Farmers And Merchants Bancshares, Inc. · OTC:FMFG
Farmers And Merchants Bancshares — Shareholder Meeting (April 2024)
23 slides from Farmers And Merchants Bancshares's shareholder meeting presentation, Apr 23, 2024
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders April 23, 2024 The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersburg … Towson
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical facts, but are statements regarding management’s beliefs, plans and objectives about the futu
Slide 3: Highlights for 2023
Highlights for 2023 Achieved earnings in 2023 of $6,418,337,or $2.08 per share, compared to 2022 earnings of $8,090,127, or $2.66 per share Cost of deposits and borrowings increased by 133 basis points in 2023 compared to 2022 causing the decline in net income Dividends paid increased to $.66
Slide 4: Assets
Assets (in thousands) 12/31/2023 12/31/2022 Change Cash & Due From Banks $ 44,690 $ 7,264 $ 37,426 Investments 185,719 148,745 36,974 Loans & Loans Held For Sale 523,308 517,349 5,959 Fixed Assets 6,584 6,187 397 Bank Owned Life Insurance 14,931 14,585 346 Other Real Estate Owned 1,242 1,242 - Goodw
Slide 5: Loan Portfolio
Loan Portfolio The loan portfolio increased by $6 million during 2023 Loan Quality: No net loan losses for five consecutive years Net recoveries totaled $398,973 in 2023 and $24,930 in 2022 Non performing assets to total assets decreased to 0.24% at 12/31/23, compared to 0.26% at 12/31/22
Slide 6: Loan Charge-off Trend
Loan Charge-off Trend Five Consecutive Years of Net Recoveries Net Loan Charge-offs (Recoveries) (in thousands) $800 $600 $400 $200 $0 (44) (78) (24) (25) ($200) ($400) (399) ($600) The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminst
Slide 7: Liabilities and Equity
Liabilities and Equity (in thousands) 12/31/2023 12/31/2022 Change Deposits $ 680,963 $ 623,611 $ 57,352 Repurchase Agreements 6,761 5,175 1,586 FHLB Advances 5,000 20,000 (15,000) FRB BTFP Advances 33,000 - 33,000 Long-Term Debt 13,212 15,096 (1,884) Other 8,827 6,554 2,273 Total Liabilities 747,76
Slide 8: Balance Sheet
Balance Sheet Five Year Trend $1,000 $800 $600 In Millions $400 $200 $0 2019 2020 2021 2022 2023 Total Assets Deposits Loans Investments The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersburg … Towson
Slide 9: Book Value per Share
Book Value per Share Five Year Trend (at year end) $19 $16 $13 $10 2019 2020 2021 2022 2023 The unrealized loss on available for sale securities is the cause of the decrease in 2022 and has not recovered as of 12/31/23. The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … R
Slide 10: Income Statement Highlights for 2023
Income Statement Highlights for 2023 Twelve Months Ended December 31, 2023 December 31, 2022 As Reported As Reported Income before income taxes $ 8,435,587 $ 10,575,153 Income taxes 2,017,250 2,485,026 Net income $ 6,418,337 $ 8,090,127 Earnings per share $ 2.08 $ 2.66 Return on average assets 0.86%
Slide 11: Income Statement Highlights for 2023 (continued)
Income Statement Highlights for 2023 (continued) Net Interest Income decreased by $2,707,000 Average interest earning assets increased by $41 million Tax equivalent net yield on interest-earning assets decreased to 2.97% in 2023 from 3.54% in 2022 Tax equivalent yield on interest earning ass
Slide 12: Net Interest Margin
Net Interest Margin Five Year Trend 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2019 2020 2021 2022 2023 Net Yield on Interest Earning Assets Interest Earning Assets Yield Cost of Deposits and Borrowings The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … W
Slide 13: Income Statement
Income Statement (in thousands) 2023 2022 Change Interest - Loans $ 25,731 $ 22,565 $ 3,166 Interest - Investments 5,592 3,704 1,888 Total Interest Income 31,323 26,269 5,054 Interest Expense (9,907) (2,146) (7,761) Net Interest Income 21,416 24,123 (2,707) Loan Loss Provision 570 (475) 1,045 Other
Slide 14: Net Income - Five Year Trend
Net Income - Five Year Trend $8,500 $7,500 In Thousands $6,500 $5,500 $4,500 $3,500 $2,500 Net Income (2020 is adjusted for acquisition costs) The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersburg … Towson
Slide 15: Efficiency Ratio
Efficiency Ratio Five Year Trend 100% 90% 80% 70% * 60% 50% 40% * F&M Bank 2020 ratio excludes the impact of the Carroll F&M Bank Bancorp acquisition costs. Peer Group The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersbur
Slide 16: Cash Dividends per Share
Cash Dividends per Share Five Year Trend Cash dividends increased $0.03 to $0.66 in 2023 from $0.63 in 2022 $0.70 $0.60 $0.50 $0.40 $0.30 The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersburg … Towson
Slide 17: Selected Local Banks
Selected Local Banks Return on Average Assets Ranked by 5 Year Average Return 5 Year 2023 2022 2021 2020 2019 Average Bay Vanguard 1.54% 1.38% 1.15% 1.43% 0.83% 1.27% ACNB 1.32% 1.31% 1.03% 0.78% 1.40% 1.17% Farmers & Merchants (a) 0.86% 1.13% 1.16% 0.97% 1.06% 1.04% Orrstown Bank 1.19% 0.77% 1.14%
Slide 18: Bank Stock Price Changes
Bank Stock Price Changes Ranked by 2023 change 2024 Q1 2023 2022 2021 2020 Orrstown Bank -12% 27% -8% 52% -27% ACNB -27% 11% 29% 25% -34% Bank of America Corp 8% 2% 31% -17% -14% Harford Bank -3% 0% 12% 38% -28% PNC 0% -2% -21% 35% -7% M & T Bank Corp 4% -6% -6% 21% -25% Shore Bancshares -27% -18% -
Slide 19: Bank Stock Dividend Yields
Bank Stock Dividend Yields Current Yield Current (a) Prior Year Shore Bancshares 4.47% 3.59% PNC 4.10% 4.92% Farmers & Merchants 3.91% 2.94% M & T Bank Corp 3.72% 4.46% ACNB 3.42% 3.64% Orrstown Bank 3.14% 4.17% Harford Bank 2.88% 2.75% Bank of America Corp 2.66% 2.98% Bay Vanguard 0.00% 1.17% Sourc
Slide 20: 2024 First Quarter Results
2024 First Quarter Results First quarter 2024 net income of $1,219,987 or $0.39 per share compared to $1,900,851 or $0.62 per share in the first quarter of 2023 Cost of funds for deposits and borrowings increased 145 basis points in Q1 2024 versus Q1 2023 Three Months Ended March 31, 2024 March
Slide 21: 2024 Initiatives
2024 Initiatives The Upperco (Fowblesburg) location reopened in March after suffering significant damage due to high winds in July 2022 A loan production branch will be opened in downtown Towson in May The Bank has been primarily a commercial real estate lender. In order to diversify into C &
Slide 22: Summary
Summary Farmers & Merchants Bancshares is: Well capitalized Profitable An active lender in the community The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersburg … Towson
Slide 23: Best Wishes in 2024!
Best Wishes in 2024! The “Community” Bank that Puts People First Upperco … Hampstead … Greenmount … Reisterstown … Owings Mills … Westminster … Eldersburg … Towson
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