Business
Farmers & Merchants Bancorp, Inc. Reports 2020 Third-Quarter and Year-to-Date Financial Results
Positive Momentum Continues as Third Quarter 2020 Earnings Per Diluted Share Increase 5.3% Despite Higher Provision for Loan Losses due to the COVID-19 Crisis
About this update from Farmers & Merchants Bancorp, Inc.
[{"type":"text","content":"Positive Momentum Continues as Third Quarter 2020 Earnings Per Diluted Share Increase 5.3% Despite Higher Provision for Loan Losses due to the COVID-19 Crisis\nARCHBOLD, Ohio, Oct. 21, 2020 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2020 third quarter and year-to-date September 30, 2020.\n 2020 Third Quarter Financial Highlights Include (on a year-over-year basis unless noted): Net interest income after provision for loan losses increased 3.0% to $13.0 million, which included a $1.7 million increase in the provision for loan losses as a result of the COVID-19 crisisNoninterest income increased 49.2% to $4.7 million, primarily due to strong residential mortgage demandEfficiency ratio improved 375 basis points to 62.11%Strong organic growth drove a 17.7% increase in net total loans and an 18.8% increase in total depositsAsset quality remains strong and nonperforming loans to total loans was 0.58% compared to 0.28%Year-to-date, net charge-offs to average loans was 0.03%, compared to 0.04% for the same period last yearThe balance of interest only and full deferrals was $8.5 million at September 30, 2020, a 94.6% decline from $156.6 million at June 30, 2020F&M remains well capitalized under regulatory guidelines with a Tier 1 capital to average assets of 10.65%Quarterly cash dividend increased 13.3% to $0.17 per share, reflecting F&M’s commitment to create long-term value for shareholdersF&M donated over $36,000 to local organizations during the third quarter, a 100% increase from the same quarter last yearNew loan production offices in Muncie, IN and Oxford, OH contributing to loan growthNew loan production office in West Bloomfield, MI and new full-service office in Fort Wayne expected to open in fourth quarter “Momentum in our business remains strong and I am extremely proud of the high level of service and dedication our employees continue to provide our customers and communities,” stated Lars B. Eller, President and Chief Executive Officer. “We entered the COVID-19 crisis from a position of strength through our commitment to community-oriented and prudent banking values. F&M’s continued success throughout this challenging period is encouraging and we have been able to offset an increased level of provision for loan losses by reducing our cost of funds, driving st...