United States

Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results

ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 third quarter and year-to-date ended September 30, 2024.

2024 Third Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

  • 86 consecutive quarters of profitability
  • Net income increased 36.4% to $6.5 million, or $0.48 per basic and diluted share, from $4.8 million, or $0.35 per basic and diluted share, and net income expanded 14.7% from the 2024 second quarter
  • Net interest margin increased 12 basis points to 2.71%
  • Efficiency ratio improved to 67.98%, compared to 73.07% for the same period a year ago, and 69.03% for the 2024 second quarter
  • Total net loans remain stable at $2.54 billion at September 30, 2024
  • Total assets increased 4.8% to a record $3.39 billion
  • Deposits increased 4.3% to a record $2.68 billion
  • Stockholders’ equity increased 10.6% to a record $335.4 million
  • Asset quality remains at historically strong levels with nonperforming loans of only $2.9 million at September 30, 2024, compared to $22.4 million at September 30, 2023
  • Allowance for credit losses was 879.37% of nonperforming loans
  • F&M ended the quarter with excellent liquidity levels, and over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%
  • According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets

Lars B. Eller, President and Chief Executive Officer, stated, “F&M produced excellent earnings growth on a year-over-year and sequential basis, driven by higher net interest income, historically strong asset quality, and prudent expense management. Most importantly, our third quarter results reflect the talent of our associates, as we continue to work hard to drive operating improvements at F&M, serve our local Ohio, Indiana, and Michigan communities, and position F&M for long-term success. In addition, I am pleased to report that F&M was the third largest bank out of 58 financial institutions within the markets we compete, according to the FDIC, reflecting the leading value we provide to our local communities. In fact, F&M is the number one bank, based on deposits, in almost half of the communities in which we operate.”  

Income Statement
Net income for the 2024 third quarter ended September 30, 2024, was $6.5 million, compared to $4.8 million for the same period last year. Net income per basic and diluted share for the 2024 third quarter was $0.48, compared to $0.35 for the same period last year. Net income for the 2024 nine months ended September 30, 2024, was $17.6 million, compared to $17.2 million for the same period last year. Net income per basic and diluted share for the 2024 nine months was $1.28, compared to $1.26 for the same period last year.

Mr. Eller continued, “Our 2024 third quarter and year-to-date performance demonstrate the success of the near-term strategies we are pursuing to navigate a complex operating environment and improve earnings. Most importantly, while the demand for loans is high across our markets, our approach to risk and pricing remains conservative. This near-term strategy has contributed to excellent asset quality. In addition, we continue to focus on strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we have added over 5,600 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended the quarter with a loan-to-deposit ratio of 93.6%, compared to 97.2% at September 30, 2023, and 96.0% at June 30, 2024. Our third quarter of 2024 loan-to-deposit ratio was the lowest quarterly value in two years. The final near-term strategy we are pursuing is focused on controlling expenses, and I am encouraged by the continued year-over-year and sequential improvement in our efficiency ratio. This reflects the opportunities we are pursuing to manage operating costs and expand productivity.”

Deposits
At September 30, 2024, total deposits were $2.68 billion, an increase of 4.3% from September 30, 2023. The Company’s cost of interest-bearing liabilities was 3.2% for the quarter ended September 30, 2024, compared to 2.82% for the quarter ended September 30, 2023, and 3.02% for the 2023 fourth quarter ended December 31, 2023.

Loan Portfolio and Asset Quality
“F&M’s teams continue to do an excellent job managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the quarter ended December 31, 2023, our yield on earning assets has increased by 34 basis points, compared to a 19 basis point increase in our cost of interest bearing liabilities – representing the third consecutive quarter our yield on earning assets has outpaced our cost of interest bearing liabilities. We expect this trend will continue as more of our loan portfolio reprices in 2024,” continued Mr. Eller.

Total loans, net at September 30, 2024, increased 0.3%, or by $8.7 million to $2.54 billion, compared to $2.53 billion at September 30, 2023. The year-over-year growth was driven by higher consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower commercial real estate, agricultural real estate, and consumer loans.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $2.9 million, or 0.11% of total loans at September 30, 2024, compared to $22.4 million, or 0.89% of total loans at September 30, 2023, and $22.4 million, or 0.87% at December 31, 2023.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at September 30, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.3% of the Company’s total loan portfolio at September 30, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $880,000.

F&M’s CRE portfolio included the following categories at September 30, 2024:

CRE Category   Dollar
Balance
  Percent of CRE Portfolio(*)   Percent of Total Loan Portfolio(*)
             
Industrial   $ 274,953   21.1 %   10.8 %
Retail   $ 237,622   18.2 %   9.4 %
Multi-family   $ 223,926   17.2 %   8.8 %
Hotels   $ 141,642   10.9 %   5.6 %
Office   $ 134,973   10.4 %   5.3 %
Gas Stations   $ 62,028   4.8 %   2.5 %
Food Service   $ 46,526   3.6 %   1.8 %
Development   $ 30,999   2.4 %   1.2 %
Senior Living   $ 29,866   2.3 %   1.2 %
Auto Dealers   $ 25,068   1.9 %   1.0 %
Other   $ 93,557   7.2 %   3.7 %
Total CRE   $ 1,301,160   100.0 %   51.3 %

         * Numbers have been rounded

At September 30, 2024, the Company’s allowance for credit losses to nonperforming loans was 879.37%, compared to 112.61% at September 30, 2023, and 111.95% at December 31, 2023. The allowance to total loans was 1.01% at September 30, 2024, compared to 1.00% at September 30, 2023. Including accretable yield adjustments, associated with the Company’s recent acquisitions, F&M’s allowance for credit losses to total loans was 1.10% at September 30, 2024, compared to 1.18% at September 30, 2023.

Mr. Eller concluded, “With two months remaining in 2024, I am encouraged by F&M’s strong financial and operating performance to date. F&M ended the quarter with record stockholders’ equity, historically strong asset quality, record deposits, and excellent liquidity levels with over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%. We remain focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. As a result, F&M’s financial and operating performance continues to strengthen and I believe the Company is well positioned to create lasting value for our communities, customers, team members, and shareholders.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 10.6% to $335.4 million, or $24.48 per share at September 30, 2024, from $303.2 million, or $22.19 per share at September 30, 2023. The Company’s Tier 1 leverage ratio of 8.04%, remained stable compared to September 30, 2023.

Tangible stockholders’ equity increased to $242.8 million at September 30, 2024, compared to $208.8 million at September 30, 2023. On a per share basis, tangible stockholders’ equity at September 30, 2024, was $17.72 per share, compared to $15.28 per share at September 30, 2023.

For the nine months ended September 30, 2024, the Company has declared cash dividends of $0.66125 per share, which is a 5.0% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the nine months ended September 30, 2024, the dividend payout ratio was 50.99% compared to 49.50% for the same period last year.

About Farmers & Merchants State Bank:
Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

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. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

 
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, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
Interest Income                              
Loans, including fees     $ 36,873     $ 36,593     $ 35,200     $ 34,493   $ 33,783     $ 108,666     $ 94,851  
Debt securities:                              
U.S. Treasury and government agencies       1,467       1,148       1,045       987     1,005       3,660       3,103  
Municipalities       387       389       394       397     392       1,170       1,201  
Dividends       334       327       333       365     246       994       517  
Federal funds sold       7       7       7       8     6       21       36  
Other       2,833       2,702       1,675       2,020     927       7,210       1,830  
Total interest income       41,901       41,166       38,654       38,270     36,359       121,721       101,538  
Interest Expense                              
Deposits       16,947       16,488       15,279       15,015     13,323       48,714       31,908  
Federal funds purchased and securities sold under agreements to repurchase       277       276       284       293     349       837       1,181  
Borrowed funds       2,804       2,742       2,689       2,742     2,741       8,235       6,134  
Subordinated notes       284       285       284       285     284       853       853  
Total interest expense       20,312       19,791       18,536       18,335     16,697       58,639       40,076  
Net Interest Income – Before Provision for Credit Losses     21,589       21,375       20,118       19,935     19,662       63,082       61,462  
Provision for Credit Losses – Loans       282       605       (289 )     278     460       598       1,420  
Provision for Credit Losses – Off Balance Sheet Credit Exposures   (267 )     (18 )     (266 )     189     (76 )     (551 )     (143 )
Net Interest Income After Provision for Credit Losses       21,574       20,788       20,673       19,468     19,278       63,035       60,185  
Noninterest Income                              
Customer service fees       300       189       598       415     248       1,087       917  
Other service charges and fees       1,155       1,085       1,057       1,090     1,133       3,297       3,253  
Interchange income       1,315       1,330       1,429       1,310     1,266       4,074       4,008  
Loan servicing income       710       513       539       666     502       1,762       3,739  
Net gain on sale of loans       215       314       107       230     294       636       469  
Increase in cash surrender value of bank owned life insurance       265       236       216       216     221       717       618  
Net loss on sale of available-for-sale securities                                         (891 )
Total noninterest income       3,960       3,667       3,946       3,927     3,664       11,573       12,113  
Noninterest Expense                              
Salaries and wages       7,713       7,589       7,846       6,981     6,777       23,148       19,934  
Employee benefits       2,112       2,112       2,171       1,218     2,066       6,395       6,302  
Net occupancy expense       1,054       999       1,027       1,187     950       3,080       2,646  
Furniture and equipment       1,472       1,407       1,353       1,370     1,189       4,232       3,652  
Data processing       339       448       500       785     840       1,287       2,362  
Franchise taxes       410       265       555       308     434       1,230       1,179  
ATM expense       472       397       473       665     640       1,342       1,946  
Advertising       597       519       530       397     865       1,646       2,209  
Net (gain) loss on sale of other assets owned             (49 )           86     49       (49 )     49  
FDIC assessment       516       507       580       594     586       1,603       1,388  
Servicing rights amortization – net       219       187       168       182     106       574       429  
Loan expense       244       251       229       246     241       724       809  
Consulting fees       251       198       186       192     179       635       640  
Professional fees       453       527       445       331     358       1,425       1,099  
Intangible asset amortization       445       444       445       446     445       1,334       1,334  
Other general and administrative       1,128       1,495       1,333       1,532     1,319       3,956       4,841  
Total noninterest expense       17,425       17,296       17,841       16,520     17,044       52,562       50,819  
Income Before Income Taxes       8,109       7,159       6,778       6,875     5,898       22,046       21,479  
Income Taxes       1,593       1,477       1,419       1,332     1,121       4,489       4,235  
Net Income       6,516       5,682       5,359       5,543     4,777       17,557       17,244  
Other Comprehensive Income (Loss) (Net of Tax):                              
Net unrealized gain (loss) on available-for-sale securities     11,664       2,531       (1,995 )     13,261     (4,514 )     12,200       (2,480 )
Reclassification adjustment for realized loss on sale of available-for-sale securities                                         891  
Net unrealized gain (loss) on available-for-sale securities     11,664       2,531       (1,995 )     13,261     (4,514 )     12,200       (1,589 )
Tax expense (benefit)       2,449       531       (418 )     2,784     (947 )     2,562       (333 )
Other comprehensive income (loss)       9,215       2,000       (1,577 )     10,477     (3,567 )     9,638       (1,256 )
Comprehensive Income     $ 15,731     $ 7,682     $ 3,782     $ 16,020   $ 1,210     $ 27,195     $ 15,988  
Basic Earnings Per Share     $ 0.48     $ 0.42     $ 0.39     $ 0.41   $ 0.35     $ 1.28     $ 1.26  
Diluted Earnings Per Share     $ 0.48     $ 0.42     $ 0.39     $ 0.41   $ 0.35     $ 1.28     $ 1.26  
Dividends Declared     $ 0.22125     $ 0.22     $ 0.22     $ 0.22   $ 0.21     $ 0.66125     $ 0.63  
                               

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except per share data)
 
      September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
      (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)
Assets                    
Cash and due from banks   $ 244,572     $ 191,785     $ 186,541     $ 140,917     $ 151,711  
Federal funds sold     932       1,283       1,241       1,284       1,471  
  Total cash and cash equivalents     245,504       193,068       187,782       142,201       153,182  
                       
Interest-bearing time deposits     2,727       3,221       2,735       2,740       2,989  
Securities – available-for-sale     404,881       365,209       347,516       358,478       348,255  
Other securities, at cost     15,028       14,721       14,744       17,138       16,995  
Loans held for sale     1,706       1,628       2,410       1,576       1,039  
Loans, net of allowance for credit losses of $25,484 9/30/24 and $25,024 12/31/23     2,512,852       2,534,468       2,516,687       2,556,167       2,504,329  
Premises and equipment     33,779       34,507       35,007       35,790       31,723  
Construction in progress     35       38       9       8       3,044  
Goodwill     86,358       86,358       86,358       86,358       86,358  
Loan servicing rights     5,644       5,504       5,555       5,648       5,687  
Bank owned life insurance     34,624       34,359       34,123       33,907       33,691  
Other assets     46,047       49,552       54,628       43,218       47,388  
                       
Total Assets   $ 3,389,185     $ 3,322,633     $ 3,287,554     $ 3,283,229     $ 3,234,680  
                       
  Liabilities and Stockholders’ Equity                    
Liabilities                    
Deposits                    
  Noninterest-bearing   $ 481,444     $ 479,069     $ 510,731     $ 528,465     $ 505,358  
  Interest-bearing                    
  NOW accounts     865,617       821,145       829,236       816,790       778,133  
  Savings     661,565       673,284       635,430       599,191       591,344  
  Time     676,187       667,592       645,985       663,017       700,445  
  Total deposits     2,684,813       2,641,090       2,621,382       2,607,463       2,575,280  
                       
Federal funds purchased and securities sold under agreements to repurchase     27,292       27,218       28,218       28,218       30,527  
Federal Home Loan Bank (FHLB) advances     263,081       266,102       256,628       265,750       266,286  
Subordinated notes, net of unamortized issuance costs     34,789       34,759       34,731       34,702       34,673  
Dividend payable     2,998       2,975       2,975       2,974       2,838  
Accrued expenses and other liabilities     40,832       27,825       25,930       27,579       21,892  
  Total liabilities     3,053,805       2,999,969       2,969,864       2,966,686       2,931,496  
                       
Commitments and Contingencies                    
                       
Stockholders’ Equity                    
Common stock – No par value 20,000,000 shares authorized; issued                    
14,564,425 shares 9/30/24 and 12/31/23; outstanding 13,702,593     135,193       135,829       135,482       135,515       135,171  
shares 9/30/24 and 13,664,641 shares 12/31/23                    
Treasury stock – 861,832 shares 9/30/24 and 899,784 shares 12/31/23     (10,904 )     (11,006 )     (10,851 )     (11,040 )     (11,008 )
Retained earnings     230,465       226,430       223,648       221,080       218,510  
Accumulated other comprehensive loss     (19,374 )     (28,589 )     (30,589 )     (29,012 )     (39,489 )
  Total stockholders’ equity     335,380       322,664       317,690       316,543       303,184  
                       
Total Liabilities and Stockholders’ Equity   $ 3,389,185     $ 3,322,633     $ 3,287,554     $ 3,283,229     $ 3,234,680  
                       

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
                                           
    For the Three Months Ended   For the Nine Months Ended
Selected financial data   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
Return on average assets     0.78 %     0.69 %     0.66 %     0.67 %     0.59 %     0.71 %     0.73 %
Return on average equity     7.93 %     7.13 %     6.76 %     7.27 %     6.26 %     7.28 %     7.52 %
Yield on earning assets     5.27 %     5.22 %     5.00 %     4.93 %     4.79 %     5.17 %     4.57 %
Cost of interest bearing liabilities     3.21 %     3.18 %     3.06 %     3.02 %     2.82 %     3.16 %     2.35 %
Net interest spread     2.06 %     2.04 %     1.94 %     1.91 %     1.97 %     2.01 %     2.22 %
Net interest margin     2.71 %     2.71 %     2.60 %     2.57 %     2.59 %     2.68 %     2.77 %
Efficiency     67.98 %     69.03 %     74.08 %     69.23 %     73.07 %     70.36 %     68.24 %
Dividend payout ratio     45.99 %     52.35 %     55.52 %     54.23 %     60.07 %     50.99 %     49.50 %
Tangible book value per share   $ 17.72     $ 16.79     $ 16.39     $ 16.29     $ 15.28              
Tier 1 leverage ratio     8.04 %     8.02 %     8.40 %     8.20 %     8.02 %            
Average shares outstanding     13,687,119       13,681,501       13,671,166       13,665,773       13,650,823       13,679,955       13,633,101  
                                           
Loans   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023            
(Dollar amounts in thousands)                                          
Commercial real estate   $ 1,301,160     $ 1,303,598     $ 1,304,400     $ 1,337,766     $ 1,304,118              
Agricultural real estate     220,328       222,558       227,455       223,791       225,672              
Consumer real estate     524,055       525,902       525,178       521,895       512,973              
Commercial and industrial     260,732       268,426       256,051       254,935       250,891              
Agricultural     137,252       142,909       127,670       132,560       123,735              
Consumer     67,394       70,918       74,819       79,591       83,024              
Other     25,916       26,449       26,776       30,136       31,083              
Less: Net deferred loan fees, costs and other (1)     1,499       (1,022 )     (982 )     517       (1,890 )            
Total loans, net   $ 2,538,336     $ 2,559,738     $ 2,541,367     $ 2,581,191     $ 2,529,606              
                                           
                                           
Asset quality data   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023            
(Dollar amounts in thousands)                                          
Nonaccrual loans   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
90 day past due and accruing   $     $     $     $     $              
Nonperforming loans   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
Other real estate owned   $     $     $     $     $              
Nonperforming assets   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
                                           
                                           
Allowance for credit losses   $ 25,484     $ 25,270     $ 24,680     $ 25,024     $ 25,277              
Allowance for unfunded     1,661       1,928       1,946       2,212       2,023              
Total Allowance for Credit Losses   $ 27,145     $ 27,198     $ 26,626     $ 27,236     $ 27,300              
Allowance for credit losses/total loans     1.01 %     0.99 %     0.97 %     0.97 %     1.00 %            
Adjusted credit losses with accretable yield/total loans     1.10 %     1.10 %     1.11 %     1.13 %     1.18 %            
Net charge-offs:                                          
Quarter-to-date   $ 68     $ 15     $ 55     $ 531     $ 93              
Year-to-date   $ 138     $ 70     $ 55     $ 551     $ 20              
Net charge-offs to average loans                                          
Quarter-to-date     0.00 %     0.00 %     0.00 %     0.02 %     0.00 %            
Year-to-date     0.01 %     0.00 %     0.00 %     0.02 %     0.00 %            
Nonperforming loans/total loans     0.11 %     0.10 %     0.76 %     0.87 %     0.89 %            
Allowance for credit losses/nonperforming loans     879.37 %     1016.08 %     127.28 %     111.95 %     112.61 %            
NPA coverage ratio     879.37 %     1016.08 %     127.28 %     111.95 %     112.61 %            
                                           
(1) Includes carrying value adjustments of $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans            

 
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, 2024   September 30, 2023
Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate
Loans   $ 2,551,899   $ 36,873   5.78 %   $ 2,536,885   $ 33,783   5.33 %
Taxable investment securities     415,943     2,107   2.03 %     393,910     1,559   1.58 %
Tax-exempt investment securities     19,661     81   2.09 %     23,986     84   1.77 %
Fed funds sold & other     197,258     2,840   5.76 %     85,515     933   4.36 %
Total Interest Earning Assets     3,184,761   $ 41,901   5.27 %     3,040,296   $ 36,359   4.79 %
                         
Nonearning Assets     168,055             180,193        
                         
Total Assets   $ 3,352,816           $ 3,220,489        
                         
Interest Bearing Liabilities:                        
Savings deposits   $ 1,538,387   $ 10,691   2.78 %   $ 1,367,168   $ 7,673   2.24 %
Other time deposits     667,224     6,256   3.75 %     667,880     5,650   3.38 %
Other borrowed money     264,539     2,804   4.24 %     266,467     2,741   4.11 %
Fed funds purchased & securities sold under agreement to repurchase     27,481     277   4.03 %     34,128     349   4.09 %
Subordinated notes     34,769     284   3.27 %     34,654     284   3.28 %
Total Interest Bearing Liabilities   $ 2,532,400   $ 20,312   3.21 %   $ 2,370,297   $ 16,697   2.82 %
                         
Noninterest Bearing Liabilities     491,851             544,801        
                         
Stockholders’ Equity   $ 328,565           $ 305,391        
                         
Net Interest Income and Interest Rate Spread       $ 21,589   2.06 %       $ 19,662   1.97 %
                         
Net Interest Margin           2.71 %           2.59 %
                         
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, 2024   September 30, 2023
Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate
Loans   $ 2,561,774   $ 108,666   5.66 %   $ 2,470,770   $ 94,851   5.12 %
Taxable investment securities     397,466     5,575   1.87 %     396,917     4,544   1.53 %
Tax-exempt investment securities     20,684     249   2.03 %     24,865     277   1.88 %
Fed funds sold & other     165,227     7,231   5.84 %     67,869     1,866   3.67 %
Total Interest Earning Assets     3,145,151   $ 121,721   5.17 %     2,960,421   $ 101,538   4.57 %
                         
Nonearning Assets     161,113             176,568        
                         
Total Assets   $ 3,306,264           $ 3,136,989        
                         
Interest Bearing Liabilities:                        
Savings deposits   $ 1,487,809   $ 30,291   2.71 %   $ 1,373,110   $ 18,854   1.83 %
Other time deposits     662,129     18,423   3.71 %     620,071     13,054   2.81 %
Other borrowed money     264,310     8,235   4.15 %     204,927     6,134   3.99 %
Fed funds purchased & securities sold under agreement to repurchase     27,887     837   4.00 %     37,649     1,181   4.18 %
Subordinated notes     34,741     853   3.27 %     34,625     853   3.28 %
Total Interest Bearing Liabilities   $ 2,476,876   $ 58,639   3.16 %   $ 2,270,382   $ 40,076   2.35 %
                         
Noninterest Bearing Liabilities     507,843             561,001        
                         
Stockholders’ Equity   $ 321,545           $ 305,606        
                         
Net Interest Income and Interest Rate Spread       $ 63,082   2.01 %       $ 61,462   2.22 %
                         
Net Interest Margin           2.68 %           2.77 %
                         
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    
                         

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 September 30, 2024   For the Three Months Ended September 30, 2023  
  As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference  
  $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield  
Interest Earning Assets:                                    
Loans $ 36,873 5.78 %   $ 36,149 5.67 %   $ 724   0.11 %   $ 33,783 5.33 %   $ 32,631 5.15 %   $ 1,152   0.18 %  
Taxable investment securities   2,107 2.03 %     2,107 2.03 %       0.00 %     1,559 1.58 %     1,559 1.58 %       0.00 %  
Tax-exempt investment securities   81 2.09 %     81 2.09 %       0.00 %     84 1.77 %     84 1.77 %       0.00 %  
Fed funds sold & other   2,840 5.76 %     2,840 5.76 %       0.00 %     933 4.36 %     933 4.36 %       0.00 %  
Total Interest Earning Assets   41,901 5.27 %     41,177 5.17 %     724   0.10 %     36,359 4.79 %     35,207 4.64 %     1,152   0.15 %  
                                     
Interest Bearing Liabilities:                                    
Savings deposits $ 10,691 2.78 %   $ 10,691 2.78 %   $   0.00 %   $ 7,673 2.24 %   $ 7,673 2.24 %   $   0.00 %  
Other time deposits   6,256 3.75 %     6,256 3.75 %       0.00 %     5,650 3.38 %     5,500 3.29 %     150   0.09 %  
Other borrowed money   2,804 4.24 %     2,800 4.23 %     4   0.01 %     2,741 4.11 %     2,759 4.14 %     (18 ) -0.03 %  
Federal funds purchased and securities sold under agreement to repurchase   277 4.03 %     277 4.03 %       0.00 %     349 4.09 %     349 4.09 %       0.00 %  
Subordinated notes   284 3.27 %     284 3.27 %       0.00 %     284 3.28 %     284 3.28 %       0.00 %  
Total Interest Bearing Liabilities   20,312 3.21 %     20,308 3.21 %     4   0.00 %     16,697 2.82 %     16,565 2.80 %     132   0.02 %  
                                     
Interest/Dividend income/yield   41,901 5.27 %     41,177 5.17 %     724   0.10 %     36,359 4.79 %     35,207 4.64 %     1,152   0.15 %  
Interest Expense / yield   20,312 3.21 %     20,308 3.21 %     4   0.00 %     16,697 2.82 %     16,565 2.80 %     132   0.02 %  
Net Interest Spread   21,589 2.06 %     20,869 1.96 %     720   0.10 %     19,662 1.97 %     18,642 1.84 %     1,020   0.13 %  
Net Interest Margin   2.71 %     2.62 %     0.09 %     2.59 %     2.46 %     0.13 %  
                                     
                                     
  For the Nine Months Ended September 30, 2024   For the Nine Months Ended September 30, 2023  
  As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference  
  $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield  
Interest Earning Assets:                                    
Loans $ 108,666 5.66 %   $ 106,588 5.55 %   $ 2,078   0.11 %   $ 94,851 5.12 %   $ 92,364 4.99 %   $ 2,487   0.13 %  
Taxable investment securities   5,575 1.87 %     5,575 1.87 %       0.00 %     4,544 1.53 %     4,544 1.53 %       0.00 %  
Tax-exempt investment securities   249 2.03 %     249 2.03 %       0.00 %     277 1.88 %     277 1.88 %       0.00 %  
Fed funds sold & other   7,231 5.84 %     7,231 5.84 %       0.00 %     1,866 3.67 %     1,866 3.67 %       0.00 %  
 Total Interest Earning Assets   121,721 5.17 %     119,643 5.08 %     2,078   0.09 %     101,538 4.57 %     99,051 4.47 %     2,487   0.10 %  
                                     
Interest Bearing Liabilities:                                    
Savings deposits $ 30,291 2.71 %   $ 30,291 2.71 %   $   0.00 %   $ 18,854 1.83 %   $ 18,854 1.83 %   $   0.00 %  
Other time deposits   18,423 3.71 %     18,423 3.71 %       0.00 %     13,054 2.81 %     13,458 2.89 %     (404 ) -0.08 %  
Other borrowed money   8,235 4.15 %     8,254 4.16 %     (19 ) -0.01 %     6,134 3.99 %     6,187 4.03 %     (53 ) -0.04 %  
Federal funds purchased and securities sold under agreement to repurchase   837 4.00 %     837 4.00 %       0.00 %     1,181 4.18 %     1,181 4.18 %       0.00 %  
Subordinated notes   853 3.27 %     853 3.27 %       0.00 %     853 3.28 %     853 3.28 %       0.00 %  
Total Interest Bearing Liabilities   58,639 3.16 %     58,658 3.16 %     (19 ) 0.00 %     40,076 2.35 %     40,533 2.38 %     (457 ) -0.03 %  
                                     
Interest/Dividend income/yield   121,721 5.17 %     119,643 5.08 %     2,078   0.09 %     101,538 4.57 %     99,051 4.47 %     2,487   0.10 %  
Interest Expense / yield   58,639 3.16 %     58,658 3.16 %     (19 ) 0.00 %     40,076 2.35 %     40,533 2.38 %     (457 ) -0.03 %  
Net Interest Spread   63,082 2.01 %     60,985 1.92 %     2,097   0.09 %     61,462 2.22 %     58,518 2.09 %     2,944   0.13 %  
Net Interest Margin   2.68 %     2.59 %     0.09 %     2.77 %     2.64 %     0.13 %  
                                     

Company Contact: Investor and Media Contact:
Lars B. Eller
President and Chief Executive Officer Farmers & Merchants Bancorp, Inc.
(419) 446-2501
[email protected]
Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
[email protected]

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