Farmers & Merchants Bancorp, Inc. Reports Record 2022 Second-Quarter and Year-to-Date Financial Results
ARCHBOLD, Ohio, July 21, 2022 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2022 second quarter and year-to-date June 30, 2022.*2022 Second Quarter Financial and Operating Highlights *(on a year-over-year basis unless noted):
· Net income increased 66.0% to a quarterly record of $8.3 million, from $5.0 million
· Earnings increased 43.2% to $0.63 per basic and diluted share, from $0.44 per basic and diluted share
· Average shares outstanding increased 16.8% as a result of the Perpetual Federal Savings Bank Acquisition
· Efficiency rate improved to 50.17%
· Organic loan growth of 19.9%, excluding PPP loans and loan balances at time of acquisitions
· Total loans were a record of $2.035 billion and increased 9.6% from $1.857 billion at December 31, 2021
· Total assets increased 23.4% to $2.675 billion
· Deposits increased 20.0% to $2.224 billion
· Strong asset quality continues as nonperforming loans declined 25.4% to $5.2 million, or 0.26% of total loans
· Net charge-offs to average loans were 0.00%, the fifth consecutive quarter at or below 0.00%
· Return on average equity, increased to 11.66% from 8.00%
· Return on average tangible equity, based on regulatory calculations, increased to 14.72% from 10.26% on a year-over-year basis
Lars B. Eller, President and Chief Executive Officer, stated, “Our record second quarter financial and operating performance reflects the benefits of our organic and acquisition growth strategies, excellent asset quality, and focus on controlling expenses and driving efficiencies. The growth we are experiencing across our Ohio, Indiana and Michigan markets is encouraging, which we believe is a result of our desire to help our retail, commercial and agricultural customers realize their best lives. Loans increased organically by $237.1 million, or 19.9% on a year-over-year basis and are up 9.6% from December 31, 2021.”
Mr. Eller continued, “In April 2022, we formally honored F&M’s 125^th anniversary, which included activities that recognized the efforts and support of our communities, customers, employees, and shareholders. We are looking forward to building a sustainable business for the next 125 years by investing in our team, innovating our organization, providing our local communities with best-in-class service, and expanding our franchise to new markets. In June 2022, we restructured our leadership team, and added new capabilities and functions that will help us manage and lead a larger organization. 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 Fort Wayne, Indiana, and Toledo, Ohio as well as an office relocation in Auburn, Indiana.”
*Income Statement*
Net income for the 2022 second quarter ended June 30, 2022, was $8.3 million, compared to $5.0 million for the same period last year. Net income per basic and diluted share for the 2022 second quarter was $0.63, compared to $0.44 for the same period last year. Net income for the 2022 first half ended June 30, 2022, was $16.4 million, compared to $9.9 million for the same period last year. Net income per basic and diluted share for the 2022 first half was $1.25, compared to $0.88 for the same period last year.
Profitability is benefitting from F&M’s larger scale, strong asset quality, and prudent expense management. The Company’s efficiency ratio improved to 50.17% during the 2022 second quarter. Strong profitability also drove higher returns, and ROAA, ROAE, and ROATCE all expanded on a year-over-year basis.
*Deposits*
At June 30, 2022, total deposits were $2.22 billion, an increase of 20.0% from June 30, 2021, and an increase of 1.4% 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 0.45% for the quarter ended June 30, 2022, compared to 0.44% for the quarter ended June 30, 2021, and 0.51% for the quarter ended December 31, 2021.
*Loan Portfolio and Asset Quality*
Total loans, net at June 30, 2022, increased 39.5%, or by $576.4 million to $2.03 billion, compared to $1.46 billion at June 30, 2021, and up from $1.84 billion at December 31, 2021. The year-over-year improvement resulted primarily from the contribution of continued organic loan growth and the completion of both the Perpetual Federal Savings Bank, Inc. and Ossian Financial Services, Inc. acquisitions.
Loans increased 19.9% organically from the same period a year ago when not including the Perpetual acquisition, and the impact of PPP loans. During the 2022 second quarter, the Company processed $455,000 of PPP loan forgiveness and principal payments received. At June 30, 2022, there were only $8,000 of PPP loans within F&M’s loan portfolio.
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $5.2 million, or 0.26% of total loans at June 30, 2022, compared to $7.0 million, or 0.48% at June 30, 2021. Due to loan growth, F&M continues to prudently fund its allowance for loan and lease losses which has increased 22.1% on a year-over-year basis. At June 30, 2022, the Company’s allowance for loan and lease losses to nonperforming loans was 351.44%, compared to 214.58% at June 30, 2021.
Mr. Eller concluded, “While economic uncertainty has increased throughout 2022, we are committed to pursuing our long-term strategic growth initiatives, helping our customers and communities, and returning additional capital to our shareholders. We are also focused on successfully closing and integrating the Peoples-Sidney Financial Corporation acquisition, which will add $132.7 million in total assets to F&M and expand F&M’s community banking franchise into compelling markets throughout Shelby County Ohio. As a result, we believe 2022 will be another record year of earnings and growth for F&M.”
*Stockholders’ Equity and Dividends*
Total stockholders’ equity increased 12.1% to $280.9 million at June 30, 2022, from $250.6 million at June 30, 2021. At June 30, 2022, the Company had a Tier 1 leverage ratio of 11.1%, compared to 8.78% at June 30, 2021.
Tangible stockholders’ equity on a regulatory basis increased to $227.7 million at June 30, 2022, compared to $189.6 million at June 30, 2021. On a per share basis, tangible stockholders’ equity at June 30, 2022, was $17.43 per share, compared to $16.94 per share at June 30, 2021.
For the six months ended June 30, 2022, the Company has declared cash dividends of $0.3925 per share, which is a 15.4% increase over the 2021 six-month declared dividend payment. Dividends declared for the 2022 six months included a special one-time cash dividend of $0.0125 to honor F&M’s 125th anniversary. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over 27 consecutive years. For the six months ended June 30, 2022, the dividend payout ratio was 30.08% compared to 38.18% 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, 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*
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,
2022 March 31,
2022 December 31,
2021 September 30,
2021 June 30,
2021 June 30,
2022 June 30,
2021
*Interest Income*
Loans, including fees $ 22,388 $ 20,455 $ 21,008 $ 18,766 $ 16,259 $ 42,843 $ 31,871
Debt securities:
U.S. Treasury and government agencies 1,035 1,023 964 924 857 2,058 1,608
Municipalities 322 300 289 284 289 622 597
Dividends 57 42 49 44 31 99 81
Federal funds sold 9 10 10 10 6 19 11
Other. 100 69 103 94 88 169 127
Total interest income 23,911 21,899 22,423 20,122 17,530 45,810 34,295
*Interest Expense*
Deposits 1,379 1,360 1,581 1,221 1,276 2,739 2,616
Federal funds purchased and securities sold under agreements to repurchase 166 152 155 165 163 318 329
Borrowed funds 218 335 361 87 115 553 337
Subordinated notes 284 269 291 199 - 553 -
Total interest expense 2,047 2,116 2,388 1,672 1,554 4,163 3,282
*Net Interest Income - Before Provision for Loan Losses* 21,864 19,783 20,035 18,450 15,976 41,647 31,013
*Provision for Loan Losses* 1,628 580 444 659 641 2,208 2,341
*Net Interest Income After Provision For Loan Losses* 20,236 19,203 19,591 17,791 15,335 39,439 28,672
*Noninterest Income*
Customer service fees 2,148 2,648 2,417 2,242 2,198 4,796 5,012
Other service charges and fees 1,008 998 1,026 1,010 874 2,006 1,712
Net gain on sale of loans 164 697 1,074 822 955 861 2,001
Net gain on sale of available-for-sale securities - - - - - - 293
Total noninterest income 3,320 4,343 4,517 4,074 4,027 7,663 9,018
*Noninterest Expense*
Salaries and wages 5,366 5,502 5,761 5,442 4,591 10,868 8,981
Employee benefits 1,546 2,054 1,792 1,621 1,915 3,600 3,909
Net occupancy expense 522 598 532 529 546 1,120 1,123
Furniture and equipment 1,008 1,056 782 903 848 2,064 1,639
Data processing 654 604 1,020 1,548 428 1,258 933
Franchise taxes 757 418 361 372 294 1,175 740
ATM expense 544 532 478 460 459 1,076 908
Advertising 300 237 431 439 331 537 566
Net (gain) loss on sale of other assets owned (266 ) (5 ) 13 219 227 (271 ) 202
FDIC assessment 270 114 265 296 276 384 512
Mortgage servicing rights amortization 59 26 266 285 524 85 1,029
Consulting fees 233 178 761 256 394 411 617
Other general and administrative 2,242 2,179 1,964 1,951 2,227 4,421 4,260
Total noninterest expense 13,235 13,493 14,426 14,321 13,060 26,728 25,419
*Income Before Income Taxes* 10,321 10,053 9,682 7,544 6,302 20,374 12,271
*Income Taxes* 2,050 1,951 1,999 1,624 1,319 4,001 2,379
*Net Income* 8,271 8,102 7,683 5,920 4,983 16,373 9,892
*Other Comprehensive Income (Loss) (Net of Tax):*
Net unrealized gain (loss) on available-for-sale securities (14,602 ) (20,939 ) (5,170 ) 173 786 (35,541 ) (5,951 )
Reclassification adjustment for realized gain on sale of available-for-sale securities - - - - - - (293 )
Net unrealized gain (loss) on available-for-sale securities (14,602 ) (20,939 ) (5,170 ) 173 786 (35,541 ) (6,244 )
Tax expense (benefit) (3,067 ) (4,397 ) (1,085 ) 36 165 (7,464 ) (1,311 )
Other comprehensive income (loss) (11,535 ) (16,542 ) (4,085 ) 137 621 (28,077 ) (4,933 )
*Comprehensive Income (Loss)* $ (3,264 ) $ (8,440 ) $ 3,598 $ 6,057 $ 5,604 $ (11,704 ) $ 4,959
*Basic and Diluted Earnings Per Share* $ 0.63 $ 0.62 $ 0.59 $ 0.53 $ 0.44 $ 1.25 $ 0.88
*Dividends Declared* $ 0.2025 $ 0.1900 $ 0.1900 $ 0.1800 $ 0.1700 $ 0.3925 $ 0.3400
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data) June 30,
2022 March 31,
2022 December 31,
2021 September 30,
2021 June 30,
2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
*Assets*
Cash and due from banks $ 69,955 $ 94,118 $ 135,485 $ 112,875 $ 93,636
Federal funds sold 1,484 45,404 45,338 45,203 57,483
Total cash and cash equivalents 71,439 139,522 180,823 158,078 151,119
Interest-bearing time deposits 6,684 8,677 10,913 14,622 18,597
Securities - available-for-sale 399,687 413,996 429,931 426,717 407,500
Other securities, at cost 8,735 8,568 8,162 4,905 6,419
Loans held for sale 4,230 6,060 7,714 3,735 8,041
Loans, net 2,016,394 1,945,449 1,841,177 1,479,864 1,443,336
Premises and equipment 26,492 26,653 26,913 26,476 26,915
Goodwill 80,434 80,434 80,434 55,214 56,066
Mortgage servicing rights 3,426 3,336 3,157 3,097 3,146
Other real estate owned - - 159 167 198
Bank owned life insurance 27,874 27,715 27,558 27,397 27,218
Other assets 29,321 25,735 21,359 18,711 18,310
*Total Assets* $ 2,674,716 $ 2,686,145 $ 2,638,300 $ 2,218,983 $ 2,166,865
*Liabilities and Stockholders' Equity*
*Liabilities*
Deposits
Noninterest-bearing $ 503,395 $ 497,249 $ 473,689 $ 438,076 $ 443,863
Interest-bearing
NOW accounts 678,552 681,975 650,466 646,237 652,078
Savings 617,850 626,787 597,828 529,532 501,687
Time 424,249 447,586 471,479 252,383 256,445
Total deposits 2,224,046 2,253,597 2,193,462 1,866,228 1,854,073
Federal funds purchased and
securities sold under agreements to repurchase 71,944 31,680 29,268 29,601 29,882
Federal Home Loan Bank (FHLB) advances 42,635 22,656 24,065 17,868 17,868
Other borrowings - 40,000 40,000 - -
Subordinated notes, net of unamortized issuance costs 34,528 34,499 34,471 34,441 -
Dividend payable 2,626 2,462 2,461 2,002 1,888
Accrued expenses and other liabilities 18,064 14,773 17,406 14,097 12,569
Total liabilities 2,393,843 2,399,667 2,341,133 1,964,237 1,916,280
*Commitments and Contingencies*
*Stockholders' Equity*
Common stock - No par value 20,000,000 shares authorized; issued and
outstanding 14,063,999 shares 6/30/22 and 12/31/21 123,145 122,886 122,674 81,382 82,259
Treasury stock - 998,174 shares 6/30/22, 997,766 shares 12/31/21 (11,822 ) (11,739 ) (11,724 ) (11,718 ) (12,172 )
Retained earnings 200,811 195,057 189,401 184,181 179,734
Accumulated other comprehensive income (loss) (31,261 ) (19,726 ) (3,184 ) 901 764
Total stockholders' equity 280,873 286,478 297,167 254,746 250,585
*Total Liabilities and Stockholders' Equity* $ 2,674,716 $ 2,686,145 $ 2,638,300 $ 2,218,983 $ 2,166,865
FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA *For the Three Months Ended**
* *For the Six Months Ended*
*Selected financial data* June 30,
2022
March 31,
2022 December 31,
2021 September 30,
2021 June 30,
2021 June 30,
2022 June 30,
2021
Return on average assets 1.23 % 1.21 % 1.17 % 1.12 % 0.90 % 1.22 % 0.98 %
Return on average equity 11.66 % 11.00 % 10.94 % 9.32 % 8.00 % 11.32 % 7.94 %
Yield on earning assets 3.47 % 3.47 % 3.59 % 3.85 % 3.53 % 3.79 % 3.61 %
Cost of interest bearing liabilities 0.45 % 0.45 % 0.51 % 0.45 % 0.44 % 0.44 % 0.48 %
Net interest spread 3.02 % 3.02 % 3.08 % 3.40 % 3.09 % 3.35 % 3.13 %
Net interest margin 3.14 % 3.14 % 3.21 % 3.53 % 3.21 % 3.47 % 3.27 %
Efficiency 50.17 % 55.44 % 58.76 % 63.50 % 64.98 % 57.90 % 63.72 %
Dividend payout ratio 30.02 % 30.64 % 32.03 % 33.81 % 37.89 % 30.08 % 38.18 %
Tangible book value per share (1) $ 17.43 $ 16.96 $ 16.49 $ 17.33 $ 16.94
Tier 1 capital to average assets 8.75 % 8.51 % 8.47 % 9.45 % 8.78 %
Average Shares Outstanding 13,065,975 13,066,272 13,046,299 11,209,732 11,191,043 13,066,123 11,194,011
*Loans* June 30,
2022 March 31,
2022 December 31,
2021 September 30,
2021 June 30,
2021
(Dollar amounts in thousands)
Commercial real estate $ 979,176 $ 910,839 $ 848,477 $ 728,852 $ 691,122
Agricultural real estate 199,972 196,223 198,343 179,374 189,742
Consumer real estate 410,450 410,120 395,873 202,454 194,715
Commercial and industrial 232,975 216,918 208,270 194,767 216,609
Agricultural 127,143 140,709 118,368 105,580 100,756
Consumer 55,411 57,521 57,737 55,521 56,427
Other 31,243 31,573 32,089 31,096 13,549
Less: Net deferred loan fees and costs (1,552 ) (1,683 ) (1,738 ) (2,082 ) (4,497 )
Total loans,net $ 2,034,818 $ 1,962,220 $ 1,857,419 $ 1,495,562 $ 1,458,423
*Asset quality data* June 30,
2022 March 31,
2022 December 31,
2021 September 30,
2021 June 30,
2021
(Dollar amounts in thousands)
Nonaccrual loans $ 5,247 $ 8,581 $ 8,076 $ 6,248 $ 7,031
Troubled debt restructuring $ 2,748 $ 7,268 $ 7,614 $ 6,035 $ 5,492
90 day past due and accruing $ - $ - $ - $ - $ -
Nonperforming loans $ 5,247 $ 8,581 $ 8,076 $ 6,248 $ 7,031
Other real estate owned $ - $ - $ 159 $ 167 $ 198
Nonperforming assets $ 5,247 $ 8,581 $ 8,235 $ 6,415 $ 7,229
(Dollar amounts in thousands)
Allowance for loan and lease losses $ 18,424 $ 16,771 $ 16,242 $ 15,698 $ 15,087
Allowance for loan and lease losses/total loans 0.91 % 0.85 % 0.87 % 1.05 % 1.03 %
Net charge-offs:
Quarter-to-date $ (25 ) $ 51 $ (101 ) $ 48 $ (21 )
Year-to-date $ 26 $ 51 $ 874 $ 974 $ 926
Net charge-offs to average loans
Quarter-to-date 0.00 % 0.00 % -0.01 % 0.00 % 0.00 %
Year-to-date 0.00 % 0.00 % 0.06 % 0.07 % 0.07 %
Nonperforming loans/total loans 0.26 % 0.44 % 0.43 % 0.42 % 0.48 %
Allowance for loan and lease losses/nonperforming loans 351.44 % 198.29 % 201.11 % 251.26 % 214.58 %
(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, 2022* *June 30, 2021*
Interest Earning Assets: Average Balance Interest/Dividends Annualized
Yield/Rate Average Balance Interest/Dividends Annualized
Yield/Rate
Loans $ 1,999,357 $ 22,388 4.48 % $ 1,419,531 $ 16,259 4.58 %
Taxable investment securities 422,482 1,344 1.27 % 367,249 1,100 1.20 %
Tax-exempt investment securities 21,649 70 1.64 % 17,497 77 2.23 %
Fed funds sold & other 81,091 109 0.54 % 187,583 94 0.20 %
Total Interest Earning Assets 2,524,579 $ 23,911 3.79 % 1,991,860 $ 17,530 3.53 %
Nonearning Assets 161,031 228,036
Total Assets $ 2,685,610 $ 2,219,896
Interest Bearing Liabilities:
Savings deposits $ 1,312,444 $ 777 0.24 % $ 1,123,157 $ 566 0.20 %
Other time deposits 435,091 602 0.55 % 250,277 710 1.13 %
Other borrowed money 39,172 218 2.23 % 17,859 115 2.58 %
Fed funds purchased & securities
sold under agreement to repurch. 35,260 166 1.88 % 29,980 163 2.17 %
Subordinated notes 34,509 284 3.29 % - - 0.00 %
Total Interest Bearing Liabilities $ 1,856,476 $ 2,047 0.44 % $ 1,421,273 $ 1,554 0.44 %
Noninterest Bearing Liabilities 545,439 549,610
Stockholders' Equity $ 283,695 $ 249,013
Net Interest Income and Interest Rate Spread $ 21,864 3.35 % $ 15,976 3.09 %
Net Interest Margin 3.47 % 3.21 %
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, 2022* *June 30, 2021*
Interest Earning Assets: Average Balance Interest/Dividends Annualized
Yield/Rate Average Balance Interest/Dividends Annualized
Yield/Rate
Loans $ 1,953,671 $ 42,843 4.39 % $ 1,374,302 $ 31,871 4.64 %
Taxable investment securities 426,189 2,639 1.24 % 345,893 2,109 1.22 %
Tax-exempt investment securities 20,119 140 1.76 % 18,936 177 2.37 %
Fed funds sold & other 124,050 188 0.30 % 162,646 138 0.17 %
Total Interest Earning Assets 2,524,029 $ 45,810 3.63 % 1,901,777 $ 34,295 3.61 %
Nonearning Assets 162,949 126,533
Total Assets $ 2,686,978 $ 2,028,310
Interest Bearing Liabilities:
Savings deposits $ 1,302,005 $ 1,365 0.21 % $ 1,069,179 $ 1,140 0.21 %
Other time deposits 447,471 1,374 0.61 % 246,155 1,476 1.20 %
Other borrowed money 51,180 553 2.16 % 17,854 337 3.78 %
Fed funds purchased & securities
sold under agreement to repurch. 32,182 318 1.98 % 30,095 329 2.19 %
Subordinated notes 34,495 553 3.12 % - - 0.00 %
Total Interest Bearing Liabilities $ 1,867,333 $ 4,163 0.44 % $ 1,363,283 $ 3,282 0.48 %
Noninterest Bearing Liabilities 530,478 415,722
Stockholders' Equity $ 289,167 $ 249,305
Net Interest Income and Interest Rate Spread $ 41,647 3.19 % $ 31,013 3.13 %
Net Interest Margin 3.30 % 3.27 %
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 Value* Year to Date Year to Date June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Shares Outstanding 13,065,825 11,189,052 13,065,825 11,189,052
Tangible Equity
Equity $ 280,872 $ 250,585 $ 280,872 $ 250,585
Goodwill 80,434 56,066 80,434 56,066
Other Intangible 3,974 4,200 3,974 4,200
Comprehensive Adjustment* - - 31,261 (764 )
Tangible Equity $ 196,464 $ 190,319 $ 227,725 $ 189,555
Shares Outstanding 13,066 11,189 13,066 11,189
Tangible Book Equity per Share *$* *15.04* *$* *17.01* *$* *17.43* *$* *16.94* Actual Average Regulatory Average Year to Date Year to Date June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Net Income $ 16,373 $ 9,892 $ 16,373 $ 9,892
Acquisition Costs - Tax Adjusted 115 982 115 982
Average Shares Outstanding 13,066,123 11,194,011 13,066,123 11,194,011
Average Tangible Equity
Average Equity $ 289,167 $ 249,305 $ 289,167 $ 249,305
Average Goodwill 80,434 50,191 80,434 50,191
Average Other Intangible 4,235 3,764 4,235 3,764
Average Comprehensive Adjustment* - - 16,893 (2,548 )
Average Tangible Equity $ 204,498 $ 195,350 $ 221,391 $ 192,803
Average Shares Outstanding 13,066 11,194 13,066 11,194
Average Tangible Book Equity per Share *$* *15.65* *$* *17.45* *$* *16.94* *$* *17.22*
Return on Average Tangible Equity *16.01* *%* *10.13* *%* *14.79* *%* *10.26* *%*
Return on Average Tangible Equity w/o Acquisition *16.12* *%* *11.13* *%* *14.89* *%* *11.28* *%*
*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