Farmers & Merchants Bancorp (FMCB) Reports Record Fourth Quarter and Full Year 2024 Financial Results
Farmers & Merchants Bancorp (FMCB) reported record financial results for 2024, with full-year net income of $88.5 million, or $121.02 per share, up 3.78% from $116.61 in 2023. The company achieved a net interest margin of 4.05%, with loan yield at 6.08% and cost of average total deposits at 1.35%.
Key highlights include total assets growing to $5.37 billion, loans and leases reaching $3.69 billion, and total deposits of $4.70 billion. The company maintained strong credit quality with minimal net charge-offs of $0.7 million and non-performing loans of $0.9 million. Capital ratios remained robust with a total risk-based capital ratio of 14.51%.
During 2024, FMCB repurchased 48,173 shares (6.44% of outstanding shares) and implemented a new $55.0 million share repurchase program with $19.9 million remaining as of December 31, 2024.
Istituto dei Coltivatori e dei Mercanti (FMCB) ha riportato risultati finanziari record per il 2024, con un utile netto annuale di 88,5 milioni di dollari, ossia 121,02 dollari per azione, in aumento del 3,78% rispetto ai 116,61 dollari del 2023. L'azienda ha raggiunto un margine d'interesse netto del 4,05%, con un rendimento sui prestiti del 6,08% e un costo medio dei depositi totali dell'1,35%.
I punti salienti includono la crescita totale degli attivi a 5,37 miliardi di dollari, prestiti e leasing che hanno raggiunto i 3,69 miliardi di dollari, e depositi totali di 4,70 miliardi di dollari. L'azienda ha mantenuto una solida qualità del credito con minimi addebiti netti di 0,7 milioni di dollari e prestiti in sofferenza di 0,9 milioni di dollari. I rapporti di capitale sono rimasti robusti con un rapporto di capitale totale basato sul rischio del 14,51%.
Nel 2024, FMCB ha riacquistato 48.173 azioni (6,44% delle azioni in circolazione) e ha attuato un nuovo programma di riacquisto di azioni da 55,0 milioni di dollari con 19,9 milioni di dollari rimanenti al 31 dicembre 2024.
Farmers & Merchants Bancorp (FMCB) reportó resultados financieros récord para 2024, con un ingreso neto anual de $88.5 millones, o $121.02 por acción, un aumento del 3.78% con respecto a $116.61 en 2023. La compañía logró un margen de interés neto del 4.05%, con un rendimiento de préstamos del 6.08% y un costo de depósitos totales promedio del 1.35%.
Los puntos destacados incluyen un crecimiento total de activos hasta $5.37 mil millones, préstamos y arrendamientos alcanzando $3.69 mil millones, y depósitos totales de $4.70 mil millones. La empresa mantuvo una sólida calidad crediticia con mínimos cargos netos de $0.7 millones y préstamos en mora de $0.9 millones. Los ratios de capital se mantuvieron robustos con un ratio total de capital basado en riesgo del 14.51%.
Durante 2024, FMCB recompró 48,173 acciones (6.44% de las acciones en circulación) e implementó un nuevo programa de recompra de acciones de $55.0 millones con $19.9 millones restantes a partir del 31 de diciembre de 2024.
농부와 상인 뱅콥 (FMCB)는 2024년에는 8,850만 달러의 연간 순이익을 기록하며 연간 주당 121.02달러로 2023년의 116.61달러에서 3.78% 증가한 기록적인 재무 결과를 발표했습니다. 회사는 4.05%의 순이자 마진을 달성했으며, 대출 수익률은 6.08%, 평균 총 예금 비용은 1.35%였습니다.
주요 하이라이트로는 총 자산이 53억 7천만 달러로 성장했으며, 대출과 리스 규모가 36억 9천만 달러에 도달하고, 총 예금이 47억 달러에 이르렀습니다. 회사는 최소 70만 달러의 순 채권 손실과 90만 달러의 부실 채권으로 강력한 신용 품질을 유지했습니다. 자본 비율은 14.51%의 총 위험 기반 자본 비율로 여전히 견고했습니다.
2024년 동안 FMCB는 48,173주(발행 주식의 6.44%)를 재매입했으며, 2024년 12월 31일 현재 1,990만 달러가 남아 있는 5,500만 달러의 새로운 주식 재매입 프로그램을 시행했습니다.
Farmers & Merchants Bancorp (FMCB) a annoncé des résultats financiers record pour 2024, avec un revenu net total de 88,5 millions de dollars, soit 121,02 dollars par action, en hausse de 3,78% par rapport à 116,61 dollars en 2023. L'entreprise a atteint une marge d'intérêt nette de 4,05%, avec un rendement des prêts de 6,08% et un coût moyen des dépôts totaux de 1,35%.
Les faits marquants comprennent la croissance totale des actifs atteignant 5,37 milliards de dollars, des prêts et des baux s'élevant à 3,69 milliards de dollars, et des dépôts totaux de 4,70 milliards de dollars. L'entreprise a maintenu une forte qualité de crédit avec des pertes nettes minimales de 0,7 million de dollars et des prêts non performants de 0,9 million de dollars. Les ratios de capital sont restés robustes, avec un ratio de capital total basé sur les risques de 14,51%.
Au cours de l'année 2024, FMCB a racheté 48 173 actions (6,44% des actions en circulation) et a mis en œuvre un nouveau programme de rachat d'actions de 55,0 millions de dollars, avec 19,9 millions de dollars restant au 31 décembre 2024.
Farmers & Merchants Bancorp (FMCB) berichtete rekordverdächtige Finanzergebnisse für 2024, mit einem Nettogewinn von 88,5 Millionen Dollar für das Gesamtjahr, was 121,02 Dollar pro Aktie entspricht und einem Anstieg von 3,78% gegenüber 116,61 Dollar im Jahr 2023. Das Unternehmen erreichte eine Nettomarge von 4,05%, bei einer Kreditverzinsung von 6,08% und Kosten für durchschnittliche Gesamteinlagen von 1,35%.
Wesentliche Höhepunkte sind das Wachstum der Gesamtaktiva auf 5,37 Milliarden Dollar, Kredite und Leasingverträge, die 3,69 Milliarden Dollar erreichten, und Gesamteinlagen von 4,70 Milliarden Dollar. Das Unternehmen w maintained eine hohe Kreditqualität mit minimalen Nettoabschreibungen von 0,7 Millionen Dollar und notleidenden Krediten von 0,9 Millionen Dollar. Die Kapitalquoten blieben robust, mit einer Gesamtkapitalquote von 14,51% basierend auf Risiken.
Im Jahr 2024 kaufte FMCB 48.173 Aktien zurück (6,44% der ausgegebenen Aktien) und setzte ein neues Aktienrückkaufprogramm in Höhe von 55,0 Millionen Dollar in Kraft, wobei zum 31. Dezember 2024 noch 19,9 Millionen Dollar übrig waren.
- Record full-year net income of $88.5 million ($121.02 per share), up 3.78% YoY
- Strong efficiency ratio of 46.24% and ROE of 15.49%
- Robust capital position with total risk-based capital ratio of 14.51%
- Strong credit quality with minimal net charge-offs ($0.7M) and non-performing loans ($0.9M)
- Tangible book value per share increased 11.64% to $800.52
- Net interest income decreased by $8.7 million (4.04%) YoY
- Net interest margin declined due to higher interest expenses
- Interest expense increased from $37.5M to $63.4M in 2024
- Modest loan growth of only 0.65% YoY
- Efficiency ratio increased from 45.31% to 46.24%
Full Year 2024 Highlights
- Record full year net income of
$88.5 million , or$121.02 per share, up from$116.61 per share from the prior year; resulting in an increase of3.78% ; - Record fourth quarter net income of
$21.8 million , or$31.11 per share; up from$21.4 million , or$28.55 per share in the fourth quarter 2023; - Net interest margin of
4.05% ; loan yield of6.08% and cost of average total deposits of1.35% ; - Effective management of operating expenses with an efficiency ratio of
46.24% ; - Achieved return on average assets of
1.64% and return on average equity of15.49% ; - Total assets at year-end grew slightly to
$5.37 billion from$5.31 billion ; - Loans and leases held for investment and total deposits both grew modestly during 2024; year-end balances were
$3.69 billion and$4.70 billion , respectively; - Strong liquidity position with
$212.6 million in cash,$1.2 billion in investment securities of which$464.4 million are available-for-sale and a borrowing capacity of$2.1 billion with no outstanding borrowings as of December 31, 2024; - Strong capital position with a total risk-based capital ratio of
14.51% , common equity tier 1 ratio of13.02% , tier 1 leverage ratio of10.95% and a tangible common equity ratio of10.46% ; all increases from the prior year-end; - Credit quality remains strong with net charge-offs for the year of
$0.7 million ;$0.9 million of non-performing loans or leases at year-end; and a total allowance for credit losses of2.11% .
LODI, Calif., Jan. 22, 2025 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), reported full-year 2024 net income of
CEO Commentary
Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President, and Chief Executive Officer, stated, “After being named the #1 performing bank in 2022 and #2 performing bank in 2023 by Bank Director Magazine, we are pleased to announce another record setting year with record net income of
Mr. Steinwert continued, “Our strategy of focusing on our client relationships, steady disciplined growth, together with an emphasis on efficiency and profitability continues to drive our performance. Our net income and earnings per share have increased in each of the last seven years and in the last five years earnings per share have grown from
Earnings
Net interest income for the year ended December 31, 2024 was
The Company’s net interest margin decreased to
Non-interest income increased
Non-interest expense increased
Balance Sheet
Total assets grew to
Credit Quality
Loans and leases held for investment grew
Non-performing loans or leases were
The Company recorded net charge-offs of
Capital
The Company’s and Bank’s regulatory capital ratios remain strong and meet the highest possible regulatory classification of “well-capitalized”. At December 31, 2024, the Company’s preliminary total risk-based capital ratio was
During 2024, the Company repurchased a total of 48,173 shares or approximately
About Farmers & Merchants Bancorp
Farmers & Merchants Bancorp, trades on the OTCQX under the symbol FMCB, is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, which proudly serves California through 33 convenient locations. F&M Bank is financially strong, with
Farmers & Merchants Bancorp has paid dividends for 89 consecutive years and has increased dividends for 59 consecutive years. As a result, Farmers & Merchants Bancorp is a member of a select group of only 56 publicly traded companies referred to as “Dividend Kings,” and is ranked 17th in that group based on consecutive years of dividend increases. A “Dividend King” is a stock with 50 or more consecutive years of dividend increase.
In August 2024, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #2 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2023. In August 2023, the Bank was named by Bank Director’s Magazine as the #1 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2022.
In April 2024, F&M Bank was ranked 6th on Forbes Magazine’s list of "America’s Best Banks" in 2023. Forbes’ annual “America’s Best Banks” list looks at ten metrics measuring growth, credit quality, profitability, and capital for the 2023 calendar year, as well as stock performance in the 12 months through March 18, 2024.
In December 2023, F&M Bank was ranked 4th on S&P Global Market Intelligence's “Top 50 List of Best-Performing Community Banks” in the US with assets between
In October, 2021, F&M Bank was named the “Best Community Bank in California” by Newsweek magazine. Newsweek’s ranking recognizes those financial institutions that best serve their customers’ needs in each state. This recognition speaks to the superior customer service the F&M Bank team members provide to its clients.
F&M Bank is the 15th largest bank lender to agriculture in the United States. F&M Bank operates in the mid-Central Valley of California including, Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east region of the San Francisco Bay Area, including Napa, Alameda and Contra Costa counties.
F&M Bank was inducted into the National Agriculture Science Center’s “Ag Hall of Fame” at the end of 2021 for providing resources, financial advice, guidance, and support to the agribusiness communities as well as to students in the next generation of agribusiness workforce. F&M Bank is dedicated to helping California remain the premier agricultural region in the world and will continue to work with the next generation of farmers, ranchers, and processors. F&M Bank remains committed to servicing the needs of agribusiness in California as has been the case since its founding over 108 years ago.
F&M Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of "Outstanding" in their last Community Reinvestment Act (“CRA”) evaluation.
Forward-Looking Statements
This press release may contain certain forward-looking statements that are based on management's current expectations regarding the Company’s financial performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements in this press release include, without limitation, statements regarding loan and deposit production (including any growth representations), balance sheet management, levels of net interest margin, the ability to control costs and expenses, the competitive environment, financial and regulatory policies of the United States government, water management issues in California and general economic conditions, inflation, recessions, natural disasters, pandemics, geopolitical risks, economic uncertainty in the United States, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting the Company's operations, pricing, products and services. These and other important factors are detailed in the Company’s Form 10-K, Form 10-Qs, and various other securities law filings made periodically by the Company, copies of which are available from the Company’s website. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.
For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.
Investor Relations Contact
Farmers & Merchants Bancorp
Bart R. Olson
Executive Vice President and Chief Financial Officer
Phone: 209-367-2485
bolson@fmbonline.com
| FINANCIAL HIGHLIGHTS | ||||||||
| For the Year-Ended | ||||||||
| (dollars in thousands, except per share amounts) | December 31, 2024 | December 31, 2023 | ||||||
| Earnings and Profitability: | ||||||||
| Interest income | $ | 271,977 | $ | 253,754 | ||||
| Interest expense | 65,301 | 38,369 | ||||||
| Net interest income | 206,676 | 215,385 | ||||||
| Provision for credit losses | - | 9,407 | ||||||
| Noninterest income | 20,700 | 14,914 | ||||||
| Noninterest expense | 105,132 | 104,339 | ||||||
| Income before taxes | 122,244 | 116,553 | ||||||
| Income tax expense | 33,787 | 28,239 | ||||||
| Net income | $ | 88,457 | $ | 88,314 | ||||
| Diluted earnings per share | $ | 121.02 | $ | 116.61 | ||||
| Return on average assets | 1.64 | % | 1.68 | % | ||||
| Return on average equity | 15.49 | % | 17.05 | % | ||||
| Loan yield | 6.08 | % | 5.84 | % | ||||
| Cost of average total deposits - core deposits | 1.35 | % | 0.80 | % | ||||
| Net interest margin - tax equivalent | 4.05 | % | 4.30 | % | ||||
| Effective tax rate | 27.64 | % | 24.23 | % | ||||
| Efficiency ratio | 46.24 | % | 45.31 | % | ||||
| Book value per share | $ | 818.91 | $ | 735.00 | ||||
| Balance Sheet: | ||||||||
| Total assets | $ | 5,370,196 | $ | 5,308,928 | ||||
| Cash and cash equivalents | 212,563 | 410,642 | ||||||
| of which held at Fed | 141,505 | 338,375 | ||||||
| Total securities | 1,233,857 | 1,000,200 | ||||||
| of which available-for-sale | 464,414 | 182,512 | ||||||
| of which held-to-maturity | 769,443 | 817,688 | ||||||
| Gross loans and leases | 3,690,221 | 3,665,397 | ||||||
| Allowance for credit losses - loans and leases | 75,283 | 74,965 | ||||||
| Total deposits | 4,699,139 | 4,668,095 | ||||||
| Borrowings | - | - | ||||||
| Subordinated debentures | 10,310 | 10,310 | ||||||
| Total shareholders' equity | $ | 573,072 | $ | 549,755 | ||||
| Loan-to-deposit ratio | 78.53 | % | 78.52 | % | ||||
| Percentage of checking deposits to total deposits | 51.08 | % | 51.76 | % | ||||
| Capital ratios (Bancorp) (1) | ||||||||
| Common equity tier 1 capital to risk-weighted assets | 13.02 | % | 12.30 | % | ||||
| Tier 1 capital to risk-weighted assets | 13.25 | % | 12.53 | % | ||||
| Risk-based capital to risk-weighted assets | 14.51 | % | 13.78 | % | ||||
| Tier 1 leverage capital ratio | 10.95 | % | 10.38 | % | ||||
| Tangible common equity ratio (2) | 10.46 | % | 10.13 | % | ||||
| (1) Capital information is preliminary for December 31, 2024 | ||||||||
| (2) Non-GAAP measurement | ||||||||
| Non-GAAP measurement reconciliation: | ||||||||
| (Dollars in thousands) | December 31, 2024 | December 31, 2023 | ||||||
| Shareholders' equity | $ | 573,072 | $ | 549,755 | ||||
| Less: Intangible assets | 12,870 | 13,419 | ||||||
| Tangible common equity | $ | 560,202 | $ | 536,336 | ||||
| Total assets | $ | 5,370,196 | $ | 5,308,928 | ||||
| Less: Intangible assets | 12,870 | 13,419 | ||||||
| Tangible assets | $ | 5,357,326 | $ | 5,295,509 | ||||
| Tangible common equity ratio(1) | 10.46 | % | 10.13 | % | ||||
| (1) Tangible common equity divided by tangible assets | ||||||||
FAQ
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