SEC Filing | Farmers & Merchants Bancorp, Inc.

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fmao-8k_20191021.htm

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 21, 2019

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. ☐

ITEM 2.02.Results of Operation and Financial Condition

On October 21, 2019, Farmers & Merchants Bancorp, Inc. issued a press release announcing its earnings for the quarter ended September 30, 2019. 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

Company Press release dated October 21, 2019

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 21, 2019		/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

fmao-ex99_6.htm

Exhibit 99

Post Office Box 216

307 North Defiance Street

Archbold, Ohio 43502

NEWS RELEASE

Company Contact:

Investor and Media Contact:

Marty Filogamo

Senior Vice President – Marketing Manager

Farmers & Merchants Bancorp, Inc.

(419) 445-3501 ext. 15435

mfilogamo@fm.bank

Andrew M. Berger

Managing Director

SM Berger & Company, Inc.

(216) 464-6400

andrew@smberger.com

Farmers & Merchants Bancorp, Inc. Reports

2019 Third-Quarter and Year-to-Date Financial Results

Organic Loan and Deposit Growth Drive Strong Third Quarter Results

ARCHBOLD, OHIO, October 21, 2019, Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2019 third quarter and year-to-date September 30, 2019.

2019 Third Quarter Financial Highlights Include (on a year-over-year basis unless noted):

•

Total loans increased 38.2% to $1.159 billion as a result of the contribution from the Limberlost acquisition and strong organic consumer lending, residential mortgage and commercial and industrial growth

•

Total assets increased 42.1% to a record $1.575 billion

•

Organic deposit growth continued and increased 2.9% in the past three months to a record $1.278 billion

•

Net interest income after provision for loan losses increased 27.3% to $12.7 million

•

Net income increased 10.3% to $4.3 million

•

Earnings per basic and diluted share decreased 9.5% to $0.38 as a result of a 20.3% increase in the weighted average common shares outstanding due to the additional shares from the Limberlost acquisition

•

Tangible book value per share increased 7.9% to $15.68 per share

“Organic loan and deposit growth accelerated during the 2019 third quarter and increased 6.2% and 2.9%, respectively over the past three months,” stated Lars B. Eller, President and Chief Executive Officer. “The strong growth trends we experienced in the third quarter are a direct result of the positive execution of our new strategic plan, the contribution of our talented and community-oriented bankers and improving production from our more recently opened offices. In addition, I am encouraged that the expansion in loans over the past three months was driven by commercial and agricultural loans. Competition for loans and deposits remains strong, which combined with lower benchmark rates, has impacted our net income margin, however, we believe strong loan growth, controlled cost of funds, and stable asset quality will continue to contribute to higher net interest income and overall profitability.”

Income Statement

Net income for the 2019 third quarter ended September 30, 2019, was $4.3 million, compared to $3.9 million for the same period last year. Earnings per basic and diluted share for the 2019 third quarter was $0.38, compared to $0.42 for the same period last year, as a result of a 20.3% increase in the weighted average common shares outstanding due to the additional shares from the Limberlost acquisition.

Net income for the 2019 nine months ended September 30, 2019, was $13.7 million, compared to $11.8 million for the same period last year. Net income for the 2019 nine months included $1.2 million of one-time acquisition related expenses and a $1.6 million benefit from recoveries. Net income per basic and diluted share for the 2019 nine months was $1.23, compared to $1.27 for the same period last year. 2019 nine months 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.

Loan Portfolio and Asset Quality

Total loans, net at September 30, 2019, increased 38.2% or by $320.0 million to $1.159 billion, compared to $838.7 million at September 30, 2018, and up 36.9% from $846.4 million at December 31, 2018. The year-over-year improvement resulted primarily from the contribution of the Limberlost acquisition and organic loan growth.

Mr. Eller continued, “Economic trends within our markets remain stable, supporting F&M’s growth and excellent asset quality. While we have experienced a temporary increase in nonaccrual loans, our nonaccrual loans as a percent of total loans of 0.28% at September 30, 2019, remains significantly better than our peer group average and demonstrates F&M’s prudent underwriting standards and high-quality loan portfolio. In addition, our allowance for loan and lease does not include a $2.2 million credit mark associated with the Limberlost acquisition, which further supports the future performance of our loan portfolio.”

Deposits

Over the past three months, deposits have increased organically 2.9% or by $35.7 million to $1.278 billion at September 30, 2019. The significant organic deposit growth we have been experiencing continues to be due primarily to new product development that has allowed F&M to attract new customers and expand existing customer holdings.

Stockholders’ Equity and Dividends

Tangible stockholders’ equity increased to $174.6 million at September 30, 2019, compared to $138.9 million at December 31, 2018, and $133.1 million at September 30, 2018. On a per share basis, tangible stockholders’ equity at September 30, 2019, was $15.68 per share, compared to $14.96 per share at December 31, 2018, and $14.53 at September 30, 2018.

Total stockholders’ equity increased 63.2% to $227.4 million at September 30, 2019, from $139.3 million at September 30, 2018, and increased 1.5% from $224.0 million at June 30, 2019. At September 30, 2019, the company had a Tier 1 leverage ratio of 11.45%, compared to 12.63% at September 30, 2018. The decline in the Tier 1 leverage ratio was primarily due to the added goodwill associated with the Limberlost acquisition.

For the 2019 third quarter, the company declared cash dividends of $0.15 per share, which is a 7.1% increase over the 2018 third quarter declared dividend payment. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over nine consecutive years.

“Our recently created three-year strategic plan is focused on growing earnings and creating value for our shareholders, and we are well positioned to achieve these goals. 2019 is shaping up to be a transformative year and we are benefitting from strong organic loan and deposit growth, the Limberlost acquisition, and the enhancements we are making to our operating platform, while we successfully navigate changes with benchmark rates. As a result, 2019 will be another record year of strong profitability and asset growth. As we look to 2020 and beyond, I am extremely confident in the direction we are headed,” concluded Mr. Eller.

About Farmers & Merchants State Bank:

Farmers & Merchants Bancorp, Inc. (“F&M”) (Nasdaq: FMAO), is the holding company for the Farmers & Merchants State Bank, a local independent community bank with $1.6 billion in assets 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 or capital 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.

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, 2019		June 30, 2019		March 31, 2019			December 31, 2018			September 30, 2018		September 30, 2019			September 30, 2018
Interest Income
Loans, including fees	$	15,202	$	16,723	$	14,680		$	10,955		$	10,725	$	46,605		$	31,348
Debt securities:
U.S. Treasury and government agencies		1,162		816		713			630			613		3,113			1,848
Municipalities		69		211		211			250			275		233			845
Dividends		120		76		88			56			56		319			164
Federal funds sold and other		459		457		170			112			84		887			221
Total interest income		17,012		18,283		15,862			12,003			11,753		51,157			34,426
Interest Expense
Deposits		3,654		3,339		2,613			1,670			1,611		9,606			4,319
Federal funds purchased and securities sold under agreement to repurchase		201		141		185			127			134		527			376
Borrowed funds		257		269		287			20			20		813			60
Total interest expense		4,112		3,749		3,085			1,817			1,765		10,946			4,755
Net Interest Income - Before Provision for Loan Losses		12,900		14,534		12,777			10,186			9,988		40,211			29,671
Provision for Loan Losses		247		133		30			105			47		410			219
Net Interest Income After Provision For Loan Losses		12,653		14,401		12,747			10,081			9,941		39,801			29,452
Noninterest Income
Customer service fees		1,722		1,694		1,578			1,612			1,392		4,994			4,323
Other service charges and fees		1,179		1,091		1,041			1,032			1,097		3,311			3,149
Net gain on sale of loans		260		196		102			140			184		558			617
Net gain (loss) on sale of available-for-sale securities		-		-		(26	)		(19	)		10		(26	)		10
Total noninterest income		3,161		2,981		2,695			2,765			2,683		8,837			8,099
Noninterest Expense
Salaries and wages		4,158		3,830		4,312			3,834			3,391		12,300			9,926
Employee benefits		1,331		1,223		1,594			1,102			1,029		4,148			3,013
Net occupancy expense		630		614		667			451			478		1,911			1,306
Furniture and equipment		720		763		696			450			588		2,179			1,660
Data processing		482		376		1,299			318			364		2,157			1,000
Franchise taxes		248		229		258			244			243		735			710
ATM expense		416		418		447			368			327		1,281			972
Advertising		587		382		260			218			236		1,229			669
Net loss on sale of other assets owned		22		28		15			27			1		65			17
FDIC assessment		-		98		96			77			81		194			249
Mortgage servicing rights amortization		149		105		75			100			84		329			264
Consulting fees		196		95		113			461			179		404			467
Other general and administrative		1,667		1,551		1,679			1,167			1,125		4,897			3,151

Total noninterest expense		10,606		9,712		11,511		8,817		8,126			31,829		23,404
Income Before Income Taxes		5,208		7,670		3,931		4,029		4,498			16,809		14,147
Income Taxes		933		1,490		707		836		623			3,130		2,391
Net Income		4,275		6,180		3,224		3,193		3,875			13,679		11,756
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for- sale securities		841		3,061		1,749		2,374		(617	)		5,651		(3,432	)
Reclassification adjustment for (gain) loss on sale of available-for-sale securities		-		-		26		19		(10	)		26		(10	)
Net unrealized gain (loss) on available-for- sale securities		841		3,061		1,775		2,393		(627	)		5,677		(3,442	)
Tax expense (benefit)		176		643		373		503		(132	)		1,192		(723	)
Other comprehensive income (loss)		665		2,418		1,402		1,890		(495	)		4,485		(2,719	)
Comprehensive Income	$	4,940	$	8,598	$	4,626	$	5,083	$	3,380		$	18,164	$	9,037
Basic and Diluted Earnings Per Share	$	0.38	$	0.56	$	0.29	$	0.34	$	0.42		$	1.23	$	1.27
Dividends Declared	$	0.15	$	0.15	$	0.15	$	0.15	$	0.14		$	0.45	$	0.41

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
	(Unaudited)
Assets
Cash and due from banks	$	103,188		$	108,085		$	48,740		$	37,492		$	28,782
Federal funds sold		11,404			15,193			33,109			873			939
Total cash and cash equivalents		114,592			123,278			81,849			38,365			29,721

Interest-bearing time deposits		4,554			4,509			4,509			4,019			4,019
Securities - available-for-sale		190,465			204,415			174,682			168,447			183,075
Other securities, at cost		5,789			5,789			5,789			3,679			3,717
Loans held for sale		606			1,909			859			495			1,679
Loans, net		1,151,937			1,084,448			1,091,829			839,599			831,943
Premises and equipment		25,990			26,013			25,205			22,615			22,117
Goodwill		47,340			47,340			47,340			4,074			4,074
Mortgage servicing rights		2,556			2,465			2,397			2,385			2,373
Other real estate owned		351			329			510			600			717
Bank owned life insurance		15,151			15,050			14,963			14,884			14,799
Other assets		15,549			15,002			15,729			17,001			9,778
Total Assets	$	1,574,880		$	1,530,547		$	1,465,661		$	1,116,163		$	1,108,012

Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	261,719		$	242,510		$	236,847		$	215,422		$	197,088
Interest-bearing
NOW accounts		430,646			430,505			418,773			298,254			314,873
Savings		310,667			293,179			272,875			227,701			230,306
Time		274,996			276,153			258,929			187,413			186,592
Total deposits		1,278,028			1,242,347			1,187,424			928,790			928,859

Federal Funds Purchased and securities sold under agreements to repurchase		30,056			27,102			25,521			32,181			27,026
Federal Home Loan Bank (FHLB) advances		24,669			24,532			24,682			-			5,000
Dividend payable		1,657			1,654			1,654			1,379			1,287
Accrued expenses and other liabilities		13,062			10,865			9,446			10,526			6,493
Total liabilities		1,347,472			1,306,500			1,248,727			972,876			968,665

Commitments and Contingencies

Stockholders' Equity
Common stock - No par value 20,000,000 shares authorized; issued and outstanding 12,230,000 shares 9/30/19, 10,400,000 shares 12/31/18		81,264			81,955			81,760			10,823			10,589
Treasury stock - 1,092,986 shares 9/30/19, 1,114,739 shares 12/31/18		(12,453	)		(12,707	)		(12,680	)		(12,409	)		(12,409	)
Retained earnings		157,126			153,993			149,466			147,887			146,072
Accumulated other comprehensive income (loss)		1,471			806			(1,612	)		(3,014	)		(4,905	)
Total stockholders' equity		227,408			224,047			216,934			143,287			139,347
Total Liabilities and Stockholders' Equity	$	1,574,880		$	1,530,547		$	1,465,661		$	1,116,163		$	1,108,012

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

SELECT FINANCIAL DATA

	For the Three Months Ended															For the Nine Months Ended
Selected financial data	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			September 30, 2019			September 30, 2018
Return on average assets		1.10	%		1.63	%		1.00	%		1.15	%		1.40	%		1.24	%		1.41	%
Return on average equity		7.54	%		11.21	%		7.16	%		9.04	%		11.19	%		8.26	%		11.49	%
Yield on earning assets		4.74	%		5.25	%		4.80	%		4.52	%		4.52	%		5.04	%		4.41	%
Cost of interest bearing liabilities		1.55	%		1.45	%		1.26	%		0.92	%		0.92	%		1.42	%		0.83	%
Net interest spread		3.19	%		3.80	%		3.54	%		3.60	%		3.60	%		3.62	%		3.58	%
Net interest margin		3.60	%		4.18	%		3.87	%		3.85	%		3.85	%		3.97	%		3.80	%
Efficiency		65.86	%		56.00	%		73.11	%		67.59	%		63.86	%		64.67	%		61.66	%
Dividend payout ratio		38.67	%		26.78	%		42.77	%		43.16	%		33.21	%		34.26	%		32.02	%
Tangible book value per share (1)	$	15.45		$	15.49		$	14.90		$	14.96		$	14.53
Tier 1 capital to average assets		11.45	%		11.77	%		13.35	%		12.81	%		12.63	%

(1) Tangible Equity = Stockholder Equity less goodwill and other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities)

Loans	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
(Dollar amounts in thousands)
Commercial real estate	$	502,137		$	443,257		$	440,993		$	419,784		$	417,217
Agricultural real estate		200,791			193,768			191,752			68,609			68,548
Consumer real estate		159,074			159,540			160,967			80,766			83,134
Commercial and industrial		130,150			125,609			137,949			121,793			119,536
Agricultural		110,270			113,755			112,898			108,495			103,624
Consumer		49,552			48,952			47,647			41,953			41,444
Other		8,167			7,341			7,392			5,889			6,005
Less: Net deferred loan fees and costs		(1,445	)		(1,091	)		(1,133	)		(915	)		(810	)
Total loans, net	$	1,158,696		$	1,091,131		$	1,098,465		$	846,374		$	838,698

Asset quality data	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
(Dollar amounts in thousands)
Nonaccrual loans	$	3,275		$	1,328		$	1,188		$	542		$	483
Troubled debt restructuring	$	1,051		$	981		$	102		$	178		$	205
90 day past due and accruing	$	-		$	-		$	-		$	-		$	-
Nonperforming loans	$	3,275		$	1,328		$	1,188		$	542		$	483
Other real estate owned	$	351		$	329		$	510		$	600		$	717
Non-performing assets	$	3,626		$	1,657		$	1,698		$	1,142		$	1,200

(Dollar amounts in thousands)
Allowance for loan and lease losses	$	6,759		$	6,964		$	6,636		$	6,755		$	6,755
Allowance for loan and lease losses/total loans		0.58	%		0.64	%		0.60	%		0.80	%		0.81	%
Net charge-offs:
Quarter-to-date	$	171		$	86		$	169		$	84		$	81
Year-to-date	$	426		$	255		$	169		$	417		$	332
Net charge-offs to average loans
Quarter-to-date		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%
Year-to-date		0.04	%		0.02	%		0.02	%		0.05	%		0.04	%
Non-performing loans/total loans		0.28	%		0.12	%		0.11	%		0.06	%		0.06	%
Allowance for loan and lease losses/nonperforming loans		173.25	%		375.51	%		558.92	%		1249.57	%		1399.58	%

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

(in thousands of dollars, except per share data)

PRO-FORMA EARNINGS PER SHARE

The results of operations of Bank of Geneva have been included in the Company’s consolidated financial statements since the acquisition date of January 1, 2019. The following schedule includes pro-forma results for the three and nine months ended September 30, 2019 and 2018 as if the Bank of Geneva acquisitions had occurred as of the beginning of the comparable prior reporting period.

	Pro-forma Three Months Ended						Pro-forma Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Earnings per share
Net income	$	4,294		$	5,223		$	14,696		$	16,812
Less: distributed earnings allocated to participating securities		(14	)		(13	)		(37	)		(38	)
Less: undistributed earnings allocated to participating securities		(16	)		(31	)		(71	)		(102	)
Net earnings available to common shareholders	$	4,264		$	5,179		$	14,588		$	16,672

Weighted average common shares outstanding including participating securities		11,121,426			11,104,507			11,105,993			11,098,819
Less: average unvested restricted shares		(79,335	)		(93,242	)		(81,569	)		(92,683	)
Weighted average common shares outstanding		11,042,091			11,011,265			11,024,424			11,006,136
Basic earnings and diluted per share	$	0.38		$	0.47		$	1.32		$	1.51

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, 2019							September 30, 2018
Interest Earning Assets:	Average Balance		Interest/ Dividends		Yield/ Rate			Average Balance		Interest/ Dividends		Yield/ Rate
Loans	$	1,126,173	$	15,202		5.40	%	$	831,246	$	10,725		5.16	%
Taxable Investment Securities		167,654		1,082		2.58	%		145,464		710		1.95	%
Tax-exempt Investment Securities		32,530		149		2.32	%		48,438		234		2.45	%
Fed Funds Sold & Other		112,961		579		2.05	%		19,674		84		1.71	%
Total Interest Earning Assets		1,439,318		17,012		4.74	%		1,044,822		11,753		4.52	%

Nonearning Assets		116,191							61,850

Total Assets	$	1,555,509						$	1,106,672

Interest Bearing Liabilities:
Savings Deposits	$	734,075	$	2,044		1.11	%	$	551,902	$	921		0.67	%
Other Time Deposits		276,793		1,610		2.33	%		180,858		690		1.53	%
Other Borrowed Money		24,582		257		4.18	%		5,000		20		1.60	%
Fed Funds Purchased & Securities
Sold under Agreement to Repurch.		28,947		201		2.78	%		25,827		134		2.08	%
Total Interest Bearing Liabilities		1,064,397		4,112		1.55	%		763,587		1,765		0.92	%

Noninterest bearing Liabilities		264,183							204,623

Stockholders Equity	$	226,929						$	138,462

Net Interest Income and interest rate spread				12,900		3.19	%				9,988		3.60	%

Net Interest Margin						3.60	%						3.85	%

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, 2019							September 30, 2018
Interest Earning Assets:	Average Balance		Interest/ Dividends		Yield/ Rate			Average Balance		Interest/ Dividends		Yield/ Rate
Loans	$	1,113,892	$	46,605		5.58	%	$	830,118	$	31,348		5.04	%
Taxable Investment Securities		146,085		2,857		2.61	%		148,797		2,136		1.91	%
Tax-exempt Investment Securities		20,784		489		3.97	%		49,643		721		2.45	%
Fed Funds Sold & Other		75,388		1,206		2.13	%		19,530		221		1.51	%
Total Interest Earning Assets		1,356,149		51,157		5.04	%		1,048,088		34,426		4.41	%

Nonearning Assets		110,141							64,167

Total Assets	$	1,466,290						$	1,112,255

Interest Bearing Liabilities:
Savings Deposits	$	708,280	$	5,577		1.05	%	$	554,164	$	2,497		0.60	%
Other Time Deposits		261,729		4,029		2.05	%		182,772		1,822		1.33	%
Other Borrowed Money		26,035		813		4.16	%		5,000		60		1.60	%
Fed Funds Purchased & Securities
Sold under Agreement to Repurch.		29,657		527		2.37	%		26,402		376		1.90	%
Total Interest Bearing Liabilities		1,025,701		10,946		1.42	%		768,338		4,755		0.83	%

Noninterest bearing Liabilities		219,673							207,504

Stockholders Equity	$	220,916						$	136,413

Net Interest Income and interest rate spread				40,211		3.62	%				29,671		3.58	%

Net Interest Margin						3.97	%						3.80	%

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