Farmers & Merchants Bancorp Reports Record First Quarter 2020 Earnings

LODI, Calif., April 27, 2020 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) today announced record net income of $14.1 million for first quarter 2020.

For the quarter ended March 31, 2020, Farmers & Merchants Bancorp reported net income of $14.1 million, or $17.80 per share, a 4.2% increase from net income of $13.5 million earned in the first quarter of 2019. Net interest income for the quarter ended March 31, 2020 was $35.4 million, up 3.6% from $34.2 million in the same quarter in 2019. The Company’s net interest margin on a tax equivalent basis was 4.19% in the first quarter of 2020, compared to 4.40% in the first quarter of 2019. Return on average assets for the first quarter of 2020 was 1.53%, compared to 1.60% for the first quarter of 2019, and return on average equity was 14.90%, compared to 16.96% for the first quarter of 2019. Total assets at quarter-end were $3.7 billion, up 9.6% from the first quarter of 2019. Total loans and leases outstanding reached $2.7 billion, an increase of 4.1% from March 31, 2019, and total deposits of $3.3 billion increased 8.2% from March 31, 2019. At quarter-end, total checking deposits represented 52.4% of total deposits compared to 52.2% at March 31, 2019. The Company’s credit quality remained strong with only $549,000 of non-performing loans and leases as of March 31, 2020. As a result, there was no provision for credit losses for the first quarter of 2020, and at quarter-end, the Company’s allowance for credit losses was $54.8 million, or 2.05% of total loans and leases. The Company’s tier 1 leverage capital ratio was 10.19% at March 31, 2020, and the total capital ratio was 12.83%, resulting in the highest possible regulatory classification of “well capitalized.” 

Kent Steinwert, Chairman, President and C.E.O. commented “the Board and Senior Management team are pleased with our 1^st quarter 2020 results. Our strong operating metrics and continued strong credit quality, when combined with adequate levels of loan loss reserves, allowed us to report stronger financial results in the quarter compared to many banks that needed to record significant loan loss provisions to reserve for the risks of COVID-19. However, we all realize that the real challenges lie ahead as our industry and country deal with the health and economic setbacks caused by the COVID-19 pandemic.