ARCHBOLD, Ohio, July 26, 2023 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) the holding company of F&M Bank, today reported financial results for the 2023 second quarter and year-to-date June 30, 2023.
2023 Second Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):
- 81 consecutive quarters of profitability
- Net income was $6.0 million, or $0.44 per basic and diluted share
- Stockholders’ equity increased 8.5% to $304.7 million
- Regulatory tangible book value per share increased 4.5% to $18.21 per share
- Organic loan growth of 18.5%, excluding PPP loans and the Peoples-Sidney Financial Corporation acquisition
- Total loans were a record of $2.52 billion and increased 6.8% from $2.36 billion at December 31, 2022
- Total assets increased 17.7% to a record $3.15 billion
- Deposits increased 11.0% to $2.50 billion
- Uninsured deposits to total deposits of approximately 18% at June 30, 2023
- Strong asset quality continues as nonperforming loans were 0.25% of total loans
- Net charge-offs to average loans were -0.01%
- Allowance for credit losses was 395.71% of nonperforming loans
- Tier 1 leverage ratio increased to 9.85% from 8.75% last year
- Strategic investments to support long-term growth continue as F&M has unveiled new branding and logo, opened two new offices, launched new deposit products, and started construction on a new regional headquarters in Fort Wayne, Indiana and the first full-service office in Michigan
Lars B. Eller, President and Chief Executive Officer, stated, “Our second quarter results demonstrate the power of F&M’s operating platform as we ended the quarter with strong capital levels, robust asset quality, and record loans and assets. These trends provide us with the flexibility to navigate a challenging banking landscape, while supporting our communities, investing in our multi-year strategic growth plan, and returning capital back to our shareholders. Most importantly, our longstanding financial success and operating growth reflects the continued commitment, experience, and hard work of our team members across our Ohio, Indiana, and Michigan markets.”
“I am pleased to report that we continue to make meaningful progress investing in our business to support our growth, enhance our operations, and execute against our recently developed three-year strategic growth plan. During the second quarter we unveiled our new branding and forward-looking logo, which was the culmination of a multi-year brand exploration process. All updates to office signage are expected to be completed by September 2023. In addition, we relocated our Auburn, Indiana office and opened new offices in downtown Toledo, Ohio, and Oxford, Ohio. Construction began on our new regional facility in Fort Wayne, and we added a highly experienced lending team in our Fort Wayne region, which will greatly expand our commitment to Eastern Indiana. We also broke ground on our first full-service office in Birmingham, Michigan following our hugely successful loan production office in Southeast Michigan. Finally, we launched new deposit products to enhance our offerings to current and prospective customers,” continued Mr. Eller.
Income Statement
Net income for the 2023 second quarter ended June 30, 2023, was $6.0 million, compared to $8.3 million for the same period last year. Net income per basic and diluted share for the 2023 second quarter was $0.44, compared to $0.63 for the same period last year. Net income for the 2023 first half ended June 30, 2023, was $12.5 million, compared to $16.4 million for the same period last year. Net income per basic and diluted share for the 2023 first half was $0.92, compared to $1.25 for the same period last year.
Mr. Eller commented: “F&M is not immune from the rapid rise in the Federal Funds Rate and the impact this has had on cost of funds and the competition for deposits it has created over the past 12 months. As a result, our cost of interest-bearing liabilities has increased by over 430% to 2.35% at June 30, 2023. In addition, year-to-date profitability has been impacted by several strategic one-time expenses including the conversion of our credit card platform, an opportunistic sale of investments, and the investments we are making in our infrastructure. Despite these near-term impacts, we believe we are well positioned for net income growth to re-accelerate in 2024 and beyond, as we benefit from continued strong asset quality, the contribution of our growth initiatives, and controlled operating expenses,” continued Mr. Eller.
Deposits
At June 30, 2023, total deposits were $2.47 billion, an increase of 11.0% from June 30, 2022. The Company’s cost of interest-bearing liabilities was 2.35% for the quarter ended June 30, 2023, compared to 0.44% for the quarter ended June 30, 2022, and 1.32% for the quarter ended December 31, 2022.
At June 30, 2023, F&M’s average deposit account had an average balance of $25,009. In addition, uninsured deposits to total deposits were approximately 18% for the quarter ended June 30, 2023, compared to approximately 21% at December 31, 2022.
Loan Portfolio and Asset Quality
Total loans, net at June 30, 2023, increased 23.6%, or by $481.0 million to a record $2.52 billion, compared to $2.03 billion at June 30, 2022, and up from $2.36 billion at December 31, 2022. The year-over-year improvement resulted primarily from the contribution of continued organic loan growth and the completion of the Peoples acquisition. Not including the Peoples acquisition, total net loans increased 18.5% organically, or by $376.3 million from the same period a year ago.
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $6.3 million, or 0.25% of total loans at June 30, 2023, compared to $5.2 million, or 0.26% of total loans at June 30, 2022. During the second quarter, one large farm loan that was paid off and another loan that was refinanced through another bank, and second quarter 2023 nonperforming loans improved by $1.4 million, or 18.4% over the past three months.
F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 50.9% of the Company’s total loan portfolio at June 30, 2023. In addition, F&M’s commercial real estate office credit exposure represented 5.0% of the Company's total loan portfolio at June 30, 2023, with a weighted average loan-to-value of approximately 64% and an average loan of $845,000.
F&M’s CRE portfolio included the following categories at June 30, 2023:
CRE Category | Dollar Balance | Percent of CRE Portfolio(*) | Percent of Total Loan Portfolio(*) | ||||
| Multi Family | $244,883 | 19.1% | 9.7% | ||||
| Retail | $218,624 | 17.1% | 8.7% | ||||
| Industrial | $216,605 | 16.9% | 8.6% | ||||
| Hotels | $135,511 | 10.6% | 5.4% | ||||
| Office | $125,039 | 9.8% | 5.0% | ||||
| Gas Stations | $59,922 | 4.7% | 2.4% | ||||
| Food Service | $43,585 | 3.4% | 1.7% | ||||
| Mixed Use | $42,425 | 3.3% | 1.7% | ||||
| Senior Living | $36,238 | 2.8% | 1.4% | ||||
| Other | $158,069 | 12.3% | 6.3% | ||||
| Total CRE | $1,225,315 | 100.0% | 50.1% | ||||
| * Numbers have been rounded | |||||||
At June 30, 2023, the Company’s allowance for credit losses to nonperforming loans was 395.71%, compared to 351.44% at June 30, 2022. The allowance to total loans was 0.99% at June 30, 2023, compared to 0.91% at June 30, 2022. As a result of F&M’s recent acquisitions, the Company had an accretable yield adjustment of $5.2 million at June 30, 2023, which further enhances F&M’s allowance, compared to $6.7 million at June 30, 2022. Including the accretable yield adjustment, F&M’s allowance for credit losses to total loans was 1.20% at June 30, 2023, compared to 1.24% at June 30, 2022.
Mr. Eller concluded, “I am proud of our team’s performance throughout the first half of 2023. The progress we are making serving our communities, and investing in our growth initiatives is encouraging. While 2023 is expected to be a transitional year, we believe we are well positioned to emerge from this period with increased market share and higher profitability. We also continue to focus on returning capital back to shareholders through our longstanding cash dividend program, which has increased on an annual basis for 28 consecutive years.”
Stockholders’ Equity and Dividends
Total stockholders’ equity increased 8.5% to $304.7 million at June 30, 2023, from $280.9 million at June 30, 2022. At June 30, 2023, the Company had a Tier 1 leverage ratio of 9.85%, compared to 8.75% at June 30, 2022.
Based on a regulatory basis, tangible stockholders’ equity increased to $248.3 million at June 30, 2023, compared to $227.7 million at June 30, 2022. On a per share basis, regulatory tangible stockholders’ equity at June 30, 2023, was $18.21 per share, compared to $17.43 per share at June 30, 2022.
For the six months ended June 30, 2023, the Company has declared cash dividends of $0.42 per share, which is a 7.0% increase over the 2022 six-month declared dividend payment. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over 28 consecutive years and has grown its dividend by over 160% since 2007. For the six months ended June 30, 2023, the dividend payout ratio was 45.44% compared to 30.08% for the same period last year.
About Farmers & Merchants Bancorp, Inc.:
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, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; 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 | Six Months Ended | ||||||||||||||||||||||||||
| June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||
| Loans, including fees | $ | 31,365 | $ | 29,703 | $ | 27,302 | $ | 24,119 | $ | 22,388 | $ | 61,068 | $ | 42,843 | |||||||||||||
| Debt securities: | |||||||||||||||||||||||||||
| U.S. Treasury and government agencies | 1,030 | 1,068 | 1,118 | 1,049 | 1,035 | 2,098 | 2,058 | ||||||||||||||||||||
| Municipalities | 401 | 408 | 420 | 373 | 322 | 809 | 622 | ||||||||||||||||||||
| Dividends | 148 | 123 | 126 | 93 | 57 | 271 | 99 | ||||||||||||||||||||
| Federal funds sold | 9 | 21 | 2 | - | 9 | 30 | 19 | ||||||||||||||||||||
| Other | 424 | 479 | 524 | 213 | 100 | 903 | 169 | ||||||||||||||||||||
| Total interest income | 33,377 | 31,802 | 29,492 | 25,847 | 23,911 | 65,179 | 45,810 | ||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||
| Deposits | 10,434 | 8,151 | 4,978 | 2,166 | 1,379 | 18,585 | 2,739 | ||||||||||||||||||||
| Federal funds purchased and securities sold | |||||||||||||||||||||||||||
| under agreements to repurchase | 427 | 405 | 463 | 416 | 166 | 832 | 318 | ||||||||||||||||||||
| Borrowed funds | 2,113 | 1,280 | 1,209 | 398 | 218 | 3,393 | 553 | ||||||||||||||||||||
| Subordinated notes | 285 | 284 | 285 | 284 | 284 | 569 | 553 | ||||||||||||||||||||
| Total interest expense | 13,259 | 10,120 | 6,935 | 3,264 | 2,047 | 23,379 | 4,163 | ||||||||||||||||||||
| Net Interest Income - Before Provision for Credit Losses* | 20,118 | 21,682 | 22,557 | 22,583 | 21,864 | 41,800 | 41,647 | ||||||||||||||||||||
| Provision for Credit Losses - Loans* | 143 | 817 | 755 | 1,637 | 1,628 | 960 | 2,208 | ||||||||||||||||||||
| Provision for Credit Losses - Off Balance Sheet Credit Exposures* | (129 | ) | 62 | - | - | - | (67 | ) | - | ||||||||||||||||||
| Net Interest Income After Provision for Credit Losses* | 20,104 | 20,803 | 21,802 | 20,946 | 20,236 | 40,907 | 39,439 | ||||||||||||||||||||
| Noninterest Income | |||||||||||||||||||||||||||
| Customer service fees | 2,361 | 2,447 | 2,862 | 2,300 | 2,148 | 4,808 | 4,796 | ||||||||||||||||||||
| Other service charges and fees | 1,803 | 2,554 | 1,115 | 1,105 | 1,008 | 4,357 | 2,006 | ||||||||||||||||||||
| Net gain on sale of loans | 108 | 67 | 165 | 327 | 164 | 175 | 861 | ||||||||||||||||||||
| Net loss on sale of available-for-sale securities | - | (891 | ) | - | - | - | (891 | ) | - | ||||||||||||||||||
| Total noninterest income | 4,272 | 4,177 | 4,142 | 3,732 | 3,320 | 8,449 | 7,663 | ||||||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||||||||
| Salaries and wages | 6,500 | 6,657 | 6,353 | 5,479 | 5,366 | 13,157 | 10,868 | ||||||||||||||||||||
| Employee benefits | 2,071 | 2,165 | 1,911 | 1,392 | 1,546 | 4,236 | 3,600 | ||||||||||||||||||||
| Net occupancy expense | 840 | 856 | 753 | 693 | 522 | 1,696 | 1,120 | ||||||||||||||||||||
| Furniture and equipment | 1,211 | 1,252 | 1,096 | 1,047 | 1,008 | 2,463 | 2,064 | ||||||||||||||||||||
| Data processing | 796 | 726 | 1,917 | 781 | 654 | 1,522 | 1,258 | ||||||||||||||||||||
| Franchise taxes | 379 | 366 | (45 | ) | 254 | 757 | 745 | 1,175 | |||||||||||||||||||
| ATM expense | 683 | 623 | 561 | 580 | 544 | 1,306 | 1,076 | ||||||||||||||||||||
| Advertising | 830 | 514 | 531 | 578 | 300 | 1,344 | 537 | ||||||||||||||||||||
| Net (gain) loss on sale of other assets owned | - | - | 12 | - | (266 | ) | - | (271 | ) | ||||||||||||||||||
| FDIC assessment | 496 | 306 | 250 | 271 | 270 | 802 | 384 | ||||||||||||||||||||
| Mortgage servicing rights amortization - net | 164 | 159 | 110 | (50 | ) | 59 | 323 | 85 | |||||||||||||||||||
| Consulting fees | 231 | 230 | 637 | 254 | 233 | 461 | 411 | ||||||||||||||||||||
| Other general and administrative | 2,643 | 3,077 | 2,964 | 2,192 | 2,242 | 5,720 | 4,421 | ||||||||||||||||||||
| Total noninterest expense | 16,844 | 16,931 | 17,050 | 13,471 | 13,235 | 33,775 | 26,728 | ||||||||||||||||||||
| Income Before Income Taxes | 7,532 | 8,049 | 8,894 | 11,207 | 10,321 | 15,581 | 20,374 | ||||||||||||||||||||
| Income Taxes | 1,531 | 1,583 | 1,706 | 2,253 | 2,050 | 3,114 | 4,001 | ||||||||||||||||||||
| Net Income | 6,001 | 6,466 | 7,188 | 8,954 | 8,271 | 12,467 | 16,373 | ||||||||||||||||||||
| Other Comprehensive Income (Loss) (Net of Tax): | |||||||||||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | (5,996 | ) | 8,030 | (628 | ) | (8,197 | ) | (14,602 | ) | 2,034 | (35,541 | ) | |||||||||||||||
| Reclassification adjustment for realized loss on sale of available-for-sale securities | - | 891 | - | - | - | 891 | - | ||||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | (5,996 | ) | 8,921 | (628 | ) | (8,197 | ) | (14,602 | ) | 2,925 | (35,541 | ) | |||||||||||||||
| Tax expense (benefit) | (1,260 | ) | 1,874 | (132 | ) | (1,721 | ) | (3,067 | ) | 614 | (7,464 | ) | |||||||||||||||
| Other comprehensive income (loss) | (4,736 | ) | 7,047 | (496 | ) | (6,476 | ) | (11,535 | ) | 2,311 | (28,077 | ) | |||||||||||||||
| Comprehensive Income (Loss) | $ | 1,265 | $ | 13,513 | $ | 6,692 | $ | 2,478 | $ | (3,264 | ) | $ | 14,778 | $ | (11,704 | ) | |||||||||||
| Basic Earnings Per Share | $ | 0.44 | $ | 0.47 | $ | 0.53 | $ | 0.68 | $ | 0.63 | $ | 0.92 | $ | 1.25 | |||||||||||||
| Diluted Earnings Per Share | $ | 0.44 | $ | 0.47 | $ | 0.53 | $ | 0.68 | $ | 0.63 | $ | 0.92 | $ | 1.25 | |||||||||||||
| Dividends Declared | $ | 0.2100 | $ | 0.2100 | $ | 0.2100 | $ | 0.2100 | $ | 0.2025 | $ | 0.4200 | $ | 0.3925 | |||||||||||||
| *ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method. | |||||||||||||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
| (Unaudited) (in thousands of dollars, except share data) | |||||||||||||||||||
| June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 69,760 | $ | 62,780 | $ | 83,085 | $ | 69,680 | $ | 69,955 | |||||||||
| Federal funds sold | 1,433 | 1,545 | 1,324 | 990 | 1,484 | ||||||||||||||
| Total cash and cash equivalents | 71,193 | 64,325 | 84,409 | 70,670 | 71,439 | ||||||||||||||
| Interest-bearing time deposits | 3,485 | 4,435 | 4,442 | 5,187 | 6,684 | ||||||||||||||
| Securities - available-for-sale | 363,225 | 372,975 | 390,789 | 395,485 | 399,687 | ||||||||||||||
| Other securities, at cost | 17,535 | 11,543 | 9,799 | 8,227 | 8,735 | ||||||||||||||
| Loans held for sale | 1,459 | 951 | 827 | 2,182 | 4,230 | ||||||||||||||
| Loans, net | 2,490,883 | 2,422,018 | 2,336,074 | 2,122,626 | 2,016,394 | ||||||||||||||
| Premises and equipment | 30,398 | 28,679 | 28,381 | 26,484 | 26,492 | ||||||||||||||
| Construction in progress | 2,290 | 1,565 | 278 | - | - | ||||||||||||||
| Goodwill | 86,358 | 86,358 | 86,358 | 80,434 | 80,434 | ||||||||||||||
| Loan servicing rights | 5,635 | 4,985 | 3,549 | 3,583 | 3,426 | ||||||||||||||
| Bank owned life insurance | 33,470 | 33,269 | 33,073 | 28,051 | 27,874 | ||||||||||||||
| Other assets | 41,512 | 38,972 | 37,372 | 40,831 | 29,321 | ||||||||||||||
| Total Assets | $ | 3,147,443 | $ | 3,070,075 | $ | 3,015,351 | $ | 2,783,760 | $ | 2,674,716 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest-bearing | $ | 488,678 | $ | 520,145 | $ | 532,794 | $ | 506,928 | $ | 503,395 | |||||||||
| Interest-bearing | |||||||||||||||||||
| NOW accounts | 770,113 | 800,230 | 750,887 | 705,888 | 678,552 | ||||||||||||||
| Savings | 581,192 | 590,854 | 627,203 | 607,375 | 617,850 | ||||||||||||||
| Time | 628,757 | 601,939 | 557,980 | 462,845 | 424,249 | ||||||||||||||
| Total deposits | 2,468,740 | 2,513,168 | 2,468,864 | 2,283,036 | 2,224,046 | ||||||||||||||
| Federal funds purchased and securities | |||||||||||||||||||
| sold under agreements to repurchase | 51,567 | 30,496 | 54,206 | 55,802 | 71,944 | ||||||||||||||
| Federal Home Loan Bank (FHLB) advances | 266,818 | 164,327 | 127,485 | 102,147 | 42,635 | ||||||||||||||
| Other borrowings | - | - | 10,000 | 10,000 | - | ||||||||||||||
| Subordinated notes, net of unamortized issuance costs | 34,644 | 34,615 | 34,586 | 34,557 | 34,528 | ||||||||||||||
| Dividend payable | 2,834 | 2,831 | 2,832 | 2,727 | 2,626 | ||||||||||||||
| Accrued expenses and other liabilities | 18,177 | 18,881 | 19,238 | 14,913 | 18,064 | ||||||||||||||
| Total liabilities | 2,842,780 | 2,764,318 | 2,717,211 | 2,503,182 | 2,393,843 | ||||||||||||||
| Commitments and Contingencies | |||||||||||||||||||
| Stockholders' Equity | |||||||||||||||||||
| Common stock - No par value 20,000,000 shares authorized; issued and | |||||||||||||||||||
| outstanding 14,564,425 shares 6/30/23 and 12/31/22 | 135,647 | 135,241 | 135,497 | 121,811 | 123,145 | ||||||||||||||
| Treasury stock - 929,513 shares 6/30/23 and 956,003 shares 12/31/22 | (11,298 | ) | (11,310 | ) | (11,573 | ) | (11,547 | ) | (11,822 | ) | |||||||||
| Retained earnings | 216,236 | 213,012 | 212,449 | 208,051 | 200,811 | ||||||||||||||
| Accumulated other comprehensive loss | (35,922 | ) | (31,186 | ) | (38,233 | ) | (37,737 | ) | (31,261 | ) | |||||||||
| Total stockholders' equity | 304,663 | 305,757 | 298,140 | 280,578 | 280,873 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,147,443 | $ | 3,070,075 | $ | 3,015,351 | $ | 2,783,760 | $ | 2,674,716 | |||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
| SELECT FINANCIAL DATA | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
| Selected financial data | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
| Return on average assets | 0.77 | % | 0.84 | % | 0.96 | % | 1.31 | % | 1.23 | % | 0.81 | % | 1.22 | % | ||||||||||||||
| Return on average equity | 7.84 | % | 8.59 | % | 10.00 | % | 12.53 | % | 11.66 | % | 8.21 | % | 11.32 | % | ||||||||||||||
| Yield on earning assets | 4.53 | % | 4.41 | % | 4.18 | % | 4.00 | % | 3.79 | % | 4.47 | % | 3.63 | % | ||||||||||||||
| Cost of interest bearing liabilities | 2.35 | % | 1.85 | % | 1.32 | % | 0.68 | % | 0.44 | % | 2.10 | % | 0.44 | % | ||||||||||||||
| Net interest spread | 2.18 | % | 2.56 | % | 2.86 | % | 3.32 | % | 3.35 | % | 2.37 | % | 3.19 | % | ||||||||||||||
| Net interest margin | 2.73 | % | 3.01 | % | 3.20 | % | 3.49 | % | 3.47 | % | 2.87 | % | 3.30 | % | ||||||||||||||
| Efficiency | 69.06 | % | 63.53 | % | 50.46 | % | 51.19 | % | 50.17 | % | 66.04 | % | 57.90 | % | ||||||||||||||
| Dividend payout ratio | 47.22 | % | 43.79 | % | 39.39 | % | 30.45 | % | 30.02 | % | 45.44 | % | 30.08 | % | ||||||||||||||
| Tangible book value per share (1) | $ | 18.21 | $ | 17.92 | $ | 17.69 | $ | 17.86 | $ | 17.43 | ||||||||||||||||||
| Tier 1 leverage ratio | 9.85 | % | 8.36 | % | 8.39 | % | 9.11 | % | 8.75 | % | ||||||||||||||||||
| Average shares outstanding | 13,632,440 | 13,615,655 | 13,606,876 | 13,083,145 | 13,065,975 | 13,624,094 | 13,066,123 | |||||||||||||||||||||
| Loans | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
| Commercial real estate | $ | 1,280,902 | $ | 1,225,315 | $ | 1,152,603 | $ | 1,063,661 | $ | 979,176 | ||||||||||||||||||
| Agricultural real estate | 230,837 | 227,897 | 220,819 | 205,089 | 199,972 | |||||||||||||||||||||||
| Consumer real estate | 506,866 | 502,974 | 494,423 | 416,001 | 410,450 | |||||||||||||||||||||||
| Commercial and industrial | 253,444 | 241,598 | 242,360 | 229,388 | 232,975 | |||||||||||||||||||||||
| Agricultural | 128,344 | 131,467 | 128,733 | 128,615 | 127,143 | |||||||||||||||||||||||
| Consumer | 88,312 | 89,588 | 89,147 | 70,602 | 55,411 | |||||||||||||||||||||||
| Other | 28,996 | 29,316 | 29,818 | 30,662 | 31,243 | |||||||||||||||||||||||
| Less: Net deferred loan fees and costs | (1,908 | ) | (1,503 | ) | (1,516 | ) | (1,402 | ) | (1,552 | ) | ||||||||||||||||||
| Total loans,net | $ | 2,515,793 | $ | 2,446,652 | $ | 2,356,387 | $ | 2,142,616 | $ | 2,034,818 | ||||||||||||||||||
| Asset quality data | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 6,295 | $ | 7,717 | $ | 4,689 | $ | 5,470 | $ | 5,247 | ||||||||||||||||||
| Troubled debt restructuring | $ | - | $ | - | $ | 3,645 | $ | 3,978 | $ | 2,748 | ||||||||||||||||||
| 90 day past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
| Nonperforming loans | $ | 6,295 | $ | 7,717 | $ | 4,689 | $ | 5,470 | $ | 5,247 | ||||||||||||||||||
| Other real estate owned | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
| Nonperforming assets | $ | 6,295 | $ | 7,717 | $ | 4,689 | $ | 5,470 | $ | 5,247 | ||||||||||||||||||
| Allowance for credit losses(2) | $ | 24,910 | $ | 24,507 | $ | 20,313 | $ | 19,990 | $ | 18,424 | ||||||||||||||||||
| Accretable yield adjustment | 5,209 | 5,754 | 6,427 | 5,959 | 6,724 | |||||||||||||||||||||||
| Adjusted credit losses with accretable yield included(2) | $ | 30,119 | $ | 30,261 | $ | 26,740 | $ | 25,949 | $ | 25,148 | ||||||||||||||||||
| Allowance for credit losses/total loans(2) | 0.99 | % | 1.00 | % | 0.86 | % | 0.93 | % | 0.91 | % | ||||||||||||||||||
| Adjusted credit losses with accretable yield/total loans(2) | 1.20 | % | 1.24 | % | 1.13 | % | 1.21 | % | 1.24 | % | ||||||||||||||||||
| Net charge-offs: | ||||||||||||||||||||||||||||
| Quarter-to-date | $ | (133 | ) | $ | 60 | $ | 431 | $ | 71 | $ | (25 | ) | ||||||||||||||||
| Year-to-date | $ | (73 | ) | $ | 60 | $ | 529 | $ | 97 | $ | 26 | |||||||||||||||||
| Net charge-offs to average loans | 0.28 | % | ||||||||||||||||||||||||||
| Quarter-to-date | -0.01 | % | 0.00 | % | 0.02 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||
| Year-to-date | -0.00 | % | 0.00 | % | 0.03 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||
| Nonperforming loans/total loans | 0.25 | % | 0.32 | % | 0.20 | % | 0.26 | % | 0.26 | % | ||||||||||||||||||
| Allowance for credit losses/nonperforming loans(2) | 395.71 | % | 319.22 | % | 273.67 | % | 365.44 | % | 351.44 | % | ||||||||||||||||||
| (1) Tangible Equity = Stockholder Equity less goodwill, other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities) plus CECL adjustment | ||||||||||||||||||||||||||||
| (2) ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method. | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||
| June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||
| Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | |||||||||||||||||
| Loans | $ | 2,476,795 | $ | 31,365 | 5.07 | % | $ | 1,999,357 | $ | 22,388 | 4.48 | % | |||||||||||
| Taxable investment securities | 399,257 | 1,486 | 1.49 | % | 422,482 | 1,344 | 1.27 | % | |||||||||||||||
| Tax-exempt investment securities | 24,259 | 93 | 1.94 | % | 21,649 | 70 | 1.64 | % | |||||||||||||||
| Fed funds sold & other | 49,160 | 433 | 3.52 | % | 81,091 | 109 | 0.54 | % | |||||||||||||||
| Total Interest Earning Assets | 2,949,471 | $ | 33,377 | 4.53 | % | 2,524,579 | $ | 23,911 | 3.79 | % | |||||||||||||
| Nonearning Assets | 169,599 | 161,031 | |||||||||||||||||||||
| Total Assets | $ | 3,119,070 | $ | 2,685,610 | |||||||||||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||||
| Savings deposits | $ | 1,356,798 | $ | 6,238 | 1.84 | % | $ | 1,312,444 | $ | 777 | 0.24 | % | |||||||||||
| Other time deposits | 612,929 | 4,196 | 2.74 | % | 435,091 | 602 | 0.55 | % | |||||||||||||||
| Other borrowed money | 215,884 | 2,113 | 3.92 | % | 39,172 | 218 | 2.23 | % | |||||||||||||||
| Fed funds purchased & securities | |||||||||||||||||||||||
| sold under agreement to repurch. | 39,966 | 427 | 4.27 | % | 35,260 | 166 | 1.88 | % | |||||||||||||||
| Subordinated notes | 34,625 | 285 | 3.29 | % | 34,509 | 284 | 3.29 | % | |||||||||||||||
| Total Interest Bearing Liabilities | $ | 2,260,202 | $ | 13,259 | 2.35 | % | $ | 1,856,476 | $ | 2,047 | 0.44 | % | |||||||||||
| Noninterest Bearing Liabilities | 552,867 | 545,439 | |||||||||||||||||||||
| Stockholders' Equity | $ | 306,001 | $ | 283,695 | |||||||||||||||||||
| Net Interest Income and Interest Rate Spread | $ | 20,118 | 2.18 | % | $ | 21,864 | 3.35 | % | |||||||||||||||
| Net Interest Margin | 2.73 | % | 3.47 | % | |||||||||||||||||||
| 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 Six Months Ended | For the Six Months Ended | ||||||||||||||||||||||
| June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||
| Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | |||||||||||||||||
| Loans | $ | 2,437,148 | $ | 61,068 | 5.01 | % | $ | 1,953,671 | $ | 42,843 | 4.39 | % | |||||||||||
| Taxable investment securities | 398,383 | 2,985 | 1.50 | % | 426,189 | 2,639 | 1.24 | % | |||||||||||||||
| Tax-exempt investment securities | 25,303 | 193 | 1.93 | % | 20,119 | 140 | 1.76 | % | |||||||||||||||
| Fed funds sold & other | 58,853 | 933 | 3.17 | % | 124,050 | 188 | 0.30 | % | |||||||||||||||
| Total Interest Earning Assets | 2,919,687 | $ | 65,179 | 4.47 | % | 2,524,029 | $ | 45,810 | 3.63 | % | |||||||||||||
| Nonearning Assets | 174,702 | 162,949 | |||||||||||||||||||||
| Total Assets | $ | 3,094,389 | $ | 2,686,978 | |||||||||||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||||
| Savings deposits | $ | 1,378,518 | $ | 11,181 | 1.62 | % | $ | 1,302,005 | $ | 1,365 | 0.21 | % | |||||||||||
| Other time deposits | 596,168 | 7,404 | 2.48 | % | 447,471 | 1,374 | 0.61 | % | |||||||||||||||
| Other borrowed money | 174,171 | 3,393 | 3.90 | % | 51,180 | 553 | 2.16 | % | |||||||||||||||
| Fed funds purchased & securities | |||||||||||||||||||||||
| sold under agreement to repurch. | 39,409 | 832 | 4.22 | % | 32,182 | 318 | 1.98 | % | |||||||||||||||
| Subordinated notes | 34,610 | 569 | 3.29 | % | 34,495 | 553 | 3.21 | % | |||||||||||||||
| Total Interest Bearing Liabilities | $ | 2,222,876 | $ | 23,379 | 2.10 | % | $ | 1,867,333 | $ | 4,163 | 0.44 | % | |||||||||||
| Noninterest Bearing Liabilities | 567,878 | 530,478 | |||||||||||||||||||||
| Stockholders' Equity | $ | 303,635 | $ | 289,167 | |||||||||||||||||||
| Net Interest Income and Interest Rate Spread | $ | 41,800 | 2.37 | % | $ | 41,647 | 3.19 | % | |||||||||||||||
| Net Interest Margin | 2.87 | % | 3.30 | % | |||||||||||||||||||
| 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 June 30, 2023 | For the Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||||
| $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||||
| Loans | $ | 31,365 | 5.07 | % | $ | 30,697 | 4.96 | % | $ | 668 | 0.11 | % | $ | 22,388 | 4.48 | % | $ | 21,986 | 4.40 | % | $ | 402 | 0.08 | % | |||||||
| Taxable investment securities | 1,486 | 1.49 | % | 1,486 | 1.49 | % | - | 0.00 | % | 1,344 | 1.27 | % | 1,344 | 1.27 | % | - | 0.00 | % | |||||||||||||
| Tax-exempt investment securities | 93 | 1.94 | % | 93 | 1.94 | % | - | 0.00 | % | 70 | 1.64 | % | 70 | 1.64 | % | - | 0.00 | % | |||||||||||||
| Fed funds sold & other | 433 | 3.52 | % | 433 | 3.52 | % | - | 0.00 | % | 109 | 0.54 | % | 109 | 0.54 | % | - | 0.00 | % | |||||||||||||
| Total Interest Earning Assets | 33,377 | 4.53 | % | 32,709 | 4.44 | % | 668 | 0.09 | % | 23,911 | 3.79 | % | 23,509 | 3.73 | % | 402 | 0.06 | % | |||||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||
| Savings deposits | $ | 6,238 | 1.84 | % | $ | 6,238 | 1.84 | % | $ | - | 0.00 | % | $ | 777 | 0.24 | % | $ | 777 | 0.24 | % | $ | - | 0.00 | % | |||||||
| Other time deposits | 4,196 | 2.74 | % | 4,291 | 2.80 | % | (95 | ) | -0.06 | % | 602 | 0.55 | % | 1,222 | 1.12 | % | (620 | ) | -0.57 | % | |||||||||||
| Other borrowed money | 2,113 | 3.92 | % | 2,130 | 3.95 | % | (17 | ) | -0.03 | % | 218 | 2.23 | % | 239 | 2.44 | % | (21 | ) | -0.21 | % | |||||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||||
| securties sold under agreement to | |||||||||||||||||||||||||||||||
| repurchase | 427 | 4.27 | % | 427 | 4.27 | % | - | 0.00 | % | 166 | 1.88 | % | 166 | 1.88 | % | - | 0.00 | % | |||||||||||||
| Subordinated notes | 285 | 3.29 | % | 285 | 3.29 | % | - | 0.00 | % | 284 | 3.29 | % | 284 | 3.29 | % | - | 0.00 | % | |||||||||||||
| Total Interest Bearing Liabilities | 13,259 | 2.35 | % | 13,371 | 2.37 | % | (112 | ) | -0.02 | % | 2,047 | 0.44 | % | 2,688 | 0.58 | % | (641 | ) | -0.14 | % | |||||||||||
| Interest/Dividend income/yield | 33,377 | 4.53 | % | 32,709 | 4.44 | % | 668 | 0.09 | % | 23,911 | 3.79 | % | 23,509 | 3.73 | % | 402 | 0.06 | % | |||||||||||||
| Interest Expense / yield | 13,259 | 2.35 | % | 13,371 | 2.37 | % | (112 | ) | -0.02 | % | 2,047 | 0.44 | % | 2,688 | 0.58 | % | (641 | ) | -0.14 | % | |||||||||||
| Net Interest Spread | 20,118 | 2.18 | % | 19,338 | 2.07 | % | 780 | 0.11 | % | 21,864 | 3.35 | % | 20,821 | 3.15 | % | 1,043 | 0.20 | % | |||||||||||||
| Net Interest Margin | 2.73 | % | 2.63 | % | 0.10 | % | 3.47 | % | 3.30 | % | 0.17 | % | |||||||||||||||||||
| For the Six Months Ended June 30, 2023 | For the Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||||
| $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||||
| Loans | $ | 61,068 | 5.01 | % | $ | 59,733 | 4.90 | % | $ | 1,335 | 0.11 | % | $ | 42,843 | 4.39 | % | $ | 42,067 | 4.31 | % | $ | 776 | 0.08 | % | |||||||
| Taxable investment securities | 2,985 | 1.50 | % | 2,985 | 1.50 | % | - | 0.00 | % | 2,639 | 1.24 | % | 2,639 | 1.24 | % | - | 0.00 | % | |||||||||||||
| Tax-exempt investment securities | 193 | 1.93 | % | 193 | 1.93 | % | - | 0.00 | % | 140 | 1.76 | % | 140 | 1.76 | % | - | 0.00 | % | |||||||||||||
| Fed funds sold & other | 933 | 3.17 | % | 933 | 3.17 | % | - | 0.00 | % | 188 | 0.30 | % | 188 | 0.30 | % | - | 0.00 | % | |||||||||||||
| Total Interest Earning Assets | 65,179 | 4.47 | % | 63,844 | 4.38 | % | 1,335 | 0.09 | % | 45,810 | 3.63 | % | 45,034 | 3.57 | % | 776 | 0.06 | % | |||||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||
| Savings deposits | $ | 11,181 | 1.62 | % | $ | 11,181 | 1.62 | % | $ | - | 0.00 | % | $ | 1,365 | 0.21 | % | $ | 1,365 | 0.21 | % | $ | - | 0.00 | % | |||||||
| Other time deposits | 7,404 | 2.48 | % | 7,958 | 2.67 | % | (554 | ) | -0.19 | % | 1,374 | 0.61 | % | 2,613 | 1.17 | % | (1,239 | ) | -0.56 | % | |||||||||||
| Other borrowed money | 3,393 | 3.90 | % | 3,428 | 3.94 | % | (35 | ) | -0.04 | % | 553 | 2.16 | % | 595 | 2.33 | % | (42 | ) | -0.17 | % | |||||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||||
| securties sold under agreement to | |||||||||||||||||||||||||||||||
| repurchase | 832 | 4.22 | % | 832 | 4.22 | % | - | 0.00 | % | 318 | 1.98 | % | 318 | 1.98 | % | - | 0.00 | % | |||||||||||||
| Subordinated notes | 569 | 3.29 | % | 569 | 3.29 | % | - | 0.00 | % | 553 | 3.21 | % | 553 | 3.21 | % | - | 0.00 | % | |||||||||||||
| Total Interest Bearing Liabilities | 23,379 | 2.10 | % | 23,968 | 2.16 | % | (589 | ) | -0.06 | % | 4,163 | 0.44 | % | 5,444 | 0.58 | % | (1,281 | ) | -0.14 | % | |||||||||||
| Interest/Dividend income/yield | 65,179 | 4.47 | % | 63,844 | 4.38 | % | 1,335 | 0.09 | % | 45,810 | 3.63 | % | 45,034 | 3.57 | % | 776 | 0.06 | % | |||||||||||||
| Interest Expense / yield | 23,379 | 2.10 | % | 23,968 | 2.16 | % | (589 | ) | -0.06 | % | 4,163 | 0.44 | % | 5,444 | 0.58 | % | (1,281 | ) | -0.14 | % | |||||||||||
| Net Interest Spread | 41,800 | 2.37 | % | 39,876 | 2.22 | % | 1,924 | 0.15 | % | 41,647 | 3.19 | % | 39,590 | 2.99 | % | 2,057 | 0.20 | % | |||||||||||||
| Net Interest Margin | 2.87 | % | 2.74 | % | 0.13 | % | 3.30 | % | 3.14 | % | 0.16 | % | |||||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||
| NON-GAAP RECONCILIATION OF NET INCOME | ||||||||||||||||
| (in thousands of dollars) | (in thousands of dollars) | |||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Non-GAAP Reconciliation of Net Income | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net income as reported | $ | 6,001 | $ | 8,271 | $ | 12,467 | $ | 16,373 | ||||||||
| Acquisition expenses | 88 | - | 184 | 145 | ||||||||||||
| Tax effect on acquisition expenses | (18 | ) | - | (37 | ) | (30 | ) | |||||||||
| Net income excluding acquisition expenses and tax effect | $ | 6,071 | $ | 8,271 | $ | 12,614 | $ | 16,488 | ||||||||
| Weighted average common shares outstanding including participating securities | 13,632,440 | 13,065,975 | 13,624,094 | 13,066,123 | ||||||||||||
| Basic and diluted earnings per share | $ | 0.45 | $ | 0.63 | $ | 0.93 | $ | 1.26 | ||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| NON-GAAP RECONCILIATION OF TANGIBLE BOOK VALUE | |||||||||||||||
| Actual End of Period | Regulatory End of Period | ||||||||||||||
| Non-GAAP Reconciliation of Tangible Book Value | Year to Date | Year to Date | |||||||||||||
| June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||
| Shares Outstanding | 13,634,912 | 13,065,825 | 13,634,912 | 13,065,825 | |||||||||||
| Tangible Equity | |||||||||||||||
| Equity | $ | 304,663 | $ | 280,872 | $ | 304,663 | $ | 280,872 | |||||||
| Goodwill | 86,358 | 80,434 | 86,358 | 80,434 | |||||||||||
| Other Intangible | 8,437 | 3,974 | 8,437 | 3,974 | |||||||||||
| Comprehensive Loss Adjustment* | - | - | 35,922 | 31,261 | |||||||||||
| CECL Adjustment** | - | - | 2,528 | - | |||||||||||
| Tangible Equity | $ | 209,868 | $ | 196,464 | $ | 248,318 | $ | 227,725 | |||||||
| Shares Outstanding | 13,635 | 13,066 | 13,635 | 13,066 | |||||||||||
| Tangible Book Equity per Share | $ | 15.39 | $ | 15.04 | $ | 18.21 | $ | 17.43 | |||||||
| Actual Average | Regulatory Average | ||||||||||||||
| Year to Date | Year to Date | ||||||||||||||
| June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||
| Net Income | $ | 12,467 | $ | 16,373 | $ | 12,467 | $ | 16,373 | |||||||
| Acquisition Costs - Tax Adjusted | 147 | 115 | 147 | 115 | |||||||||||
| Average Shares Outstanding | 13,624,094 | 13,066,123 | 13,624,094 | 13,066,123 | |||||||||||
| Average Tangible Equity | |||||||||||||||
| Average Equity | $ | 303,635 | $ | 289,167 | $ | 303,635 | $ | 289,167 | |||||||
| Average Goodwill | 86,358 | 80,434 | 86,358 | 80,434 | |||||||||||
| Average Other Intangible | 8,942 | 4,235 | 8,942 | 4,235 | |||||||||||
| Average Comprehensive Loss Adjustment* | - | - | 34,921 | 16,893 | |||||||||||
| Average CECL Adjustment** | - | - | 2,528 | ||||||||||||
| Average Tangible Equity | $ | 208,336 | $ | 204,498 | $ | 245,784 | $ | 221,391 | |||||||
| Average Shares Outstanding | 13,624 | 13,066 | 13,624 | 13,066 | |||||||||||
| Average Tangible Book Equity per Share | $ | 15.29 | $ | 15.65 | $ | 18.04 | $ | 16.94 | |||||||
| Return on Average Tangible Equity | 11.97 | % | 16.01 | % | 10.14 | % | 14.79 | % | |||||||
| Return on Average Tangible Equity w/o Acquisition | 12.11 | % | 16.12 | % | 10.26 | % | 14.89 | % | |||||||
| *The Bank has adopted the Accumulated Other Comprehensive Income (AOCI) opt out election which removed AOCI | |||||||||||||||
| from the calculation of tangible equity for regulatory purposes. | |||||||||||||||
| **ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method and | |||||||||||||||
| the Bank has elected to spread the Capital adjustment over three years. The first year permits 75% of the capital adjustment to be removed | |||||||||||||||
| from the calculation of tangible equity for regulatory purposes. | |||||||||||||||
| 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 |
