Farmers & Merchants Bancorp, Inc. · NASDAQ:FMAO
Farmers & Merchants Bancorp — Merger or Acquisition (June 2022)
12 slides from Farmers & Merchants Bancorp's merger presentation, Jun 15, 2022
Slide 1: Partnership with Peoples-Sidney Financial Corporation
Partnership with Peoples-Sidney Financial Corporation June 14, 2022 Investor Presentation Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This investor presentation may contain forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe
Slide 3: Transaction Highlights
Attractive addition to F&M’s franchise Financially Compelling Farmers & Merchants (“F&M”) expands branch footprint in Central Ohio by partnering with a client-focused community bank Strategically located between Urbana, Dayton and Findlay Provides access to a growing industrial market, home to many
Slide 4: PPSF Background and Transaction Overview
Partnership with Peoples-Sidney Financial Corporation PPSF Background and Transaction Overview Headquartered in Sidney, OH and founded in 1886 Complements F&M’s existing Ohio presence with a diverse economy and appealing demographics along the highly-trafficked I-75 corridor Allows F&M to expand cli
Slide 5: Expands Ohio Presence in the Attractive Sidney, OH Market
Expands Ohio Presence in the Attractive Sidney, OH Market Notable Employers Market Demographics Sidney, OH Market Highlights Sidney’s strategic location within the I-75 corridor provides easy access to a high concentration of both businesses and governmental functions Shelby County and its six surro
Slide 6: Institution Overview
Institution Overview This partnership expands F&M’s Ohio footprint with a connected, community-focused bank PPSF MRQ Summary Financials Headquarters Building History The Bank’s headquarters building in Sidney, OH was designed by architect Louis H. Sullivan in the early 1900s It is one of two Sulliva
Slide 7: Financially Compelling Transaction
Financially Compelling Transaction >20% Internal Rate of Return ~3.25 Years TBV Earnback (Crossover) 2.5% Approximate 2023 EPS Accretion 3.9% Approximate 2024 EPS Accretion (2.1%) TBV Dilution Key Financial Results >20% Internal Rate of Return ~2.00 Years TBV Earnback (Crossover) 1.0% Approximate 20
Slide 8: Transaction Value and Assumptions
Transaction Value $27.0 million, or $23.10 per Peoples-Sidney Financial Corporation common share based on 1,167,025 common shares of PPSF outstanding¹ Consideration to PPSF Shareholders Cash or stock election subject to proration, resulting in stock consideration of at least 65% Fixed exchange ratio
Slide 9: Approach to M&A
Approach to M&A Peoples-Sidney Financial Corporation fits the criteria F&M seeks in a partner Expanded capabilities to serve the client Strong financial performance Deep commitment to communities This transaction provides an opportunity to take market share from large competitors in Shelby County wh
Slide 10: A Consistent M&A Strategy Paired with Organic Growth
A Consistent M&A Strategy Paired with Organic Growth 12.5% Asset CAGR since 2012 Total Assets ($B) Acquisition October 2021 $395M Assets Acquisition April 2021 $130M Assets Acquisition January 2019 $290M Assets Recent Growth Through Acquisitions Disciplined, strategic partnership approach Creating l
Slide 11: Pro Forma Loan Mix
Pro Forma Loan Mix (According to Call reports as of March 31, 2022)
Slide 12: Pro Forma Deposit Mix
Pro Forma Deposit Mix (According to Call reports as of March 31, 2022) Note: Jumbo defined as >$250k
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