ARCHBOLD, Ohio, April 21, 2021 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2021 first quarter ended March 31, 2021.
2021 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):
- Net income increased 19.6% to $4.9 million
- Earnings increased 18.9% to $0.44 per basic and diluted share
- Net interest income after provision for loan losses increased by 5.7% to $13.3 million, which included a $0.3 million increase in the first quarter provision for loan losses
- Noninterest income increased 59.9% to $5.0 million
- First quarter after-tax income benefited from $0.5 million of accelerated fees associated with the Paycheck Protection Program (“PPP”)
- Strong organic growth supported a 7.1% increase in net total loans and a 24.8% increase in total deposits
- Originated $43.5 million of new loans under the latest Paycheck Protection Program, helping F&M protect over 18,000 jobs throughout the program
- Return on average tangible equity increased to 10.10% from 9.13% for the first quarter last year
- Loans 30 days past due to total loans, excluding COVID related loans, was only 0.18%
- New full-service office in Fort Wayne, IN opened in 2021 second quarter
“2021 is off to a strong start as our markets emerge from the COVID-19 crisis and we continue to focus on providing local services and leading financial products to our retail, commercial, and agriculture customers. As a result, we are gaining market share and benefitting from robust growth in loans, deposits, and noninterest income, which have helped us successfully offset higher provision for loan losses and operating expenses during the 2021 first quarter,” stated Lars B. Eller, President and Chief Executive Officer. “I am grateful to our team members who continue to work diligently and support the financial needs of our local customers and communities.”
“The acquisition of Ossian Financial Services is expected to close in the coming weeks, and we are well positioned to quickly integrate Ossian into F&M’s platform. Once completed, we expect the acquisition will add approximately $122 million in assets to F&M and will begin contributing to earnings in 2021. In addition, we expect to see the benefit to noninterest expense of our office realignment strategy over the next several quarters, and we will use a portion of the savings to reinvest in expanding our digital and online offerings.”
Income Statement
Net income for the 2021 first quarter ended March 31, 2021, was $4.9 million, compared to $4.1 million for the same period last year. Earnings per basic and diluted share for the 2021 first quarter was $0.44, compared to $0.37 for the same period last year.
Higher provision for loan losses and operating expenses were successfully offset by increased interest income, successful reductions in cost of funds, interest and fees earned from the Paycheck Protection Program, and a 59.9% or $1.9 million year-over-year increase in noninterest income. Increases in Customer Service Fees and Gain on sales of both 1-4 family mortgage loans and fixed rate agricultural loans were the biggest contributors in noninterest income. F&M’s provision for loan losses increased from $1.4 million for the three months ended March 31, 2020, to $1.7 million for the three months ended March 31, 2021, as the Company prudently increased its allowance of loan losses primarily associated with continued economic uncertainty caused by the COVID-19 crisis. In addition, noninterest expense increased by $1.7 million, due to higher operating expenses supporting a 20% larger Company in asset size and servicing a larger footprint. It also included a one-time expense of $0.3 million related to the Company’s pension.
Deposits
At March 31, 2021, total deposits were $1.684 billion, an increase of 24.8% from March 31, 2020, and an increase of 5.5% from December 31, 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 March 31, 2021, increased 7.5% or by $94.0 million to $1.342 billion, compared to $1.248 billion at March 31, 2020, and up from $1.303 billion at December 31, 2020. The year-over-year improvement resulted primarily from the contribution of continued strong organic loan growth. In addition, during the 2021 first quarter, the Company processed $57.5 million of PPP loan forgiveness and principal payments received and originated $43.5 million of new PPP loans, resulting in a total of $12.777 million of PPP loans within F&M’s loan portfolio.
Mr. Eller continued, “Since the start of the crisis, we strengthened our relationships by increasing the amount of financial relief, assistance, and advice we are providing customers. During the first quarter, we processed more than 1,200 new PPP loans, and throughout the PPP process, we have helped our small business customers protect more than 18,000 jobs within our markets.”
“Our local relationships continue to produce strong organic growth, and loans not including PPP loans, increased nearly 2.3% during the 2021 first quarter. We are experiencing organic loan growth across our Ohio, Indiana, and Michigan markets, due to our recently opened LPOs and our strong, experienced, and local lenders. Our agriculture portfolios are also demonstrating compelling growth and strong asset performance as farmers benefit from robust market dynamics.”
Mr. Eller continued: “At March 31, 2021 there were only five loans totaling $10.4 million of COVID-related payment modifications, all of which are interest-only modifications and secured by real estate. This compares to 190 loans representing a balance of $165 million in deferrals at the peak last year. Given the uncertainty surrounding the COVID-19 crisis, we continue to fund our allowance for loan and lease losses, which increased by 69.0% over the past 12 months. Our allowance for loan and lease losses to total loans, adjusted for our PPP balances, is now over 1.28% and includes the $1.5 million credit mark associated with the 2019 Bank of Geneva acquisition.”
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $8.1 million, or 0.61% of total loans at March 31, 2021, compared to $3.3 million, or 0.27% at March 31, 2020. The year-over-year increase in nonperforming loans is primarily due to the impacts of the COVID-19 crisis.
Mr. Eller concluded: “2021 is expected to be a transformative year for F&M. Throughout the year, we will focus on executing our strategic plan, completing and integrating the Ossian acquisition, integrating last year’s acquisition of Adams County Financial Resources, achieving the benefits from our office realignment program, and driving strong organic growth by supporting our local communities. I am proud of our continued strong performance and excited to update shareholders in the coming quarters on the progress we are making.”
Stockholders’ Equity and Dividends
Total stockholders’ equity increased 4.4% to $246.8 million at March 31, 2021, from $236.5 million at March 31, 2020. At March 31, 2021, the Company had a Tier 1 leverage ratio of 10.39%, compared to 11.56% at March 31, 2020.
Tangible stockholders’ equity increased to $195.9 million at March 31, 2021, compared to $180.9 million at March 31, 2020. On a per share basis, tangible stockholders’ equity at March 31, 2021, was $17.50 per share, compared to $16.26 per share at March 31, 2020.
For the 2021 first quarter, the company declared cash dividends of $0.17 per share, which is a 6.3% increase over the 2020 first quarter 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 2021 first quarter, the dividend payout ratio was 38.48% compared to 43.07% 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. 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. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.
| 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] |
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME | |||||||||||||||||||||
| (Unaudited) (in thousands of dollars, except per share data) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||
| Interest Income | |||||||||||||||||||||
| Loans, including fees | $ | 15,612 | $ | 17,061 | $ | 16,181 | $ | 16,192 | $ | 15,883 | |||||||||||
| Debt securities: | |||||||||||||||||||||
| U.S. Treasury and government agencies | 751 | 695 | 761 | 767 | 1,146 | ||||||||||||||||
| Municipalities | 308 | 295 | 279 | 243 | 262 | ||||||||||||||||
| Dividends | 50 | 35 | 36 | 26 | 45 | ||||||||||||||||
| Federal funds sold | 5 | 5 | 4 | 5 | 6 | ||||||||||||||||
| Other. | 39 | 48 | 32 | 40 | 122 | ||||||||||||||||
| Total interest income | 16,765 | 18,139 | 17,293 | 17,273 | 17,464 | ||||||||||||||||
| Interest Expense | |||||||||||||||||||||
| Deposits | 1,340 | 1,619 | 1,864 | 2,254 | 2,901 | ||||||||||||||||
| Federal funds purchased and securities sold | |||||||||||||||||||||
| under agreements to repurchase | 166 | 170 | 174 | 187 | 244 | ||||||||||||||||
| Borrowed funds | 222 | 226 | 231 | 257 | 266 | ||||||||||||||||
| Total interest expense | 1,728 | 2,015 | 2,269 | 2,698 | 3,411 | ||||||||||||||||
| Net Interest Income – Before Provision for Loan Losses | 15,037 | 16,124 | 15,024 | 14,575 | 14,053 | ||||||||||||||||
| Provision for Loan Losses | 1,700 | 1,995 | 1,987 | 1,569 | 1,430 | ||||||||||||||||
| Net Interest Income After Provision For Loan Losses | 13,337 | 14,129 | 13,037 | 13,006 | 12,623 | ||||||||||||||||
| Noninterest Income | |||||||||||||||||||||
| Customer service fees | 2,814 | 2,750 | 2,299 | 2,258 | 1,586 | ||||||||||||||||
| Other service charges and fees | 838 | 980 | 879 | 704 | 1,039 | ||||||||||||||||
| Net gain on sale of loans | 1,046 | 1,894 | 1,537 | 364 | 227 | ||||||||||||||||
| Net gain on sale of available-for-sale securities | 293 | – | – | – | 270 | ||||||||||||||||
| Total noninterest income | 4,991 | 5,624 | 4,715 | 3,326 | 3,122 | ||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||
| Salaries and wages | 4,390 | 5,068 | 5,102 | 4,095 | 4,223 | ||||||||||||||||
| Employee benefits | 1,994 | 1,140 | 1,566 | 1,218 | 1,677 | ||||||||||||||||
| Net occupancy expense | 577 | 585 | 558 | 564 | 564 | ||||||||||||||||
| Furniture and equipment | 791 | 760 | 875 | 750 | 758 | ||||||||||||||||
| Data processing | 505 | 428 | 490 | 408 | 442 | ||||||||||||||||
| Franchise taxes | 446 | 241 | 368 | 369 | 368 | ||||||||||||||||
| ATM expense | 449 | 456 | 444 | 376 | 414 | ||||||||||||||||
| Advertising | 235 | 353 | 411 | 265 | 303 | ||||||||||||||||
| Net (gain) loss on sale of other assets owned | (25 | ) | 20 | (7 | ) | (7 | ) | 1 | |||||||||||||
| FDIC assessment | 236 | 223 | 194 | 144 | 72 | ||||||||||||||||
| Mortgage servicing rights amortization | 505 | 247 | 296 | 356 | 132 | ||||||||||||||||
| Consulting fees | 223 | 407 | 205 | 217 | 139 | ||||||||||||||||
| Other general and administrative | 2,033 | 1,358 | 1,553 | 1,612 | 1,575 | ||||||||||||||||
| Total noninterest expense | 12,359 | 11,286 | 12,055 | 10,367 | 10,668 | ||||||||||||||||
| Income Before Income Taxes | 5,969 | 8,467 | 5,697 | 5,965 | 5,077 | ||||||||||||||||
| Income Taxes | 1,060 | 1,691 | 1,287 | 1,161 | 972 | ||||||||||||||||
| Net Income | 4,909 | 6,776 | 4,410 | 4,804 | 4,105 | ||||||||||||||||
| Other Comprehensive Income (Loss) (Net of Tax): | |||||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | (6,737 | ) | (207 | ) | 639 | 661 | 4,998 | ||||||||||||||
| Reclassification adjustment for realized gain on sale of available-for-sale securities | (293 | ) | – | – | – | (270 | ) | ||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | (7,030 | ) | (207 | ) | 639 | 661 | 4,728 | ||||||||||||||
| Tax expense (benefit) | (1,476 | ) | (44 | ) | 134 | 139 | 993 | ||||||||||||||
| Other comprehensive income (loss) | (5,554 | ) | (163 | ) | 505 | 522 | 3,735 | ||||||||||||||
| Comprehensive Income (Loss) | $ | (645 | ) | $ | 6,613 | $ | 4,915 | $ | 5,326 | $ | 7,840 | ||||||||||
| Basic and Diluted Earnings Per Share | $ | 0.44 | $ | 0.60 | $ | 0.40 | $ | 0.43 | $ | 0.37 | |||||||||||
| Dividends Declared | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.16 | $ | 0.16 | |||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| (Unaudited) (in thousands of dollars, except share data) | ||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 118,139 | $ | 98,279 | $ | 46,395 | $ | 54,336 | $ | 49,844 | ||||||||||
| Federal funds sold | 57,361 | 77,427 | 41,358 | 31,105 | 40,993 | |||||||||||||||
| Total cash and cash equivalents | 175,500 | 175,706 | 87,753 | 85,441 | 90,837 | |||||||||||||||
| Interest-bearing time deposits | 4,405 | 4,653 | 4,657 | 4,636 | 4,869 | |||||||||||||||
| Securities – available-for-sale | 352,974 | 307,812 | 259,041 | 236,292 | 204,121 | |||||||||||||||
| Other securities, at cost | 5,939 | 5,939 | 5,827 | 5,810 | 5,810 | |||||||||||||||
| Loans held for sale | 7,511 | 8,391 | 7,621 | 11,445 | 2,153 | |||||||||||||||
| Loans, net | 1,327,254 | 1,288,667 | 1,351,979 | 1,334,790 | 1,239,108 | |||||||||||||||
| Premises and equipment | 26,703 | 27,063 | 26,776 | 26,049 | 26,120 | |||||||||||||||
| Goodwill | 47,340 | 47,340 | 47,340 | 47,340 | 47,340 | |||||||||||||||
| Mortgage servicing rights | 3,444 | 3,320 | 3,027 | 2,740 | 2,672 | |||||||||||||||
| Other real estate owned | 148 | 71 | 206 | 135 | 185 | |||||||||||||||
| Bank owned life insurance | 25,347 | 25,208 | 15,501 | 15,399 | 15,313 | |||||||||||||||
| Other assets | 16,720 | 15,374 | 16,872 | 14,370 | 16,597 | |||||||||||||||
| Total Assets | $ | 1,993,285 | $ | 1,909,544 | $ | 1,826,600 | $ | 1,784,447 | $ | 1,655,125 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 384,558 | $ | 351,147 | $ | 330,845 | $ | 336,027 | $ | 261,786 | ||||||||||
| Interest-bearing | ||||||||||||||||||||
| NOW accounts | 605,533 | 542,317 | 534,792 | 504,846 | 463,734 | |||||||||||||||
| Savings | 451,043 | 455,145 | 392,059 | 374,871 | 341,256 | |||||||||||||||
| Time | 242,717 | 247,553 | 261,177 | 261,631 | 281,931 | |||||||||||||||
| Total deposits | 1,683,851 | 1,596,162 | 1,518,873 | 1,477,375 | 1,348,707 | |||||||||||||||
| Federal Funds Purchased and | ||||||||||||||||||||
| securities sold under agreements to repurchase | 30,072 | 30,239 | 29,859 | 30,949 | 30,585 | |||||||||||||||
| Federal Home Loan Bank (FHLB) advances | 17,840 | 17,861 | 17,724 | 19,087 | 24,788 | |||||||||||||||
| Dividend payable | 1,889 | 1,889 | 1,882 | 1,768 | 1,768 | |||||||||||||||
| Accrued expenses and other liabilities | 12,805 | 14,233 | 14,841 | 14,971 | 12,820 | |||||||||||||||
| Total liabilities | 1,746,457 | 1,660,384 | 1,583,179 | 1,544,150 | 1,418,668 | |||||||||||||||
| Commitments and Contingencies | ||||||||||||||||||||
| Stockholders’ Equity | ||||||||||||||||||||
| Common stock – No par value 20,000,000 shares authorized; issued | ||||||||||||||||||||
| and outstanding 12,230,000 shares 3/31/21 and 12/31/20 | 82,030 | 81,804 | 81,577 | 82,134 | 81,844 | |||||||||||||||
| Treasury stock – 1,033,256 shares 3/31/21, 1,032,456 shares 12/31/20 | (11,962 | ) | (11,932 | ) | (12,397 | ) | (12,668 | ) | (12,636 | ) | ||||||||||
| Retained earnings | 176,617 | 173,591 | 168,381 | 165,476 | 162,416 | |||||||||||||||
| Accumulated other comprehensive income | 143 | 5,697 | 5,860 | 5,355 | 4,833 | |||||||||||||||
| Total stockholders’ equity | 246,828 | 249,160 | 243,421 | 240,297 | 236,457 | |||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 1,993,285 | $ | 1,909,544 | $ | 1,826,600 | $ | 1,784,447 | $ | 1,655,125 | ||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| SELECT FINANCIAL DATA | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| Selected financial data | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||
| Return on average assets | 1.01% | 1.43% | 0.98% | 1.10% | 1.02% | |||||||||||||||
| Return on average equity | 7.87% | 11.04% | 7.28% | 8.07% | 7.06% | |||||||||||||||
| Yield on earning assets | 3.71% | 4.09% | 4.04% | 4.25% | 4.66% | |||||||||||||||
| Cost of interest bearing liabilities | 0.53% | 0.64% | 0.74% | 0.91% | 1.22% | |||||||||||||||
| Net interest spread | 3.18% | 3.45% | 3.30% | 3.34% | 3.44% | |||||||||||||||
| Net interest margin | 3.33% | 3.63% | 3.51% | 3.59% | 3.75% | |||||||||||||||
| Efficiency | 62.57% | 52.20% | 62.11% | 57.91% | 63.09% | |||||||||||||||
| Dividend payout ratio | 38.48% | 27.77% | 42.66% | 36.80% | 43.07% | |||||||||||||||
| Tangible book value per share (1) | $ | 17.50 | $ | 17.19 | $ | 16.78 | $ | 16.33 | $ | 16.26 | ||||||||||
| Tier 1 capital to average assets | 10.39% | 10.46% | 10.65% | 10.70% | 11.56% | |||||||||||||||
| Average Shares Outstanding | 11,197,012 | 11,177,765 | 11,142,797 | 11,129,341 | 11,134,870 | |||||||||||||||
| Loans | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||
| Commercial real estate | $ | 618,754 | $ | 588,825 | $ | 595,146 | $ | 589,382 | $ | 570,217 | ||||||||||
| Agricultural real estate | 179,945 | 189,159 | 192,883 | 194,606 | 194,383 | |||||||||||||||
| Consumer real estate | 175,675 | 175,588 | 175,963 | 174,069 | 174,731 | |||||||||||||||
| Commercial and industrial | 202,958 | 189,246 | 238,175 | 223,842 | 143,261 | |||||||||||||||
| Agricultural | 100,022 | 94,358 | 103,330 | 107,458 | 109,584 | |||||||||||||||
| Consumer | 54,445 | 52,540 | 53,320 | 50,108 | 49,022 | |||||||||||||||
| Other | 14,088 | 15,757 | 9,030 | 9,714 | 8,336 | |||||||||||||||
| Less: Net deferred loan fees and costs | (4,208 | ) | (2,483 | ) | (3,985 | ) | (4,456 | ) | (1,893 | ) | ||||||||||
| Total loans,net | $ | 1,341,679 | $ | 1,302,990 | $ | 1,363,862 | $ | 1,344,723 | $ | 1,247,641 | ||||||||||
| Asset quality data | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||
| Nonaccrual loans | $ | 8,139 | $ | 9,404 | $ | 7,870 | $ | 8,473 | $ | 3,344 | ||||||||||
| Troubled debt restructuring | $ | 5,774 | $ | 6,514 | $ | 7,028 | $ | 7,034 | $ | 1,934 | ||||||||||
| 90 day past due and accruing | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
| Nonperforming loans | $ | 8,139 | $ | 9,404 | $ | 7,870 | $ | 8,473 | $ | 3,344 | ||||||||||
| Other real estate owned | $ | 148 | $ | 71 | $ | 206 | $ | 135 | $ | 185 | ||||||||||
| Nonperforming assets | $ | 8,287 | $ | 9,475 | $ | 8,076 | $ | 8,608 | $ | 3,529 | ||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||
| Allowance for loan and lease losses | $ | 14,425 | $ | 13,672 | $ | 11,883 | $ | 10,538 | $ | 8,533 | ||||||||||
| Allowance for loan and lease losses/total loans | 1.08% | 1.05% | 0.87% | 0.78% | 0.68% | |||||||||||||||
| Net charge-offs: | ||||||||||||||||||||
| Quarter-to-date | $ | 947 | $ | 205 | $ | 37 | $ | 169 | $ | 125 | ||||||||||
| Year-to-date | $ | 947 | $ | 537 | $ | 331 | $ | 294 | $ | 125 | ||||||||||
| Net charge-offs to average loans | ||||||||||||||||||||
| Quarter-to-date | 0.07% | 0.02% | 0.00% | 0.01% | 0.01% | |||||||||||||||
| Year-to-date | 0.07% | 0.04% | 0.03% | 0.02% | 0.01% | |||||||||||||||
| Nonperforming loans/total loans | 0.61% | 0.72% | 0.58% | 0.63% | 0.27% | |||||||||||||||
| Allowance for loan and lease losses/nonperforming loans | 177.24% | 177.96% | 151.01% | 117.24% | 256.66% | |||||||||||||||
| (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 | ||||||||||||||||||
| March 31, 2021 | March 31, 2020 | ||||||||||||||||||
| Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | |||||||||||||
| Loans | $ | 1,328,571 | $ | 15,612 | 4.70% | $ | 1,236,848 | $ | 15,883 | 5.14% | |||||||||
| Taxable Investment Securities | 324,536 | 1,009 | 1.24% | 190,158 | 1,321 | 2.78% | |||||||||||||
| Tax-exempt Investment Securities | 20,375 | 100 | 2.49% | 28,832 | 132 | 2.32% | |||||||||||||
| Fed Funds Sold & Other | 136,663 | 44 | 0.13% | 46,393 | 128 | 1.10% | |||||||||||||
| Total Interest Earning Assets | 1,810,145 | $ | 16,765 | 3.71% | 1,502,231 | $ | 17,464 | 4.66% | |||||||||||
| Nonearning Assets | 126,579 | 114,326 | |||||||||||||||||
| Total Assets | $ | 1,936,724 | $ | 1,616,557 | |||||||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||
| Savings Deposits | $ | 1,014,392 | $ | 574 | 0.23% | 773,130 | 1,485 | 0.77% | |||||||||||
| Other Time Deposits | 242,033 | 766 | 1.27% | 277,579 | 1,416 | 2.04% | |||||||||||||
| Other Borrowed Money | 17,848 | 222 | 4.98% | 24,787 | 266 | 4.29% | |||||||||||||
| Fed Funds Purchased & Securities | |||||||||||||||||||
| Sold under Agreement to Repurch. | 30,210 | 166 | 2.20% | 38,954 | 244 | 2.51% | |||||||||||||
| Total Interest Bearing Liabilities | $ | 1,304,483 | $ | 1,728 | 0.53% | $ | 1,114,450 | $ | 3,411 | 1.22% | |||||||||
| Noninterest bearing Liabilities | 382,640 | 269,550 | |||||||||||||||||
| Stockholders Equity | $ | 249,601 | $ | 232,557 | |||||||||||||||
| Net Interest Income and interest rate spread | $ | 15,037 | 3.18% | $ | 14,053 | 3.44% | |||||||||||||
| Net Interest Margin | 3.33% | 3.75% | |||||||||||||||||
| 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. | ||||
| NOTES TO CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS | ||||
| Non-GAAP Allowance for Loan Losses, excluding PPP Loans | ||||
| (in thousands of dollars, except percentages) | ||||
| For the Three Months Ended | ||||
| March 31, 2021 | ||||
| Allowance for Loan Losses | $ | 14,425 | ||
| Credit Mark | 1,500 | |||
| Total Credit Mark & Allowance for Loan Losses | 15,925 | |||
| Loans | $ | 1,341,679 | ||
| Adjustments | ||||
| PPP Loans | (12,777 | ) | ||
| Loans excluding PPP Loans | $ | 1,328,902 | ||
| Allowance for Loan Losses | 1.08 | % | ||
| Effect of Credit Mark | 0.19 | % | ||
| Effect of PPP Loans | 0.01 | % | ||
| Allowance for Loan Losses, excluding PPP Loans | 1.28 | % | ||