Business
Farmers & Merchants Bancorp, Inc. Reports 2020 Second-Quarter and Year-to-Date Financial Results
Strong Operating Performance Supports Communities, while Driving Loan and Deposit Growth ARCHBOLD, Ohio, July 22, 2020 (GLOBE NEWSWIRE) -- Farmers & Merchants
About this update from Farmers & Merchants Bancorp, Inc.
[{"type":"text","content":"Strong Operating Performance Supports Communities, while Driving Loan and Deposit Growth\nARCHBOLD, Ohio, July 22, 2020 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2020 second quarter and year-to-date June 30, 2020.\n 2020 Second Quarter Financial and Operating Highlights Include (on a year-over-year basis unless noted): Net income was $4.8 million, and included a $1.4 million increase in the provision for loan losses as a result of the COVID-19 crisisNoninterest income increased 11.6% to $3.3 millionStrong organic growth drove a 23.1% increase in net total loans and a 18.9% increase in total depositsApproved 947 PPP applications for $87.0 million during the second quarterYear-to-date, net charge-offs to average loans was 0.02%, compared to 0.02% for the same period last yearReturn on average assets was 1.10%, compared to 1.63% for the same period last year (last year’s second quarter included a one-time $1.4 million tax adjusted recovery benefit)F&M remains well capitalized under regulatory guidelines with a Tier 1 capital to average assets of 10.70%F&M continues investing in its strategic growth plan and, during the quarter, added new leadership talent and opened two new loan production offices in Muncie, IN and Oxford, OH “Through the course of the COVID-19 pandemic, the health and safety of our customers, employees and communities has remained our highest priority. On June 15, 2020, all F&M offices reopened to provide customers with full lobby access, while operating with new safety procedures to do our part in limiting the spread of the coronavirus,” stated Lars B. Eller, President and Chief Executive Officer. “F&M is dedicated to helping our communities through supportive financial relief programs. The high level of interest-only modifications compared to payment deferrals is encouraging and demonstrates the strong asset quality and lending relationships we had prior to the crisis. Specifically, we have only received $32.5 million of payment deferrals and $124.0 million of loans have entered into interest-only modifications as of June 30, 2020. Combined deferrals and interest-only modifications represent only 11.7% of our net total loans at the end of the second quarter. F&M has no exposure to the energy sector, while our exposure to industries most likely i...