U.S. Markets open in 1 hr 6 mins
  • S&P Futures

    4,704.00
    +2.50 (+0.05%)
     
  • Dow Futures

    35,830.00
    +19.00 (+0.05%)
     
  • Nasdaq Futures

    16,494.75
    +13.50 (+0.08%)
     
  • Russell 2000 Futures

    2,365.40
    +1.20 (+0.05%)
     
  • Gold

    1,861.20
    -0.20 (-0.01%)
     
  • Silver

    24.88
    -0.02 (-0.08%)
     
  • EUR/USD

    1.1369
    -0.0006 (-0.0568%)
     
  • 10-Yr Bond

    1.5890
    -0.0150 (-0.94%)
     
  • Vix

    17.59
    +0.48 (+2.81%)
     
  • GBP/USD

    1.3497
    -0.0003 (-0.0216%)
     
  • USD/JPY

    114.3040
    +0.0520 (+0.0455%)
     
  • BTC-USD

    57,271.39
    +2,920.93 (+5.37%)
     
  • CMC Crypto 200

    1,402.14
    -65.80 (-4.48%)
     
  • FTSE 100

    7,255.96
    -35.24 (-0.48%)
     
  • Nikkei 225

    29,683.09
    +84.43 (+0.29%)
     

Farmers & Merchants Bancorp, Inc. Reports 2020 Second-Quarter and Year-to-Date Financial Results

  • Oops!
    Something went wrong.
    Please try again later.
·22 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Strong Operating Performance Supports Communities, while Driving Loan and Deposit Growth

ARCHBOLD, Ohio, July 22, 2020 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2020 second quarter and year-to-date June 30, 2020.

2020 Second Quarter Financial and Operating Highlights Include (on a year-over-year basis unless noted):

  • Net income was $4.8 million, and included a $1.4 million increase in the provision for loan losses as a result of the COVID-19 crisis

  • Noninterest income increased 11.6% to $3.3 million

  • Strong organic growth drove a 23.1% increase in net total loans and a 18.9% increase in total deposits

  • Approved 947 PPP applications for $87.0 million during the second quarter

  • Year-to-date, net charge-offs to average loans was 0.02%, compared to 0.02% for the same period last year

  • Return on average assets was 1.10%, compared to 1.63% for the same period last year (last year’s second quarter included a one-time $1.4 million tax adjusted recovery benefit)

  • F&M remains well capitalized under regulatory guidelines with a Tier 1 capital to average assets of 10.70%

  • F&M continues investing in its strategic growth plan and, during the quarter, added new leadership talent and opened two new loan production offices in Muncie, IN and Oxford, OH

“Through the course of the COVID-19 pandemic, the health and safety of our customers, employees and communities has remained our highest priority. On June 15, 2020, all F&M offices reopened to provide customers with full lobby access, while operating with new safety procedures to do our part in limiting the spread of the coronavirus,” stated Lars B. Eller, President and Chief Executive Officer.

“F&M is dedicated to helping our communities through supportive financial relief programs. The high level of interest-only modifications compared to payment deferrals is encouraging and demonstrates the strong asset quality and lending relationships we had prior to the crisis. Specifically, we have only received $32.5 million of payment deferrals and $124.0 million of loans have entered into interest-only modifications as of June 30, 2020. Combined deferrals and interest-only modifications represent only 11.7% of our net total loans at the end of the second quarter. F&M has no exposure to the energy sector, while our exposure to industries most likely impacted by the pandemic remains limited. Loans in the restaurant, hospitality (hotel) and entertainment industries represent 8.63% of our total loan portfolio at June 30, 2020. In addition, our total past due balance remains low and was $6.2 million, or 0.46% of net total loans at June 30, 2020.”

Mr. Eller continued, “Through our Paycheck Protection Program efforts, 947 loans to small business customers have been approved by the Small Business Administration for total consideration of nearly $87 million. The success of this program has helped F&M provide the necessary financial resources to many small business customers who employ over 12,400 people. I am extremely grateful to all our employees for their hard work and dedication as we support our local communities through the COVID-19 crisis.”

Income Statement
Net income for the 2020 second quarter ended June 30, 2020, was $4.8 million, compared to $6.2 million for the same period last year. Net income for the 2019 second quarter included $31,000 of one-time acquisition related expenses and a $1.4 million tax-adjusted benefit from recoveries. Net income per basic and diluted share for the 2020 second quarter was $0.43, compared to $0.56 for the same period last year. One-time acquisition related expenses had no impact on earnings per basic and diluted share for the 2019 second quarter, while the benefit from recoveries enhanced earnings per basic and diluted share by $0.14 for the 2019 second quarter.

Net income for the 2020 first half ended June 30, 2020, was $8.9 million, compared to $9.4 million for the same period last year. Net income for the 2019 first half included $1.2 million of one-time acquisition related expenses and a $1.4 million tax-adjusted benefit from recoveries. Net income per basic and diluted share for the 2020 first half was $0.80, compared to $0.85 for the same period last year. 2019 first half earnings included $0.09 per basic and diluted share of one-time acquisition related expenses and a $0.14 per basic and diluted share benefit from recoveries.

Mr. Eller continued, “We are working hard to diversify our sources of income, while controlling expenses and reducing our cost of funds to help offset the March 2020 Federal Reserve emergency rate cuts. Noninterest income increased 11.6% to $3.3 million in the second quarter, the highest quarterly amount in nearly eight years, primarily due to higher home loans originated during the quarter. Our cost of interest-bearing liabilities was 0.91% for the 2020 second quarter, a 49-basis point reduction from 1.40% at December 31, 2019. Meanwhile, we continue to control expenses and our efficiency ratio for the six months ended June 30, 2020 was 60.43%, compared to 64.09% for the same period last year.”

Deposits
At June 30, 2020, total deposits were $1.477 billion, an increase of 18.9% from June 30, 2019. 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 June 30, 2020, increased 23.1% or by $250.3 million to $1.335 billion, compared to $1.084 billion at June 30, 2019, and up 10.2% from $1.212 billion at December 31, 2019. The year-over-year improvement resulted primarily from the contribution of strong organic loan growth and $87.0 million of PPP loans originated during the 2020 second quarter.

Mr. Eller continued, “We continue preparing for a potential economic downturn in the future and have stress tested nearly all the loans in our portfolio. In addition, for the 2020 six-months ended June 30, 2020, our provision for loan losses was $2.8 million higher than the same period last year as we proactively increased the allowance for loan and lease losses. While we increase our reserves, our asset quality remains strong and is in line with pre-crisis levels. This is a testament to our strong leadership team and long history of prudent credit practices. We remain conservative in our approach to risk and disciplined in pricing, which combined with F&M’s financial position and capital levels, provide us with the right resources and platform to navigate this challenging period.”

Focused on Operational Excellence
“Across our organization we are focused on operational excellence aimed at responding to the current economic environment, while pursuing our long-term strategic growth initiatives. During the second quarter, we accelerated investments in our digital infrastructure to support our employee’s ability to work from home and to make it easier for our customers to engage with the bank electronically. We also recently hired Shalini Singhal as our new Chief Information Officer. Shalini is a proven CIO who will lead our digital efforts, and I am excited by the motivated and experienced leadership team we are assembling. In addition, we opened two new loan production offices in Muncie, IN and Oxford, OH, and broke ground on a new full-service office in Ft. Wayne.”

“The COVID-19 pandemic continues to have an unprecedented impact on the country and our thoughts go out to anyone who has been impacted by the virus. At F&M we remain committed to building strong relationships with our communities and helping our customers navigate the challenges associated with the COVID-19 crisis. We are all in this together and F&M is focused on providing support for you and us,” concluded Mr. Eller.

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 7.3% to $240.3 million at June 30, 2020, from $224.0 million at June 30, 2019. At June 30, 2020, the company had a Tier 1 leverage ratio of 10.70%, compared to 11.77% at June 30, 2019.

Tangible stockholders’ equity increased to $181.7 million at June 30, 2020, compared to $172.0 million at June 30, 2019. On a per share basis, tangible stockholders’ equity at June 30, 2020, was $16.33 per share, compared to $15.49 per share at June 30, 2019.

For the six months ended June 30, 2020, the Company has declared cash dividends of $0.32 per share, which is a 6.7% increase over the 2019 six month declared dividend payment. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over 20 consecutive years. For the six months ended June 30, 2020, the dividend payout ratio was 39.69% compared to 32.26% 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 through its 30 offices. 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.



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, 2020

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

June 30, 2020

June 30, 2019

Interest Income

Loans, including fees

$

16,192

$

15,883

$

15,608

$

15,202

$

16,723

$

32,075

$

31,403

Debt securities:

U.S. Treasury and government agencies

767

1,146

840

972

816

1,913

1,529

Municipalities

243

262

225

190

211

505

422

Dividends

26

45

60

69

76

71

164

Federal funds sold

5

6

97

120

162

11

199

Other.

40

122

319

459

295

162

428

Total interest income

17,273

17,464

17,149

17,012

18,283

34,737

34,145

Interest Expense

Deposits

2,254

2,901

3,336

3,654

3,339

5,155

5,952

Federal funds purchased and securities sold

under agreements to repurchase

187

244

207

201

141

431

326

Borrowed funds

257

266

270

257

269

523

556

Total interest expense

2,698

3,411

3,813

4,112

3,749

6,109

6,834

Net Interest Income - Before Provision for Loan Losses

14,575

14,053

13,336

12,900

14,534

28,628

27,311

Provision for Loan Losses

1,569

1,430

728

247

133

2,999

163

Net Interest Income After Provision For Loan Losses

13,006

12,623

12,608

12,653

14,401

25,629

27,148

Noninterest Income

Customer service fees

2,258

1,586

1,732

1,722

1,694

3,844

3,272

Other service charges and fees

704

1,039

1,132

1,179

1,091

1,743

2,132

Net gain on sale of loans

364

227

119

260

196

591

298

Net gain (loss) on sale of available-for-sale securities

-

270

-

-

-

270

(26

)

Total noninterest income

3,326

3,122

2,983

3,161

2,981

6,448

5,676

Noninterest Expense

Salaries and wages

4,043

4,223

4,029

4,158

3,830

8,266

8,142

Employee benefits

1,218

1,677

1,410

1,331

1,223

2,895

2,817

Net occupancy expense

564

564

406

630

614

1,128

1,281

Furniture and equipment

750

758

596

720

763

1,508

1,459

Data processing

408

442

396

482

376

850

1,675

Franchise taxes

369

368

246

248

229

737

487

ATM expense

376

414

434

416

418

790

865

Advertising

265

303

340

587

382

568

642

Net (gain) loss on sale of other assets owned

(7

)

1

16

22

28

(6

)

43

FDIC assessment

144

72

(11

)

-

98

216

194

Mortgage servicing rights amortization

356

132

158

149

105

488

180

Consulting fees

217

139

264

196

95

356

208

Other general and administrative

1,691

1,602

1,482

1,667

1,551

3,293

3,230

Total noninterest expense

10,394

10,695

9,766

10,606

9,712

21,089

21,223

Income Before Income Taxes

5,938

5,050

5,825

5,208

7,670

10,988

11,601

Income Taxes

1,134

945

1,102

933

1,490

2,079

2,197

Net Income

4,804

4,105

4,723

4,275

6,180

8,909

9,404

Other Comprehensive Income (Loss) (Net of Tax):

Net unrealized gain (loss) on available-for-sale securities

661

4,998

(472

)

841

3,061

5,659

4,810

Reclassification adjustment for realized (gain) loss on sale of available-for-sale securities

-

(270

)

-

-

-

(270

)

26

Net unrealized gain (loss) on available-for-sale securities

661

4,728

(472

)

841

3,061

5,389

4,836

Tax expense (benefit)

139

993

(99

)

176

643

1,132

1,016

Other comprehensive income (loss)

522

3,735

(373

)

665

2,418

4,257

3,820

Comprehensive Income

$

5,326

$

7,840

$

4,350

$

4,940

$

8,598

$

13,166

$

13,224

Basic and Diluted Earnings Per Share

$

0.43

$

0.37

$

0.43

$

0.38

$

0.56

$

0.80

$

0.85

Dividends Declared

$

0.16

$

0.16

$

0.16

$

0.15

$

0.15

$

0.32

$

0.30



FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in thousands of dollars, except share data)

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Assets

Cash and due from banks

$

54,336

$

49,844

$

50,137

$

103,188

$

108,085

Federal funds sold

31,105

40,993

1,159

11,404

15,193

Total cash and cash equivalents

85,441

90,837

51,296

114,592

123,278

Interest-bearing time deposits

4,636

4,869

4,309

4,554

4,509

Securities - available-for-sale

236,292

204,121

222,293

190,465

204,415

Other securities, at cost

5,810

5,810

5,810

5,789

5,789

Loans held for sale

11,445

2,153

4,248

606

1,909

Loans, net

1,334,790

1,239,108

1,211,771

1,151,937

1,084,448

Premises and equipment

26,049

26,120

26,351

25,990

26,013

Goodwill

47,340

47,340

47,340

47,340

47,340

Mortgage servicing rights

2,740

2,672

2,629

2,556

2,465

Other real estate owned

135

185

214

351

329

Bank owned life insurance

15,399

15,313

15,235

15,151

15,050

Other assets

14,370

16,597

15,834

15,549

15,002

Total Assets

$

1,784,447

$

1,655,125

$

1,607,330

$

1,574,880

$

1,530,547

Liabilities and Stockholders' Equity

Liabilities

Deposits

Noninterest-bearing

$

336,027

$

261,786

$

265,156

$

261,719

$

242,510

Interest-bearing

NOW accounts

504,846

463,734

423,655

430,646

430,505

Savings

374,871

341,256

322,973

310,667

293,179

Time

261,631

281,931

276,563

274,996

276,153

Total deposits

1,477,375

1,348,707

1,288,347

1,278,028

1,242,347

Federal Funds Purchased and

securities sold under agreements to repurchase

30,949

30,585

48,073

30,056

27,102

Federal Home Loan Bank (FHLB) advances

19,087

24,788

24,806

24,669

24,532

Dividend payable

1,768

1,768

1,768

1,657

1,654

Accrued expenses and other liabilities

14,971

12,820

14,078

13,062

10,865

Total liabilities

1,544,150

1,418,668

1,377,072

1,347,472

1,306,500

Commitments and Contingencies

Stockholders' Equity

Common stock - No par value 20,000,000 shares authorized; issued

and outstanding 12,230,000 shares 6/30/20 and 12/31/19

82,134

81,844

81,535

81,264

81,955

Treasury stock - 1,100,975 shares 6/30/20, 1,093,065 shares 12/31/19

(12,668

)

(12,636

)

(12,456

)

(12,453

)

(12,707

)

Retained earnings

165,476

162,416

160,081

157,126

153,993

Accumulated other comprehensive income

5,355

4,833

1,098

1,471

806

Total stockholders' equity

240,297

236,457

230,258

227,408

224,047

Total Liabilities and Stockholders' Equity

$

1,784,447

$

1,655,125

$

1,607,330

$

1,574,880

$

1,530,547



FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

SELECT FINANCIAL DATA

For the Three Months Ended

For the Six Months Ended

Selected financial data

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

June 30, 2020

June 30, 2019

Return on average assets

1.10

%

1.02

%

1.18

%

1.10

%

1.63

%

1.06

%

1.32

%

Return on average equity

8.07

%

7.06

%

8.26

%

7.54

%

11.21

%

7.57

%

8.63

%

Yield on earning assets

4.25

%

4.66

%

4.63

%

4.74

%

5.25

%

4.44

%

5.03

%

Cost of interest bearing liabilities

0.91

%

1.22

%

1.40

%

1.55

%

1.45

%

1.06

%

1.36

%

Net interest spread

3.34

%

3.44

%

3.23

%

3.19

%

3.80

%

3.38

%

3.57

%

Net interest margin

3.59

%

3.75

%

3.60

%

3.60

%

4.18

%

3.67

%

3.78

%

Efficiency

57.91

%

63.09

%

63.67

%

65.86

%

56.00

%

60.43

%

64.09

%

Dividend payout ratio

36.80

%

43.07

%

43.34

%

38.67

%

26.78

%

39.69

%

32.26

%

Tangible book value per share (1)

$

16.33

$

16.26

$

16.01

$

15.68

$

15.49

Tier 1 capital to average assets

10.70

%

11.56

%

11.52

%

11.45

%

11.77

%

Loans

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

(Dollar amounts in thousands)

Commercial real estate

$

589,382

$

570,217

$

551,309

$

502,137

$

443,257

Agricultural real estate

194,606

194,383

199,105

200,791

193,768

Consumer real estate

174,069

174,731

165,349

159,074

159,540

Commercial and industrial

223,842

143,261

135,631

130,150

125,609

Agricultural

107,458

109,584

111,820

110,270

113,755

Consumer

50,108

49,022

49,237

49,552

48,952

Other

9,714

8,336

8,314

8,167

7,341

Less: Net deferred loan fees and costs

(4,456

)

(1,893

)

(1,766

)

(1,445

)

(1,091

)

Total loans,net

$

1,344,723

$

1,247,641

$

1,218,999

$

1,158,696

$

1,091,131

Asset quality data

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

(Dollar amounts in thousands)

Nonaccrual loans

$

8,473

$

3,344

$

3,400

$

3,275

$

1,328

Troubled debt restructuring

$

7,034

$

1,934

$

956

$

1,051

$

981

90 day past due and accruing

$

-

$

-

$

-

$

-

$

-

Nonperforming loans

$

8,473

$

3,344

$

3,400

$

3,275

$

1,328

Other real estate owned

$

135

$

185

$

214

$

351

$

329

Nonperforming assets

$

8,608

$

3,529

$

3,614

$

3,626

$

1,657

(Dollar amounts in thousands)

Allowance for loan and lease losses

$

10,538

$

8,533

$

7,228

$

6,759

$

6,964

Allowance for loan and lease losses/total loans

0.78%

0.68%

0.59%

0.58%

0.64%

Net charge-offs:

Quarter-to-date

$

169

$

125

$

295

$

171

$

86

Year-to-date

$

294

$

125

$

685

$

426

$

255

Net charge-offs to average loans

Quarter-to-date

0.01%

0.01%

0.03%

0.02%

0.01%

Year-to-date

0.02%

0.01%

0.06%

0.04%

0.02%

Nonperforming loans/total loans

0.63%

0.27%

0.28%

0.28%

0.12%

Allowance for loan and lease losses/nonperforming loans

117.24%

256.66%

187.17%

173.25%

375.51%

(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

June 30, 2020

June 30, 2019

Interest Earning Assets:

Average Balance

Interest/Dividends

Annualized
Yield/Rate

Average Balance

Interest/Dividends

Annualized
Yield/Rate

Loans

$

1,321,405

$

16,192

4.90

%

$

1,107,271

$

16,723

6.04

%

Taxable Investment Securities

189,977

931

1.96

%

169,776

933

2.20

%

Tax-exempt Investment Securities

21,915

105

2.43

%

33,622

170

2.56

%

Fed Funds Sold & Other

93,041

45

0.19

%

87,248

457

2.10

%

Total Interest Earning Assets

1,626,338

$

17,273

4.25

%

1,397,917

$

18,283

5.25

%

Nonearning Assets

125,730

115,082

Total Assets

$

1,752,068

$

1,512,999

Interest Bearing Liabilities:

Savings Deposits

$

859,644

$

954

0.44

%

718,731

2,006

1.12

%

Other Time Deposits

269,897

1,300

1.93

%

265,113

1,333

2.01

%

Other Borrowed Money

23,496

257

4.38

%

24,668

269

4.36

%

Fed Funds Purchased & Securities

Sold under Agreement to Repurch.

30,300

187

2.47

%

26,231

141

2.15

%

Total Interest Bearing Liabilities

$

1,183,337

$

2,698

0.91

%

$

1,034,743

$

3,749

1.45

%

Noninterest bearing Liabilities

330,611

257,765

Stockholders Equity

$

238,120

$

220,491

Net Interest Income and interest rate spread

$

14,575

3.34

%

$

14,534

3.80

%

Net Interest Margin

3.59

%

4.17

%

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, 2020

June 30, 2019

Interest Earning Assets:

Average Balance

Interest/Dividends

Annualized

Average Balance

Interest/Dividends

Annualized

Loans

$

1,279,127

$

32,075

5.02

%

$

1,107,649

$

31,403

5.67

%

Taxable Investment Securities

190,067

2,252

2.37

%

160,830

1,775

2.21

%

Tax-exempt Investment Securities

25,374

237

2.36

%

34,067

340

2.53

%

Fed Funds Sold & Other

71,927

173

0.48

%

59,526

627

2.11

%

Total Interest Earning Assets

1,566,495

$

34,737

4.44

%

1,362,072

$

34,145

5.03

%

Nonearning Assets

117,818

59,609

Total Assets

$

1,684,313

$

1,421,681

Interest Bearing Liabilities:

Savings Deposits

$

816,610

$

2,439

0.60

%

695,302

3,533

1.02

%

Other Time Deposits

273,738

2,716

1.98

%

253,991

2,419

1.90

%

Other Borrowed Money

24,141

523

4.33

%

26,424

556

4.21

%

Fed Funds Purchased & Securities

Sold under Agreement to Repurch.

34,627

431

2.49

%

30,012

326

2.17

%

Total Interest Bearing Liabilities

$

1,149,116

$

6,109

1.06

%

$

1,005,729

6,834

1.36

%

Noninterest bearing Liabilities

299,859

198,042

Stockholders Equity

$

235,338

$

217,910

Net Interest Income and interest rate spread

$

28,628

3.38

%

$

27,311

3.67

%

Net Interest Margin

3.67

%

4.03

%

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


Company Contact:

Investor and Media Contact:

Lars B. Eller

Andrew M. Berger

President and Chief Executive Officer

Managing Director

Farmers & Merchants Bancorp, Inc.

SM Berger & Company, Inc.

(419) 446-2501

(216) 464-6400

leller@fm.bank

andrew@smberger.com