Farmers And Merchants Bancshares, Inc. · OTC:FMFG
Farmers And Merchants Bancshares — Shareholder Meeting (April 2021)
23 slides from Farmers And Merchants Bancshares's shareholder meeting presentation, Apr 26, 2021
Slide 1: Annual Meeting of Shareholders
yooTH ANNIVERS apy, IZERCHANS ‘my ek MUNITY” aanK THAT PUTS PEM Farmers and Merchants Bancshares, Inc. Annual Meeting of Shareholders April 27, 2021 The “Community” Bank that Puts People First (Roe a a ee
Slide 2: Forward-Looking Statements
Forward-Looking Statements The statements contained herein that are not historical facts are forward- looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management's current expectations and beliefs concerning future developments and their potential effe
Slide 3: Highlights for 2020
Highlights for 2020 Completed the acquisition of Carroll Bancorp, Inc. (“Carroll”). Managed through the COVID-19 pandemic 2020 net income of $2,682,003 was well below 2019's net income of $4,560,804 due to the one-time costs of $3,236,817 incurred with the acquisition of Carroll a Excluding the acqu
Slide 4: Acquisition of Carroll Bancorp, Inc.
| Acquisition of Carroll Bancorp, Inc. = Acquisition announced on March 6, 2020 & closed on October 1, 2020 a Price - $25 million in cash = $17million loan obtained along with $8 million from the Bank a Assets acquired — $176 million = Loans acquired - $145 million = Deposits acquired - $145 million
Slide 5: COVID-19 Impact
COVID-19 Impact Health and well-being of our employees and customers has been the top priority since the start of the pandemic 2 Bank lobbies were closed as necessary, employees were rotated, work at home accommodations were made, and meetings were held virtually. a Weare currently encouraging all e
Slide 6: Total Assets
Total Assets (in thousands) 12/31/2020 12/31/2019 Change Cash & Due From Banks $ 40,976 $ 9,121 $ 31,855 Investments 79,859 57,050 22,809 Loans & Loans Held For Sale 523,364 359,625 163,739 Fixed Assets 7,737 5,037 2,700 Bank Owned Life Insurance 11,297 7.145 4,152 Other Real Estate Owned 1,412 - 1,
Slide 7: Loan Quality
Loan Quality No loan losses for two consecutive years a Net recoveries totaled $77,823 in 2020 and $44,381 in 2019 Non performing assets to total assets remain low at 0.89% at 12/31/20, compared to 0.00% at 12/31/19 and 0.29% at 12/31/18. Net loan (recoveries)losses to loans outstanding was (0.01%)
Slide 8: Loan Charge-off Trend
Loan Charge-off Trend Net Loan Charge-offs (Recoveries) (in thousands) $1,000 $800 $600 425 $400 314 220 $200 | $0 + => @ 44, ($200) ee oO Ow 4 es Ff fF F F The “Community” Bank that Puts People First (Roe a a ee
Slide 9: Liabilities and Equity
Liabilities and Equity (in thousands) 12/31/2020 _ 12/31/2019 Change Deposits $ 573,402 $ 376613 $ 196,789 Repurchase Agreements 24,754 10,958 13,796 FHLB Advances 5,000 - 5,000 Long-Term Debt 16,973 - 16,973 Other 5,459 5,190 269 Total Liabilities 625,588 392,761 232,827 Stockholders’ Equity $1,729
Slide 10: Balance Sheet Five Year Trend
Balance Sheet Five Year Trend $700 $600 $500 | In Millions $400 $300 — $200 2016 2017 2018 2019 2020 Total Assets Deposits @Loans The “Community” Bank that Puts People First (Roe a a ee
Slide 11: Book Value per Share
Book Value per Share $19 + $16 > $13 4 $10 + Five Year Trend 2016 2017 ; 2018 2019 : 2020 The “Community” Bank that Puts People First (Roe a a ee
Slide 12: Income Statement Highlights for 2020
Income Statement Highlights for 2020 = Net Income with and without impact of Carroll acquisition costs: fonths Ended ‘December 31, 2019 Income before income taxes $ 3.168214 $ 6406081 S Income taxes Netinceme 5 Eamings per share $ Return on average assets Return on average equity = Net Interest Inco
Slide 13: Income Statement
Income Statement (in thousands) 2020 2019 Change Interest - Loans S 19201 § 16895 S$ 2,396 Interest - Investments 4472 1,807 335) Total terest income 20,763, 18,702 2,061 Interest Expense 3.459) 380) 224 Net terest income 17,304 15,022 2,282 Loan Loss Provision (625) (40) (685) (ther income 2072 1,4
Slide 14: Net Income - Five Year Trend
In Thousands Net Income - Five Year Trend $5,500 $6,000 $4,500 $4,000 $3,500 - $3,000 $2,500 5 S v g ¥ Net Income Net Income Adjusted The “Community” Bank that Puts People First (Roe a a ee
Slide 15: Efficiency Ratio
Efficiency Ratio Five Year Trend 100% 90% - 80% 70% - 60% - 50% - oe oO aA Ko) 2D * F&M Bank 2020 ratio excludes the impact of the Carroll ®F&M Bank pesca Peer Group NRL The “Community” Bank that Puts People First VERCHAN. Upperco ... Hampstead ... Greenmount ... Reisterstown ... Owings Mills... Wes
Slide 16: Cash Dividends per Share
Cash Dividends per Share Five Year Trend Cash dividends increased $0.01 to $0.52 in 2020 from $0.51 in 2019 $0.60 $0.50 $0.40 $0.30 The “Community” Bank that Puts People First LERETESSS™ —Upperco ... Hampstead ... Greenmount ... Reisterstown .. Owings Mills... Westminster ... Eldersburg
Slide 17: Selected Local Banks
| Selected Local Banks Return on Average Assets Ranked by 5 Year Average Return 5 Year 2020. 2019 2018 2017 2016 Average ACNB 0.78% 1.40% 1.34% 0.69% 0.93% 1.03% Shore Bancshares 0.93% 1.12% 1.15% 0.82% 0.84% 0.97% Harford Bank 0.72% 0.88% 0.90% 0.56% 0.57% 0.73% Orrstown Bank 0.98% 0.98% 0.85% 0.70
Slide 18: Bank Stock Price Changes
| Bank Stock Price Changes Ranked by 2021 change 2021 (a) 2020 2019 2018 Howard Bancorp 40% -30% 18% -35% Bank of America Corp 29% -14% 43% -17% ACNB 21% -34% -4% 33% M &T Bank Corp 21% -25% 19% -16% Shore Bancshares 20% -16% 19% -13% PNC 19% -7% 37% ~19% Citigroup 18% -23% 53% -30% Harford Bank 12%
Slide 19: Bank Stock Dividend Yields
| Bank Stock Dividend Yields Current Yield Current (a) Prior Year ACNB 3.23% 3.87% Orrstown Bank 3.20% 5.38% M &T Bank Corp 2.92% 4.01% Citigroup 2.85% 5.07% Shore Bancshares 2.81% 3.87% Farmers and Merchants 2.67% 3.46% PNC 2.64% 4.79% Harford Bank 2.19% 3.08% Bank of America Corp 1.88% 3.28% Banva
Slide 20: Stockholder Value
Stockholder Value = Bank stock prices increased in the Mid Atlantic and Nationally as a percentage of book value during the last half of 2020 and into early 2021 as the stock market recovered from the steep decline that occurred at the start of the pandemic in March 2020: Price to Book April1, 2021
Slide 21: 2021 First Quarter Results
2021 First Quarter Results = Record quarterly net income of $2,029,575 or $0.67 per share compared to $843,307 or $0.28 per share in the first quarter of 2020 a Carroll acquisition and PPP loans were the main drivers of the significant increase in net income. = Income from PPP loans accounted for ap
Slide 22: Summary
Summaty Farmers and Merchants Bancshares is: Well capitalized Profitable An active lender in the community Growing assets and deposits The “Community” Bank that Puts People First Upperco ... Hampstead ... Greenmount ... Reisterstown ... Owings Mills... Westminster ... Eldersburg
Slide 23: Best Wishes in 2021
Best Wishes in 2021 yoOTH ANNIVERS Ap, ae The “Community” Bank that Puts People First TREERSSS™ —Upperco ... Hampstead ... Greenmount ... Reistersiown ... Owings Mills... Westminster .. Eldersburg
Farmers and Merchants Bancshares — Shareholder Meeting (April 2021) on 6ix