Farmers & Merchants Bancorp Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow

fmao-10q_20210331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period March 31, 2021

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 001-38084

FARMERS & MERCHANTS BANCORP, INC.

(Exact name of registrant as specified in its charter)

Ohio

34-1469491

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification No.)

307 North Defiance Street, Archbold, Ohio	43502
(Address of principal executive offices)	(Zip Code)

(419) 446-2501

Registrant’s telephone number, including area code

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of Each Exchange
Common Stock, No Par Value	FMAO	NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares of each of the issuers’ classes of common stock, as of the latest practicable date:

Common Stock, No Par Value	11,195,894
Class	Outstanding as of April 23, 2021

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10Q

FARMERS & MERCHANTS BANCORP, INC.

INDEX

Form 10-Q Items		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets - March 31, 2021 and December 31, 2020	3

	Condensed Consolidated Statements of Income - Three Months Ended March 31, 2021 and March 31, 2020	4

	Condensed Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2021 and March 31, 2020	5

	Condensed Consolidated Statements of Changes to Stockholders’ Equity - Three Months Ended March 31, 2021 and March 31, 2020	6-7

	Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2021 and March 31, 2020	8-9

	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	40-56

Item 3.	Qualitative and Quantitative Disclosures About Market Risk	57

Item 4.	Controls and Procedures	58

PART II.	OTHER INFORMATION	58

Item 1.	Legal Proceedings	58

Item 1A.	Risk Factors	58

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58

Item 3.	Defaults Upon Senior Securities	58

Item 4.	Mine Safety Disclosures	58

Item 5.	Other Information	58

Item 6.	Exhibits	59

Signatures		60

101.INS	Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.⁽¹⁾
101.SCH	Inline XBRL Taxonomy Extension Schema Document ⁽¹⁾
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document ⁽¹⁾
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document ⁽¹⁾
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document ⁽¹⁾
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document ⁽¹⁾

⁽¹⁾

Pursuant to Rule 406T of Regulation S-T, the interactive Data Files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

PART 1 - FINANCIAL INFORMATION

ITEM 1 FINANCIAL STATEMENTS

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	(in thousands of dollars)
	March 31, 2021			December 31, 2020
	(Unaudited)
Assets
Cash and due from banks	$	118,139		$	98,279
Federal funds sold		57,361			77,427
Total cash and cash equivalents		175,500			175,706
Interest-bearing time deposits		4,405			4,653
Securities - available-for-sale		352,974			307,812
Other securities, at cost		5,939			5,939
Loans held for sale		7,511			7,740
Loans, net		1,327,254			1,289,318
Premises and equipment		26,703			27,063
Goodwill		47,340			47,340
Mortgage servicing rights		3,444			3,320
Other real estate owned		148			71
Bank owned life insurance		25,347			25,208
Other assets		16,720			15,374
Total Assets	$	1,993,285		$	1,909,544

Liabilities and Stockholders' Equity

Liabilities
Deposits
Noninterest-bearing	$	384,558		$	351,147
Interest-bearing
NOW accounts		605,533			542,317
Savings		451,043			455,145
Time		242,717			247,553
Total deposits		1,683,851			1,596,162
Federal funds purchased and securities sold under agreements to repurchase		30,072			30,239
Federal Home Loan Bank (FHLB) advances		17,840			17,861
Dividend payable		1,889			1,889
Accrued expenses and other liabilities		12,805			14,233
Total liabilities		1,746,457			1,660,384

Commitments and Contingencies

Stockholders' Equity
Common stock - No par value 20,000,000 shares authorized; issued and outstanding 12,230,000 shares 3/31/21 and 12/31/20		82,030			81,804
Treasury stock - 1,033,256 shares 3/31/21, 1,032,456 shares 12/31/20		(11,962	)		(11,932	)
Retained earnings		176,617			173,591
Accumulated other comprehensive income		143			5,697
Total stockholders' equity		246,828			249,160
Total Liabilities and Stockholders' Equity	$	1,993,285		$	1,909,544

See Notes to Condensed Consolidated Unaudited Financial Statements.

Note: The December 31, 2020, Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	(in thousands of dollars, except per share data)
	Three Months Ended
	March 31, 2021			March 31, 2020
Interest Income
Loans, including fees	$	15,612		$	15,883
Debt securities:
U.S. Treasury and government agencies		751			1,146
Municipalities		308			262
Dividends		50			45
Federal funds sold		5			6
Other		39			122
Total interest income		16,765			17,464
Interest Expense
Deposits		1,340			2,901
Federal funds purchased and securities sold under agreements to repurchase		166			244
Borrowed funds		222			266
Total interest expense		1,728			3,411
Net Interest Income - Before Provision for Loan Losses		15,037			14,053
Provision for Loan Losses		1,700			1,430
Net Interest Income After Provision for Loan Losses		13,337			12,623
Noninterest Income
Customer service fees		2,814			1,586
Other service charges and fees		838			1,039
Net gain on sale of loans		1,046			227
Net gain on sale of available-for-sale securities		293			270
Total noninterest income		4,991			3,122
Noninterest Expense
Salaries and wages		4,390			4,223
Employee benefits		1,994			1,677
Net occupancy expense		577			564
Furniture and equipment		791			758
Data processing		505			442
Franchise taxes		446			368
ATM expense		449			414
Advertising		235			303
Net (gain) loss on sale of other assets owned		(25	)		1
FDIC assessment		236			72
Mortgage servicing rights amortization		505			132
Consulting fees		223			139
Other general and administrative		2,033			1,575
Total noninterest expense		12,359			10,668
Income Before Income Taxes		5,969			5,077
Income Taxes		1,060			972
Net Income	$	4,909		$	4,105
Basic and Diluted Earnings Per Share	$	0.44		$	0.37
Dividends Declared	$	0.17		$	0.16

See Notes to Condensed Consolidated Unaudited Financial Statements

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	(in thousands of dollars)
	Three Months Ended
	March 31, 2021			March 31, 2020
Net Income	$	4,909		$	4,105
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		(6,737	)		4,998
Reclassification adjustment for realized gain on sale of available-for-sale securities		(293	)		(270	)
Net unrealized gain (loss) on available-for-sale securities		(7,030	)		4,728
Tax expense (benefit)		(1,476	)		993
Other comprehensive income (loss)		(5,554	)		3,735
Comprehensive Income (Loss)	$	(645	)	$	7,840

See Notes to Condensed Consolidated Unaudited Financial Statements

[ Remainder of this page intentionally left blank ]

Farmers & Merchants Bancorp, Inc. and Subsidiaries

CONDENSED Consolidated StatementS of Changes TO Stockholders’ Equity

For the THREE Months Ended March 31, 2021

(000’s Omitted, Except Per Share Data)

(Unaudited)

												Accumulated
	Shares of											Other			Total
	Common			Common		Treasury			Retained			Comprehensive			Stockholders'
	Stock			Stock		Stock			Earnings			Income			Equity
Balance - January 1, 2021		11,197,544		$	81,804	$	(11,932	)	$	173,591		$	5,697		$	249,160
Net income										4,909						4,909
Other comprehensive loss													(5,554	)		(5,554	)
Purchase of treasury stock		(950	)				(23	)								(23	)
Issuance of 750 shares of restricted stock (Net of forfeitures - 600)		150			1		(7	)		6						-
Stock-based compensation expense					225											225
Cash dividends declared - $0.17 per share										(1,889	)					(1,889	)
Balance - March 31, 2021		11,196,744		$	82,030	$	(11,962	)	$	176,617		$	143		$	246,828

See Notes to Condensed Consolidated Unaudited Financial Statements

Farmers & Merchants Bancorp, Inc. and Subsidiaries

CONDENSED Consolidated StatementS of Changes TO Stockholders’ Equity

For the THREE Months Ended March 31, 2020

(000’s Omitted, Except Per Share Data)

(Unaudited)

Accumulated

Shares of

Other

Total

Common

Price	25.70	EPS	1
Shares	12	P/E	19
MCap	314	P/FCF	16
Net Debt	-115	EBIT	34
TEV	200	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-04-27
10-K	2020-12-31	Filed 2021-02-24
10-Q	2020-09-30	Filed 2020-10-28
10-Q	2020-06-30	Filed 2020-07-29
10-Q	2020-03-31	Filed 2020-04-29
10-K	2019-12-31	Filed 2020-02-26
10-Q	2019-09-30	Filed 2019-10-30
10-Q	2019-06-30	Filed 2019-07-24
10-Q	2019-03-31	Filed 2019-05-01
10-K	2018-12-31	Filed 2019-02-27
10-Q	2018-09-30	Filed 2018-10-24
10-Q	2018-06-30	Filed 2018-07-25
10-Q	2018-03-31	Filed 2018-04-25
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-10-25
10-Q	2017-06-30	Filed 2017-07-26
10-Q	2017-03-31	Filed 2017-04-26
10-K	2016-12-31	Filed 2017-02-22
10-Q	2016-09-30	Filed 2016-10-26
10-Q	2016-06-30	Filed 2016-07-27
10-Q	2016-03-31	Filed 2016-04-27
10-K	2015-12-31	Filed 2016-02-24
10-Q	2015-09-30	Filed 2015-10-28
10-Q	2015-06-30	Filed 2015-07-29
10-Q	2015-03-31	Filed 2015-04-29
10-K	2014-12-31	Filed 2015-02-25
10-Q	2014-09-30	Filed 2014-10-29
10-Q	2014-06-30	Filed 2014-07-28
10-Q	2014-03-31	Filed 2014-04-28
10-K	2013-12-31	Filed 2014-02-26
10-Q	2013-09-30	Filed 2013-10-30
10-Q	2013-06-30	Filed 2013-07-31
10-Q	2013-03-31	Filed 2013-04-26
10-K	2012-12-31	Filed 2013-02-25
10-Q	2012-09-30	Filed 2012-10-29
10-Q	2012-06-30	Filed 2012-08-01
10-Q	2012-03-31	Filed 2012-04-30
10-K	2011-12-31	Filed 2012-02-24
10-Q	2011-09-30	Filed 2011-11-04
10-Q	2011-06-30	Filed 2011-08-04
10-Q	2011-03-31	Filed 2011-04-29
10-K	2010-12-31	Filed 2011-03-02
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-04-29
10-K	2009-12-31	Filed 2010-02-26

8-K	2021-02-10	Earnings, Exhibits
8-K	2021-01-15	Other Events
8-K	2020-12-21	Enter Agreement, Regulation FD, Exhibits
8-K	2020-11-20
8-K	2020-11-13
8-K	2020-10-21
8-K	2020-07-22
8-K	2020-04-24
8-K	2020-04-16
8-K	2020-02-05
8-K	2020-01-31
8-K	2020-01-17
8-K	2019-10-21
8-K	2019-09-05
8-K	2019-07-19
8-K	2019-04-26
8-K	2019-04-16
8-K	2019-02-13
8-K	2019-02-01
8-K	2019-01-18
8-K	2019-01-01
8-K	2018-10-18
8-K	2018-09-13
8-K	2018-08-20
8-K	2018-08-17
8-K	2018-07-18
8-K	2018-05-21
8-K	2018-04-19
8-K	2018-04-19
8-K	2018-02-08
8-K	2018-01-19

EX-31.1	fmao-ex311_8.htm
EX-31.2	fmao-ex312_7.htm
EX-32.1	fmao-ex321_9.htm
EX-32.2	fmao-ex322_6.htm

FMAO 10Q Quarterly Report

Farmers & Merchants Bancorp Earnings 2021-03-31