Farmers & Merchants Bancorp (FMCB) Reports Record Third Quarter 2024 Earnings

Financial Performance - The company reported record net income of $22.1 million, or $29.96 per diluted common share for Q3 2024, representing a 2.50% increase on a per share basis compared to Q3 2023 [2][24] - Annualized return on average assets was 1.65% and return on average equity was 15.03% for Q3 2024, with a decrease in return on average equity primarily due to a $72.1 million increase in total shareholders' equity [2][4] - Net income over the trailing twelve months was $88.0 million, up 3.79% from $86.9 million a year earlier, with earnings per share totaling $118.46 [3][4] Liquidity and Capital - The company maintained a solid liquidity position with $1.5 billion in cash and investment securities and a borrowing capacity of $2.1 billion, with no outstanding borrowings as of September 30, 2024 [4][10] - Total risk-based capital ratio was 14.95%, common equity tier 1 ratio was 13.47%, and tier 1 capital ratio was 13.70%, all exceeding regulatory requirements for "well-capitalized" banks [10][26] - Tangible common equity ratio increased to 10.91% as of September 30, 2024, up 127 basis points from the previous year [10][26] Credit Quality - Credit quality remained strong with only $677,000 in non-accrual loans and a minimal delinquency ratio of 0.21% of total loans as of September 30, 2024 [9][10] - The allowance for credit losses was $78.5 million, or 2.11% of total loans, indicating a stable credit environment despite some stress in the agricultural sector [9][10] Balance Sheet - Total assets were $5.4 billion as of September 30, 2024, consistent with the previous year, while total loans and leases outstanding increased by $146.9 million, or 4.13% [8][24] - Total deposits remained stable at $4.7 billion, with a loan-to-deposit ratio of 78.9% as of September 30, 2024, compared to 75.1% a year earlier [8][24] Recognition and Awards - The company was recognized as the 2 best performing bank in the nation across all asset categories by Bank Director's Magazine for 2023, following a 1 ranking in 2022 [14][15] - F&M Bank was also ranked 6th on Forbes Magazine's list of "America's Best Banks" in 2023, highlighting its strong financial performance [15]