Farmers & Merchants Bancorp Reports Record Third Quarter and Year-to-Date 2020 Earnings - Seite 2

Nachrichtenquelle: globenewswire
26.10.2020, 23:02  |  142   |   |   

At September 30, 2020, the Company’s total capital ratio was 13.12%, and the tier 1 leverage capital ratio was 9.50%, resulting in the highest possible regulatory classification of “well capitalized.” Had the Company not participated in the PPP program, the net result would have been an 86 basis point improvement to the September 30, 2020 tier 1 leverage capital ratio, increasing the ratio to 10.36%.

For the nine-month period ending September 30, 2020, net income was $43.2 million, up 4.47% from the prior year, and earnings per weighted average share of common stock outstanding grew to $54.49, compared to $52.64 per share in 2019. The Company’s net interest margin on a tax equivalent basis was 3.90% in the first nine months of 2020 and the efficiency ratio was 50.5%. For the first nine months, return on average assets was 1.44%, and return on average equity was 14.54%.

Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are pleased that the Company’s earnings growth has continued through the first nine months of 2020 despite significant headwinds from both a continuing low interest rate environment and the COVID-19 pandemic. Net income was up 4.47% over the same period in the prior year. We are working hard to protect our margins in what is a very difficult pricing environment. Our strong operating metrics and credit quality, when combined with adequate levels of loan loss reserves, allowed us to report stronger financial results in the third quarter and first nine months of 2020 compared to many banks that needed to record significant loan loss provisions to reserve for the risks of COVID-19. However, we realize that the real challenges may still lie ahead as our industry and the country deal with the health and economic effects of the COVID-19 pandemic.

At this current moment, the COVID-19 restrictions on business and other activities put into effect by California Governor Gavin Newsom are continuing to adversely impact economic recovery efforts. Given the uncertainty as to how long these restrictions will remain in place, and how severe the ultimate economic impact will be, we continue to prepare for what could be a significant recession. Fortunately, we remain confident that our long-term strategy of focusing a large segment of our business on agribusiness and the production, processing and distribution of food supplies will somewhat buffer the Company from changes in the economic environment in California, the United States and globally. Demand for high quality, protein rich food will continue to grow in the future and California’s great Central Valley is a leading agricultural supplier of many important products.

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Farmers & Merchants Bancorp Reports Record Third Quarter and Year-to-Date 2020 Earnings - Seite 2 LODI, Calif., Oct. 26, 2020 (GLOBE NEWSWIRE) - Farmers & Merchants Bancorp (OTCQX: FMCB) today announced record third quarter and year-to-date net income. For the quarter ending September 30, 2020, Farmers & Merchants Bancorp reported net income …

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