Farmers & Merchants Bancorp, Inc. Reports 2020 Third-Quarter and Year-to-Date Financial Results

Nachrichtenquelle: globenewswire
21.10.2020, 22:00  |  101   |   |   

Positive Momentum Continues as Third Quarter 2020 Earnings Per Diluted Share Increase 5.3% Despite Higher Provision for Loan Losses due to the COVID-19 Crisis

ARCHBOLD, Ohio, Oct. 21, 2020 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2020 third quarter and year-to-date September 30, 2020.

2020 Third Quarter Financial Highlights Include (on a year-over-year basis unless noted):

  • Net interest income after provision for loan losses increased 3.0% to $13.0 million, which included a $1.7 million increase in the provision for loan losses as a result of the COVID-19 crisis
  • Noninterest income increased 49.2% to $4.7 million, primarily due to strong residential mortgage demand
  • Efficiency ratio improved 375 basis points to 62.11%
  • Strong organic growth drove a 17.7% increase in net total loans and an 18.8% increase in total deposits
  • Asset quality remains strong and nonperforming loans to total loans was 0.58% compared to 0.28%
  • Year-to-date, net charge-offs to average loans was 0.03%, compared to 0.04% for the same period last year
  • The balance of interest only and full deferrals was $8.5 million at September 30, 2020, a 94.6% decline from $156.6 million at June 30, 2020
  • F&M remains well capitalized under regulatory guidelines with a Tier 1 capital to average assets of 10.65%
  • Quarterly cash dividend increased 13.3% to $0.17 per share, reflecting F&M’s commitment to create long-term value for shareholders
  • F&M donated over $36,000 to local organizations during the third quarter, a 100% increase from the same quarter last year
  • New loan production offices in Muncie, IN and Oxford, OH contributing to loan growth
  • New loan production office in West Bloomfield, MI and new full-service office in Fort Wayne expected to open in fourth quarter

“Momentum in our business remains strong and I am extremely proud of the high level of service and dedication our employees continue to provide our customers and communities,” stated Lars B. Eller, President and Chief Executive Officer. “We entered the COVID-19 crisis from a position of strength through our commitment to community-oriented and prudent banking values. F&M’s continued success throughout this challenging period is encouraging and we have been able to offset an increased level of provision for loan losses by reducing our cost of funds, driving strong noninterest income, and improving our efficiency ratio. As a result, third quarter net income increased 3.2%, and earnings per diluted share are up 5.3% over the prior year period.”  

Mr. Eller continued: “Our loan portfolio continues to be resilient. Loans 30 days past due to total loans, excluding PPP loan balance, is comparable to pre-COVID levels and was 0.26% at September 30, 2020, compared to 0.18% at December 31, 2019. In addition, we ended the third quarter with only $8.5 million of interest only and full deferrals, compared to $156.6 million at the end of the second quarter. Given this favorable performance, we believe interest only and full deferrals, as well as second deferrals, will continue to decline throughout the remainder of 2020. However, given the uncertainty surrounding the COVID-19 crisis and the continued impacts the pandemic is having on the global economy, we are proactively monitoring our portfolio’s performance and our approach to risk remains prudent. As a result, we have increased our allowance for loan and lease losses by nearly 76.0% over the past 12 months, and our allowance for loan and lease losses to total loans, adjusted for our PPP balances, are now over 1.0%.”

Income Statement
Net income for the 2020 third quarter ended September 30, 2020, was $4.4 million, compared to $4.3 million for the same period last year. Net income per basic and diluted share for the 2020 third quarter was $0.40, compared to $0.38 for the same period last year. Net income for the 2020 nine-month period ended September 30, 2020, was $13.3 million, compared to $13.7 million for the same period last year. Net income per basic and diluted share for the 2020 nine months was $1.20, compared to $1.23 for the same period last year.

Mr. Eller continued, “Our provision for loan losses has increased from $410,000 for the nine months ended September 30, 2019 to $5.0 million for the nine months ended September 30, 2020. Helping offset this year-to-date increase, has been a slight increase in total interest income, a 23.5% improvement in total interest expense, and a 26.3% increase in noninterest income. In addition, noninterest expenses have increased only 4.9% year-to-date, primarily due to a one-time $0.5 million increase in salary and wages during the third quarter to support our employees’ annual incentive program. Despite higher operating expenses, our efficiency ratio for the nine months ended September 30, 2020 was 62.11%, compared to 65.86% for the same period last year and at the bank only level, excluding the parent or any affiliate, our efficiency ratio at September 30, 2020, was 59.89% compared to 62.45% for the same period last year.”

Deposits
At September 30, 2020, total deposits were $1.519 billion, an increase of 18.8% from September 30, 2019, and an increase of 2.8% from June 30, 2020. The significant organic deposit growth being experienced is a result of continued strength in expanding relationships with new and existing customers, and the benefits of PPP activity. In addition, we continue to see growing customer preferences to more stable and secure saving instruments as deposits have increased since the COVID-19 crisis began.

Loan Portfolio and Asset Quality
Total loans, net at September 30, 2020, increased 17.7% or by $205.2 million to $1.364 billion, compared to $1.159 billion at September 30, 2019, and up 1.4% from $1.345 billion at June 30, 2020. The year-over-year improvement resulted primarily from the contribution of strong organic loan growth and $87.0 million of PPP loans originated during the 2020 second quarter.

Mr. Eller continued, “Despite the challenges created by the COVID-19 crisis, we continue to grow our loan portfolio with high quality customers, reflecting the personal financial services and value we provide our local communities and the recent contribution of our newly opened loan production offices in Muncie, IN and Oxford, OH.”

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. The Bank initially had loans of $28 million in deferment and loans of $137 million making interest only payments. As of September 30, 2020, there is a total of $8.5 million outstanding between deferrals and interest only payments within the Company’s commercial and agriculture portfolios. The $8.5 million balance comprised $1.4 million with one full month of deferment, $641,000 with three full months of deferment, $5.5 million with three months interest only payments, and $900,000 with six months interest only. Second deferrals were negligible at September 30, 2020 and at this point in time, existing loans outstanding in deferral or interest only payments are expected to be current as of December 31, 2020.

The Company’s management team has evaluated its exposure to increased loan losses related to the COVID-19 pandemic and has identified the following industry segments most impacted by the pandemic as of September 30, 2020:

 
Industry Segments
(Dollars in Thousands)
  Outstanding
Loan Balance
    Percent of
Total
Loan
Portfolio
    Payment
Deferment
    Percent of
Total Loans
Adjusted
with
Deferment
    Interest Only
Modifications
    Percent of
Total Loans
Adjusted
with Interest
Only
 
Hospitality (Hotels)   $ 74,426       5.44 %   $ -       0.00 %   $ 1,679       26.19 %
Restaurants     21,726       1.59 %     -       0.00 %     2,000       31.20 %
Retail Commercial
Real Estate *
    101,783       7.44 %     -       0.00 %     -       0.00 %
Entertainment     24,568       1.80 %     641       31.10 %     1,302       20.32 %
Car Dealers     32,094       2.35 %     -       0.00 %     -       0.00 %
Gas Stations     17,586       1.29 %     -       0.00 %     -       0.00 %
Other     770,197       56.31 %     1,420       68.90 %     1,429       22.29 %
Total   $ 1,042,380       76.22 %   $ 2,061       100.00 %   $ 6,410       100.00 %
                                                 
# of Customers                   4             5          
                                                 
*Includes Owner Occupied                                  
Report on Adjusted Loans as of September 30, 2020                                  
                                   

The other category in payment deferment at September 30, 2020, is a loan for a livestock production facility. The other category for interest modifications as of September 30, 2020, is for construction of an agricultural implement facility and a manufacturer.

F&M’s agriculture portfolio continues to perform well, as a result of the Company’s experienced lenders, diversified market exposure, and geographic focus within strong agricultural markets. At September 30, 2020, F&M’s $103.3 million agriculture portfolio consisted primarily of row crop and livestock production, with almost no dairy exposure. Agriculture customers are proven farmers with strong balance sheets and 95% of row crop producers utilize crop insurance to mitigate weather and production risks. Approximately, 25% of F&M’s agriculture portfolio at September 30, 2020, was within the livestock sector, and approximately 70% of this exposure is to customers that support production but do not have direct livestock ownership. In addition, approximately 80% of F&M’s livestock exposure is for loans with balances under $750,000 and of the borrowers with direct livestock ownership, approximately 50% are not dependent on the income from livestock to manage their debt payments.   Overall, F&M believes agricultural performance will be similar to 2019.

Focusing on Operational Excellence and Executing Long-Term Strategic Plan
Mr. Eller stated: “Based on the lessons we have learned throughout the COVID-19 pandemic, we are making strategic investments across our organization that support the future needs of our operations as well as adapt to changing customer preferences. We are reviewing our office modification strategy. As a part of this, we are exploring the opportunity for offices in compelling markets with a high concentration of our core customer demographic. During the fourth quarter, we are expanding our physical presence into the state of Michigan with a new loan production office in West Bloomfield, MI. Our new full-service office in Fort Wayne, IN is also expected to open in fourth quarter.”  

“We have recently split our back-end operations team into four separate locations to mitigate risk of operating one facility and promote social distancing within our facilities, in addition to supporting our employees’ efforts to work from home. We also remain focused on attracting and retaining employees to support our current and future growth, and during the third quarter we expanded our employee 401(k) offerings, and upgraded our HR system. Investments in our digital infrastructure continue and in the coming months we will go live with an upgrade to F&M’s website, improve our customer’s ability to automatically open accounts online, and open a new call center to support our growing digital strategies.”

Mr. Eller concluded: “Despite the unprecedented impacts of the COVID-19 pandemic, 2020 is shaping up to be a strong year demonstrating the resiliency of our employees, customers, and communities. We are all in this together and F&M remains focused on providing support for you and us, throughout the near-term challenges and future prosperity.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 7.0% to $243.4 million at September 30, 2020, from $227.4 million at September 30, 2019. At September 30, 2020, the Company had a Tier 1 leverage ratio of 10.65%, compared to 11.60% at September 30, 2019.

Tangible stockholders’ equity increased to $187.2 million at September 30, 2020, compared to $174.6 million at September 30, 2019. The largest change to intangible stockholders’ equity was an increase in accumulated comprehensive income, which increased from $1.471 million as of September 30, 2019 to $5.860 million as of September 30, 2020. On a per share basis, tangible stockholders’ equity at September 30, 2020, was $16.78 per share, compared to $15.68 per share at September 30, 2019.

For the nine months ended September 30, 2020, the Company has declared cash dividends of $0.49 per share, which is an 8.9% increase over the 2019 nine month declared dividend payment. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 26 consecutive years. For the nine months ended September 30, 2020, the dividend payout ratio was 42.66% compared to 38.67% for the same period last year.

About Farmers & Merchants State Bank:
The Farmers & Merchants State Bank is a local independent community bank that has been serving Northwest Ohio and Northeast Indiana since 1897. The Farmers & Merchants State Bank provides commercial banking, retail banking and other financial services through its 30 offices. Our locations are in Fulton, Defiance, Hancock, Henry, Lucas, Williams, and Wood counties in Northwest Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, and Steuben counties.

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.

 
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, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019     September 30, 2020   September 30, 2019
Interest Income                                
Loans, including fees     $ 16,181     $ 16,192     $ 15,883     $ 15,608     $ 15,202     $ 48,256     $ 46,605  
Debt securities:                                
U.S. Treasury and government agencies       761       767       1,146       840       972       2,674       2,501  
Municipalities       279       243       262       225       190       784       612  
Dividends       36       26       45       60       69       107       233  
Federal funds sold       4       5       6       97       120       15       319  
Other.       32       40       122       319       459       194       887  
Total interest income       17,293       17,273       17,464       17,149       17,012       52,030       51,157  
Interest Expense                                
Deposits       1,864       2,254       2,901       3,336       3,654       7,019       9,606  
Federal funds purchased and securities sold under agreements to repurchase       174       187       244       207       201       605       527  
Borrowed funds       231       257       266       270       257       754       813  
Total interest expense       2,269       2,698       3,411       3,813       4,112       8,378       10,946  
Net Interest Income - Before Provision for Loan Losses     15,024       14,575       14,053       13,336       12,900       43,652       40,211  
Provision for Loan Losses       1,987       1,569       1,430       728       247       4,986       410  
Net Interest Income After Provision For Loan Losses     13,037       13,006       12,623       12,608       12,653       38,666       39,801  
Noninterest Income                                
Customer service fees       2,299       2,258       1,586       1,732       1,722       6,143       4,994  
Other service charges and fees       879       704       1,039       1,132       1,179       2,622       3,311  
Net gain on sale of loans       1,537       364       227       119       260       2,128       558  
Net gain (loss) on sale of available-for-sale securities     -       -       270       -       -       270       (26 )
Total noninterest income       4,715       3,326       3,122       2,983       3,161       11,163       8,837  
Noninterest Expense                                
Salaries and wages       5,102       4,043       4,223       4,029       4,158       13,420       12,300  
Employee benefits       1,566       1,218       1,677       1,410       1,331       4,461       4,148  
Net occupancy expense       558       564       564       406       630       1,686       1,911  
Furniture and equipment       875       750       758       596       720       2,383       2,179  
Data processing       490       408       442       396       482       1,340       2,157  
Franchise taxes       368       369       368       246       248       1,105       735  
ATM expense       444       376       414       434       416       1,234       1,281  
Advertising       411       265       303       340       587       979       1,229  
Net (gain) loss on sale of other assets owned       (7 )     (7 )     1       16       22       (13 )     65  
FDIC assessment       194       144       72       (11 )     -       410       194  
Mortgage servicing rights amortization       296       356       132       158       149       784       329  
Consulting fees       205       217       139       264       196       561       404  
Other general and administrative       1,786       1,691       1,602       1,482       1,667       5,027       4,897  
Total noninterest expense       12,288       10,394       10,695       9,766       10,606       33,377       31,829  
Income Before Income Taxes       5,464       5,938       5,050       5,825       5,208       16,452       16,809  
Income Taxes       1,054       1,134       945       1,102       933       3,133       3,130  
Net Income       4,410       4,804       4,105       4,723       4,275       13,319       13,679  
Other Comprehensive Income (Loss) (Net of Tax):                                
Net unrealized gain (loss) on available-for-sale securities     639       661       4,998       (472 )     841       6,298       5,651  
Reclassification adjustment for realized (gain) loss on sale of available-for-sale securities     -       -       (270 )     -       -       (270 )     26  
Net unrealized gain (loss) on available-for-sale securities     639       661       4,728       (472 )     841       6,028       5,677  
Tax expense (benefit)       134       139       993       (99 )     176       1,266       1,192  
Other comprehensive income (loss)       505       522       3,735       (373 )     665       4,762       4,485  
Comprehensive Income     $ 4,915     $ 5,326     $ 7,840     $ 4,350     $ 4,940     $ 18,081     $ 18,164  
Basic and Diluted Earnings Per Share     $ 0.40     $ 0.43     $ 0.37     $ 0.43     $ 0.38     $ 1.20     $ 1.23  
Dividends Declared     $ 0.17     $ 0.16     $ 0.16     $ 0.16     $ 0.15     $ 0.49     $ 0.45  
                                 

 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(Unaudited) (in thousands of dollars, except share data)  
   
      September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019    
      (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)    
Assets                          
          Cash and due from banks   $ 46,395     $ 54,336     $ 49,844     $ 50,137     $ 103,188      
          Federal funds sold     41,358       31,105       40,993       1,159       11,404      
  Total cash and cash equivalents     87,753       85,441       90,837       51,296       114,592      
                           
          Interest-bearing time deposits     4,657       4,636       4,869       4,309       4,554      
          Securities - available-for-sale     259,041       236,292       204,121       222,293       190,465      
          Other securities, at cost     5,827       5,810       5,810       5,810       5,789      
          Loans held for sale     7,621       11,445       2,153       4,248       606      
          Loans, net     1,351,979       1,334,790       1,239,108       1,211,771       1,151,937      
          Premises and equipment     26,776       26,049       26,120       26,351       25,990      
          Goodwill     47,340       47,340       47,340       47,340       47,340      
          Mortgage servicing rights     3,027       2,740       2,672       2,629       2,556      
          Other real estate owned     206       135       185       214       351      
          Bank owned life insurance     15,501       15,399       15,313       15,235       15,151      
          Other assets     16,872       14,370       16,597       15,834       15,549      
                           
Total Assets   $ 1,826,600     $ 1,784,447     $ 1,655,125     $ 1,607,330     $ 1,574,880      
  Liabilities and Stockholders' Equity                        
Liabilities                        
          Deposits                        
  Noninterest-bearing   $ 330,845     $ 336,027     $ 261,786     $ 265,156     $ 261,719      
  Interest-bearing                        
       NOW accounts     534,792       504,846       463,734       423,655       430,646      
       Savings     392,059       374,871       341,256       322,973       310,667      
       Time     261,177       261,631       281,931       276,563       274,996      
  Total deposits     1,518,873       1,477,375       1,348,707       1,288,347       1,278,028      
                           
          Federal Funds Purchased and securities sold under agreements to repurchase     29,859       30,949       30,585       48,073       30,056      
          Federal Home Loan Bank (FHLB) advances     17,724       19,087       24,788       24,806       24,669      
          Dividend payable     1,882       1,768       1,768       1,768       1,657      
          Accrued expenses and other liabilities     14,841       14,971       12,820       14,078       13,062      
  Total liabilities     1,583,179       1,544,150       1,418,668       1,377,072       1,347,472      
                           
Commitments and Contingencies                        
                           
Stockholders' Equity                        
Common stock - No par value 20,000,000 shares authorized; issued and outstanding 12,230,000 shares 9/30/20 and 12/31/19     81,577       82,134       81,844       81,535       81,264      
Treasury stock - 1,071,299 shares 9/30/20, 1,093,065 shares 12/31/19   (12,397 )     (12,668 )     (12,636 )     (12,456 )     (12,453 )    
Retained earnings     168,381       165,476       162,416       160,081       157,126      
Accumulated other comprehensive income     5,860       5,355       4,833       1,098       1,471      
                   Total stockholders' equity     243,421       240,297       236,457       230,258       227,408      
                           
Total Liabilities and Stockholders' Equity   $ 1,826,600     $ 1,784,447     $ 1,655,125     $ 1,607,330     $ 1,574,880      
                           


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES  
SELECT FINANCIAL DATA  
                                             
          For the Three Months Ended   For the Nine Months Ended  
Selected financial data   September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019     September 30, 2020     September 30, 2019  
Return on average assets     0.98 %     1.10 %     1.02 %     1.18 %     1.10 %     1.03 %     1.24 %  
Return on average equity     7.28 %     8.07 %     7.06 %     8.26 %     7.40 %     7.45 %     8.26 %  
Yield on earning assets     4.04 %     4.25 %     4.66 %     4.63 %     4.74 %     4.30 %     4.93 %  
Cost of interest bearing liabilities     0.74 %     0.91 %     1.22 %     1.40 %     1.55 %     0.95 %     1.42 %  
Net interest spread     3.30 %     3.34 %     3.44 %     3.23 %     3.19 %     3.35 %     3.51 %  
Net interest margin     3.51 %     3.59 %     3.75 %     3.60 %     3.60 %     3.61 %     3.88 %  
Efficiency     62.11 %     57.91 %     63.09 %     63.67 %     65.86 %     61.05 %     64.67 %  
Dividend payout ratio     42.66 %     36.80 %     43.07 %     43.34 %     38.67 %     40.68 %     34.26 %  
Tangible book value per share (1)   $ 16.78     $ 16.33     $ 16.26     $ 16.01     $ 15.68                
Tier 1 capital to average assets     10.65 %     10.70 %     11.56 %     11.52 %     11.60 %              
Average Shares Outstanding     11,142,797       11,129,341       11,134,870       11,137,004       11,121,426       11,135,695       11,105,993    
                               
Loans   September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019              
(Dollar amounts in thousands)                                            
Commercial real estate   $ 595,146     $ 589,382     $ 570,217     $ 551,309     $ 502,137                
Agricultural real estate     192,883       194,606       194,383       199,105       200,791                
Consumer real estate     175,963       174,069       174,731       165,349       159,074                
Commercial and industrial     238,175       223,842       143,261       135,631       130,150                
Agricultural     103,330       107,458       109,584       111,820       110,270                
Consumer     53,320       50,108       49,022       49,237       49,552                
Other     9,030       9,714       8,336       8,314       8,167                
  Less: Net deferred loan fees and costs     (3,985 )     (4,456 )     (1,893 )     (1,766 )     (1,445 )              
Total loans,net   $ 1,363,862     $ 1,344,723     $ 1,247,641     $ 1,218,999     $ 1,158,696                
                                             
                               
Asset quality data   September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019              
(Dollar amounts in thousands)                                            
Nonaccrual loans   $ 7,870     $ 8,473     $ 3,344     $ 3,400     $ 3,275                
Troubled debt restructuring   $ 7,028     $ 7,034     $ 1,934     $ 956     $ 1,051                
90 day past due and accruing   $ -     $ -     $ -     $ -     $ -                
Nonperforming loans   $ 7,870     $ 8,473     $ 3,344     $ 3,400     $ 3,275                
Other real estate owned   $ 206     $ 135     $ 185     $ 214     $ 351                
Nonperforming assets   $ 8,076     $ 8,608     $ 3,529     $ 3,614     $ 3,626                
                                             
(Dollar amounts in thousands)                                            
Allowance for loan and lease losses   $ 11,883     $ 10,538     $ 8,533     $ 7,228     $ 6,759                
Allowance for loan and lease losses/total loans     0.87 %     0.78 %     0.68 %     0.59 %     0.58 %              
Net charge-offs:                                            
   Quarter-to-date   $ 37     $ 169     $ 125     $ 295     $ 171                
   Year-to-date   $ 331     $ 294     $ 125     $ 685     $ 426                
Net charge-offs to average loans                                            
   Quarter-to-date     0.00 %     0.01 %     0.01 %     0.03 %     0.02 %              
   Year-to-date     0.03 %     0.02 %     0.01 %     0.06 %     0.04 %              
Nonperforming loans/total loans     0.58 %     0.63 %     0.27 %     0.28 %     0.28 %              
Allowance for loan and lease losses/nonperforming loans     151.01 %     117.24 %     256.66 %     187.17 %     173.25 %              
                                             
(1) Tangible Equity = Stockholder Equity less goodwill and other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities)              
                                             


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, 2020   September 30, 2019  
Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized
Yield/Rate
  Average Balance   Interest/Dividends   Annualized
Yield/Rate
 
Loans   $ 1,359,156   $ 16,181   4.76 %   $ 1,126,173   $ 15,202   5.40 %  
Taxable Investment Securities     245,274     968   1.58 %     167,654     1,082   2.58 %  
Tax-exempt Investment Securities     26,032     108   2.10 %     32,530     149   2.32 %  
Fed Funds Sold & Other     83,760     36   0.17 %     112,961     579   2.05 %  
Total Interest Earning Assets     1,714,222   $ 17,293   4.04 %     1,439,318   $ 17,012   4.74 %  
                           
Nonearning Assets     93,778             116,191          
                           
Total Assets   $ 1,808,000           $ 1,555,509          
                           
Interest Bearing Liabilities:                          
Savings Deposits   $ 915,367   $ 798   0.35 %     734,075     2,044   1.11 %  
Other Time Deposits     258,809     1,066   1.65 %     276,793     1,610   2.33 %  
Other Borrowed Money     18,920     231   4.88 %     24,582     257   4.18 %  
Fed Funds Purchased & Securities                          
  Sold under Agreement to Repurch.     30,100     174   2.31 %     28,947     201   2.78 %  
Total Interest Bearing Liabilities   $ 1,223,196   $ 2,269   0.74 %   $ 1,064,397   $ 4,112   1.55 %  
                           
Noninterest bearing Liabilities     342,388             264,183          
                           
Stockholders Equity   $ 242,416           $ 226,929          
                           
Net Interest Income and interest rate spread       $ 15,024   3.30 %       $ 12,900   3.19 %  
                           
Net Interest Margin           3.51 %           3.60 %  
                           
    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 Nine Months Ended   For the Nine Months Ended  
    September 30, 2020   September 30, 2019  
Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate  
Loans   $ 1,305,998   $ 48,256   4.93 %   $ 1,113,892   $ 46,605   5.58 %  
Taxable Investment Securities     208,499     3,220   2.06 %     163,106     2,857   2.34 %  
Tax-exempt Investment Securities     25,564     345   2.28 %     33,554     489   2.46 %  
Fed Funds Sold & Other     75,917     209   0.37 %     77,296     1,206   2.08 %  
Total Interest Earning Assets     1,615,978   $ 52,030   4.30 %     1,387,848   $ 51,157   4.93 %  
                           
Nonearning Assets     109,564             78,442          
                           
Total Assets   $ 1,725,542           $ 1,466,290          
                           
Interest Bearing Liabilities:                          
Savings Deposits   $ 849,748   $ 3,237   0.51 %     708,280     5,577   1.05 %  
Other Time Deposits     268,762     3,782   1.88 %     261,592     4,029   2.05 %  
Other Borrowed Money     22,401     754   4.49 %     25,811     813   4.20 %  
Fed Funds Purchased & Securities                          
  Sold under Agreement to Repurch.     33,118     605   2.44 %     29,657     527   2.37 %  
Total Interest Bearing Liabilities   $ 1,174,029   $ 8,378   0.95 %   $ 1,025,340     10,946   1.42 %  
                           
Noninterest bearing Liabilities     313,224             220,034          
                           
Stockholders Equity   $ 238,289           $ 220,916          
                           
Net Interest Income and interest rate spread       $ 43,652   3.35 %       $ 40,211   3.51 %  
                           
Net Interest Margin           3.61 %           3.88 %  
                           
    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      
                           

 

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

Farmers & Merchants Bancorp (Ohio) Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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Farmers & Merchants Bancorp, Inc. Reports 2020 Third-Quarter and Year-to-Date Financial Results Positive Momentum Continues as Third Quarter 2020 Earnings Per Diluted Share Increase 5.3% Despite Higher Provision for Loan Losses due to the COVID-19 CrisisARCHBOLD, Ohio, Oct. 21, 2020 (GLOBE NEWSWIRE) - Farmers & Merchants Bancorp, Inc. …

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