ARCHBOLD, Ohio, Aug. 01, 2024 (GLOBE NEWSWIRE) -- 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 85th consecutive 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 agreements 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 | ||||||||||||||||||||||
| 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 | ||||||||||||||||||||
| 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 and 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 | |||||||||||||||||
| 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 | % | |||||||||||||||||
| (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 $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 | ||||||||||||||||||||||
| 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 repurch. | 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 | ||||||||||||||||||||||
| 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 repurch. | 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 | |||||||||||||||||||||||||||||||||||
| (in thousands of dollars, except percentages) | |||||||||||||||||||||||||||||||||||
| For the Three Months Ended June 30, 2024 | For the Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | 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 | % | |||||||||||||||
| Federal 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 | % | |||||||||||||||||||||||
| For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | 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 | % | |||||||||||||||
| Federal 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 | % | |||||||||||||||||||||||
| 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 | $ | 257,502 | $ | 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. | ||||||||||||||||
| 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 |
