Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results
Farmers & Merchants Bancorp (FMAO) reported strong Q3 2024 financial results with net income increasing 36.4% to $6.5 million, or $0.48 per share. The company achieved record levels across key metrics, with total assets up 4.8% to $3.39 billion and deposits growing 4.3% to $2.68 billion. Net interest margin improved by 12 basis points to 2.71%, while the efficiency ratio enhanced to 67.98%. Asset quality remained robust with nonperforming loans decreasing significantly to $2.9 million from $22.4 million year-over-year. The company maintained strong liquidity with $635 million in contingent funding sources and a 7.2% cash-to-assets ratio.
Farmers & Merchants Bancorp (FMAO) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un aumento del reddito netto del 36,4% a 6,5 milioni di dollari, pari a 0,48 dollari per azione. L'azienda ha raggiunto livelli record in vari indicatori, con un aumento totale degli attivi del 4,8% a 3,39 miliardi di dollari e un incremento dei depositi del 4,3% a 2,68 miliardi di dollari. Il margine di interesse netto è migliorato di 12 punti base, attestandosi al 2,71%, mentre il rapporto di efficienza è migliorato a 67,98%. La qualità degli attivi è rimasta forte, con prestiti non performanti che sono diminuiti significativamente a 2,9 milioni di dollari rispetto ai 22,4 milioni dell'anno precedente. L'azienda ha mantenuto una solida liquidità, con 635 milioni di dollari in fonti di finanziamento contingente e un rapporto contante-attivi del 7,2%.
Farmers & Merchants Bancorp (FMAO) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un aumento del ingreso neto del 36,4% a 6,5 millones de dólares, o 0,48 dólares por acción. La compañía alcanzó niveles récord en métricas clave, con activos totales en aumento del 4,8% a 3,39 mil millones de dólares y depósitos creciendo un 4,3% a 2,68 mil millones de dólares. El margen de interés neto mejoró en 12 puntos básicos hasta el 2,71%, mientras que el ratio de eficiencia se mejoró al 67,98%. La calidad de los activos se mantuvo sólida, con préstamos incobrables que disminuyeron significativamente a 2,9 millones de dólares desde 22,4 millones interanuales. La compañía mantuvo una fuerte liquidez con 635 millones de dólares en fuentes de financiamiento contingente y una relación de efectivo a activos del 7,2%.
Farmers & Merchants Bancorp (FMAO)는 2024년 3분기 동안 강력한 재무 실적을 보고했으며, 순이익이 36.4% 증가하여 650만 달러, 즉 주당 0.48달러에 달했습니다. 이 회사는 주요 지표에서 기록적인 수준에 도달했으며, 총 자산은 4.8% 증가하여 33억 9천만 달러에 이르고, 예금은 4.3% 증가하여 26억 8천만 달러에 달했습니다. 순이자 마진은 12bp 개선되어 2.71%에 도달했으며, 효율성 비율은 67.98%로 개선되었습니다. 자산 품질은 견고하게 유지되었고, 부실채권은 연간 2240만 달러에서 290만 달러로 대폭 감소했습니다. 회사는 6억 3500만 달러의 비상 자금과 7.2%의 현금-자산 비율로 강력한 유동성을 유지했습니다.
Farmers & Merchants Bancorp (FMAO) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un revenu net en hausse de 36,4 % à 6,5 millions de dollars, soit 0,48 dollar par action. L'entreprise a atteint des niveaux records dans des indicateurs clés, avec des actifs totaux en augmentation de 4,8 % à 3,39 milliards de dollars et des dépôts en croissance de 4,3 % à 2,68 milliards de dollars. La marge d'intérêt nette s'est améliorée de 12 points de base pour atteindre 2,71 %, tandis que le ratio d'efficacité s'est amélioré à 67,98 %. La qualité des actifs est restée robuste, avec des prêts non performants diminuant de manière significative à 2,9 millions de dollars contre 22,4 millions de dollars d'une année sur l'autre. L'entreprise a maintenu une solide liquidité avec 635 millions de dollars en sources de financement contingentes et un ratio de trésorerie sur actifs de 7,2 %.
Farmers & Merchants Bancorp (FMAO) meldete für das dritte Quartal 2024 starke Finanzresultate mit einem Anstieg des Nettoergebnisses um 36,4 % auf 6,5 Millionen Dollar, bzw. 0,48 Dollar pro Aktie. Das Unternehmen erreichte Rekordwerte in wichtigen Kennzahlen, mit einem Anstieg der Gesamtaus Assets um 4,8 % auf 3,39 Milliarden Dollar und Einlagen, die um 4,3 % auf 2,68 Milliarden Dollar wuchsen. Die Nettozinsspanne verbesserte sich um 12 Basispunkte auf 2,71 %, während das Effizienzverhältnis auf 67,98 % steigerte. Die Asset-Qualität blieb robust, da die notleidenden Kredite signifikant auf 2,9 Millionen Dollar von 22,4 Millionen Dollar im Jahresvergleich gesenkt wurden. Das Unternehmen wMaintained eine starke Liquidität mit 635 Millionen Dollar an potenziellen Finanzierungsquellen und einem Cash-to-Assets-Verhältnis von 7,2 %.
- Net income increased 36.4% YoY to $6.5 million ($0.48 per share)
- Total assets grew 4.8% to record $3.39 billion
- Deposits increased 4.3% to record $2.68 billion
- Nonperforming loans decreased significantly from $22.4M to $2.9M YoY
- Stockholders' equity increased 10.6% to record $335.4 million
- Net interest margin improved by 12 basis points to 2.71%
- Efficiency ratio improved from 73.07% to 67.98% YoY
- Cost of interest-bearing liabilities increased to 3.2% from 2.82% YoY
- Minimal loan growth of 0.3% YoY
Insights
The Q3 2024 results demonstrate strong financial performance with several positive indicators. Net income increased by
Key strengths include record deposits of
The improved net interest margin and controlled cost of funds, combined with strong deposit growth and capital levels, position the bank well for continued growth.
ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 third quarter and year-to-date ended September 30, 2024.
2024 Third Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):
- 86 consecutive quarters of profitability
- Net income increased
36.4% to$6.5 million , or$0.48 per basic and diluted share, from$4.8 million , or$0.35 per basic and diluted share, and net income expanded14.7% from the 2024 second quarter - Net interest margin increased 12 basis points to
2.71% - Efficiency ratio improved to
67.98% , compared to73.07% for the same period a year ago, and69.03% for the 2024 second quarter - Total net loans remain stable at
$2.54 billion at September 30, 2024 - Total assets increased
4.8% to a record$3.39 billion - Deposits increased
4.3% to a record$2.68 billion - Stockholders’ equity increased
10.6% to a record$335.4 million - Asset quality remains at historically strong levels with nonperforming loans of only
$2.9 million at September 30, 2024, compared to$22.4 million at September 30, 2023 - Allowance for credit losses was
879.37% of nonperforming loans - F&M ended the quarter with excellent liquidity levels, and over
$635 million in contingent funding sources, and a cash-to-assets ratio of7.2% - According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets
Lars B. Eller, President and Chief Executive Officer, stated, “F&M produced excellent earnings growth on a year-over-year and sequential basis, driven by higher net interest income, historically strong asset quality, and prudent expense management. Most importantly, our third 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. In addition, I am pleased to report that F&M was the third largest bank out of 58 financial institutions within the markets we compete, according to the FDIC, reflecting the leading value we provide to our local communities. In fact, F&M is the number one bank, based on deposits, in almost half of the communities in which we operate.”
Income Statement
Net income for the 2024 third quarter ended September 30, 2024, was
Mr. Eller continued, “Our 2024 third quarter and year-to-date performance demonstrate the success of the near-term strategies we are pursuing to navigate a complex operating environment and improve earnings. Most importantly, while the demand for loans is high across our markets, our approach to risk and pricing remains conservative. This near-term strategy has contributed to excellent asset quality. In addition, we continue to focus on strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we have added over 5,600 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended the quarter with a loan-to-deposit ratio of
Deposits
At September 30, 2024, total deposits were
Loan Portfolio and Asset Quality
“F&M’s teams continue to do an excellent job managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the quarter ended December 31, 2023, our yield on earning assets has increased by 34 basis points, compared to a 19 basis point increase in our cost of interest bearing liabilities – representing the third consecutive quarter 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,” continued Mr. Eller.
Total loans, net at September 30, 2024, increased
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were
F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented
F&M’s CRE portfolio included the following categories at September 30, 2024:
CRE Category | Dollar Balance | Percent of CRE Portfolio(*) | Percent of Total Loan Portfolio(*) | ||||||
Industrial | $ | 274,953 | 21.1 | % | 10.8 | % | |||
Retail | $ | 237,622 | 18.2 | % | 9.4 | % | |||
Multi-family | $ | 223,926 | 17.2 | % | 8.8 | % | |||
Hotels | $ | 141,642 | 10.9 | % | 5.6 | % | |||
Office | $ | 134,973 | 10.4 | % | 5.3 | % | |||
Gas Stations | $ | 62,028 | 4.8 | % | 2.5 | % | |||
Food Service | $ | 46,526 | 3.6 | % | 1.8 | % | |||
Development | $ | 30,999 | 2.4 | % | 1.2 | % | |||
Senior Living | $ | 29,866 | 2.3 | % | 1.2 | % | |||
Auto Dealers | $ | 25,068 | 1.9 | % | 1.0 | % | |||
Other | $ | 93,557 | 7.2 | % | 3.7 | % | |||
Total CRE | $ | 1,301,160 | 100.0 | % | 51.3 | % |
* Numbers have been rounded
At September 30, 2024, the Company’s allowance for credit losses to nonperforming loans was
Mr. Eller concluded, “With two months remaining in 2024, I am encouraged by F&M’s strong financial and operating performance to date. F&M ended the quarter with record stockholders’ equity, historically strong asset quality, record deposits, and excellent liquidity levels with over
Stockholders’ Equity and Dividends
Total stockholders’ equity increased
Tangible stockholders’ equity increased to
For the nine months ended September 30, 2024, the Company has declared cash dividends of
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 | Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||
Loans, including fees | $ | 36,873 | $ | 36,593 | $ | 35,200 | $ | 34,493 | $ | 33,783 | $ | 108,666 | $ | 94,851 | ||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||
U.S. Treasury and government agencies | 1,467 | 1,148 | 1,045 | 987 | 1,005 | 3,660 | 3,103 | |||||||||||||||||||||
Municipalities | 387 | 389 | 394 | 397 | 392 | 1,170 | 1,201 | |||||||||||||||||||||
Dividends | 334 | 327 | 333 | 365 | 246 | 994 | 517 | |||||||||||||||||||||
Federal funds sold | 7 | 7 | 7 | 8 | 6 | 21 | 36 | |||||||||||||||||||||
Other | 2,833 | 2,702 | 1,675 | 2,020 | 927 | 7,210 | 1,830 | |||||||||||||||||||||
Total interest income | 41,901 | 41,166 | 38,654 | 38,270 | 36,359 | 121,721 | 101,538 | |||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||
Deposits | 16,947 | 16,488 | 15,279 | 15,015 | 13,323 | 48,714 | 31,908 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 277 | 276 | 284 | 293 | 349 | 837 | 1,181 | |||||||||||||||||||||
Borrowed funds | 2,804 | 2,742 | 2,689 | 2,742 | 2,741 | 8,235 | 6,134 | |||||||||||||||||||||
Subordinated notes | 284 | 285 | 284 | 285 | 284 | 853 | 853 | |||||||||||||||||||||
Total interest expense | 20,312 | 19,791 | 18,536 | 18,335 | 16,697 | 58,639 | 40,076 | |||||||||||||||||||||
Net Interest Income - Before Provision for Credit Losses | 21,589 | 21,375 | 20,118 | 19,935 | 19,662 | 63,082 | 61,462 | |||||||||||||||||||||
Provision for Credit Losses - Loans | 282 | 605 | (289 | ) | 278 | 460 | 598 | 1,420 | ||||||||||||||||||||
Provision for Credit Losses - Off Balance Sheet Credit Exposures | (267 | ) | (18 | ) | (266 | ) | 189 | (76 | ) | (551 | ) | (143 | ) | |||||||||||||||
Net Interest Income After Provision for Credit Losses | 21,574 | 20,788 | 20,673 | 19,468 | 19,278 | 63,035 | 60,185 | |||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||||
Customer service fees | 300 | 189 | 598 | 415 | 248 | 1,087 | 917 | |||||||||||||||||||||
Other service charges and fees | 1,155 | 1,085 | 1,057 | 1,090 | 1,133 | 3,297 | 3,253 | |||||||||||||||||||||
Interchange income | 1,315 | 1,330 | 1,429 | 1,310 | 1,266 | 4,074 | 4,008 | |||||||||||||||||||||
Loan servicing income | 710 | 513 | 539 | 666 | 502 | 1,762 | 3,739 | |||||||||||||||||||||
Net gain on sale of loans | 215 | 314 | 107 | 230 | 294 | 636 | 469 | |||||||||||||||||||||
Increase in cash surrender value of bank owned life insurance | 265 | 236 | 216 | 216 | 221 | 717 | 618 | |||||||||||||||||||||
Net loss on sale of available-for-sale securities | - | - | - | - | - | - | (891 | ) | ||||||||||||||||||||
Total noninterest income | 3,960 | 3,667 | 3,946 | 3,927 | 3,664 | 11,573 | 12,113 | |||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||
Salaries and wages | 7,713 | 7,589 | 7,846 | 6,981 | 6,777 | 23,148 | 19,934 | |||||||||||||||||||||
Employee benefits | 2,112 | 2,112 | 2,171 | 1,218 | 2,066 | 6,395 | 6,302 | |||||||||||||||||||||
Net occupancy expense | 1,054 | 999 | 1,027 | 1,187 | 950 | 3,080 | 2,646 | |||||||||||||||||||||
Furniture and equipment | 1,472 | 1,407 | 1,353 | 1,370 | 1,189 | 4,232 | 3,652 | |||||||||||||||||||||
Data processing | 339 | 448 | 500 | 785 | 840 | 1,287 | 2,362 | |||||||||||||||||||||
Franchise taxes | 410 | 265 | 555 | 308 | 434 | 1,230 | 1,179 | |||||||||||||||||||||
ATM expense | 472 | 397 | 473 | 665 | 640 | 1,342 | 1,946 | |||||||||||||||||||||
Advertising | 597 | 519 | 530 | 397 | 865 | 1,646 | 2,209 | |||||||||||||||||||||
Net (gain) loss on sale of other assets owned | - | (49 | ) | - | 86 | 49 | (49 | ) | 49 | |||||||||||||||||||
FDIC assessment | 516 | 507 | 580 | 594 | 586 | 1,603 | 1,388 | |||||||||||||||||||||
Servicing rights amortization - net | 219 | 187 | 168 | 182 | 106 | 574 | 429 | |||||||||||||||||||||
Loan expense | 244 | 251 | 229 | 246 | 241 | 724 | 809 | |||||||||||||||||||||
Consulting fees | 251 | 198 | 186 | 192 | 179 | 635 | 640 | |||||||||||||||||||||
Professional fees | 453 | 527 | 445 | 331 | 358 | 1,425 | 1,099 | |||||||||||||||||||||
Intangible asset amortization | 445 | 444 | 445 | 446 | 445 | 1,334 | 1,334 | |||||||||||||||||||||
Other general and administrative | 1,128 | 1,495 | 1,333 | 1,532 | 1,319 | 3,956 | 4,841 | |||||||||||||||||||||
Total noninterest expense | 17,425 | 17,296 | 17,841 | 16,520 | 17,044 | 52,562 | 50,819 | |||||||||||||||||||||
Income Before Income Taxes | 8,109 | 7,159 | 6,778 | 6,875 | 5,898 | 22,046 | 21,479 | |||||||||||||||||||||
Income Taxes | 1,593 | 1,477 | 1,419 | 1,332 | 1,121 | 4,489 | 4,235 | |||||||||||||||||||||
Net Income | 6,516 | 5,682 | 5,359 | 5,543 | 4,777 | 17,557 | 17,244 | |||||||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax): | ||||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | 11,664 | 2,531 | (1,995 | ) | 13,261 | (4,514 | ) | 12,200 | (2,480 | ) | ||||||||||||||||||
Reclassification adjustment for realized loss on sale of available-for-sale securities | - | - | - | - | - | - | 891 | |||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | 11,664 | 2,531 | (1,995 | ) | 13,261 | (4,514 | ) | 12,200 | (1,589 | ) | ||||||||||||||||||
Tax expense (benefit) | 2,449 | 531 | (418 | ) | 2,784 | (947 | ) | 2,562 | (333 | ) | ||||||||||||||||||
Other comprehensive income (loss) | 9,215 | 2,000 | (1,577 | ) | 10,477 | (3,567 | ) | 9,638 | (1,256 | ) | ||||||||||||||||||
Comprehensive Income | $ | 15,731 | $ | 7,682 | $ | 3,782 | $ | 16,020 | $ | 1,210 | $ | 27,195 | $ | 15,988 | ||||||||||||||
Basic Earnings Per Share | $ | 0.48 | $ | 0.42 | $ | 0.39 | $ | 0.41 | $ | 0.35 | $ | 1.28 | $ | 1.26 | ||||||||||||||
Diluted Earnings Per Share | $ | 0.48 | $ | 0.42 | $ | 0.39 | $ | 0.41 | $ | 0.35 | $ | 1.28 | $ | 1.26 | ||||||||||||||
Dividends Declared | $ | 0.22125 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.66125 | $ | 0.63 | ||||||||||||||
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of dollars, except per share data) | |||||||||||||||||||||
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 244,572 | $ | 191,785 | $ | 186,541 | $ | 140,917 | $ | 151,711 | |||||||||||
Federal funds sold | 932 | 1,283 | 1,241 | 1,284 | 1,471 | ||||||||||||||||
Total cash and cash equivalents | 245,504 | 193,068 | 187,782 | 142,201 | 153,182 | ||||||||||||||||
Interest-bearing time deposits | 2,727 | 3,221 | 2,735 | 2,740 | 2,989 | ||||||||||||||||
Securities - available-for-sale | 404,881 | 365,209 | 347,516 | 358,478 | 348,255 | ||||||||||||||||
Other securities, at cost | 15,028 | 14,721 | 14,744 | 17,138 | 16,995 | ||||||||||||||||
Loans held for sale | 1,706 | 1,628 | 2,410 | 1,576 | 1,039 | ||||||||||||||||
Loans, net of allowance for credit losses of | 2,512,852 | 2,534,468 | 2,516,687 | 2,556,167 | 2,504,329 | ||||||||||||||||
Premises and equipment | 33,779 | 34,507 | 35,007 | 35,790 | 31,723 | ||||||||||||||||
Construction in progress | 35 | 38 | 9 | 8 | 3,044 | ||||||||||||||||
Goodwill | 86,358 | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||||||
Loan servicing rights | 5,644 | 5,504 | 5,555 | 5,648 | 5,687 | ||||||||||||||||
Bank owned life insurance | 34,624 | 34,359 | 34,123 | 33,907 | 33,691 | ||||||||||||||||
Other assets | 46,047 | 49,552 | 54,628 | 43,218 | 47,388 | ||||||||||||||||
Total Assets | $ | 3,389,185 | $ | 3,322,633 | $ | 3,287,554 | $ | 3,283,229 | $ | 3,234,680 | |||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Noninterest-bearing | $ | 481,444 | $ | 479,069 | $ | 510,731 | $ | 528,465 | $ | 505,358 | |||||||||||
Interest-bearing | |||||||||||||||||||||
NOW accounts | 865,617 | 821,145 | 829,236 | 816,790 | 778,133 | ||||||||||||||||
Savings | 661,565 | 673,284 | 635,430 | 599,191 | 591,344 | ||||||||||||||||
Time | 676,187 | 667,592 | 645,985 | 663,017 | 700,445 | ||||||||||||||||
Total deposits | 2,684,813 | 2,641,090 | 2,621,382 | 2,607,463 | 2,575,280 | ||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 27,292 | 27,218 | 28,218 | 28,218 | 30,527 | ||||||||||||||||
Federal Home Loan Bank (FHLB) advances | 263,081 | 266,102 | 256,628 | 265,750 | 266,286 | ||||||||||||||||
Subordinated notes, net of unamortized issuance costs | 34,789 | 34,759 | 34,731 | 34,702 | 34,673 | ||||||||||||||||
Dividend payable | 2,998 | 2,975 | 2,975 | 2,974 | 2,838 | ||||||||||||||||
Accrued expenses and other liabilities | 40,832 | 27,825 | 25,930 | 27,579 | 21,892 | ||||||||||||||||
Total liabilities | 3,053,805 | 2,999,969 | 2,969,864 | 2,966,686 | 2,931,496 | ||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||
Common stock - No par value 20,000,000 shares authorized; issued | |||||||||||||||||||||
14,564,425 shares 9/30/24 and 12/31/23; outstanding 13,702,593 | 135,193 | 135,829 | 135,482 | 135,515 | 135,171 | ||||||||||||||||
shares 9/30/24 and 13,664,641 shares 12/31/23 | |||||||||||||||||||||
Treasury stock - 861,832 shares 9/30/24 and 899,784 shares 12/31/23 | (10,904 | ) | (11,006 | ) | (10,851 | ) | (11,040 | ) | (11,008 | ) | |||||||||||
Retained earnings | 230,465 | 226,430 | 223,648 | 221,080 | 218,510 | ||||||||||||||||
Accumulated other comprehensive loss | (19,374 | ) | (28,589 | ) | (30,589 | ) | (29,012 | ) | (39,489 | ) | |||||||||||
Total stockholders' equity | 335,380 | 322,664 | 317,690 | 316,543 | 303,184 | ||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 3,389,185 | $ | 3,322,633 | $ | 3,287,554 | $ | 3,283,229 | $ | 3,234,680 | |||||||||||
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES SELECT FINANCIAL DATA | ||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
Selected financial data | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||||||||
Return on average assets | 0.78 | % | 0.69 | % | 0.66 | % | 0.67 | % | 0.59 | % | 0.71 | % | 0.73 | % | ||||||||||||||
Return on average equity | 7.93 | % | 7.13 | % | 6.76 | % | 7.27 | % | 6.26 | % | 7.28 | % | 7.52 | % | ||||||||||||||
Yield on earning assets | 5.27 | % | 5.22 | % | 5.00 | % | 4.93 | % | 4.79 | % | 5.17 | % | 4.57 | % | ||||||||||||||
Cost of interest bearing liabilities | 3.21 | % | 3.18 | % | 3.06 | % | 3.02 | % | 2.82 | % | 3.16 | % | 2.35 | % | ||||||||||||||
Net interest spread | 2.06 | % | 2.04 | % | 1.94 | % | 1.91 | % | 1.97 | % | 2.01 | % | 2.22 | % | ||||||||||||||
Net interest margin | 2.71 | % | 2.71 | % | 2.60 | % | 2.57 | % | 2.59 | % | 2.68 | % | 2.77 | % | ||||||||||||||
Efficiency | 67.98 | % | 69.03 | % | 74.08 | % | 69.23 | % | 73.07 | % | 70.36 | % | 68.24 | % | ||||||||||||||
Dividend payout ratio | 45.99 | % | 52.35 | % | 55.52 | % | 54.23 | % | 60.07 | % | 50.99 | % | 49.50 | % | ||||||||||||||
Tangible book value per share | $ | 17.72 | $ | 16.79 | $ | 16.39 | $ | 16.29 | $ | 15.28 | ||||||||||||||||||
Tier 1 leverage ratio | 8.04 | % | 8.02 | % | 8.40 | % | 8.20 | % | 8.02 | % | ||||||||||||||||||
Average shares outstanding | 13,687,119 | 13,681,501 | 13,671,166 | 13,665,773 | 13,650,823 | 13,679,955 | 13,633,101 | |||||||||||||||||||||
Loans | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,301,160 | $ | 1,303,598 | $ | 1,304,400 | $ | 1,337,766 | $ | 1,304,118 | ||||||||||||||||||
Agricultural real estate | 220,328 | 222,558 | 227,455 | 223,791 | 225,672 | |||||||||||||||||||||||
Consumer real estate | 524,055 | 525,902 | 525,178 | 521,895 | 512,973 | |||||||||||||||||||||||
Commercial and industrial | 260,732 | 268,426 | 256,051 | 254,935 | 250,891 | |||||||||||||||||||||||
Agricultural | 137,252 | 142,909 | 127,670 | 132,560 | 123,735 | |||||||||||||||||||||||
Consumer | 67,394 | 70,918 | 74,819 | 79,591 | 83,024 | |||||||||||||||||||||||
Other | 25,916 | 26,449 | 26,776 | 30,136 | 31,083 | |||||||||||||||||||||||
Less: Net deferred loan fees, costs and other (1) | 1,499 | (1,022 | ) | (982 | ) | 517 | (1,890 | ) | ||||||||||||||||||||
Total loans, net | $ | 2,538,336 | $ | 2,559,738 | $ | 2,541,367 | $ | 2,581,191 | $ | 2,529,606 | ||||||||||||||||||
Asset quality data | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 2,898 | $ | 2,487 | $ | 19,391 | $ | 22,353 | $ | 22,447 | ||||||||||||||||||
90 day past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Nonperforming loans | $ | 2,898 | $ | 2,487 | $ | 19,391 | $ | 22,353 | $ | 22,447 | ||||||||||||||||||
Other real estate owned | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Nonperforming assets | $ | 2,898 | $ | 2,487 | $ | 19,391 | $ | 22,353 | $ | 22,447 | ||||||||||||||||||
Allowance for credit losses | $ | 25,484 | $ | 25,270 | $ | 24,680 | $ | 25,024 | $ | 25,277 | ||||||||||||||||||
Allowance for unfunded | 1,661 | 1,928 | 1,946 | 2,212 | 2,023 | |||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 27,145 | $ | 27,198 | $ | 26,626 | $ | 27,236 | $ | 27,300 | ||||||||||||||||||
Allowance for credit losses/total loans | 1.01 | % | 0.99 | % | 0.97 | % | 0.97 | % | 1.00 | % | ||||||||||||||||||
Adjusted credit losses with accretable yield/total loans | 1.10 | % | 1.10 | % | 1.11 | % | 1.13 | % | 1.18 | % | ||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Quarter-to-date | $ | 68 | $ | 15 | $ | 55 | $ | 531 | $ | 93 | ||||||||||||||||||
Year-to-date | $ | 138 | $ | 70 | $ | 55 | $ | 551 | $ | 20 | ||||||||||||||||||
Net charge-offs to average loans | ||||||||||||||||||||||||||||
Quarter-to-date | 0.00 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.00 | % | ||||||||||||||||||
Year-to-date | 0.01 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.00 | % | ||||||||||||||||||
Nonperforming loans/total loans | 0.11 | % | 0.10 | % | 0.76 | % | 0.87 | % | 0.89 | % | ||||||||||||||||||
Allowance for credit losses/nonperforming loans | 879.37 | % | 1016.08 | % | 127.28 | % | 111.95 | % | 112.61 | % | ||||||||||||||||||
NPA coverage ratio | 879.37 | % | 1016.08 | % | 127.28 | % | 111.95 | % | 112.61 | % | ||||||||||||||||||
(1) Includes carrying value adjustments of |
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 | |||||||||||||||||
September 30, 2024 | September 30, 2023 | |||||||||||||||||
Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | ||||||||||||
Loans | $ | 2,551,899 | $ | 36,873 | 5.78 | % | $ | 2,536,885 | $ | 33,783 | 5.33 | % | ||||||
Taxable investment securities | 415,943 | 2,107 | 2.03 | % | 393,910 | 1,559 | 1.58 | % | ||||||||||
Tax-exempt investment securities | 19,661 | 81 | 2.09 | % | 23,986 | 84 | 1.77 | % | ||||||||||
Fed funds sold & other | 197,258 | 2,840 | 5.76 | % | 85,515 | 933 | 4.36 | % | ||||||||||
Total Interest Earning Assets | 3,184,761 | $ | 41,901 | 5.27 | % | 3,040,296 | $ | 36,359 | 4.79 | % | ||||||||
Nonearning Assets | 168,055 | 180,193 | ||||||||||||||||
Total Assets | $ | 3,352,816 | $ | 3,220,489 | ||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||
Savings deposits | $ | 1,538,387 | $ | 10,691 | 2.78 | % | $ | 1,367,168 | $ | 7,673 | 2.24 | % | ||||||
Other time deposits | 667,224 | 6,256 | 3.75 | % | 667,880 | 5,650 | 3.38 | % | ||||||||||
Other borrowed money | 264,539 | 2,804 | 4.24 | % | 266,467 | 2,741 | 4.11 | % | ||||||||||
Fed funds purchased & securities sold under agreement to repurchase | 27,481 | 277 | 4.03 | % | 34,128 | 349 | 4.09 | % | ||||||||||
Subordinated notes | 34,769 | 284 | 3.27 | % | 34,654 | 284 | 3.28 | % | ||||||||||
Total Interest Bearing Liabilities | $ | 2,532,400 | $ | 20,312 | 3.21 | % | $ | 2,370,297 | $ | 16,697 | 2.82 | % | ||||||
Noninterest Bearing Liabilities | 491,851 | 544,801 | ||||||||||||||||
Stockholders' Equity | $ | 328,565 | $ | 305,391 | ||||||||||||||
Net Interest Income and Interest Rate Spread | $ | 21,589 | 2.06 | % | $ | 19,662 | 1.97 | % | ||||||||||
Net Interest Margin | 2.71 | % | 2.59 | % | ||||||||||||||
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a | ||||||||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||||
September 30, 2024 | September 30, 2023 | |||||||||||||||||
Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | ||||||||||||
Loans | $ | 2,561,774 | $ | 108,666 | 5.66 | % | $ | 2,470,770 | $ | 94,851 | 5.12 | % | ||||||
Taxable investment securities | 397,466 | 5,575 | 1.87 | % | 396,917 | 4,544 | 1.53 | % | ||||||||||
Tax-exempt investment securities | 20,684 | 249 | 2.03 | % | 24,865 | 277 | 1.88 | % | ||||||||||
Fed funds sold & other | 165,227 | 7,231 | 5.84 | % | 67,869 | 1,866 | 3.67 | % | ||||||||||
Total Interest Earning Assets | 3,145,151 | $ | 121,721 | 5.17 | % | 2,960,421 | $ | 101,538 | 4.57 | % | ||||||||
Nonearning Assets | 161,113 | 176,568 | ||||||||||||||||
Total Assets | $ | 3,306,264 | $ | 3,136,989 | ||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||
Savings deposits | $ | 1,487,809 | $ | 30,291 | 2.71 | % | $ | 1,373,110 | $ | 18,854 | 1.83 | % | ||||||
Other time deposits | 662,129 | 18,423 | 3.71 | % | 620,071 | 13,054 | 2.81 | % | ||||||||||
Other borrowed money | 264,310 | 8,235 | 4.15 | % | 204,927 | 6,134 | 3.99 | % | ||||||||||
Fed funds purchased & securities sold under agreement to repurchase | 27,887 | 837 | 4.00 | % | 37,649 | 1,181 | 4.18 | % | ||||||||||
Subordinated notes | 34,741 | 853 | 3.27 | % | 34,625 | 853 | 3.28 | % | ||||||||||
Total Interest Bearing Liabilities | $ | 2,476,876 | $ | 58,639 | 3.16 | % | $ | 2,270,382 | $ | 40,076 | 2.35 | % | ||||||
Noninterest Bearing Liabilities | 507,843 | 561,001 | ||||||||||||||||
Stockholders' Equity | $ | 321,545 | $ | 305,606 | ||||||||||||||
Net Interest Income and Interest Rate Spread | $ | 63,082 | 2.01 | % | $ | 61,462 | 2.22 | % | ||||||||||
Net Interest Margin | 2.68 | % | 2.77 | % | ||||||||||||||
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a | ||||||||||||||||||
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 September 30, 2024 | For the Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||
As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | |||||||||||||||||||||||||||
$ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | |||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||
Loans | $ | 36,873 | 5.78 | % | $ | 36,149 | 5.67 | % | $ | 724 | 0.11 | % | $ | 33,783 | 5.33 | % | $ | 32,631 | 5.15 | % | $ | 1,152 | 0.18 | % | ||||||||
Taxable investment securities | 2,107 | 2.03 | % | 2,107 | 2.03 | % | - | 0.00 | % | 1,559 | 1.58 | % | 1,559 | 1.58 | % | - | 0.00 | % | ||||||||||||||
Tax-exempt investment securities | 81 | 2.09 | % | 81 | 2.09 | % | - | 0.00 | % | 84 | 1.77 | % | 84 | 1.77 | % | - | 0.00 | % | ||||||||||||||
Fed funds sold & other | 2,840 | 5.76 | % | 2,840 | 5.76 | % | - | 0.00 | % | 933 | 4.36 | % | 933 | 4.36 | % | - | 0.00 | % | ||||||||||||||
Total Interest Earning Assets | 41,901 | 5.27 | % | 41,177 | 5.17 | % | 724 | 0.10 | % | 36,359 | 4.79 | % | 35,207 | 4.64 | % | 1,152 | 0.15 | % | ||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Savings deposits | $ | 10,691 | 2.78 | % | $ | 10,691 | 2.78 | % | $ | - | 0.00 | % | $ | 7,673 | 2.24 | % | $ | 7,673 | 2.24 | % | $ | - | 0.00 | % | ||||||||
Other time deposits | 6,256 | 3.75 | % | 6,256 | 3.75 | % | - | 0.00 | % | 5,650 | 3.38 | % | 5,500 | 3.29 | % | 150 | 0.09 | % | ||||||||||||||
Other borrowed money | 2,804 | 4.24 | % | 2,800 | 4.23 | % | 4 | 0.01 | % | 2,741 | 4.11 | % | 2,759 | 4.14 | % | (18 | ) | -0.03 | % | |||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 277 | 4.03 | % | 277 | 4.03 | % | - | 0.00 | % | 349 | 4.09 | % | 349 | 4.09 | % | - | 0.00 | % | ||||||||||||||
Subordinated notes | 284 | 3.27 | % | 284 | 3.27 | % | - | 0.00 | % | 284 | 3.28 | % | 284 | 3.28 | % | - | 0.00 | % | ||||||||||||||
Total Interest Bearing Liabilities | 20,312 | 3.21 | % | 20,308 | 3.21 | % | 4 | 0.00 | % | 16,697 | 2.82 | % | 16,565 | 2.80 | % | 132 | 0.02 | % | ||||||||||||||
Interest/Dividend income/yield | 41,901 | 5.27 | % | 41,177 | 5.17 | % | 724 | 0.10 | % | 36,359 | 4.79 | % | 35,207 | 4.64 | % | 1,152 | 0.15 | % | ||||||||||||||
Interest Expense / yield | 20,312 | 3.21 | % | 20,308 | 3.21 | % | 4 | 0.00 | % | 16,697 | 2.82 | % | 16,565 | 2.80 | % | 132 | 0.02 | % | ||||||||||||||
Net Interest Spread | 21,589 | 2.06 | % | 20,869 | 1.96 | % | 720 | 0.10 | % | 19,662 | 1.97 | % | 18,642 | 1.84 | % | 1,020 | 0.13 | % | ||||||||||||||
Net Interest Margin | 2.71 | % | 2.62 | % | 0.09 | % | 2.59 | % | 2.46 | % | 0.13 | % | ||||||||||||||||||||
For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||
As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | |||||||||||||||||||||||||||
$ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | |||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||
Loans | $ | 108,666 | 5.66 | % | $ | 106,588 | 5.55 | % | $ | 2,078 | 0.11 | % | $ | 94,851 | 5.12 | % | $ | 92,364 | 4.99 | % | $ | 2,487 | 0.13 | % | ||||||||
Taxable investment securities | 5,575 | 1.87 | % | 5,575 | 1.87 | % | - | 0.00 | % | 4,544 | 1.53 | % | 4,544 | 1.53 | % | - | 0.00 | % | ||||||||||||||
Tax-exempt investment securities | 249 | 2.03 | % | 249 | 2.03 | % | - | 0.00 | % | 277 | 1.88 | % | 277 | 1.88 | % | - | 0.00 | % | ||||||||||||||
Fed funds sold & other | 7,231 | 5.84 | % | 7,231 | 5.84 | % | - | 0.00 | % | 1,866 | 3.67 | % | 1,866 | 3.67 | % | - | 0.00 | % | ||||||||||||||
Total Interest Earning Assets | 121,721 | 5.17 | % | 119,643 | 5.08 | % | 2,078 | 0.09 | % | 101,538 | 4.57 | % | 99,051 | 4.47 | % | 2,487 | 0.10 | % | ||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Savings deposits | $ | 30,291 | 2.71 | % | $ | 30,291 | 2.71 | % | $ | - | 0.00 | % | $ | 18,854 | 1.83 | % | $ | 18,854 | 1.83 | % | $ | - | 0.00 | % | ||||||||
Other time deposits | 18,423 | 3.71 | % | 18,423 | 3.71 | % | - | 0.00 | % | 13,054 | 2.81 | % | 13,458 | 2.89 | % | (404 | ) | -0.08 | % | |||||||||||||
Other borrowed money | 8,235 | 4.15 | % | 8,254 | 4.16 | % | (19 | ) | -0.01 | % | 6,134 | 3.99 | % | 6,187 | 4.03 | % | (53 | ) | -0.04 | % | ||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 837 | 4.00 | % | 837 | 4.00 | % | - | 0.00 | % | 1,181 | 4.18 | % | 1,181 | 4.18 | % | - | 0.00 | % | ||||||||||||||
Subordinated notes | 853 | 3.27 | % | 853 | 3.27 | % | - | 0.00 | % | 853 | 3.28 | % | 853 | 3.28 | % | - | 0.00 | % | ||||||||||||||
Total Interest Bearing Liabilities | 58,639 | 3.16 | % | 58,658 | 3.16 | % | (19 | ) | 0.00 | % | 40,076 | 2.35 | % | 40,533 | 2.38 | % | (457 | ) | -0.03 | % | ||||||||||||
Interest/Dividend income/yield | 121,721 | 5.17 | % | 119,643 | 5.08 | % | 2,078 | 0.09 | % | 101,538 | 4.57 | % | 99,051 | 4.47 | % | 2,487 | 0.10 | % | ||||||||||||||
Interest Expense / yield | 58,639 | 3.16 | % | 58,658 | 3.16 | % | (19 | ) | 0.00 | % | 40,076 | 2.35 | % | 40,533 | 2.38 | % | (457 | ) | -0.03 | % | ||||||||||||
Net Interest Spread | 63,082 | 2.01 | % | 60,985 | 1.92 | % | 2,097 | 0.09 | % | 61,462 | 2.22 | % | 58,518 | 2.09 | % | 2,944 | 0.13 | % | ||||||||||||||
Net Interest Margin | 2.68 | % | 2.59 | % | 0.09 | % | 2.77 | % | 2.64 | % | 0.13 | % | ||||||||||||||||||||
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 |
FAQ
What was FMAO's net income in Q3 2024?
How much did FMAO's deposits grow in Q3 2024?
What was FMAO's nonperforming loans ratio in Q3 2024?