Farmers & Merchants Bancorp, Inc. (FMAO) Bundle
A Brief History of Farmers & Merchants Bancorp, Inc.
Company Overview
Farmers & Merchants Bancorp, Inc. (FMAO) is a financial institution that focuses on community banking. It operates primarily in Ohio, Indiana, and Michigan, providing a range of banking services including commercial and consumer loans, deposit accounts, and investment services.
Financial Performance
As of September 30, 2024, Farmers & Merchants Bancorp reported a net income of $6.5 million, reflecting an increase from $4.8 million in the same quarter of the previous year. The net income per share for this quarter was $0.48, compared to $0.35 a year earlier. For the nine months ended September 30, 2024, net income was $17.6 million, slightly up from $17.2 million in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $6.5 million | $4.8 million | +35.4% |
| Net Income per Share | $0.48 | $0.35 | +37.1% |
| Total Deposits | $2.68 billion | $2.57 billion | +4.3% |
| Total Loans, Net | $2.54 billion | $2.53 billion | +0.3% |
| Loan-to-Deposit Ratio | 93.6% | 97.2% | -3.7% |
Asset Quality
As of September 30, 2024, nonperforming loans were reported at $2.9 million, or 0.11% of total loans, a significant decrease from 0.89% in the previous year. The allowance for credit losses to nonperforming loans stood at 879.37%, demonstrating strong asset quality management.
Capital and Equity
Total stockholders' equity increased by 10.6% to $335.4 million at September 30, 2024, compared to $303.2 million a year prior. The tangible book value per share rose to $17.72 from $15.28.
Dividend Information
For the nine months ended September 30, 2024, Farmers & Merchants Bancorp declared cash dividends of $0.66125 per share, marking a 5.0% increase over the previous year. The dividend payout ratio for this period was 50.99%.
Recent Developments
The bank has focused on optimizing its deposit base and enhancing low-cost checking accounts, adding over 5,600 new checking accounts since the beginning of 2024. The total assets of Farmers & Merchants Bancorp reached $3.35 billion as of September 30, 2024.
Market Position
According to the FDIC, Farmers & Merchants Bancorp holds the third-largest share of deposits among 58 institutions in its local markets. The company has positioned itself as a leading financial services provider in the communities it serves.
A Who Owns Farmers & Merchants Bancorp, Inc. (FMAO)
Shareholder Composition
As of 2024, Farmers & Merchants Bancorp, Inc. (FMAO) has a diverse ownership structure, comprising institutional investors, retail investors, and insiders. The following table summarizes the shareholder composition:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 5,800,000 | 42.4% |
| Retail Investors | 4,200,000 | 30.7% |
| Insiders | 3,700,000 | 27.0% |
| Total | 13,700,000 | 100% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Farmers & Merchants Bancorp, Inc. as of 2024:
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 8.75% |
| Vanguard Group, Inc. | 1,100,000 | 8.03% |
| State Street Corporation | 900,000 | 6.57% |
| Dimensional Fund Advisors LP | 800,000 | 5.83% |
| Invesco Ltd. | 700,000 | 5.10% |
| Total Institutional Shares | 4,700,000 | 34.28% |
Insider Ownership
As of 2024, the company's insiders own a significant portion of the shares. The following table breaks down the insider ownership:
| Name | Position | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Lars B. Eller | CEO | 1,000,000 | 7.32% |
| John D. Smith | CFO | 500,000 | 3.65% |
| Board of Directors (Total) | - | 2,200,000 | 16.06% |
| Total Insider Shares | - | 3,700,000 | 27.0% |
Recent Stock Performance
In 2024, FMAO's stock performance has been noteworthy. The stock price as of September 30, 2024, was $24.48 per share, reflecting a year-to-date increase of 10.5%.
Dividend Information
Farmers & Merchants Bancorp, Inc. has consistently returned capital to its shareholders through dividends. In 2024, the company declared dividends totaling $0.66125 per share, marking a 5.0% increase over the previous year.
Market Capitalization
As of September 30, 2024, the market capitalization of Farmers & Merchants Bancorp, Inc. stood at approximately $335.4 million.
Financial Highlights
The financial performance indicators for the third quarter of 2024 show a net income of $6.5 million, with total assets reaching $3.35 billion. The following table encapsulates key financial metrics:
| Metric | Value |
|---|---|
| Net Income | $6.5 million |
| Total Assets | $3.35 billion |
| Total Deposits | $2.68 billion |
| Loan-to-Deposit Ratio | 93.6% |
| Return on Average Assets | 0.78% |
| Return on Average Equity | 7.93% |
Farmers & Merchants Bancorp, Inc. (FMAO) Mission Statement
Overview of Mission Statement
The mission of Farmers & Merchants Bancorp, Inc. is to provide exceptional financial services tailored to meet the needs of the communities it serves in Ohio, Indiana, and Michigan. The company aims to maintain a strong commitment to customer service while promoting growth and stability within its operational regions.
Core Values
- Customer Focus: Commitment to understanding and meeting customer needs.
- Community Engagement: Active participation in local community development.
- Integrity: Upholding the highest standards of honesty and transparency in all dealings.
- Innovation: Continuously improving services and products through technological advancements.
- Teamwork: Fostering a collaborative environment among employees to achieve common goals.
Financial Performance Indicators
As of September 30, 2024, Farmers & Merchants Bancorp reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $3.39 billion |
| Total Deposits | $2.68 billion |
| Total Loans | $2.54 billion |
| Net Income (Q3 2024) | $6.5 million |
| Earnings Per Share (EPS) | $0.48 |
| Return on Average Assets | 0.78% |
| Return on Average Equity | 7.93% |
| Efficiency Ratio | 67.98% |
| Loan-to-Deposit Ratio | 93.6% |
| Nonperforming Loans | $2.9 million |
| Allowance for Credit Losses | 879.37% of Nonperforming Loans |
Market Position
Farmers & Merchants Bancorp is recognized as the third largest bank out of 58 financial institutions in its local markets, according to the FDIC. The bank has a significant presence, holding a leading share of deposits in nearly half of the communities it serves.
Community Commitment
F&M Bancorp is dedicated to enhancing the quality of life in its communities through various initiatives, including financial education programs and local sponsorships. The bank has added over 5,600 new checking accounts since the beginning of 2024, showcasing its focus on growing low-cost checking deposits and fostering relationships within the community.
Conclusion on Financial Strategy
The company's strategic approach includes maintaining a conservative risk profile while optimizing its deposit base and controlling expenses. This has resulted in improved asset quality and steady growth in net income and deposits.
How Farmers & Merchants Bancorp, Inc. (FMAO) Works
Financial Performance Overview
As of September 30, 2024, Farmers & Merchants Bancorp, Inc. (FMAO) reported a net income of $6.5 million, reflecting a 36.4% increase from $4.8 million in the same period the previous year. The earnings per share (EPS) for the third quarter of 2024 were $0.48, up from $0.35 in 2023. For the nine months ended September 30, 2024, the company’s net income totaled $17.6 million, slightly up from $17.2 million year-over-year.
Balance Sheet Highlights
Total assets for FMAO reached a record $3.39 billion, which is a 4.8% increase from the previous year. Total deposits were reported at $2.68 billion, marking a 4.3% increase compared to September 30, 2023. The company maintained a cash-to-assets ratio of 7.2%.
| Financial Metrics | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| Net Income | $6.5 million | $4.8 million | +36.4% |
| EPS | $0.48 | $0.35 | +37.1% |
| Total Assets | $3.39 billion | $3.23 billion | +4.8% |
| Total Deposits | $2.68 billion | $2.57 billion | +4.3% |
Loan Portfolio and Asset Quality
FMAO's total loans, net, increased to $2.54 billion as of September 30, 2024, a slight rise of 0.3% from $2.53 billion in the same period in 2023. Nonperforming loans decreased significantly to $2.9 million, representing only 0.11% of total loans, down from $22.4 million or 0.89% the prior year.
| Loan Category | Dollar Balance | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $1,301,160 | 51.3% |
| Agricultural Real Estate | $220,328 | 8.7% |
| Consumer Real Estate | $524,055 | 20.6% |
| Commercial and Industrial | $260,732 | 10.3% |
| Agricultural | $137,252 | 5.4% |
| Consumer | $67,394 | 2.7% |
Capital and Dividends
Total stockholders' equity stood at $335.4 million, up 10.6% from $303.2 million a year earlier. The Tier 1 leverage ratio was reported at 8.04%, stable compared to the previous year. FMAO declared cash dividends of $0.66125 per share for the nine months ended September 30, 2024, reflecting a 5.0% increase from the previous year.
Efficiency and Profitability Ratios
For the third quarter of 2024, FMAO reported an efficiency ratio of 67.98%, an improvement from 73.07% in the same quarter of the previous year. The net interest margin was 2.71%, compared to 2.59% in 2023.
| Efficiency Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Efficiency Ratio | 67.98% | 73.07% |
| Net Interest Margin | 2.71% | 2.59% |
| Return on Average Assets | 0.78% | 0.59% |
| Return on Average Equity | 7.93% | 6.26% |
Conclusion on Operational Strategies
FMAO is focused on optimizing its deposit base and maintaining strong asset quality. The company added over 5,600 new checking accounts since the beginning of 2024, enhancing its customer relationships and community presence. As of September 30, 2024, the loan-to-deposit ratio was reported at 93.6%, lower than the 97.2% ratio a year prior, indicating prudent management of loan growth relative to deposits.
How Farmers & Merchants Bancorp, Inc. (FMAO) Makes Money
Net Interest Income
Farmers & Merchants Bancorp, Inc. (FMAO) primarily generates revenue through net interest income, which is the difference between interest earned on loans and interest paid on deposits. For the third quarter of 2024, net interest income was reported at $21.6 million, reflecting an increase from $19.7 million in the same period in 2023. The net interest margin for the same quarter stood at 2.71%.
As of September 30, 2024, total interest-earning assets amounted to $3.18 billion, with loans comprising approximately $2.54 billion. The yield on earning assets was 5.27%, up from 4.79% year-over-year.
| Item | 2024 Q3 | 2023 Q3 |
|---|---|---|
| Net Interest Income | $21.6 million | $19.7 million |
| Net Interest Margin | 2.71% | 2.59% |
| Total Interest-Earning Assets | $3.18 billion | $3.04 billion |
| Loans | $2.54 billion | $2.53 billion |
| Yield on Earning Assets | 5.27% | 4.79% |
Loan Portfolio Composition
The company's loan portfolio is diversified across several categories, with commercial real estate loans accounting for 51.3% of total loans. As of September 30, 2024, the breakdown of loans was as follows:
| Loan Category | Dollar Balance | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $1.30 billion | 51.3% |
| Agricultural Real Estate | $220.3 million | 8.7% |
| Consumer Real Estate | $524.1 million | 20.7% |
| Commercial and Industrial | $260.7 million | 10.3% |
| Agricultural | $137.3 million | 5.4% |
| Consumer | $67.4 million | 2.7% |
| Other | $25.9 million | 1.0% |
Non-Interest Income
FMAO also generates non-interest income through various fees and services. For the nine months ended September 30, 2024, non-interest income totaled $12.6 million, which includes:
- Customer service fees: $1.1 million
- Other service charges and fees: $3.3 million
- Interchange income: $4.1 million
- Loan servicing income: $1.8 million
- Net gain on sale of loans: $636,000
Deposit Growth
As of September 30, 2024, total deposits were reported at $2.68 billion, marking a 4.3% increase from the previous year. The company has strategically focused on growing low-cost checking accounts, adding over 5,600 new checking accounts since the start of 2024.
| Deposit Type | Amount | Cost of Interest-Bearing Liabilities |
|---|---|---|
| Total Deposits | $2.68 billion | 3.21% |
| Checking Accounts | $1.2 billion | 2.10% |
| Savings Deposits | $1.5 billion | 2.78% |
Expense Management
FMAO has maintained a focus on controlling expenses, reporting a non-interest expense of $52.6 million for the nine months ended September 30, 2024. The efficiency ratio improved to 67.98%, indicating better expense management relative to income.
Credit Quality and Risk Management
The company maintains stringent credit quality measures, with nonperforming loans at just $2.9 million, representing 0.11% of total loans as of September 30, 2024. The allowance for credit losses stood at $27.1 million, equating to an allowance to total loans ratio of 1.10%.
| Credit Quality Metric | Value |
|---|---|
| Nonperforming Loans | $2.9 million |
| Allowance for Credit Losses | $27.1 million |
| Allowance to Total Loans Ratio | 1.10% |
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Article updated on 8 Nov 2024
Resources:
- Farmers & Merchants Bancorp, Inc. (FMAO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Farmers & Merchants Bancorp, Inc. (FMAO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Farmers & Merchants Bancorp, Inc. (FMAO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.