Farmers & Merchants Bancorp (FMCB) Reports Record Third Quarter 2024 Earnings
Farmers & Merchants Bancorp (OTCQX: FMCB) reported record third quarter 2024 earnings with net income of $22.1 million, or $29.96 per diluted common share, up 2.50% on a per share basis from Q3 2023. The company achieved a return on average assets of 1.65% and a return on average equity of 15.03%. FMCB maintained a strong liquidity position with $1.5 billion in cash and investment securities and a $2.1 billion borrowing capacity. The company's total risk-based capital ratio was 14.95%, with a common equity tier 1 ratio of 13.47%. Credit quality remained robust with a total allowance for credit losses of 2.11%. Total assets were $5.4 billion, with loans and leases outstanding at $3.7 billion, up 4.13% year-over-year. Deposits remained stable at $4.7 billion.
Farmers & Merchants Bancorp (OTCQX: FMCB) ha riportato guadagni record nel terzo trimestre del 2024, con un reddito netto di 22,1 milioni di dollari, o 29,96 dollari per azione comune diluita, in aumento del 2,50% su base per azione rispetto al Q3 2023. L'azienda ha raggiunto un ritorno sugli attivi medi del 1,65% e un ritorno sul capitale medio del 15,03%. FMCB ha mantenuto una solida posizione di liquidità con 1,5 miliardi di dollari in contante e titoli d'investimento e una capacità di prestito di 2,1 miliardi di dollari. Il rapporto totale di capitale basato sul rischio dell'azienda era del 14,95%, con un rapporto di capitale comune di classe 1 del 13,47%. La qualità del credito è rimasta robusta con un accantonamento totale per le perdite su crediti del 2,11%. Gli attivi totali ammontavano a 5,4 miliardi di dollari, con prestiti e leasing in corso per 3,7 miliardi di dollari, in aumento del 4,13% rispetto all'anno precedente. I depositi sono rimasti stabili a 4,7 miliardi di dollari.
Farmers & Merchants Bancorp (OTCQX: FMCB) reportó ganancias récord en el tercer trimestre de 2024, con un ingreso neto de 22.1 millones de dólares, o 29.96 dólares por acción común diluida, un aumento del 2.50% por acción en comparación con el Q3 2023. La empresa logró un retorno sobre activos promedio del 1.65% y un retorno sobre capital promedio del 15.03%. FMCB mantuvo una fuerte posición de liquidez con 1.5 mil millones de dólares en efectivo y valores de inversión, y una capacidad de endeudamiento de 2.1 mil millones de dólares. El ratio total de capital basado en riesgos de la empresa fue del 14.95%, con un ratio de capital común de nivel 1 del 13.47%. La calidad crediticia se mantuvo robusta con una provisión total para pérdidas crediticias del 2.11%. Los activos totales fueron de 5.4 mil millones de dólares, con préstamos y arrendamientos pendientes de 3.7 mil millones de dólares, un aumento del 4.13% interanual. Los depósitos se mantuvieron estables en 4.7 mil millones de dólares.
Farmers & Merchants Bancorp (OTCQX: FMCB)는 2024년 3분기 기록적인 수익을 보고하였으며, 순이익은 2,210만 달러, 희석된 보통주 당 29.96달러로, 2023년 3분기 대비 주당 2.50% 증가했습니다. 회사는 평균 자산 수익률 1.65%와 평균 자기자본 수익률 15.03%을 달성했습니다. FMCB는 15억 달러의 현금과 투자 증권, 21억 달러의 차입 능력을 갖춘 강력한 유동성 상태를 유지했습니다. 회사의 총 위험 기반 자본 비율은 14.95%였으며, 보통주 1단계 자본 비율은 13.47%였습니다. 신용 품질은 신용 손실을 위한 총 적립금이 2.11%인 robust 한 상태를 유지했습니다. 총 자산은 54억 달러였으며, 대출 및 리스 잔액은 37억 달러로 전년 대비 4.13% 증가했습니다. 예금은 47억 달러로 안정세를 유지했습니다.
Farmers & Merchants Bancorp (OTCQX: FMCB) a annoncé des bénéfices records au troisième trimestre de 2024, avec un revenu net de 22,1 millions de dollars, soit 29,96 dollars par action ordinaire diluée, en hausse de 2,50% par action par rapport au T3 2023. L'entreprise a réalisé un retour sur actifs moyens de 1,65% et un retour sur capitaux propres moyens de 15,03%. FMCB a maintenu une solide position de liquidité avec 1,5 milliard de dollars en espèces et titres d'investissement, et une capacité d'emprunt de 2,1 milliards de dollars. Le ratio total de capital à risque de l'entreprise était de 14,95%, avec un ratio de capital de base commun de 13,47%. La qualité du crédit est restée robuste avec un provisionnement total pour pertes de crédit de 2,11%. Les actifs totaux s'élevaient à 5,4 milliards de dollars, avec des prêts et baux en cours de 3,7 milliards de dollars, en hausse de 4,13% par rapport à l'année précédente. Les dépôts sont restés stables à 4,7 milliards de dollars.
Farmers & Merchants Bancorp (OTCQX: FMCB) berichtete über rekordverdächtige Gewinne im dritten Quartal 2024 mit einem Nettogewinn von 22,1 Millionen Dollar, oder 29,96 Dollar pro verwässerter Stammaktie, was einem Anstieg von 2,50% pro Aktie im Vergleich zum Q3 2023 entspricht. Das Unternehmen erzielte eine Rendite auf das durchschnittliche Vermögen von 1,65% und eine Rendite auf das durchschnittliche Eigenkapital von 15,03%. FMCB hielt eine starke Liquiditätsposition mit 1,5 Milliarden Dollar in Bargeld und Investmenttiteln sowie einer Kreditaufnahme von 2,1 Milliarden Dollar. Das gesamt Risikokapitalverhältnis des Unternehmens betrug 14,95%, mit einem Eigenkapitalquote 1 von 13,47%. Die Kreditqualität blieb robust mit einer gesamt Rückstellung für Kreditverluste von 2,11%. Die Gesamtaktiva betrugen 5,4 Milliarden Dollar, wobei die ausstehenden Kredite und Leases bei 3,7 Milliarden Dollar lagen, was einem Anstieg von 4,13% im Jahresvergleich entspricht. Die Einlagen blieben stabil bei 4,7 Milliarden Dollar.
- Record Q3 2024 net income of $22.1 million, up 2.50% per share YoY
- Strong liquidity position with $1.5 billion in cash and investments
- Total risk-based capital ratio of 14.95%, well above regulatory requirements
- Loan portfolio growth of 4.13% YoY
- Stable deposit base of $4.7 billion
- Low non-accrual loans of $677,000 and minimal delinquency ratio of 0.21%
- Tangible book value per share increased 16.21% YoY to $799.04
- Decrease in return on average equity from 16.80% in Q3 2023 to 15.03% in Q3 2024
- Net interest income for the first nine months of 2024 decreased by 4.39% compared to the same period in 2023
- Slight decrease in net income for the first nine months of 2024 compared to the same period in 2023
Third Quarter 2024 Highlights
- Record net income of
$22.1 million , or$29.96 per share; up2.50% on a per share basis from third quarter 2023; - Achieved a return on average assets of
1.65% and a return on average equity of15.03% ; - Solid liquidity position with
$1.5 billion in cash and investment securities and a borrowing capacity of$2.1 billion with no outstanding borrowings as of September 30, 2024; - Continued growth in capital with a total risk-based capital ratio of
14.95% , common equity tier 1 ratio of13.47% , tier 1 capital ratio of13.70% and a tangible common equity ratio of10.91% ; - Credit quality remains strong with a total allowance for credit losses of
2.11% .
LODI, Calif., Oct. 16, 2024 (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 record third quarter net income of
Net income over the trailing twelve months was
CEO Commentary
Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are pleased with the Company’s strong ongoing financial performance including the results in the first nine months of 2024 highlighted by net income of
Earnings
Net interest income for the quarter ended September 30, 2024 was
For the nine-months ended September 30, 2024, net income was
Balance Sheet
Total assets were
Credit Quality
The Company’s credit quality remained resilient with only
Capital
The Company’s and Bank’s regulatory capital ratios remain strong while increasing from June 30, 2024. At September 30, 2024, the Company’s preliminary total risk-based capital ratio was
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 32 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. Last year 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 | |||||||||||||||||||||
| Three-Months Ended | Nine-Months Ended | ||||||||||||||||||||
| (dollars in thousands, except share and per share amounts) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||
| Earnings and Profitability: | |||||||||||||||||||||
| Interest income | $ | 68,635 | $ | 69,831 | $ | 65,713 | $ | 205,107 | $ | 186,362 | |||||||||||
| Interest expense | 16,642 | 19,050 | 12,272 | 50,620 | 24,777 | ||||||||||||||||
| Net interest income | 51,993 | 50,781 | 53,441 | 154,487 | 161,585 | ||||||||||||||||
| Provision for credit losses | - | - | 3,000 | - | 7,057 | ||||||||||||||||
| Noninterest income | 6,280 | 4,767 | 3,606 | 16,122 | 12,513 | ||||||||||||||||
| Noninterest expense | 27,755 | 25,422 | 24,468 | 78,698 | 79,473 | ||||||||||||||||
| Income before taxes | 30,518 | 30,126 | 29,579 | 91,911 | 87,568 | ||||||||||||||||
| Income tax expense | 8,397 | 8,359 | 7,545 | 25,300 | 20,679 | ||||||||||||||||
| Net income | $ | 22,121 | $ | 21,767 | $ | 22,034 | $ | 66,611 | $ | 66,889 | |||||||||||
| Diluted earnings per share | $ | 29.96 | $ | 29.39 | $ | 29.23 | $ | 89.91 | $ | 88.06 | |||||||||||
| Return on average assets | 1.65 | % | 1.58 | % | 1.65 | % | 1.65 | % | 1.70 | % | |||||||||||
| Return on average equity | 15.03 | % | 15.33 | % | 16.80 | % | 15.55 | % | 17.43 | % | |||||||||||
| Loan yield | 6.13 | % | 6.13 | % | 5.87 | % | 6.11 | % | 5.77 | % | |||||||||||
| Cost of average total deposits | 1.39 | % | 1.51 | % | 1.01 | % | 1.39 | % | 0.70 | % | |||||||||||
| Net interest margin - tax equivalent | 4.07 | % | 3.91 | % | 4.17 | % | 4.04 | % | 4.33 | % | |||||||||||
| Effective tax rate | 27.51 | % | 27.75 | % | 25.51 | % | 27.53 | % | 23.61 | % | |||||||||||
| Efficiency ratio | 47.63 | % | 45.77 | % | 42.89 | % | 46.13 | % | 45.65 | % | |||||||||||
| Book value per share | $ | 816.67 | $ | 779.40 | $ | 705.60 | $ | 816.67 | $ | 705.60 | |||||||||||
| Balance Sheet: | |||||||||||||||||||||
| Total assets | $ | 5,418,132 | $ | 5,267,485 | $ | 5,375,375 | $ | 5,418,132 | $ | 5,375,375 | |||||||||||
| Cash and cash equivalents | 293,250 | 295,936 | 668,361 | 293,250 | 668,361 | ||||||||||||||||
| of which held at Fed | 198,637 | 225,676 | 597,739 | 198,637 | 597,739 | ||||||||||||||||
| Total securities | 1,182,073 | 1,046,210 | 932,508 | 1,182,073 | 932,508 | ||||||||||||||||
| of which available-for-sale | 401,563 | 251,413 | 106,493 | 401,563 | 106,493 | ||||||||||||||||
| of which held-to-maturity | 780,510 | 794,797 | 826,015 | 780,510 | 826,015 | ||||||||||||||||
| Gross Loans | 3,713,735 | 3,692,237 | 3,567,807 | 3,713,735 | 3,567,807 | ||||||||||||||||
| Allowance for credit losses - loans and leases | 75,816 | 75,032 | 74,159 | 75,816 | 74,159 | ||||||||||||||||
| Total deposits | 4,708,682 | 4,597,055 | 4,748,767 | 4,708,682 | 4,748,767 | ||||||||||||||||
| Borrowings | - | - | - | - | - | ||||||||||||||||
| Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||||||||
| Total shareholders' equity | $ | 602,696 | $ | 576,220 | $ | 530,623 | $ | 602,696 | $ | 530,623 | |||||||||||
| Loan-to-deposit ratio | 78.87 | % | 80.32 | % | 75.13 | % | 78.87 | % | 75.13 | % | |||||||||||
| Percentage of checking deposits to total deposits | 50.01 | % | 48.60 | % | 51.72 | % | 50.01 | % | 51.72 | % | |||||||||||
| Capital ratios (Bancorp) (1) | |||||||||||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 13.47 | % | 13.09 | % | 12.48 | % | 13.47 | % | 12.48 | % | |||||||||||
| Tier 1 capital to risk-weighted assets | 13.70 | % | 13.32 | % | 12.72 | % | 13.70 | % | 12.72 | % | |||||||||||
| Risk-based capital to risk-weighted assets | 14.95 | % | 14.58 | % | 13.97 | % | 14.95 | % | 13.97 | % | |||||||||||
| Tier 1 leverage capital ratio | 11.32 | % | 10.66 | % | 10.22 | % | 11.32 | % | 10.22 | % | |||||||||||
| Tangible common equity ratio (2) | 10.91 | % | 10.72 | % | 9.64 | % | 10.91 | % | 9.64 | % | |||||||||||
| (1) Capital information is preliminary for September 30, 2024 | |||||||||||||||||||||
| (2) Non-GAAP measurement | |||||||||||||||||||||
| Non-GAAP measurement reconciliation: | |||||||||||||||||||||
| (Dollars in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||
| Shareholders' equity | $ | 602,696 | $ | 576,220 | $ | 530,623 | |||||||||||||||
| Less: Intangible assets | 13,007 | 13,145 | 13,563 | ||||||||||||||||||
| Tangible common equity | $ | 589,689 | $ | 563,075 | $ | 517,060 | |||||||||||||||
| Total assets | $ | 5,418,132 | $ | 5,267,485 | $ | 5,375,375 | |||||||||||||||
| Less: Intangible assets | 13,007 | 13,145 | 13,563 | ||||||||||||||||||
| Tangible assets | $ | 5,405,125 | $ | 5,254,340 | $ | 5,361,812 | |||||||||||||||
| Tangible common equity ratio (1) | 10.91 | % | 10.72 | % | 9.64 | % | |||||||||||||||
| (1) Tangible common equity divided by tangible assets | |||||||||||||||||||||
FAQ
What was Farmers & Merchants Bancorp's (FMCB) earnings per share for Q3 2024?
How much did Farmers & Merchants Bancorp's (FMCB) loan portfolio grow in Q3 2024?
What was Farmers & Merchants Bancorp's (FMCB) total risk-based capital ratio as of September 30, 2024?
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