Farmers & Merchants Bancorp, Inc. · NASDAQ:FMAO
Farmers & Merchants Bancorp — Q4 2024 Earnings Presentation
24 slides from Farmers & Merchants Bancorp's earnings presentation, 2025
Slide 1: 2024 Fourth Quarter Investor Presentation
2024 Fourth Quarter Investor Presentation NASDAQ: FMAO
Slide 2: Forward Looking Statement
Forward Looking Statement Statements contained in any portion of the Company’s annual meeting may be forward-looking statements, as that term is defined in the private securities litigation reform act of 1995. Forward- looking statements may be identified by the use of such words as “intend,” “belie
Slide 3: Vision and Mission
VISION Community vested to help people realize their best lives. MISSION We nurture lasting relationships. NASDAQ: FMAO Slide 3
Slide 4: About F&M
About F&M • Farmers & Merchants Bancorp, Inc. is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897 • Top 100 Farm Lending Bank and Top 200 Publicly Traded Community Bank, according to American Banker • Twice named Top 50 Social Media
Slide 5: Compelling Opportunities Across Strong Markets
F&M is headquartered in Compelling Opportunities Across Strong Markets Archbold, Ohio Full service independent community bank, with offices serving customers F&M Market Ohio Indiana in Northwest Ohio, Highlights Northeast Indiana, and Offices 25 13 Southern Michigan, along the corridors of Interstat
Slide 6: Leading Market Share
Leading Market Share (data from FDIC June 2024 Market Share Report) F&M Total Market Share (1) Total Deposit Growth Market share in 13 communities of 2024 2023 2022 2021 7.4% #1 our 37 locations $2,645 $2,473 $2,227 8.5% $1,855 10.1% F&M’s total deposits have increased 10.5% 2021 2022 2023 2024 43%
Slide 7: Profitable Financial Model
Profitable Financial Model $ in millions Stockholders’ Equity $400 11.3% CAGR in Stockholders’ Equity From 2014 - 2024 $350 Proven earnings model supported by geographic $300 expansion, strong loan growth $250 and pricing, controlled operating expenses, accretive $200 acquisitions, and the contribut
Slide 8: Legacy of Value Creation
Legacy of Value Creation For the twelve months ended Annual Dividends(1) Total Shareholder Return(1) December 31, 2024, the (12/31/11 – 12/31/2024) Company declared cash $1.00 $600 dividends of $0.8825 per share, $0.90 representing a 3.8% increase $500 $492 over the same period last year. $0.80 F&M
Slide 9: Financial Highlights
Financial Highlights Total Assets ($ in millions) 5-Year Growth YoY Growth: 2.5% CAGR: 15.9% • Year-over-year asset growth primarily driven by increased cash and cash equivalents and available-for-sale securities $3,283 $3,365 $3,365 • Total loans, net at December 31, 2024, decreased 0.7%, or by $19
Slide 10: Executing our Strategic Plan
Executing our Strategic Plan Leveraging Investments and Optimizing Platform • New offices opened in 2023 in Fort Wayne, IN, Birmingham, MI, Toledo, OH and Oxford, OH added $53.9 million of new deposits and $80.5 million in new loans during 2024 • Optimizing key vendor agreements during 2024 Total As
Slide 11: Growth Oriented Strategy
Growth Oriented Strategy F&M is following a new 3-year strategic plan focused on growing earnings and creating value for its shareholders After successfully completing its prior strategic plan and growing assets to over $3 billion, in 2022 F&M developed a new three-year plan to guide the next phase
Slide 12: Deploying Digital Strategies for Future Growth
Deploying Digital Strategies for Future Growth Improve the Leverage Upgrade Align Customer Modern Systems and Reskill Leadership and Experience Technologies Processes Workforce Culture 2024 Digital Engagement Growth 32% 29% 27% 17% 8% 14% Increase in Increase in Increase in Increase in Increase in I
Slide 13: Committed and Highly Experienced Leadership Team
Committed and Highly Experienced Leadership Team Lars B. Eller Eller joined F&M in September 2018. He has Barbara J. Britenriker Britenriker has been with F&M for 40 years, President, Chief more than 30 years of banking experience, EVP & Chief Financial beginning in the new accounts department Execu
Slide 14: F&M Bank Leadership Development Approach
F&M Bank Leadership Development Approach Executive Level Focus areas: • Company wide leadership Sr. Manager/Director Level • Executive Success Focus areas: Profile • Moving from operational • Competencies First Time Supervisor leadership to strategic • Inspire a vision for Focus areas: • Leadership
Slide 15: Proven Board of Directors
Proven Board of Directors Andrew J. Briggs Named Chairman as of April 30, Lars B. Eller President and CEO of the Chairman 2024. Former Chairman of Director Company and The Farmers & Age: 70 Limberlost Bancshares, Inc and Age: 58 Merchants State Bank President of its wholly-owned subsidiary Bank of G
Slide 16: Track Record of Deposit Growth
Track Record of Deposit Growth Cumulative Number of DDA Deposits From 2019 – 2024, total Accounts Opened in 2024 ($ in millions) deposits increased at a 15.8% (as of December 2024) 8,000 $2,687 CAGR $2,607 $2,469 7,000 Growing new demand deposit $2,193 accounts (“DDA”) is an 6,000 important near-ter
Slide 17: Liquidity and Capital Position at December 31, 2024
Liquidity and Capital Position at December 31, 2024 $602.9 million $690+ million Total Cash, Cash 12.80% Contingent Liability Equivalents and Total Risk-Based Availability Securities Available Capital for Sale 5.3% ~10.4% 8.12% Cash-to-Assets Uninsured Deposits / Tier 1 leverage Ratio Total Deposits
Slide 18: CRE Dashboard at December 31, 2024
CRE Overview at December 31, 2024 CRE Dashboard at December 31, 2024 • CRE was 51.2% of total loan portfolio CRE Breakdown CRE Categories CRE Locations • 5.2% office credit exposure to total loans with an average 2% 2% loan to value (LTV) of 64% 2% 8% 4% 5% 2% 21% 18% 8% • Zero non-recourse office C
Slide 19: Fixed vs. Variable Loan Mix at December 31, 2024
Compelling Variable Loan Mix Fixed vs. Variable Loan Mix at December 31, 2024 F&M has proactively Loan Maturity and Repricing Variable Loans as a % of balanced the amount of as a % of Total Loan Portfolio Total Product Category Loans fixed vs. variable loans on its balance sheet. Ag. 64.4% At Decemb
Slide 20: Strong Allowance Combined with Robust Asset Quality
Strong Allowance Combined with Robust Asset Quality Credit Quality Highlights Great Financial Crisis and Pandemic • Portfolio risk mitigated through diversification and • During the pandemic, F&M did not grant any full payment standardization of lending policies and procedures deferrals, and only gr
Slide 21: Supporting Our Communities
Supporting Our Communities PPP Lending • F&M funded in a two-year period $142.3 million in PPP loans, including $53.8 million in 2021 • PPP Lending by F&M is estimated to have impacted more than 18,000 jobs in our communities Community Involvement • Provided $511,525 of charitable donations to suppo
Slide 22: Agriculture Supports Business and Market Diversity
Agriculture Supports Business and Market Diversity Diversifies portfolio and historically inverse cycle with commercial loan performance • Concentrated in three Midwest states to leverage soil quality Total Agriculture Loans ~40% of all F&M Ag real estate lending is sold on the secondary market Incl
Slide 23: Consistent M&A Strategy Paired with Organic Growth
Consistent M&A Strategy Paired with Organic Growth Acquisition Acquisition Total Asset Growth ($ in Billions) June 2022 October 2021 $133 Million in Assets $395 Million in Assets $3.28 $3.36 $3.02 Acquisition Asset Purchase $2.64 $1.91 $1.61 April 2021 December 2020 $130 Million in Assets $83 Millio
Slide 24: 2025 Priorities
2025 Priorities Control Growth Enhance Profitability • Focus on growing low-cost • Leverage prior year deposits investments • Prudent underwriting and risk • Accelerate new office management to drive productivity controlled loan growth • Benefits of loan repricing Continually Innovate Operational Ef
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