266,286 | 266,818 | 164,327 | 127,485 | |||||||||||||||
| Other borrowings | - | - | - | - | 10,000 | |||||||||||||||
| Subordinated notes, net of unamortized issuance costs | 34,702 | 34,673 | 34,644 | 34,615 | 34,586 | |||||||||||||||
| Dividend payable | 2,974 | 2,838 | 2,834 | 2,831 | 2,832 | |||||||||||||||
| Accrued expenses and other liabilities | 27,579 | 21,892 | 18,177 | 18,881 | 19,238 | |||||||||||||||
| Total liabilities | 2,966,686 | 2,931,496 | 2,842,780 | 2,764,318 | 2,717,211 | |||||||||||||||
| Commitments and Contingencies | ||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Common stock - No par value 20,000,000 shares authorized; issued and | ||||||||||||||||||||
| outstanding 14,564,425 shares 12/31/23 and 12/31/22 | 135,515 | 135,171 | 135,647 | 135,241 | 135,497 | |||||||||||||||
| Treasury stock - 899,784 shares 12/31/23 and 956,003 shares 12/31/22 | (11,040 | ) | (11,008 | ) | (11,298 | ) | (11,310 | ) | (11,573 | ) | ||||||||||
| Retained earnings | 221,080 | 218,510 | 216,236 | 213,012 | 212,449 | |||||||||||||||
| Accumulated other comprehensive loss | (29,012 | ) | (39,489 | ) | (35,922 | ) | (31,186 | ) | (38,233 | ) | ||||||||||
| Total stockholders' equity | 316,543 | 303,184 | 304,663 | 305,757 | 298,140 | |||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,283,229 | $ | 3,234,680 | $ | 3,147,443 | $ | 3,070,075 | $ | 3,015,351 | ||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| SELECT FINANCIAL DATA | ||||||||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||
| Selected financial data | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||
| Return on average assets | 0.67 | % | 0.59 | % | 0.77 | % | 0.84 | % | 0.96 | % | 0.71 | % | 1.17 | % | ||||||||||||
| Return on average equity | 7.27 | % | 6.26 | % | 7.84 | % | 8.59 | % | 10.00 | % | 7.46 | % | 11.30 | % | ||||||||||||
| Yield on earning assets | 4.93 | % | 4.79 | % | 4.53 | % | 4.41 | % | 4.18 | % | 4.67 | % | 3.87 | % | ||||||||||||
| Cost of interest bearing liabilities | 3.02 | % | 2.82 | % | 2.35 | % | 1.85 | % | 1.32 | % | 2.53 | % | 0.74 | % | ||||||||||||
| Net interest spread | 1.91 | % | 1.97 | % | 2.18 | % | 2.56 | % | 2.86 | % | 2.14 | % | 3.13 | % | ||||||||||||
| Net interest margin | 2.57 | % | 2.59 | % | 2.73 | % | 3.01 | % | 3.20 | % | 2.72 | % | 3.32 | % | ||||||||||||
| Efficiency | 69.23 | % | 73.07 | % | 69.06 | % | 63.53 | % | 50.46 | % | 68.48 | % | 55.95 | % | ||||||||||||
| Dividend payout ratio | 54.23 | % | 60.07 | % | 47.22 | % | 43.79 | % | 39.39 | % | 50.65 | % | 33.06 | % | ||||||||||||
| Tangible book value per share (1) | $ | 18.60 | $ | 18.36 | $ | 18.21 | $ | 17.92 | $ | 17.69 | ||||||||||||||||
| Tier 1 leverage ratio | 8.20 | % | 8.02 | % | 9.85 | % | 8.36 | % | 8.39 | % | ||||||||||||||||
| Average shares outstanding | 13,665,773 | 13,650,823 | 13,632,440 | 13,615,655 | 13,606,876 | 13,641,336 | 13,206,713 | |||||||||||||||||||
| Loans | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||
| Commercial real estate | $ | 1,337,766 | $ | 1,304,118 | $ | 1,280,902 | $ | 1,225,315 | $ | 1,152,603 | ||||||||||||||||
| Agricultural real estate | 223,791 | 225,672 | 230,837 | 227,897 | 220,819 | |||||||||||||||||||||
| Consumer real estate | 521,895 | 512,973 | 506,866 | 502,974 | 494,423 | |||||||||||||||||||||
| Commercial and industrial | 254,935 | 250,891 | 253,444 | 241,598 | 242,360 | |||||||||||||||||||||
| Agricultural | 132,560 | 123,735 | 128,344 | 131,467 | 128,733 | |||||||||||||||||||||
| Consumer | 79,591 | 83,024 | 88,312 | 89,588 | 89,147 | |||||||||||||||||||||
| Other | 30,136 | 31,083 | 28,996 | 29,316 | 29,818 | |||||||||||||||||||||
| Less: Net deferred loan fees, costs and other (2) | 517 | (1,890 | ) | (1,908 | ) | (1,503 | ) | (1,516 | ) | |||||||||||||||||
| Total loans,net | $ | 2,581,191 | $ | 2,529,606 | $ | 2,515,793 | $ | 2,446,652 | $ | 2,356,387 | ||||||||||||||||
| Asset quality data | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||
| Nonaccrual loans | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | $ | 4,689 | ||||||||||||||||
| 90 day past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| Nonperforming loans | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | $ | 4,689 | ||||||||||||||||
| Other real estate owned | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| Nonperforming assets | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | $ | 4,689 | ||||||||||||||||
| Allowance for credit losses (3) | $ | 25,024 | $ | 25,277 | $ | 24,910 | $ | 24,507 | $ | 20,313 | ||||||||||||||||
| Accretable yield adjustment | 4,018 | 4,565 | 5,209 | 5,754 | 6,427 | |||||||||||||||||||||
| Adjusted credit losses with accretable yield included (3) | $ | 29,042 | $ | 29,842 | $ | 30,119 | $ | 30,261 | $ | 26,740 | ||||||||||||||||
| Allowance for credit losses/total loans (3) | 0.97 | % | 1.00 | % | 0.99 | % | 1.00 | % | 0.86 | % | ||||||||||||||||
| Adjusted credit losses with accretable yield/total loans (3) | 1.13 | % | 1.18 | % | 1.20 | % | 1.24 | % | 1.13 | % | ||||||||||||||||
| Net charge-offs: | ||||||||||||||||||||||||||
| Quarter-to-date | $ | 893 | $ | 93 | $ | (133 | ) | $ | 60 | $ | 431 | |||||||||||||||
| Year-to-date | $ | 990 | $ | 97 | $ | (73 | ) | $ | 60 | $ | 529 | |||||||||||||||
| Net charge-offs to average loans | ||||||||||||||||||||||||||
| Quarter-to-date | 0.03 | % | 0.00 | % | -0.01 | % | 0.00 | % | 0.02 | % | ||||||||||||||||
| Year-to-date | 0.04 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.03 | % | ||||||||||||||||
| Nonperforming loans/total loans | 0.87 | % | 0.89 | % | 0.25 | % | 0.32 | % | 0.20 | % | ||||||||||||||||
| Allowance for credit losses/nonperforming loans (3) | 111.95 | % | 112.61 | % | 395.71 | % | 319.22 | % | 273.67 | % | ||||||||||||||||
| NPA coverage ratio | 129.92 | % | 132.94 | % | 478.46 | % | 392.13 | % | 570.27 | % | ||||||||||||||||
| (1) Tangible Equity = Stockholder Equity less goodwill, other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities) plus CECL adjustment | ||||||||||||||||||||||||||
| (2) Includes carrying value adjustments of $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans | ||||||||||||||||||||||||||
| (3) ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method. | ||||||||||||||||||||||||||
| 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 | |||||||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||||||
| Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | ||||||||||||
| Loans | $ | 2,553,023 | $ | 34,493 | 5.41 | % | $ | 2,301,204 | $ | 27,302 | 4.75 | % | ||||||
| Taxable investment securities | 386,931 | 1,660 | 1.72 | % | 422,247 | 1,556 | 1.47 | % | ||||||||||
| Tax-exempt investment securities | 24,145 | 89 | 1.87 | % | 28,522 | 108 | 1.92 | % | ||||||||||
| Fed funds sold & other | 142,642 | 2,028 | 5.69 | % | 74,876 | 526 | 2.81 | % | ||||||||||
| Total Interest Earning Assets | 3,106,741 | $ | 38,270 | 4.93 | % | 2,826,849 | $ | 29,492 | 4.18 | % | ||||||||
| Nonearning Assets | 189,202 | 173,048 | ||||||||||||||||
| Total Assets | $ | 3,295,943 | $ | 2,999,897 | ||||||||||||||
| Interest Bearing Liabilities: | ||||||||||||||||||
| Savings deposits | $ | 1,392,304 | $ | 8,570 | 2.46 | % | $ | 1,394,663 | $ | 3,427 | 0.98 | % | ||||||
| Other time deposits | 701,347 | 6,445 | 3.68 | % | 485,461 | 1,551 | 1.28 | % | ||||||||||
| Other borrowed money | 265,948 | 2,742 | 4.12 | % | 135,013 | 1,209 | 3.58 | % | ||||||||||
| Fed funds purchased & securities | ||||||||||||||||||
| sold under agreement to repurch. | 28,739 | 293 | 4.08 | % | 53,506 | 463 | 3.46 | % | ||||||||||
| Subordinated notes | 34,683 | 285 | 3.29 | % | 34,567 | 285 | 3.30 | % | ||||||||||
| Total Interest Bearing Liabilities | $ | 2,423,021 | $ | 18,335 | 3.02 | % | $ | 2,103,210 | $ | 6,935 | 1.32 | % | ||||||
| Noninterest Bearing Liabilities | 567,813 | 609,253 | ||||||||||||||||
| Stockholders' Equity | $ | 305,109 | $ | 287,434 | ||||||||||||||
| Net Interest Income and Interest Rate Spread | $ | 19,935 | 1.91 | % | $ | 22,557 | 2.86 | % | ||||||||||
| Net Interest Margin | 2.57 | % | 3.20 | % | ||||||||||||||
| 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 | ||||||||||||||||||
| For the Twelve Months Ended | For the Twelve Months Ended | |||||||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||||||
| Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | ||||||||||||
| Loans | $ | 2,491,502 | $ | 129,344 | 5.19 | % | $ | 2,073,737 | $ | 94,264 | 4.55 | % | ||||||
| Taxable investment securities | 394,424 | 6,204 | 1.57 | % | 424,229 | 5,621 | 1.32 | % | ||||||||||
| Tax-exempt investment securities | 24,686 | 366 | 1.88 | % | 23,472 | 337 | 1.82 | % | ||||||||||
| Fed funds sold & other | 85,018 | 3,894 | 4.58 | % | 95,301 | 927 | 0.97 | % | ||||||||||
| Total Interest Earning Assets | 2,995,630 | $ | 139,808 | 4.67 | % | 2,616,739 | $ | 101,149 | 3.87 | % | ||||||||
| Nonearning Assets | 197,726 | 158,361 | ||||||||||||||||
| Total Assets | $ | 3,193,356 | $ | 2,775,100 | ||||||||||||||
| Interest Bearing Liabilities: | ||||||||||||||||||
| Savings deposits | $ | 1,376,318 | $ | 27,424 | 1.99 | % | $ | 1,335,271 | $ | 6,378 | 0.48 | % | ||||||
| Other time deposits | 640,390 | 19,499 | 3.04 | % | 451,013 | 3,505 | 0.78 | % | ||||||||||
| Other borrowed money | 220,175 | 8,876 | 4.03 | % | 74,379 | 2,160 | 2.90 | % | ||||||||||
| Fed funds purchased & securities | ||||||||||||||||||
| sold under agreement to repurch. | 35,421 | 1,474 | 4.16 | % | 45,314 | 1,197 | 2.64 | % | ||||||||||
| Subordinated notes | 34,640 | 1,138 | 3.29 | % | 34,524 | 1,122 | 3.25 | % | ||||||||||
| Total Interest Bearing Liabilities | $ | 2,306,944 | $ | 58,411 | 2.53 | % | $ | 1,940,501 | $ | 14,362 | 0.74 | % | ||||||
| Noninterest Bearing Liabilities | 580,931 | 546,731 | ||||||||||||||||
| Stockholders' Equity | $ | 305,481 | $ | 287,868 | ||||||||||||||
| Net Interest Income and Interest Rate Spread | $ | 81,397 | 2.14 | % | $ | 86,787 | 3.13 | % | ||||||||||
| Net Interest Margin | 2.72 | % | 3.32 | % | ||||||||||||||
| 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 | |||||||||||||||||||||||||||||
| (in thousands of dollars, except percentages) | |||||||||||||||||||||||||||||
| For the Three Months Ended December 31, 2023 | For the Three Months Ended December 31, 2022 | ||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||
| $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||
| Loans | $ | 34,493 | 5.41 | % | $ | 33,769 | 5.29 | % | $ | 724 | 0.12 | % | 27,302 | 4.75 | % | 26,628 | 4.63 | % | $ | 674 | 0.12 | % | |||||||
| Taxable investment securities | 1,660 | 1.72 | % | 1,660 | 1.72 | % | - | 0.00 | % | 1,556 | 1.47 | % | 1,556 | 1.47 | % | - | 0.00 | % | |||||||||||
| Tax-exempt investment securities | 89 | 1.87 | % | 89 | 1.87 | % | - | 0.00 | % | 108 | 1.92 | % | 108 | 1.92 | % | - | 0.00 | % | |||||||||||
| Fed funds sold & other | 2,028 | 5.69 | % | 2,028 | 5.69 | % | - | 0.00 | % | 526 | 2.81 | % | 526 | 2.81 | % | - | 0.00 | % | |||||||||||
| Total Interest Earning Assets | 38,270 | 4.93 | % | 37,546 | 4.84 | % | 724 | 0.09 | % | 29,492 | 4.18 | % | 28,818 | 4.08 | % | 674 | 0.10 | % | |||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||||||||||
| Savings deposits | $ | 8,570 | 2.46 | % | $ | 8,570 | 2.46 | % | $ | - | 0.00 | % | 3,427 | 0.98 | % | 3,427 | 0.98 | % | $ | - | 0.00 | % | |||||||
| Other time deposits | 6,445 | 3.68 | % | 6,381 | 3.64 | % | 64 | 0.04 | % | 1,551 | 1.28 | % | 2,010 | 1.66 | % | (459 | ) | -0.38 | % | ||||||||||
| Other borrowed money | 2,742 | 4.12 | % | 2,760 | 4.15 | % | (18 | ) | -0.03 | % | 1,209 | 3.58 | % | 1,227 | 3.64 | % | (18 | ) | -0.06 | % | |||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||
| securities sold under agreement to | |||||||||||||||||||||||||||||
| repurchase | 293 | 4.08 | % | 293 | 4.08 | % | - | 0.00 | % | 463 | 3.46 | % | 463 | 3.46 | % | - | 0.00 | % | |||||||||||
| Subordinated notes | 285 | 3.29 | % | 285 | 3.29 | % | - | 0.00 | % | 285 | 3.30 | % | 285 | 3.30 | % | - | 0.00 | % | |||||||||||
| Total Interest Bearing Liabilities | 18,335 | 3.02 | % | 18,289 | 3.02 | % | 46 | 0.00 | % | 6,935 | 1.32 | % | 7,412 | 1.41 | % | (477 | ) | -0.09 | % | ||||||||||
| Interest/Dividend income/yield | 38,270 | 4.93 | % | 37,546 | 4.84 | % | 724 | 0.09 | % | 29,492 | 4.18 | % | 28,818 | 4.08 | % | 674 | 0.10 | % | |||||||||||
| Interest Expense / yield | 18,335 | 3.02 | % | 18,289 | 3.02 | % | 46 | 0.00 | % | 6,935 | 1.32 | % | 7,412 | 1.41 | % | (477 | ) | -0.09 | % | ||||||||||
| Net Interest Spread | 19,935 | 1.91 | % | 19,257 | 1.82 | % | 678 | 0.09 | % | 22,557 | 2.86 | % | 21,406 | 2.67 | % | 1,151 | 0.19 | % | |||||||||||
| Net Interest Margin | 2.57 | % | 2.48 | % | 0.09 | % | 3.20 | % | 3.03 | % | 0.17 | % | |||||||||||||||||
| For the Twelve Months Ended December 31, 2023 | For the Twelve Months Ended December 31, 2022 | ||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||
| $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||
| Loans | $ | 129,344 | 5.19 | % | $ | 126,133 | 5.06 | % | $ | 3,211 | 0.13 | % | 94,264 | 4.55 | % | 92,132 | 4.45 | % | $ | 2,132 | 0.10 | % | |||||||
| Taxable investment securities | 6,204 | 1.57 | % | 6,204 | 1.57 | % | - | 0.00 | % | 5,621 | 1.32 | % | 5,621 | 1.32 | % | - | 0.00 | % | |||||||||||
| Tax-exempt investment securities | 366 | 1.88 | % | 366 | 1.88 | % | - | 0.00 | % | 337 | 1.82 | % | 337 | 1.82 | % | - | 0.00 | % | |||||||||||
| Fed funds sold & other | 3,894 | 4.58 | % | 3,894 | 4.58 | % | - | 0.00 | % | 927 | 0.97 | % | 927 | 0.97 | % | - | 0.00 | % | |||||||||||
| Total Interest Earning Assets | 139,808 | 4.67 | % | 136,597 | 4.57 | % | 3,211 | 0.10 | % | 101,149 | 3.87 | % | 99,017 | 3.79 | % | 2,132 | 0.08 | % | |||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||||||||||
| Savings deposits | $ | 27,424 | 1.99 | % | $ | 27,424 | 1.99 | % | $ | - | 0.00 | % | 6,378 | 0.48 | % | 6,378 | 0.48 | % | $ | - | 0.00 | % | |||||||
| Other time deposits | 19,499 | 3.04 | % | 19,839 | 3.10 | % | (340 | ) | -0.06 | % | 3,505 | 0.78 | % | 5,822 | 1.29 | % | (2,317 | ) | -0.51 | % | |||||||||
| Other borrowed money | 8,876 | 4.03 | % | 8,947 | 4.06 | % | (71 | ) | -0.03 | % | 2,160 | 2.90 | % | 2,241 | 3.01 | % | (81 | ) | -0.11 | % | |||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||
| securities sold under agreement to | |||||||||||||||||||||||||||||
| repurchase | 1,474 | 4.16 | % | 1,474 | 4.16 | % | - | 0.00 | % | 1,197 | 2.64 | % | 1,197 | 2.64 | % | - | 0.00 | % | |||||||||||
| Subordinated notes | 1,138 | 3.29 | % | 1,138 | 3.29 | % | - | 0.00 | % | 1,122 | 3.25 | % | 1,122 | 3.25 | % | - | 0.00 | % | |||||||||||
| Total Interest Bearing Liabilities | 58,411 | 2.53 | % | 58,822 | 2.55 | % | (411 | ) | -0.02 | % | 14,362 | 0.74 | % | 16,760 | 0.86 | % | (2,398 | ) | -0.12 | % | |||||||||
| Interest/Dividend income/yield | 139,808 | 4.67 | % | 136,597 | 4.57 | % | 3,211 | 0.10 | % | 101,149 | 3.87 | % | 99,017 | 3.79 | % | 2,132 | 0.08 | % | |||||||||||
| Interest Expense / yield | 58,411 | 2.53 | % | 58,822 | 2.55 | % | (411 | ) | -0.02 | % | 14,362 | 0.74 | % | 16,760 | 0.86 | % | (2,398 | ) | -0.12 | % | |||||||||
| Net Interest Spread | 81,397 | 2.14 | % | 77,775 | 2.02 | % | 3,622 | 0.12 | % | 86,787 | 3.13 | % | 82,257 | 2.93 | % | 4,530 | 0.20 | % | |||||||||||
| Net Interest Margin | 2.72 | % | 2.60 | % | 0.12 | % | 3.32 | % | 3.15 | % | 0.17 | % | |||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||
| NON-GAAP RECONCILIATION OF NET INCOME | ||||||||||||||||
| (in thousands of dollars, except share data) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Non-GAAP Reconciliation of Net Income | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net income as reported | $ | 5,543 | $ | 7,188 | $ | 22,787 | $ | 32,515 | ||||||||
| Acquisition expenses | 24 | 2,019 | 208 | 2,511 | ||||||||||||
| Tax effect on acquisition expenses | (5 | ) | (386 | ) | (42 | ) | (455 | ) | ||||||||
| Net income excluding acquisition expenses and tax effect | $ | 5,562 | $ | 8,821 | $ | 22,953 | $ | 34,571 | ||||||||
| Weighted average common shares outstanding including participating securities | 13,665,773 | 13,606,876 | 13,641,336 | 13,206,713 | ||||||||||||
| Basic and diluted earnings per share | $ | 0.41 | $ | 0.65 | $ | 1.68 | $ | 2.62 | ||||||||
| 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 | ||||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Shares Outstanding | 13,664,641 | 13,608,422 | 13,664,641 | 13,608,422 | ||||||||||||
| Tangible Equity | ||||||||||||||||
| Equity | $ | 316,543 | $ | 298,140 | $ | 316,543 | $ | 298,140 | ||||||||
| Goodwill | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||
| Other Intangible | 7,548 | 9,327 | 7,548 | 9,327 | ||||||||||||
| Comprehensive Loss Adjustment* | - | - | 29,012 | 38,233 | ||||||||||||
| CECL Adjustment** | - | - | 2,528 | - | ||||||||||||
| Tangible Equity | $ | 222,637 | $ | 202,455 | $ | 254,177 | $ | 240,688 | ||||||||
| Shares Outstanding | 13,665 | 13,608 | 13,665 | 13,608 | ||||||||||||
| Tangible Book Equity per Share | $ | 16.29 | $ | 14.88 | $ | 18.60 | $ | 17.69 | ||||||||
| Actual Average | Regulatory Average | |||||||||||||||
| Year to Date | Year to Date | |||||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Net Income | $ | 22,787 | $ | 32,515 | $ | 22,787 | $ | 32,515 | ||||||||
| Acquisition Costs - Tax Adjusted | 166 | 2,066 | 166 | 2,066 | ||||||||||||
| Average Shares Outstanding | 13,641,336 | 13,206,713 | 13,641,336 | 13,206,713 | ||||||||||||
| Average Tangible Equity | ||||||||||||||||
| Average Equity | $ | 305,481 | $ | 287,868 | $ | 305,481 | $ | 287,868 | ||||||||
| Average Goodwill | 86,358 | 80,164 | 86,358 | 80,164 | ||||||||||||
| Average Other Intangible | 8,494 | 4,997 | 8,494 | 4,997 | ||||||||||||
| Average Comprehensive Loss Adjustment* | - | - | 36,443 | 26,393 | ||||||||||||
| Average CECL Adjustment** | - | - | 2,528 | - | ||||||||||||
| Average Tangible Equity | $ | 210,629 | $ | 202,707 | $ | 249,600 | $ | 229,100 | ||||||||
| Average Shares Outstanding | 13,641 | 13,207 | 13,641 | 13,207 | ||||||||||||
| Average Tangible Book Equity per Share | $ | 15.44 | $ | 15.35 | $ | 18.30 | $ | 17.35 | ||||||||
| Return on Average Tangible Equity | 10.82 | % | 16.04 | % | 9.13 | % | 14.19 | % | ||||||||
| Return on Average Tangible Equity w/o Acquisition | 10.90 | % | 17.06 | % | 9.20 | % | 15.09 | % | ||||||||
| *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; therefore, prior period's provision amount reflects the incurred loss method and the Bank has elected to spread the Capital adjustment over three years. The first year permits 75% of the capital adjustment to be removed from the calculation of tangible equity for regulatory purposes. | ||||||||||||||||
