FMAO Farmers and Merchants Bancorp Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 30, 2024

 

Farmers & Merchants Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Ohio	001-38084	34-1469491
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

 

307 North Defiance Street, Archbold, Ohio	43502
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number, including Area Code (419) 446-2501

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Each Exchange
Common Stock, No Par Value	FMAO	NASDAQ Capital Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17-CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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ITEM 2.02. Results of Operation and Financial Condition

On October 30, 2024, Farmers & Merchants Bancorp, Inc. issued a press release (the “Release”) announcing its earnings for the three and nine months ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99 and is incorporated by reference herein.

ITEM 9.01. Financial Statements and Exhibits

(d) Exhibits.

 

Exhibit Number	Exhibit
99	Company Press Release dated October 30, 2024

 

104	The Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto authorized.

 

	FARMERS & MERCHANTS BANCORP, INC.
		(Registrant)
Dated: October 30, 2024		/s/ Lars B. Eller
		Lars B. Eller
		President and Chief Executive Officer
		/s/ Barbara J. Britenriker
		Barbara J. Britenriker
		Executive Vice President and Chief Financial Officer

 

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Exhibit 99

Post Office Box 216 307 North Defiance Street Archbold, Ohio 43502	NEWS RELEASE

 

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

 

Farmers & Merchants Bancorp, Inc. Reports

2024 Third-Quarter and Year-to-Date Financial Results

 

ARCHBOLD, OHIO, October 30, 2024, 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):

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,

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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.

 

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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.

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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.

 

 

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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 agreement 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
(continued)

 

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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (continued)

(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
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

 

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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in thousands of dollars, except 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 shares 9/30/24 and 13,664,641    shares 12/31/23			135,193				135,829				135,482				135,515				135,171
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

 

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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
(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

 

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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

SELECT FINANCIAL DATA (continued)

 

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	%

 

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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
		Average Balance				Interest/ Dividends				Annualized Yield/Rate				Average Balance				Interest/ Dividends				Annualized Yield/Rate
Interest Earning Assets:
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

 

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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

 

		For the Nine Months Ended												For the Nine Months Ended
		September 30, 2024												September 30, 2023
		Average Balance				Interest/ Dividends				Annualized Yield/Rate				Average Balance				Interest/ Dividends				Annualized Yield/Rate
Interest Earning Assets:
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

 

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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

 

		For the Three Months Ended																								For the Three Months Ended
		September 30, 2024																								September 30, 2023
		As Reported							Excluding Accretion/Amortization									Difference								As Reported							Excluding Accretion/Amortization									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	%
Fed 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	%
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

 

 

 

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FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (continued)

(in thousands of dollars, except percentages)

 

		For the Nine Months Ended																								For the Nine Months Ended
		September 30, 2024																								September 30, 2023
		As Reported							Excluding Accretion/Amortization									Difference								As Reported							Excluding Accretion/Amortization									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	%
Fed 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	%
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

 

 

 

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v3.24.3

Document and Entity Information	Oct. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 30, 2024
Entity Registrant Name	Farmers & Merchants Bancorp, Inc.
Entity Central Index Key	0000792966
Entity Emerging Growth Company	false
Entity File Number	001-38084
Entity Incorporation State Country Code	OH
Entity Tax Identification Number	34-1469491
Entity Address, Address Line One	307 North Defiance Street
Entity Address, City or Town	Archbold
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43502
City Area Code	(419)
Local Phone Number	446-2501
Written Communications	false
Soliciting Material	false
Pre commencement Tender Offer	false
Pre commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, No Par Value
Trading Symbol	FMAO
Security Exchange Name	NASDAQ

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