• Farmers & Merchants Bancorp, Inc. Reports 2022 Third-Quarter and Year-to-Date Financial Results

    المصدر: Nasdaq GlobeNewswire / 19 أكتوبر 2022 17:00:01   America/New_York

    ARCHBOLD, Ohio, Oct. 19, 2022 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2022 third quarter and year-to-date September 30, 2022.

    2022 Third Quarter Financial Highlights Include
    (Compared to the 2021 third quarter period unless noted):

    • Net income increased 51.3% to a quarterly record of $9.0 million, from $5.9 million
    • Earnings increased 28.3% to $0.68 per basic and diluted share, from $0.53 per basic and diluted share
    • Average shares outstanding increased 16.7% as a result of the Perpetual Federal Savings Bank Acquisition
    • Efficiency rate improved to 51.19% for the 2022 third quarter, and 53.16% for the 2022 nine months
    • Organic loan growth of 21.3%, excluding PPP loans and loan balances at time of acquisitions
    • Total loans were a record of $2.143 billion and increased 15.4% from $1.857 billion at December 31, 2021
    • Total assets increased 25.5% to a record $2.784 billion
    • Deposits increased 22.3% to $2.283 billion
    • Strong asset quality continues as nonperforming loans declined 12.5% to $5.5 million, or 0.26% of total loans
    • Net charge-offs to average loans were 0.00%, the sixth consecutive quarter at or below 0.00%
    • Return on average equity, increased to 12.53% from 9.32%
    • Return on average tangible equity, based on regulatory calculations, increased to 15.50% from 12.23% on a year-over-year basis
    • 2022 third quarter cash dividend increased by 16.7% year-over-year to $0.21 per share
    • Eric Faust named Senior Vice President and Chief Risk Officer of Farmers & Merchants State Bank
    • Benét Rupp, Chief Administrative Officer, promoted to Executive Vice President
    • Completed the Peoples-Sidney Financial Corporation acquisition on October 1, 2022

    Lars B. Eller, President and Chief Executive Officer, stated, “Record third quarter results demonstrate the continued success of our strategic growth plan, the value we provide our local communities, and the power of our financial model. Throughout 2022, we have experienced strong organic loan growth across our Ohio, Indiana and Michigan markets as loans increased organically by $301.4 million, or 21.3% on a year-over-year basis. Robust loan growth, combined with our recent acquisitions, excellent asset quality, and stable net interest margin, have driven a 30.0% increase in net interest income after the provision for loan losses. These outstanding trends and our focus on prudently controlling operating expenses are supporting a powerful financial model as we achieved record quarterly and year-to-date net income and earnings per share.”

    Mr. Eller continued, “As we enter the fourth quarter, positive momentum across many areas of our business remains strong and we started the quarter with a robust pipeline of news loans expected to close over the next three months. On October 1, 2022, we completed the Peoples-Sidney Financial Corporation acquisition. Peoples adds slightly over $130 million in total assets to F&M, expands F&M’s community banking franchise into compelling markets throughout Shelby County Ohio, and excluding one-time transaction costs, is expected to be accretive to 2023 earnings by approximately 2.5%. We also continue to pursue opportunities for de novo growth. Expansion plans underway include new full-service offices that are expected to open over the next 12 months in Toledo, Ohio, Fort Wayne, Indiana, and Birmingham, Michigan as well as an office relocation in Auburn, Indiana.”

    Income Statement
    Net income for the 2022 third quarter ended September 30, 2022, was $9.0 million, compared to $5.9 million for the same period last year. Net income per basic and diluted share for the 2022 third quarter was $0.68, compared to $0.53 for the same period last year. Net income for the 2022 nine months ended September 30, 2022, was $25.3 million, compared to $15.8 million for the same period last year. Net income per basic and diluted share for the 2022 nine months was $1.94, compared to $1.41 for the same period last year.

    Noninterest expense for the 2022 third quarter and nine months included approximately $0.5 million and approximately $0.5 million, respectively of one-time expenses associated with the Company’s recent acquisitions. Noninterest expense for the 2021 third quarter and nine months included $1.4 million and $2.7 million, respectively of one-time expenses associated with the Company’s recent acquisitions.

    Profitability is benefitting from F&M’s larger scale, strong asset quality, and prudent expense management. The Company’s efficiency ratio improved to 51.19% during the 2022 third quarter, and 53.16% for the 2022 nine-month period. Strong profitability also drove higher returns, and ROAA, ROAE, and ROATCE all expanded on a year-over-year basis.

    Deposits
    At September 30, 2022, total deposits were $2.283 billion, an increase of 22.3% from September 30, 2021, and an increase of 4.1% from December 31, 2021. F&M continues to see growing customer preferences to more stable and secure saving instruments as deposits have increased since the COVID-19 crisis began. The Company’s cost of interest-bearing liabilities was 0.68% for the quarter ended September 30, 2022, compared to 0.45% for the quarter ended September 30, 2021, and 0.51% for the quarter ended December 31, 2021.

    Loan Portfolio and Asset Quality
    Total net loans, at September 30, 2022, increased 43.3%, or by $647.1 million to $2.143 billion, compared to $1.496 billion at September 30, 2021, and up 15.4% from $1.857 billion at December 31, 2021. The year-over-year improvement resulted primarily from the contribution of continued organic loan growth and the completion of the Perpetual Federal Savings Bank and Ossian Financial Services acquisitions.

    Not including the Ossian acquisition and PPP, loans increased 21.3% organically or by $301.4 million from the same period a year ago. Additionally, there were only $7,000 of PPP loans within F&M’s loan portfolio at September 30, 2022.

    F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $5.5 million, or 0.26% of total loans at September 30, 2022, compared to $6.2 million, or 0.42% at September 30, 2021. Due to loan growth, F&M continues to prudently fund its allowance for loan and lease losses which has increased 27.3% on a year-over-year basis.

    At September 30, 2022, the Company’s allowance for loan and lease losses to nonperforming loans was 365.44%, compared to 251.26% at September 30, 2021. As a result of F&M’s recent acquisitions, the Company has a total gross credit mark of nearly $6.0 million, which further enhances F&M’s allowance at September 30, 2022. Including the total gross credit mark, F&M’s allowance for loan and lease losses to total loans improved to 1.21% at September 30, 2022.

    Mr. Eller concluded, “Economic uncertainty continues to increase as a result of more restrictive monetary policies and rapid inflation. We are watching our markets closely and working with our business, retail, and agricultural customers to help them navigate a more fluid economic environment. Overall, F&M is well positioned for changes in the economic cycle as our asset quality remains strong, and we remain well capitalized. In addition, while we anticipate inflation to impact noninterest expenses and competition for deposits to increase our cost of funds in the coming quarters, our efficiency ratio is strong, and our larger scale continues to benefit profitability. As you can see, trends in our business are at record levels, and we believe 2022 will be another record year of earnings and growth for F&M.”

    Stockholders’ Equity and Dividends
    Total stockholders’ equity increased 10.1% to $280.6 million at September 30, 2022, from $254.7 million at September 30, 2021. At September 30, 2022, the Company had a Tier 1 leverage ratio of 9.11%, compared to 9.45% at September 30, 2021.

    Tangible stockholders’ equity on a regulatory basis increased to $234.1 million at September 30, 2022, compared to $194.6 million at September 30, 2021. On a per share basis, tangible stockholders’ equity at September 30, 2022, was $17.86 per share, compared to $17.33 per share at September 30, 2021.

    For the nine months ended September 30, 2022, the Company has declared cash dividends of $0.6025 per share, which is a 15.9% increase over the same period last year. Dividends declared for the 2022 nine months included a special one-time cash dividend of $0.0125 to honor F&M’s 125th anniversary, and a 16.7% year-over-year increase for the 2022 third quarter dividend payment to $0.21 per share. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over 28 consecutive years. For the nine months ended September 30, 2022, the dividend payout ratio was 40.58% compared to 36.55% 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 Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Western Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Bryan and Oxford, Ohio.

    Safe harbor statement
    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, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021  September 30, 2022 September 30, 2021 
    Interest Income               
    Loans, including fees$24,119  $22,388  $20,455  $21,008  $18,766  $66,962  $50,637  
    Debt securities:               
    U.S. Treasury and government agencies 1,049   1,035   1,023   964   924   3,107   2,532  
    Municipalities 373   322   300   289   284   995   881  
    Dividends 93   57   42   49   44   192   125  
    Federal funds sold -   9   10   10   10   19   21  
    Other. 213   100   69   103   94   382   221  
    Total interest income 25,847   23,911   21,899   22,423   20,122   71,657   54,417  
    Interest Expense               
    Deposits 2,166   1,379   1,360   1,581   1,221   4,905   3,837  
    Federal funds purchased and securities sold               
    under agreements to repurchase 416   166   152   155   165   734   494  
    Borrowed funds 398   218   335   361   87   951   424  
    Subordinated notes 284   284   269   291   199   837   199  
    Total interest expense 3,264   2,047   2,116   2,388   1,672   7,427   4,954  
    Net Interest Income - Before Provision for Loan Losses 22,583   21,864   19,783   20,035   18,450   64,230   49,463  
    Provision for Loan Losses  1,637   1,628   580   444   659   3,845   3,000  
    Net Interest Income After Provision for Loan Losses 20,946   20,236   19,203   19,591   17,791   60,385   46,463  
    Noninterest Income               
    Customer service fees 2,300   2,148   2,648   2,417   2,242   7,096   7,254  
    Other service charges and fees 1,105   1,008   998   1,026   1,010   3,111   2,722  
    Net gain on sale of loans 327   164   697   1,074   822   1,188   2,823  
    Net gain on sale of available-for-sale securities -   -   -   -   -   -   293  
    Total noninterest income 3,732   3,320   4,343   4,517   4,074   11,395   13,092  
    Noninterest Expense               
    Salaries and wages 5,479   5,366   5,502   5,761   5,442   16,347   14,423  
    Employee benefits 1,392   1,546   2,054   1,792   1,621   4,992   5,530  
    Net occupancy expense 693   522   598   532   529   1,813   1,652  
    Furniture and equipment 1,047   1,008   1,056   782   903   3,111   2,542  
    Data processing 781   654   604   1,020   1,548   2,039   2,481  
    Franchise taxes 254   757   418   361   372   1,429   1,112  
    ATM expense 580   544   532   478   460   1,656   1,368  
    Advertising 578   300   237   431   439   1,115   1,005  
    Net (gain) loss on sale of other assets owned -   (266)  (5)  13   219   (271)  421  
    FDIC assessment 271   270   114   265   296   655   808  
    Mortgage servicing rights amortization (50)  59   26   266   285   35   1,314  
    Consulting fees 254   233   178   761   256   665   873  
    Other general and administrative 2,192   2,242   2,179   1,964   1,951   6,613   6,211  
    Total noninterest expense 13,471   13,235   13,493   14,426   14,321   40,199   39,740  
    Income Before Income Taxes 11,207   10,321   10,053   9,682   7,544   31,581   19,815  
    Income Taxes 2,253   2,050   1,951   1,999   1,624   6,254   4,003  
    Net Income 8,954   8,271   8,102   7,683   5,920   25,327   15,812  
    Other Comprehensive Income (Loss) (Net of Tax):               
    Net unrealized gain (loss) on available-for-sale securities (8,197)  (14,602)  (20,939)  (5,170)  173   (43,738)  (5,778) 
    Reclassification adjustment for realized gain on sale of available-for-sale securities -   -   -   -   -   -   (293) 
    Net unrealized gain (loss) on available-for-sale securities (8,197)  (14,602)  (20,939)  (5,170)  173   (43,738)  (6,071) 
    Tax expense (benefit) (1,721)  (3,067)  (4,397)  (1,085)  36   (9,185)  (1,275) 
    Other comprehensive income (loss) (6,476)  (11,535)  (16,542)  (4,085)  137   (34,553)  (4,796) 
    Comprehensive Income (Loss)$2,478  $(3,264) $(8,440) $3,598  $6,057  $(9,226) $11,016  
    Basic and Diluted Earnings Per Share$0.68  $0.63  $0.62  $0.59  $0.53  $1.94  $1.41  
    Dividends Declared$0.2100  $0.2025  $0.1900  $0.1900  $0.1800  $0.6025  $0.5200  



    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES 
    CONDENSED CONSOLIDATED BALANCE SHEETS 
    (Unaudited) (in thousands of dollars, except share data) 
      
       September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021  
       (Unaudited) (Unaudited) (Unaudited)   (Unaudited)  
    Assets             
              Cash and due from banks $69,680  $69,955  $94,118  $135,485  $112,875   
              Federal funds sold  990   1,484   45,404   45,338   45,203   
     Total cash and cash equivalents  70,670   71,439   139,522   180,823   158,078   
                  
              Interest-bearing time deposits  5,187   6,684   8,677   10,913   14,622   
              Securities - available-for-sale  395,485   399,687   413,996   429,931   426,717   
              Other securities, at cost  8,227   8,735   8,568   8,162   4,905   
              Loans held for sale  2,182   4,230   6,060   7,714   3,735   
              Loans, net  2,122,626   2,016,394   1,945,449   1,841,177   1,479,864   
              Premises and equipment  26,484   26,492   26,653   26,913   26,476   
              Goodwill  80,434   80,434   80,434   80,434   55,214   
              Mortgage servicing rights  3,583   3,426   3,336   3,157   3,097   
              Other real estate owned  -   -   -   159   167   
              Bank owned life insurance  28,051   27,874   27,715   27,558   27,397   
              Other assets  40,831   29,321   25,735   21,359   18,711   
                  
    Total Assets $2,783,760  $2,674,716  $2,686,145  $2,638,300  $2,218,983   
     Liabilities and Stockholders' Equity            
    Liabilities            
              Deposits            
     Noninterest-bearing $506,928  $503,395  $497,249  $473,689  $438,076   
     Interest-bearing            
          NOW accounts  705,888   678,552   681,975   650,466   646,237   
          Savings  607,375   617,850   626,787   597,828   529,532   
          Time  462,845   424,249   447,586   471,479   252,383   
     Total deposits  2,283,036   2,224,046   2,253,597   2,193,462   1,866,228   
                  
              Federal funds purchased and            
                   securities sold under agreements to repurchase  55,802   71,944   31,680   29,268   29,601   
              Federal Home Loan Bank (FHLB) advances  102,147   42,635   22,656   24,065   17,868   
              Other borrowings  10,000   -   40,000   40,000   -   
              Subordinated notes, net of unamortized issuance costs  34,557   34,528   34,499   34,471   34,441   
              Dividend payable  2,727   2,626   2,462   2,461   2,002   
              Accrued expenses and other liabilities  14,913   18,064   14,773   17,406   14,097   
     Total liabilities  2,503,182   2,393,843   2,399,667   2,341,133   1,964,237   
                  
    Commitments and Contingencies            
                  
    Stockholders' Equity            
              Common stock - No par value 20,000,000 shares authorized; issued and              
                  outstanding 14,063,999 shares 9/30/22 and 12/31/21  121,811   123,145   122,886   122,674   81,382   
              Treasury stock - 956,499 shares 9/30/22, 997,766 shares 12/31/21  (11,547)  (11,822)  (11,739)  (11,724)  (11,718)  
              Retained earnings  208,051   200,811   195,057   189,401   184,181   
              Accumulated other comprehensive income (loss)  (37,737)  (31,261)  (19,726)  (3,184)  901   
                      Total stockholders' equity  280,578   280,873   286,478   297,167   254,746   
                  
    Total Liabilities and Stockholders' Equity $2,783,760  $2,674,716  $2,686,145  $2,638,300  $2,218,983   
                  



    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    SELECT FINANCIAL DATA
                        
       For the Three Months EndedFor the Nine Months Ended
    Selected financial data September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 September 30, 2022 September 30, 2021
    Return on average assets  1.31%  1.23%  1.21%  1.17%  1.07% 1.25% 1.01%
    Return on average equity  12.53%  11.66%  11.00%  10.94%  9.32% 11.72% 8.40%
    Yield on earning assets  4.00%  3.79%  3.47%  3.59%  3.85% 3.76% 3.70%
    Cost of interest bearing liabilities  0.68%  0.44%  0.45%  0.51%  0.45% 0.53% 0.47%
    Net interest spread  3.32%  3.35%  3.02%  3.08%  3.40% 3.23% 3.23%
    Net interest margin  3.49%  3.47%  3.14%  3.21%  3.53% 3.37% 3.36%
    Efficiency  51.19%  50.17%  55.44%  58.76%  63.50% 53.16% 63.70%
    Dividend payout ratio  30.45%  30.02%  30.64%  32.03%  33.81% 40.58% 36.55%
    Tangible book value per share (1) $17.86  $17.43  $16.96  $16.49  $17.33     
    Tier 1 capital to average assets  9.11%  8.75%  8.51%  8.47%  9.45%    
    Average Shares Outstanding  13,083,145   13,065,975   13,066,272   13,046,299   11,209,732  13,071,859  11,199,309 
                 
    Loans September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021    
    (Dollar amounts in thousands)                   
    Commercial real estate $1,063,661  $979,176  $910,839  $848,477  $728,852     
    Agricultural real estate  205,089   199,972   196,223   198,343   179,374     
    Consumer real estate  416,001   410,450   410,120   395,873   202,454     
    Commercial and industrial  229,388   232,975   216,918   208,270   194,767     
    Agricultural  128,615   127,143   140,709   118,368   105,580     
    Consumer  70,602   55,411   57,521   57,737   55,521     
    Other  30,662   31,243   31,573   32,089   31,096     
      Less: Net deferred loan fees and costs  (1,402)  (1,552)  (1,683)  (1,738)  (2,082)    
    Total loans,net $2,142,616  $2,034,818  $1,962,220  $1,857,419  $1,495,562     
                        
                 
    Asset quality data September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021    
    (Dollar amounts in thousands)                   
    Nonaccrual loans $5,470  $5,247  $8,581  $8,076  $6,248     
    Troubled debt restructuring $3,978  $2,748  $7,268  $7,614  $6,035     
    90 day past due and accruing $-  $-  $-  $-  $-     
    Nonperforming loans $5,470  $5,247  $8,581  $8,076  $6,248     
    Other real estate owned $-  $-  $-  $159  $167     
    Nonperforming assets $5,470  $5,247  $8,581  $8,235  $6,415     
                        
                        
    Allowance for loan and lease losses (ALLL) $19,990  $18,424  $16,771  $16,242  $15,698     
    Total Credit Mark  5,959   6,724   7,201   7,616   2,348     
    Adjusted ALLL with credit mark included $25,949  $25,148  $23,972  $23,858  $18,046     
    Allowance for loan and lease losses/total loans  0.93%  0.91%  0.85%  0.87%  1.05%    
    Adjusted ALLL with credit mark/total loans  1.21%  1.24%  1.22%  1.28%  1.21%    
    Net charge-offs:                   
       Quarter-to-date $71  $(25) $51  $(101) $48     
       Year-to-date $97  $26  $51  $874  $974     
    Net charge-offs to average loans                   
       Quarter-to-date  0.00%  0.00%  0.00%  -0.01%  0.00%    
       Year-to-date  0.00%  0.00%  0.00%  0.06%  0.07%    
    Nonperforming loans/total loans  0.26%  0.26%  0.44%  0.43%  0.42%    
    Allowance for loan and lease losses/nonperforming loans  365.44%  351.44%  198.29%  201.11%  251.26%    
                        
    (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 
      September 30, 2022 September 30, 2021 
    Interest Earning Assets: Average Balance Interest/Dividends Annualized Yield/Rate Average Balance Interest/Dividends Annualized Yield/Rate 
    Loans $2,082,486 $24,119 4.63% $1,490,988 $18,766 5.04% 
    Taxable investment securities  422,250  1,426 1.35%  398,060  1,177 1.18% 
    Tax-exempt investment securities  25,169  89 1.79%  17,293  75 2.20% 
    Fed funds sold & other  58,266  213 1.46%  187,398  104 0.22% 
    Total Interest Earning Assets  2,588,171 $25,847 4.00%  2,093,739 $20,122 3.85% 
                  
    Nonearning Assets  150,044      127,160     
                  
    Total Assets $2,738,215     $2,220,899     
                  
    Interest Bearing Liabilities:             
    Savings deposits $1,328,344 $1,586 0.48% $1,181,103 $560 0.19% 
    Other time deposits  423,668  580 0.55%  252,966  661 1.05% 
    Other borrowed money  60,455  398 2.63%  17,868  87 1.95% 
    Fed funds purchased & securities             
      sold under agreement to repurch.  63,388  416 2.63%  29,729  165 2.22% 
    Subordinated notes  34,538  284 3.29%  23,807  199 3.34% 
    Total Interest Bearing Liabilities $1,910,393 $3,264 0.68% $1,505,473 $1,672 0.45% 
                  
    Noninterest Bearing Liabilities  542,077      461,252     
                  
    Stockholders' Equity $285,745     $254,174     
                  
    Net Interest Income and Interest Rate Spread   $22,583 3.32%   $18,450 3.40% 
                  
    Net Interest Margin     3.49%     3.53% 
                  
        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, 2022 September 30, 2021 
    Interest Earning Assets: Average Balance Interest/Dividends Annualized Yield/Rate Average Balance Interest/Dividends Annualized Yield/Rate 
    Loans $1,997,081 $66,962 4.47% $1,413,625 $50,637 4.78% 
    Taxable investment securities  424,882  4,065 1.28%  363,284  3,286 1.21% 
    Tax-exempt investment securities  21,794  229 1.77%  18,387  252 2.31% 
    Fed funds sold & other  101,922  401 0.52%  171,015  242 0.19% 
    Total Interest Earning Assets  2,545,679 $71,657 3.76%  1,966,311 $54,417 3.70% 
                  
    Nonearning Assets  158,378      134,108     
                  
    Total Assets $2,704,057     $2,100,419     
                  
    Interest Bearing Liabilities:             
    Savings deposits $1,315,793 $2,951 0.30% $1,106,674 $1,700 0.20% 
    Other time deposits  439,534  1,954 0.59%  248,426  2,137 1.15% 
    Other borrowed money  54,184  951 2.34%  17,859  424 3.17% 
    Fed funds purchased & securities             
      sold under agreement to repurch.  42,584  734 2.30%  29,973  494 2.20% 
    Subordinated notes  34,509  837 3.23%  8,023  199 3.31% 
    Total Interest Bearing Liabilities $1,886,604 $7,427 0.53% $1,410,955 $4,954 0.47% 
                  
    Noninterest Bearing Liabilities  529,439      438,518     
                  
    Stockholders' Equity $288,014     $250,946     
                  
    Net Interest Income and Interest Rate Spread   $64,230 3.23%   $49,463 3.23% 
                  
    Net Interest Margin     3.37%     3.36% 
                  
        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
    NON-GAAP RECONCILIATION OF TANGIBLE BOOK VALUE
              
              
      Actual End of Period Regulatory End of Period 
    Non-GAAP Reconciliation of Tangible Book ValueYear to Date Year to Date 
      September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 
              
    Shares Outstanding  13,107,500   11,232,320   13,107,500   11,232,320  
              
    Tangible Equity         
      Equity $280,578  $254,746  $280,578  $254,746  
      Goodwill  80,434   55,214   80,434   55,214  
      Other Intangible  3,744   3,994   3,744   3,994  
    Comprehensive Adjustment*  -   -   37,737   (901) 
    Tangible Equity $196,400  $195,538  $234,137  $194,637  
    Shares Outstanding  13,108   11,232   13,108   11,232  
    Tangible Book Equity per Share $ 14.98  $ 17.41  $ 17.86  $ 17.33  
              
              
      Actual Average Regulatory Average 
      Year to Date Year to Date 
      September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 
              
    Net Income $25,327  $15,812  $25,327  $15,812  
    Acquisition Costs - Tax Adjusted  463   2,155   463   2,155  
              
    Average Shares Outstanding  13,071,859   11,199,309   13,071,859   11,199,309  
              
    Average Tangible Equity         
      Average Equity $288,014  $250,946  $288,014  $250,946  
      Average Goodwill  80,434   51,884   80,434   51,884  
      Average Other Intangible  4,119   3,887   4,119   3,887  
    Average Comprehensive Adjustment*  -   -   21,181   (2,442) 
    Average Tangible Equity $203,461  $195,175  $224,642  $192,733  
    Average Shares Outstanding  13,072   11,199   13,072   11,199  
    Average Tangible Book Equity per Share $ 15.56  $ 17.43  $ 17.19  $ 17.21  
              
    Return on Average Tangible Equity  16.60%  10.80%  15.03%  10.94% 
    Return on Average Tangible Equity w/o Acquisition 16.90%  12.27%  15.31%  12.43% 
              
              
    *The Bank has adopted the Accumulated Other Comprehensive Income (AOCI) opt out election which removed AOCI 
    from the calculation of tangible equity for regulatory purposes.       
              

     


    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

     


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