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Release Details

Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results

October 30, 2024
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ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) -- 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):

  • 86 consecutive quarters of profitability
  • Net income increased 36.4% to $6.5 million, or $0.48 per basic and diluted share, from $4.8 million, or $0.35 per basic and diluted share, and net income expanded 14.7% from the 2024 second quarter
  • Net interest margin increased 12 basis points to 2.71%
  • Efficiency ratio improved to 67.98%, compared to 73.07% for the same period a year ago, and 69.03% for the 2024 second quarter
  • Total net loans remain stable at $2.54 billion at September 30, 2024
  • Total assets increased 4.8% to a record $3.39 billion
  • Deposits increased 4.3% to a record $2.68 billion
  • Stockholders’ equity increased 10.6% to a record $335.4 million
  • Asset quality remains at historically strong levels with nonperforming loans of only $2.9 million at September 30, 2024, compared to $22.4 million at September 30, 2023
  • Allowance for credit losses was 879.37% of nonperforming loans
  • F&M ended the quarter with excellent liquidity levels, and over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%
  • According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets

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, 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.

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.

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  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 agreements 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 
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 
                


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except per 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  135,193   135,829   135,482   135,515   135,171 
shares 9/30/24 and 13,664,641 shares 12/31/23          
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 
            


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       
                      
                      
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%      
                      
(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      


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


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 September 30, 2024 For the Three Months Ended September 30, 2023 
 As Reported Excluding Acc/AmortDifference As Reported Excluding Acc/AmortDifference 
 $Yield $Yield $Yield $Yield $Yield $Yield 
Interest Earning Assets:                  
Loans$36,8735.78% $36,1495.67% $724 0.11% $33,7835.33% $32,6315.15% $1,152 0.18% 
Taxable investment securities 2,1072.03%  2,1072.03%  - 0.00%  1,5591.58%  1,5591.58%  - 0.00% 
Tax-exempt investment securities 812.09%  812.09%  - 0.00%  841.77%  841.77%  - 0.00% 
Fed funds sold & other 2,8405.76%  2,8405.76%  - 0.00%  9334.36%  9334.36%  - 0.00% 
Total Interest Earning Assets 41,9015.27%  41,1775.17%  724 0.10%  36,3594.79%  35,2074.64%  1,152 0.15% 
                   
Interest Bearing Liabilities:                  
Savings deposits$10,6912.78% $10,6912.78% $- 0.00% $7,6732.24% $7,6732.24% $- 0.00% 
Other time deposits 6,2563.75%  6,2563.75%  - 0.00%  5,6503.38%  5,5003.29%  150 0.09% 
Other borrowed money 2,8044.24%  2,8004.23%  4 0.01%  2,7414.11%  2,7594.14%  (18)-0.03% 
Federal funds purchased and securities sold under agreement to repurchase 2774.03%  2774.03%  - 0.00%  3494.09%  3494.09%  - 0.00% 
Subordinated notes 2843.27%  2843.27%  - 0.00%  2843.28%  2843.28%  - 0.00% 
Total Interest Bearing Liabilities 20,3123.21%  20,3083.21%  4 0.00%  16,6972.82%  16,5652.80%  132 0.02% 
                   
Interest/Dividend income/yield 41,9015.27%  41,1775.17%  724 0.10%  36,3594.79%  35,2074.64%  1,152 0.15% 
Interest Expense / yield 20,3123.21%  20,3083.21%  4 0.00%  16,6972.82%  16,5652.80%  132 0.02% 
Net Interest Spread 21,5892.06%  20,8691.96%  720 0.10%  19,6621.97%  18,6421.84%  1,020 0.13% 
Net Interest Margin 2.71%  2.62%  0.09%  2.59%  2.46%  0.13% 
                   
                   
 For the Nine Months Ended September 30, 2024 For the Nine Months Ended September 30, 2023 
 As Reported Excluding Acc/AmortDifference As Reported Excluding Acc/AmortDifference 
 $Yield $Yield $Yield $Yield $Yield $Yield 
Interest Earning Assets:                  
Loans$108,6665.66% $106,5885.55% $2,078 0.11% $94,8515.12% $92,3644.99% $2,487 0.13% 
Taxable investment securities 5,5751.87%  5,5751.87%  - 0.00%  4,5441.53%  4,5441.53%  - 0.00% 
Tax-exempt investment securities 2492.03%  2492.03%  - 0.00%  2771.88%  2771.88%  - 0.00% 
Fed funds sold & other 7,2315.84%  7,2315.84%  - 0.00%  1,8663.67%  1,8663.67%  - 0.00% 
 Total Interest Earning Assets 121,7215.17%  119,6435.08%  2,078 0.09%  101,5384.57%  99,0514.47%  2,487 0.10% 
                   
Interest Bearing Liabilities:                  
Savings deposits$30,2912.71% $30,2912.71% $- 0.00% $18,8541.83% $18,8541.83% $- 0.00% 
Other time deposits 18,4233.71%  18,4233.71%  - 0.00%  13,0542.81%  13,4582.89%  (404)-0.08% 
Other borrowed money 8,2354.15%  8,2544.16%  (19)-0.01%  6,1343.99%  6,1874.03%  (53)-0.04% 
Federal funds purchased and securities sold under agreement to repurchase 8374.00%  8374.00%  - 0.00%  1,1814.18%  1,1814.18%  - 0.00% 
Subordinated notes 8533.27%  8533.27%  - 0.00%  8533.28%  8533.28%  - 0.00% 
Total Interest Bearing Liabilities 58,6393.16%  58,6583.16%  (19)0.00%  40,0762.35%  40,5332.38%  (457)-0.03% 
                   
Interest/Dividend income/yield 121,7215.17%  119,6435.08%  2,078 0.09%  101,5384.57%  99,0514.47%  2,487 0.10% 
Interest Expense / yield 58,6393.16%  58,6583.16%  (19)0.00%  40,0762.35%  40,5332.38%  (457)-0.03% 
Net Interest Spread 63,0822.01%  60,9851.92%  2,097 0.09%  61,4622.22%  58,5182.09%  2,944 0.13% 
Net Interest Margin 2.68%  2.59%  0.09%  2.77%  2.64%  0.13% 
                   


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