Farmers & Merchants Bancorp Reports Record First Quarter 2021 Earnings

LODI, Calif., April 29, 2021 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) today announced record net income of $16.7 million for first quarter 2021.

For the quarter ending March 31, 2021, Farmers & Merchants Bancorp reported net income of $16.7 million, an increase of 18.4% from net income of $14.1 million in the first quarter of 2020. Earnings per share of common stock were $21.17, up 18.9% from $17.80 per share in the first quarter of 2020. Additionally, the Company’s net income over the trailing twelve months was $61.3 million ($77.40 per share as reported), as compared to $56.6 million for the same period in the prior year. Return on average assets for the first quarter of 2021 was 1.45%, and return on average equity was 15.56%.

Net interest income for the quarter ended March 31, 2021 was $40.1 million, up 13.2% from $35.4 million in the same quarter in 2020. The Company’s net interest margin on a tax equivalent basis was 3.74% in the first quarter of 2021, compared to 4.19% in the first quarter of 2020. The net interest margin in the first quarter of 2021 was impacted by the overall decline in market interest rates, as well as the inclusion of over $220 million in Small Business Administration Paycheck Protection Program loans originated since the second quarter of 2020 which are accruing interest income at only 1% per annum (plus accreted loan fees). For the first quarter of 2021 the Company’s efficiency ratio was 52.91%.

Total assets at quarter-end were $4.7 billion, up 27.3% from the first quarter of 2020. Total loans and leases outstanding reached $3.1 billion, an increase of 16.5% from March 31, 2020. Excluding SBA PPP loans, total loans grew $14 million during first quarter 2021 and $219 million since the end of first quarter 2020. Importantly, the Company has been successful in fully replacing forgiven SBA PPP loans with new, higher yielding loans. Total deposits of $4.2 billion increased 30.3% from March 31, 2020. At quarter-end, total checking deposits represented 59.2% of total deposits compared to 52.4% at March 31, 2020.

At March 31, 2021, the Company’s total capital ratio was 12.89%, and the tier 1 leverage capital ratio was 9.19%, 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 a 46 basis point improvement to the March 31, 2021 tier 1 leverage capital ratio, increasing the ratio to 9.65%.