Farmers & Merchants Bancorp repors Q3 EPS $29.23 vs. $25.20 last year

The Company’s and Bank’s regulatory capital ratios remain strong and increased from June 30, 2023. At September 30, 2023, the Company’s preliminary total risk-based capital ratio was 13.97%, the common equity tier 1 capital ratio was 12.48% and the tier 1 leverage capital ratio was 10.22% an increase from 13.71%, 12.22% and 10.21% as of June 30, 2023, respectively. At September 30, 2023, all F&M Bank capital ratios exceeded the regulatory requirements to be classified as “well capitalized”. At September 30, 2023, the tangible common equity ratio was 9.64% an increase of 131 basis points from the 8.33% as of September 30, 2022. Tangible book value per share increased to $687.57 at September 30, 2023, up 16.73% compared with $589.03 a year ago. Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are very pleased with the Company’s financial performance in the third quarter of 2023 highlighted by net income of $22.0 million and record year-to-date net income of $66.9 million. Our earnings per share over the trailing twelve months ended September 30, 2023 totaled $114.13, up 25.83% compared with $90.70 per share for the same trailing period a year ago. Our results reflect the dedication and efforts of all our employees and their focus on being a strong and stable partner for our customers and communities. By growing deposits, we increased our already strong liquidity position and balance sheet at quarter end with $668.4 million in cash, $106.5 million of available-for-sale investments, no outstanding borrowings and access to $2.2 billion in borrowing capacity. Our regulatory capital levels continued to increase during the third quarter and our capital position remains strong and significantly above the regulatory thresholds for well-capitalized. Additionally, our tangible common equity ratio increased to 9.64%. Our total deposits, all of which are core deposits since we have no brokered deposits, grew $110.5 million or 2.38% during the third quarter compared to the second quarter of 2023 and our cost of deposits of 1.01% for the third quarter highlights our disciplined approach to effectively managing our deposit costs. Our loan portfolio grew $65.5 million or 1.88% during third quarter compared to the second quarter of 2023 as we continue to lend and serve the needs of our customers and local communities. Credit quality continues to remain strong with net recoveries of $274,000 for the first nine-months of 2023 while our total allowance for credit losses strengthened to 2.14%. Our Company remains in excellent financial condition and is well positioned to meet any challenges that might arise in the future as we have for the past 107 years.”