Release Details

Farmers & Merchants Bancorp, Inc. Reports 2021 Second-Quarter and Year-to-Date Financial Results

July 21, 2021

ARCHBOLD, Ohio, July 21, 2021 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2021 second quarter and year-to-date June 30, 2021.

2021 Second Quarter Financial and Operating Highlights
(compared to the 2020 second quarter period unless noted):

  • Net income increased 3.7% to $5.0 million, and included one-time acquisition costs of $1.0 million
  • Earnings increased 2.3% to $0.44 per basic and diluted share, and included one-time acquisition costs of $0.08 per basic and diluted share
  • Net interest income after provision for loan losses increased by 17.9% to $15.3 million
  • Noninterest income increased 21.1% to $4.0 million
  • Second quarter after-tax income benefited from $0.35 million of accelerated fees associated with the Paycheck Protection Program (“PPP”)
  • Loans have increased 3.9% organically year-to-date, not including recent acquisitions or PPP loans
  • Net charge-offs to average loans were 0.00%, compared to 0.01%
  • Adjusted return on average tangible equity increased to 11.28% from 9.98%
  • Completed the acquisition of Ossian Financial
  • Announced the acquisition of Perpetual Federal Savings Bank
  • Appointed Frank R. Simon to the Board of Directors
  • Opened a new full-service office in Fort Wayne, IN

“I am excited by the progress F&M is making as we continue to achieve strong execution across all of our key business strategies, while deepening customer relationships, expanding into new markets, and delivering robust operating and financial results,” stated Lars B. Eller, President and Chief Executive Officer. “In 2019 we created a strategic plan aimed at growing earnings and creating value for shareholders by increasing total assets from $1.6 billion to $3.0 billion by 2023. We expect earnings growth will accelerate in the coming quarters as we benefit from the progress we are making on executing our strategic growth plan.”

On April 30, 2021, F&M successfully closed the acquisition of Ossian Financial Services, Inc (“OFSI”).   OFSI is F&M’s third recent acquisition in Northeast Indiana and immediately enhances the Company’s growing franchise within the state. The integration and conversion were completed during the second quarter, and OFSI’s offices and online portal have transitioned to F&M. Also, in the 2021 second quarter, the Company announced the upcoming acquisition of Perpetual Federal Savings Bank (“PFSB”), expanding F&M’s community banking franchise into the compelling Urbana, Columbus, Dayton, Springfield, Piqua, Tipp City, Troy, and Sidney markets. The Company expects the PFSB acquisition to close in October 2021.

Mr. Eller continued, “Acquisition growth is an important component of our strategic growth plan and over the past 12 months we have announced two bank acquisitions and acquired an Indiana based wealth management company. Through the OFSI and PFSB acquisitions, we expect to add a combined $513 million in new assets and $413 million in new deposits. F&M will also see expense benefits as we re-align our footprint and add new customers to a single platform, which will help to contribute to earnings and allow us to further invest in technology to improve the experience for our customers and employees.”  

Mr. Eller continued, “Despite our recent growth and expansion, we remain committed to honoring the community banking values that are responsible for our accomplishments over the past 124 years and continue to drive our success today. As a result, F&M has continued to experience strong organic loan growth outside of PPP and acquired loans during the first half of 2021.   Organic loans have increased 3.9% year-to-date. In addition, our credit portfolio remains strong and 30+ days past due accounts as of June 30, 2021 were 0.12%, the lowest level since 2018.”

Income Statement
Net income for the 2021 second quarter ended June 30, 2021, was $5.0 million, compared to $4.8 million for the same period last year. Net income per basic and diluted share for the 2021 second quarter was $0.44, compared to $0.43 for the same period last year. Net income for the 2021 first half ended June 30, 2021, was $9.9 million, compared to $8.9 million for the same period last year. Net income per basic and diluted share for the 2021 first half was $0.88, compared to $0.80 for the same period last year.

Net income for the 2021 second quarter and first half included one-time tax adjusted expenses of $0.8 million and $1.0 million, respectively. On a per share basis, for the 2021 second quarter and first half, net income included one-time tax adjusted expenses of $0.08 or $0.11, respectively, per basic and diluted share.

Mr. Eller continued, “F&M’s larger size and expanded footprint have helped establish diversity within our revenue streams and insulated our earnings. For the 2021 first half, noninterest income as a percent of total revenue has increased to 20.8%, compared to 15.7% for the same period last year. In addition, during the 2021 first half, we have incurred several one-time costs due to our strategic growth focus, which has reduced the level of profitability we are accustomed to seeing. However, we expect to realize significant long-term benefits from our strategies and we believe we will experience an acceleration in profitability in the coming quarters.”

Deposits
At June 30, 2021, total deposits were $1.854 billion, an increase of 25.5% from June 30, 2020, and an increase of 16.2% from December 31, 2020. The significant organic deposit growth being experienced is a result of continued strength in expanding relationships with new and existing customers, the benefits of PPP activity, and the completion of the Ossian Financial Services, Inc. acquisition. 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, 2021, increased 8.4%, or by $113.7 million to $1.458 billion, compared to $1.345 billion at June 30, 2020, and up from $1.303 billion at December 31, 2020. The year-over-year improvement resulted primarily from the contribution of continued organic loan growth and the completion of the Ossian Financial Services, Inc. acquisition. In addition, during the 2021 second quarter, the Company processed $12.9 million of PPP loan forgiveness and principal payments received, resulting in a total of $47.0 million of PPP loans within F&M’s loan portfolio at June 30, 2021.

Mr. Eller continued: “At June 30, 2021, there were only two loans totaling $0.6 million of COVID-related payment modifications, all of which are interest-only modifications and secured by real estate. This compares to 190 loans representing a balance of $165 million in deferrals at the peak last year. As economic activity stabilizes, and our loan performance improves better than pre-pandemic levels, we expect contributions to our allowance for loan losses will also stabilize and align with loan growth in future periods.”    

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $7.0 million, or 0.48% of total loans at June 30, 2021, compared to $8.5 million, or 0.63% at June 30, 2020.

Mr. Eller continued, “As we work to integrate and close our recent acquisitions, we remain focused on operational excellence, investments in technology, supporting our communities, and ensuring a best-in-class experience for our customers. In addition, we are committed to attracting and retaining experienced professionals across our organization, and I am encouraged with the addition of Frank R. Simon to our Board of Directors. We continue to believe 2021 will be a transformative year for F&M and we expect our enhanced scale and operating platform will magnify shareholder value.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 4.3% to $250.6 million at June 30, 2021, from $240.3 million at June 30, 2020. At June 30, 2021, the Company had a Tier 1 leverage ratio of 8.78%, compared to 10.70% at June 30, 2020.

Tangible stockholders’ equity increased to $189.6 million at June 30, 2021, compared to $181.7 million at June 30, 2020. On a per share basis, tangible stockholders’ equity at June 30, 2021, was $16.94 per share, compared to $16.33 per share at June 30, 2020.

For the six months ended June 30, 2021, the Company has declared cash dividends of $0.34 per share, which is a 6.3% increase over the 2020 six-month declared dividend payment. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over 26 consecutive years. For the six months ended June 30, 2021, the dividend payout ratio was 38.18% compared to 39.69% for the same period last year.

About Farmers & Merchants State Bank:
The Farmers & Merchants State Bank is a local independent community bank that has been serving Northwest Ohio and Northeast Indiana since 1897. The Farmers & Merchants State Bank provides commercial banking, retail banking and other financial services. Our locations are in Fulton, Defiance, Hancock, Henry, Lucas, Williams, and Wood counties in Northwest Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, and Steuben counties.

Safe harbor statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

  
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, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020  June 30, 2021 June 30, 2020 
Interest Income                
Loans, including fees $16,259 $15,612  $17,061  $16,181  $16,192   $31,871  $32,075  
Debt securities:                
U.S. Treasury and government agencies  857  751   695   761   767    1,608   1,913  
Municipalities  289  308   295   279   243    597   505  
Dividends  31  50   35   36   26    81   71  
Federal funds sold  6  5   5   4   5    11   11  
Other.  88  39   48   32   40    127   162  
Total interest income  17,530  16,765   18,139   17,293   17,273    34,295   34,737  
Interest Expense                
Deposits  1,276  1,340   1,619   1,864   2,254    2,616   5,155  
Federal funds purchased and securities sold under agreements to repurchase  163  166   170   174   187    329   431  
Borrowed funds  115  222   226   231   257    337   523  
Total interest expense  1,554  1,728   2,015   2,269   2,698    3,282   6,109  
Net Interest Income - Before Provision for Loan Losses 15,976  15,037   16,124   15,024   14,575    31,013   28,628  
Provision for Loan Losses   641  1,700   1,995   1,987   1,569    2,341   2,999  
Net Interest Income After Provision For Loan Losses 15,335  13,337   14,129   13,037   13,006    28,672   25,629  
Noninterest Income                
Customer service fees  2,198  2,814   2,750   2,299   2,258    5,012   3,844  
Other service charges and fees  874  838   980   879   704    1,712   1,743  
Net gain on sale of loans  955  1,046   1,894   1,537   364    2,001   591  
Net gain on sale of available-for-sale securities  -  293   -   -   -    293   270  
Total noninterest income  4,027  4,991   5,624   4,715   3,326    9,018   6,448  
Noninterest Expense                
Salaries and wages  4,591  4,390   5,068   5,102   4,095    8,981   8,266  
Employee benefits  1,915  1,994   1,140   1,566   1,218    3,909   2,895  
Net occupancy expense  546  577   585   558   564    1,123   1,128  
Furniture and equipment  848  791   760   875   750    1,639   1,508  
Data processing  428  505   428   490   408    933   850  
Franchise taxes  294  446   241   368   369    740   737  
ATM expense  459  449   456   444   376    908   790  
Advertising  331  235   353   411   265    566   568  
Net (gain) loss on sale of other assets owned  227  (25)  20   (7)  (7)   202   (6) 
FDIC assessment  276  236   223   194   144    512   216  
Mortgage servicing rights amortization  524  505   247   296   356    1,029   488  
Consulting fees  394  223   407   205   217    617   356  
Other general and administrative  2,227  2,033   1,358   1,553   1,612    4,260   3,293  
Total noninterest expense  13,060  12,359   11,286   12,055   10,367    25,419   21,089  
Income Before Income Taxes  6,302  5,969   8,467   5,697   5,965    12,271   10,988  
Income Taxes  1,319  1,060   1,691   1,287   1,161    2,379   2,079  
Net Income  4,983  4,909   6,776   4,410   4,804    9,892   8,909  
Other Comprehensive Income (Loss) (Net of Tax):                
Net unrealized gain (loss) on available-for-sale securities 786  (6,737)  (207)  639   661    (5,951)  5,659  
Reclassification adjustment for realized gain on sale of available-for-sale securities -  (293)  -   -   -    (293)  (270) 
Net unrealized gain (loss) on available-for-sale securities 786  (7,030)  (207)  639   661    (6,244)  5,389  
Tax expense (benefit)  165  (1,476)  (44)  134   139    (1,311)  1,132  
Other comprehensive income (loss)  621  (5,554)  (163)  505   522    (4,933)  4,257  
Comprehensive Income (Loss) $5,604 $(645) $6,613  $4,915  $5,326   $4,959  $13,166  
Basic and Diluted Earnings Per Share $0.44 $0.44  $0.60  $0.40  $0.43   $0.88  $0.80  
Dividends Declared $0.17 $0.17  $0.17  $0.17  $0.16   $0.34  $0.32  
                 
                 

 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)
 
   June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 
   (Unaudited) (Unaudited)   (Unaudited) (Unaudited) 
Assets            
          Cash and due from banks $93,636  $118,139  $98,279  $46,395  $54,336  
          Federal funds sold  57,483   57,361   77,427   41,358   31,105  
 Total cash and cash equivalents  151,119   175,500   175,706   87,753   85,441  
             
          Interest-bearing time deposits  18,597   4,405   4,653   4,657   4,636  
          Securities - available-for-sale  407,500   352,974   307,812   259,041   236,292  
          Other securities, at cost  6,419   5,939   5,939   5,827   5,810  
          Loans held for sale  8,041   7,511   8,391   7,621   11,445  
          Loans, net  1,443,336   1,327,254   1,288,667   1,351,979   1,334,790  
          Premises and equipment  26,915   26,703   27,063   26,776   26,049  
          Goodwill  56,066   47,340   47,340   47,340   47,340  
          Mortgage servicing rights  3,146   3,444   3,320   3,027   2,740  
          Other real estate owned  198   148   71   206   135  
          Bank owned life insurance  27,218   25,347   25,208   15,501   15,399  
          Other assets  18,310   16,720   15,374   16,872   14,370  
             
Total Assets $2,166,865  $1,993,285  $1,909,544  $1,826,600  $1,784,447  
 Liabilities and Stockholders' Equity           
Liabilities           
          Deposits           
 Noninterest-bearing $443,863  $384,558  $351,147  $330,845  $336,027  
 Interest-bearing           
      NOW accounts  652,078   605,533   542,317   534,792   504,846  
      Savings  501,687   451,043   455,145   392,059   374,871  
      Time  256,445   242,717   247,553   261,177   261,631  
 Total deposits  1,854,073   1,683,851   1,596,162   1,518,873   1,477,375  
             
          Federal funds purchased and securities sold under agreements to repurchase  29,882   30,072   30,239   29,859   30,949  
          Federal Home Loan Bank (FHLB) advances  17,868   17,840   17,861   17,724   19,087  
          Dividend payable  1,888   1,889   1,889   1,882   1,768  
          Accrued expenses and other liabilities  12,569   12,805   14,233   14,841   14,971  
 Total liabilities  1,916,280   1,746,457   1,660,384   1,583,179   1,544,150  
             
Commitments and Contingencies           
             
Stockholders' Equity           
                     
Common stock - No par value 20,000,000 shares authorized; issued and outstanding 12,230,000 shares 6/30/21 and 12/31/20  82,259   82,030   81,804   81,577   82,134  
Treasury stock - 1,040,948 shares 6/30/21, 1,032,456 shares 12/31/20 (12,172)  (11,962)  (11,932)  (12,397)  (12,668) 
Retained earnings  179,734   176,617   173,591   168,381   165,476  
 Accumulated other comprehensive income  764   143   5,697   5,860   5,355  
                  Total stockholders' equity  250,585   246,828   249,160   243,421   240,297  
             
Total Liabilities and Stockholders' Equity $2,166,865  $1,993,285  $1,909,544  $1,826,600  $1,784,447  
             

 

 
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
                      
   For the Three Months Ended For the Six Months Ended
Selected financial data June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020  June 30, 2021  June 30, 2020
Return on average assets  0.90%  1.01%  1.43%  0.98%  1.10%  0.98%  1.06%
Return on average equity  8.00%  7.87%  11.04%  7.28%  8.07%  7.94%  7.57%
Yield on earning assets  3.53%  3.71%  4.09%  4.04%  4.25%  3.61%  4.44%
Cost of interest bearing liabilities  0.44%  0.53%  0.64%  0.74%  0.91%  0.48%  1.06%
Net interest spread  3.09%  3.18%  3.45%  3.30%  3.34%  3.13%  3.38%
Net interest margin  3.21%  3.33%  3.63%  3.51%  3.59%  3.27%  3.67%
Efficiency  64.98%  62.57%  52.20%  62.11%  57.91%  63.72%  60.43%
Dividend payout ratio  37.89%  38.48%  27.77%  42.66%  36.80%  38.18%  39.69%
Tangible book value per share (1) $16.94  $17.50  $17.19  $16.78  $16.33       
Tier 1 capital to average assets  8.78%  10.39%  10.46%  10.65%  10.70%      
Average Shares Outstanding  11,191,043   11,197,012   11,177,765   11,142,797   11,129,341   11,194,011   11,132,105 
               
Loans June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020      
(Dollar amounts in thousands)                     
Commercial real estate $691,122  $618,754  $588,825  $595,146  $589,382       
Agricultural real estate  189,742   179,945   189,159   192,883   194,606       
Consumer real estate  194,715   175,675   175,588   175,963   174,069       
Commercial and industrial  216,609   202,958   189,246   238,175   223,842       
Agricultural  100,756   100,022   94,358   103,330   107,458       
Consumer  56,427   54,445   52,540   53,320   50,108       
Other  13,549   14,088   15,757   9,030   9,714       
  Less: Net deferred loan fees and costs  (4,497)  (4,208)  (2,483)  (3,985)  (4,456)      
Total loans,net $1,458,423  $1,341,679  $1,302,990  $1,363,862  $1,344,723       
                      
               
Asset quality data June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020      
(Dollar amounts in thousands)                     
Nonaccrual loans $7,031  $8,139  $9,404  $7,870  $8,473       
Troubled debt restructuring $5,492  $5,774  $6,514  $7,028  $7,034       
90 day past due and accruing $-  $-  $-  $-  $-       
Nonperforming loans $7,031  $8,139  $9,404  $7,870  $8,473       
Other real estate owned $198  $148  $71  $206  $135       
Nonperforming assets $7,229  $8,287  $9,475  $8,076  $8,608       
                      
(Dollar amounts in thousands)                     
Allowance for loan and lease losses $15,087  $14,425  $13,672  $11,883  $10,538       
Allowance for loan and lease losses/total loans  1.03%  1.08%  1.05%  0.87%  0.78%      
Net charge-offs (recoveries):                     
   Quarter-to-date $(21) $947  $205  $37  $169       
   Year-to-date $926  $947  $537  $331  $294       
Net charge-offs to average loans                     
   Quarter-to-date  0.00%  0.07%  0.02%  0.00%  0.01%      
   Year-to-date  0.07%  0.07%  0.04%  0.03%  0.02%      
Nonperforming loans/total loans  0.48%  0.61%  0.72%  0.58%  0.63%      
Allowance for loan and lease losses/nonperforming loans  214.58%  177.24%  177.96%  151.01%  117.24%      
                      
(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, 2021 June 30, 2020 

Interest Earning Assets:
 
Average Balance
 
Interest/Dividends
 Annualized
Yield/Rate
 
Average Balance
 
Interest/Dividends
 Annualized
Yield/Rate
 
Loans $1,419,531 $16,259 4.58% $1,321,405 $16,192 4.90% 
Taxable investment securities  367,249  1,100 1.20%  189,977  931 1.96% 
Tax-exempt investment securities  17,497  77 2.23%  21,915  105 2.43% 
Fed funds sold & other  187,583  94 0.20%  93,041  45 0.19% 
Total Interest Earning Assets  1,991,860 $17,530 3.53%  1,626,338 $17,273 4.25% 
              
Nonearning Assets  228,036      125,730     
              
Total Assets $2,219,896     $1,752,068     
              
Interest Bearing Liabilities:             
Savings deposits $1,123,157 $566 0.20% $859,644 $954 0.44% 
Other time deposits  250,277  710 1.13%  269,897  1,300 1.93% 
Other borrowed money  17,859  115 2.58%  23,496  257 4.38% 
Fed funds purchased & securities sold under agreement to repurchase  29,980  163 2.17%  30,300  187 2.47% 
Total Interest Bearing Liabilities $1,421,273 $1,554 0.44% $1,183,337 $2,698 0.91% 
              
Noninterest bearing Liabilities  549,610      330,611     
              
Stockholders Equity $249,013     $238,120     
              
Net Interest Income and Interest Rate Spread   $15,976 3.09%   $14,575 3.34% 
              
Net Interest Margin     3.21%     3.59% 
              
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
              
              
  For the Six Months Ended For the Six Months Ended 
  June 30, 2021 June 30, 2020 

Interest Earning Assets:
 
Average Balance
 
Interest/Dividends
 Annualized Yield/Rate 
Average Balance
 
Interest/Dividends
 Annualized Yield/Rate 
Loans $1,374,302 $31,871 4.64% $1,279,127 $32,075 5.02% 
Taxable investment securities  345,893  2,109 1.22%  190,067  2,252 2.37% 
Tax-exempt investment securities  18,936  177 2.37%  25,374  237 2.36% 
Fed funds sold & other  162,646  138 0.17%  71,927  173 0.48% 
Total Interest Earning Assets  1,901,777 $34,295 3.61%  1,566,495 $34,737 4.44% 
              
Nonearning Assets  126,533      117,818     
              
Total Assets $2,028,310     $1,684,313     
              
Interest Bearing Liabilities:             
Savings deposits $1,069,179 $1,140 0.21% $816,610 $2,439 0.60% 
Other time deposits  246,155  1,476 1.20%  273,738  2,716 1.98% 
Other borrowed money  17,854  337 3.78%  24,141  523 4.33% 
Fed funds purchased & securities sold under agreement to repurchase  30,095  329 2.19%  34,627  431 2.49% 
Total Interest Bearing Liabilities $1,363,283 $3,282 0.48% $1,149,116 $6,109 1.06% 
              
Noninterest bearing Liabilities  415,722      299,859     
              
Stockholders Equity $249,305     $235,338     
              
Net Interest Income and Interest Rate Spread   $31,013 3.13%   $28,628 3.38% 
              
Net Interest Margin     3.27%     3.67% 
              
    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
NOTES TO CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
 
    
Non-GAAP Allowance for Loan Losses, excluding PPP Loans  
(in thousands of dollars, except percentages)  
   
  June 30, 2021
    
Allowance for Loan Losses $15,087  
Credit Mark  2,172  
Total Credit Mark and Allowance for Loan Losses  17,259  
    
Loans $1,458,423  
Adjustments   
PPP Loans  (47,041) 
Loans excluding PPP Loans $1,411,382  
    
Allowance for Loan Losses  1.03% 
Effect of Credit Mark  0.15% 
Effect of PPP Loans  0.04% 
Allowance for Loan Losses, excluding PPP Loans  1.22% 
    
    

 

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, 2021 June 30, 2020 June 30, 2021 June 30, 2020
  (Unaudited) (Unaudited)
Net income as reported $4,983  $4,804 $9,892  $8,909
Net income from Ossian Financial Services, Inc prior to acquisition $54  $- $269  $-
Acquisition expenses  1,092   -  1,248   -
Tax effect  (224)  -  (295)  -
Net income excluding acquisition expenses $5,905  $4,804 $11,114  $8,909
         

 

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