Farmers & Merchants Bancorp, Inc. · NASDAQ:FMAO
Farmers & Merchants Bancorp — Merger or Acquisition (May 2021)
13 slides from Farmers & Merchants Bancorp's merger presentation, May 4, 2021
Slide 1: Acquisition of Perpetual Federal Savings Bank
Exhibit 99.2 Farmers & Merchants Bancorp, Inc. (NASDAQ: FMAO) Acquisition of Perpetual Federal Savings Bank May 4, 2021 We Nurture Lasting RelationshipsExhibit 99.2 Farmers & Merchants Bancorp, Inc. (NASDAQ: FMAO) Acquisition of Perpetual Federal Savings Bank May 4, 2021 We Nurture Lasting Relations
Slide 2: Transaction Overview
Transaction Overview Farmers & Merchants Bancorp, Inc. to acquire Perpetual Federal Savings Bank ▪ Farmers & Merchants Bancorp, Inc. (“FMAO”) to acquire Perpetual Federal Savings Bank (“PFSB”), a community bank based in Urbana, Ohio, with one full-service location. PFSB represents FMAO’s largest acq
Slide 3: PFSB Profile – Investment Highlights
PFSB Profile – Investment Highlights • Strong profitability – average annual net income and ROAA of $5.7 million and 1.45%, respectively, between 2018 and 2020 • Consistent earnings - LTM ended 03/31/2021 net income equaled $4.8 million. Net income equaled $1.2 Financial Stability million in each of
Slide 4: PFSB Profile – Investment Highlights (Cont.)
PFSB Profile – Investment Highlights (Cont.) • Implement FMAO’s retail culture by providing more traditional community bank lending and deposit products/services Margin Improvement • Implement FMAO’s ALCO management process to effectively manage interest rate risk Included in Pro Forma Model • Trans
Slide 5: PFSB Profile – Investment Highlights (Cont.)
PFSB Profile – Investment Highlights (Cont.) • Extension of FMAO’s franchise into Columbus, Piqua, Sidney, Springfield, Tipp City and Troy markets with Strategically significant fill-in potential Well-Positioned• Eastern suburbs of Dayton and western suburbs of Columbus are approximately 30 miles fr
Slide 6: Pro Forma Footprint
Pro Forma Footprint Perpetual Federal Savings Bank Jun-20 Deposits Branch Address City County ST ($000) 1 120 N Main St Urbana Champaign OH $306,090 Total $306,090 Farmers & Merchants State Bank **Ohio Branches Listed Below** Jun-20 Deposits Branch Address City County ST ($000) 1 307 N Defiance St (
Slide 7: Pro Forma Loan Mix
Pro Forma Loan Mix Perpetual Federal Savings Farmers & Merchants State Ossian State Bank Combined Banks Bank Bank Other Agric. Other Agric. 0.4% Constr. 1.4% Other 0.1% Other 0.1% 0.4% Constr. Agric. 1.1% 0.9% Constr. Cons. Agric. Cons. 5.8% Constr. 0.2% Farm 8.0% C&I 0.7% 7.4% Cons. 10.2% 2.0% 0.9%
Slide 8: Pro Forma Deposit Mix
Pro Forma Deposit Mix Perpetual Federal Savings Farmers & Merchants State Ossian State Bank Combined Banks Bank Bank Jumbo Jumbo Jumbo Retail Time Retail Nonint. Time Time Time Jumbo Deposits NOW, Time Deposits Bearing Deposits Deposits Time 4.0% MMDA, Deposits 1.0% 1.1% 1.9% 9.3% Deposits Savings 1
Slide 9: Other Key Assumptions
Other Key Assumptions • Loan credit mark at 1.25% of estimated closing total loans; PFSB’s ALLL/Loans currently at 1.50% Purchase Accounting • Core deposit intangible of 1.0% ($585,000); amortized 7-year straight line Assumptions (“PAA”) • PAA on loan yield and time deposits TBD but would not alter
Slide 10: Transaction Multiples / Pro Forma Results
Transaction Multiples / Pro Forma Results FMAO Acquisition of PFSB Aggregate Shares Issued 1,833,999 Aggregate Cash Consideration $59.2 million (1) Aggregate Deal Value $103.7 million (2) Price/TBV (03/31/2021) 131% (3) Price/LTM Earnings (03/31/2021) 21.7x (4) Expected Year 1 EPS Accretion 10.0% Ex
Slide 11: History of Organic & Acquisition Growth
History of Organic & Acquisition Growth FMAO Achieves Record Earnings FMAO - Total Assets ($Millions) FMAO - Net Income ($Millions) $2,750 $30.0 Implied CAGR = 31.1% Implied CAGR = 20.1% $2,513 $2,250 $25.0 $26.4 $1,993 $1,750 $20.0 $1,910 $20.1 $1,607 $18.4 $1,250 $15.0 $14.9 $1,116 $12.7 $750 $10.
Slide 12: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events
Slide 13: We Nurture Lasting RelationshipsWe Nurture Lasting Relationships
We Nurture Lasting RelationshipsWe Nurture Lasting Relationships
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