Farmers & Merchants Bancorp(FMAO) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue rose by 16.7% year-over-year, while noninterest expense increased by 5.2%, leading to a 49.6% increase in pre-tax, pre-provision income to $9.3 million [5]. - Net income for Q1 2025 was $7.0 million, a 29.7% increase from $5.4 million in Q1 2024, with earnings per share rising to $0.51 [7]. - Net income for Q1 2025 was $6,952,000, down 17.03% from $8,381,000 in Q4 2024 [22]. - Basic and diluted earnings per share for Q1 2025 were both $0.51, compared to $0.61 in Q4 2024 [22]. - Cash dividends declared were $0.22125 per share, reflecting a 0.6% increase over the same period last year [16]. Loan and Deposit Growth - Total loans increased by $40.5 million, or 1.6%, to $2.58 billion compared to the same period last year [6]. - Total deposits grew by $78.9 million, or 3.0%, to $2.70 billion [6]. - Total loans, net increased to $2,581,904 million as of March 31, 2025, from $2,561,869 million in the previous quarter, marking a growth of 0.8% [27]. - Total deposits rose to $2,700,284 million, up from $2,686,765 million in the previous quarter, indicating an increase of 0.5% [25]. Asset Management - Total assets increased to $3,388,786 million as of March 31, 2025, compared to $3,364,723 million as of December 31, 2024, reflecting a growth of 0.7% [24]. - The total assets of the company reached $3,327,760,000 in March 2025, compared to $3,252,779,000 in March 2024, marking a growth of 2.3% [31]. - Total interest-earning assets increased to $3,161,130,000 in March 2025 from $3,093,539,000 in March 2024, reflecting a growth of 2.2% [31]. Credit Quality - Nonperforming loans were $4.5 million, representing only 0.17% of total loans, a significant improvement from 0.76% a year ago [11]. - Nonperforming loans increased to $4,494,000 in March 2025 from $3,124,000 in December 2024, representing a 43.8% increase [29]. - The allowance for credit losses to nonperforming loans was 586.38%, compared to 127.28% a year ago [12]. - The allowance for credit losses to nonperforming loans ratio was 586.38% in March 2025, down from 826.70% in December 2024, indicating a decrease in coverage [29]. - Provision for credit losses on loans was $811,000 in Q1 2025, up from $346,000 in Q4 2024 [21]. - Net charge-offs for the quarter-to-date in March 2025 were $285,000, significantly higher than $4,000 in the previous quarter, indicating a substantial increase in credit losses [29]. Efficiency and Ratios - The efficiency ratio improved to 66.79%, down from 74.08% [6]. - Efficiency ratio was reported at 66.79%, an increase from 59.82% in the previous quarter, indicating a decline in operational efficiency [27]. - Return on average assets decreased to 0.85% for the three months ended March 31, 2025, down from 0.99% in the previous quarter [27]. - Return on average equity declined to 8.31% from 10.00% in the previous quarter, showing a decrease of 1.69 percentage points [27]. - The Tier 1 leverage ratio improved to 8.44%, up from 8.12% in the previous quarter, indicating a stronger capital position [27]. Interest Income and Expenses - Net interest margin increased by 43 basis points year-over-year to 3.03% and by 19 basis points from Q4 2024 [5]. - Total interest income for Q1 2025 was $41,002,000, a decrease of 2.03% from $41,851,000 in Q4 2024 [21]. - Net interest income after provision for credit losses was $23,358,000, up 3.32% from $22,604,000 in Q4 2024 [22]. - Total interest expense decreased to $17,093,000 in Q1 2025 from $19,021,000 in Q4 2024, a decline of 10.14% [21]. - The net interest margin improved to 3.03% compared to 2.84% in the previous quarter, reflecting an increase of 0.19 percentage points [27]. - The net interest margin improved to 3.03% in March 2025, up from 2.60% in March 2024, indicating enhanced profitability on interest-earning assets [31].