Farmers & Merchants Bancorp(FMAO) - 2024 Q4 - Annual Results

Financial Performance - Net income for the fourth quarter of 2024 increased by 51.2% to $8.4 million, or $0.61 per share, compared to $5.5 million, or $0.41 per share in the same period last year[7]. - Net income for the three months ended December 31, 2024, was $8,381,000, an increase of 28.5% compared to $6,516,000 for the same period in 2023[25]. - Basic earnings per share for the twelve months ended December 31, 2024, were $1.90, up from $1.67 in 2023, indicating a growth of 13.8%[25]. - The company’s income before income taxes for the three months ended December 31, 2024, was $10,527,000, an increase of 29.8% compared to $8,109,000 for the same period in 2023[25]. Asset and Deposit Growth - Total assets rose by 2.5% to $3.36 billion, while total deposits reached a record $2.69 billion, an increase of 3.0% year-over-year[7]. - Total assets as of December 31, 2024, were $3,364,723,000, compared to $3,283,229,000 as of December 31, 2023, reflecting a year-over-year increase of 2.5%[27]. - Total deposits increased to $2,686,765,000 as of December 31, 2024, from $2,607,463,000 a year earlier, representing a growth of 3.0%[28]. - The company added nearly 7,500 new checking accounts in 2024, optimizing its deposit base and growing low-cost checking deposits[11]. Loan Performance - Nonperforming loans decreased significantly to $3.1 million, or 0.12% of total loans, down from $22.4 million, or 0.87% a year earlier[13]. - Loans, including fees, for the twelve months ended December 31, 2024, totaled $145,329,000, compared to $129,344,000 in 2023, representing an increase of 12.4%[24]. - Loans generated $9,500,000 with a yield of 5.68% for the twelve months ended December 31, 2024, up from $8,400,000 and a yield of 5.19% in 2023, indicating a growth in loan performance[37]. Interest Income and Margin - Net interest margin increased by 27 basis points to 2.84%, contributing to strong earnings growth[7]. - Total interest income for the twelve months ended December 31, 2024, was $163,572,000, an increase from $139,808,000 in 2023, reflecting a growth of 17.0%[24]. - The net interest margin improved to 2.84% for the twelve months ended December 31, 2024, compared to 2.71% in the previous year[31]. - The net interest margin improved to 2.72% for the twelve months ended December 31, 2024, compared to 2.60% in 2023, showcasing enhanced profitability from interest-earning assets[37]. Expense Management - The efficiency ratio improved to 59.82%, compared to 69.23% for the same period last year, indicating enhanced operational efficiency[7]. - Total noninterest expense for the twelve months ended December 31, 2024, was $68,687,000, a slight increase from $67,204,000 in 2023[25]. - Interest expense for the twelve months ended December 31, 2024, was $77,660,000 with a yield of 3.12%, consistent with the previous year, indicating stable cost management[37]. Dividends and Equity - Cash dividends declared for the twelve months ended December 31, 2024, were $0.8825 per share, representing a 3.8% increase year-over-year[19]. - Total stockholders' equity increased by 5.9% to $335.2 million, with a Tier 1 leverage ratio of 8.12% remaining stable[17]. - The company declared dividends of $0.22125 per share for the three months ended December 31, 2024, consistent with the previous quarter[25]. - Total stockholders' equity as of December 31, 2024, is $335,211,000, a slight decrease from $335,380,000 as of December 31, 2023[29]. Risk Management - The allowance for credit losses to nonperforming loans was 826.70%, significantly higher than 111.95% at the end of 2023, reflecting strong risk management[16]. - Provision for credit losses on loans for the twelve months ended December 31, 2024, was $944,000, a decrease from $1,698,000 in 2023, showing a reduction of 44.4%[24]. - The allowance for credit losses was $27,367,000 as of December 31, 2024, compared to $27,236,000 as of December 31, 2023[32].