Farmers & Merchants Bancorp(FMAO) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $5.4 million, down from $6.5 million in Q1 2023, with earnings per share at $0.39 compared to $0.47 last year[6]. - Net income for the quarter was $5,359,000, a decrease from $5,543,000 in the previous quarter, representing a decline of 3.3%[24]. - The company reported a net income of $5,359 thousand for the three months ended March 31, 2024, compared to $6,466 thousand in the same period of 2023, a decrease of 17.14%[37]. Income and Expenses - Total interest income for the three months ended March 31, 2024, was $38,654,000, an increase from $38,270,000 in December 2023, representing a growth of 1.0%[23]. - Net interest income after provision for credit losses was $20,673,000 for the quarter, compared to $19,468,000 in the previous quarter, reflecting an increase of 6.2%[23]. - Noninterest income totaled $3,946,000, slightly up from $3,927,000 in the previous quarter, indicating a growth of 0.5%[24]. - Total noninterest expense increased to $17,841,000 from $16,520,000 in December 2023, marking an increase of 8.0%[24]. Loans and Deposits - Total loans rose by 3.9% year-over-year to $2.54 billion as of March 31, 2024[7]. - Total deposits reached a record $2.62 billion, marking a 4.3% increase from the previous year[9]. - Total loans, net, decreased to $2,541,367 thousand as of March 31, 2024, from $2,581,191 thousand in December 2023, a decline of 1.5%[30]. - Total deposits increased to $2,621,382 thousand as of March 31, 2024, compared to $2,607,463 thousand in December 2023, reflecting a growth of 0.6%[27]. Asset Management - Total assets increased by 7.1% to a record $3.29 billion[7]. - Total assets as of March 31, 2024, were $3,287,554,000, a slight increase from $3,283,229,000 in December 2023, reflecting a growth of 0.1%[26]. - Cash and cash equivalents surged by 191.9% to $187.8 million, reflecting a $123.5 million increase[7]. - Cash and cash equivalents increased to $187,782,000 from $142,201,000 in December 2023, representing a significant growth of 32.0%[26]. Credit Quality - The allowance for credit losses to nonperforming loans was 127.28%, down from 319.38% a year ago[14]. - Nonperforming loans increased to $19.4 million, or 0.76% of total loans, primarily due to one agricultural relationship[11]. - Nonaccrual loans decreased to $19,391 thousand from $22,353 thousand in the previous year, indicating a reduction of 13.1%[32]. - Allowance for credit losses was $26,626 thousand as of March 31, 2024, down from $27,236 thousand in December 2023, a decrease of 2.2%[32]. Dividends and Shareholder Returns - The company declared cash dividends of $0.22 per share, a 4.8% increase over the same period last year, with a payout ratio of 55.52%[18]. - Dividends declared remained stable at $0.22 per share for both the current and previous quarters[24]. - Dividend payout ratio increased to 55.52% in March 2024 from 54.23% in December 2023, reflecting a higher proportion of earnings distributed to shareholders[30]. Efficiency and Ratios - Return on average assets for the quarter ended March 31, 2024, was 0.66%, slightly down from 0.67% in December 2023[30]. - The efficiency ratio improved to 74.08% in March 2024 from 69.23% in December 2023, indicating a decline in operational efficiency[30]. - The Tier 1 leverage ratio stood at 8.40% as of March 31, 2024, up from 8.20% in December 2023, indicating improved capital adequacy[30]. - Return on average tangible equity was 9.59% for the three months ended March 31, 2024, down from 12.57% in the same period of 2023[37]. Growth and Expansion - The company opened four new offices in 2023, contributing $78.6 million in deposits as of March 31, 2024[5]. - Total interest earning assets increased to $3,093,539 thousand for the three months ended March 31, 2024, compared to $2,889,450 thousand for the same period in 2023, reflecting a growth of 7.05%[34]. - Average loans increased to $2,577,114 thousand with a yield of 5.46% for the three months ended March 31, 2024, compared to $2,397,061 thousand with a yield of 4.96% in the same period of 2023[34]. - The average tangible equity for the three months ended March 31, 2024, was $223,487 thousand, compared to $205,718 thousand in the same period of 2023, reflecting an increase of 8.66%[37].