■ |
Net income of $22.7 million, or $30.56 per share;
|
■ |
Achieved return on average assets of 1.71% and return on average equity of 16.33%;
|
■ |
Strong liquidity position with $738.4 million in cash, $239.9 million in available-for-sale investment securities and a borrowing capacity of $1.9 billion as of March 31, 2024;
|
■ |
Strengthening capital position with a total risk-based capital ratio of 14.23%, common equity tier 1 ratio of 12.75%, tier 1 leverage ratio of 10.85% and a tangible common equity ratio of 9.68%;
|
■ |
Credit quality remains solid with net recoveries of $53,000; no non-accrual loans or leases at quarter-end; and a total allowance for credit losses of 2.12%.
|
Three Months Ended
| ||||||||||||
(dollars in thousands, except per share amounts)
|
March 31, 2024
|
December 31, 2023
|
March 31, 2023
| |||||||||
Earnings and Profitability:
| ||||||||||||
Interest income
|
$
|
66,641
|
$
|
67,392
|
$
|
59,632
| ||||||
Interest expense
|
14,928
|
13,592
|
3,910
| |||||||||
Net interest income
|
51,713
|
53,800
|
55,722
| |||||||||
Provision for credit losses
|
-
|
2,350
|
1,500
| |||||||||
Noninterest income
|
5,075
|
2,401
|
3,460
| |||||||||
Noninterest expense
|
25,521
|
24,866
|
28,183
| |||||||||
Income before taxes
|
31,267
|
28,985
|
29,499
| |||||||||
Income tax expense
|
8,544
|
7,560
|
5,952
| |||||||||
Net income
|
$
|
22,723
|
$
|
21,425
|
$
|
23,547
| ||||||
Diluted earnings per share
|
$
|
30.56
|
$
|
28.55
|
$
|
30.80
| ||||||
Return on average assets
|
1.71
|
%
|
1.63
|
%
|
1.80
|
%
| ||||||
Return on average equity
|
16.33
|
%
|
16.54
|
%
|
18.93
|
%
| ||||||
Loan yield
|
6.09
|
%
|
6.10
|
%
|
5.69
|
%
| ||||||
Cost of average total deposits - core deposits
|
1.27
|
%
|
1.14
|
%
|
0.32
|
%
| ||||||
Net interest margin - tax equivalent
|
4.14
|
%
|
4.24
|
%
|
4.55
|
%
| ||||||
Effective tax rate
|
27.33
|
%
|
26.08
|
%
|
20.18
|
%
| ||||||
Efficiency ratio
|
44.94
|
%
|
44.24
|
%
|
47.62
|
%
| ||||||
Book value per share
|
$
|
760.96
|
$
|
735.00
|
$
|
667.04
| ||||||
Balance Sheet:
| ||||||||||||
Total assets
|
$
|
5,714,573
|
$
|
5,308,928
|
$
|
5,133,771
| ||||||
Cash and cash equivalents
|
738,397
|
410,642
|
529,593
| |||||||||
of which held at Fed
|
672,601
|
338,375
|
461,315
| |||||||||
Total securities
|
1,046,827
|
1,000,200
|
968,824
| |||||||||
of which available for sale
|
239,856
|
182,512
|
118,437
| |||||||||
of which held to maturity
|
806,971
|
817,688
|
850,387
| |||||||||
Gross Loans
|
3,706,437
|
3,665,397
|
3,437,591
| |||||||||
Allowance for credit losses - Loans
|
75,018
|
74,965
|
68,573
| |||||||||
Total deposits
|
4,959,589
|
4,668,095
|
4,539,162
| |||||||||
Borrowings
|
100,000
|
-
|
-
| |||||||||
Subordinated debentures
|
10,310
|
10,310
|
10,310
| |||||||||
Total shareholders' equity
|
$
|
565,217
|
$
|
549,755
|
$
|
508,902
| ||||||
Loan-to-deposit ratio
|
74.73
|
%
|
78.52
|
%
|
75.73
|
%
| ||||||
Percentage of checking deposits to total deposits
|
49.39
|
%
|
51.76
|
%
|
55.89
|
%
| ||||||
Capital ratios (Bancorp) (1) | ||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
12.75
|
%
|
12.30
|
%
|
12.19
|
%
| ||||||
Tier 1 capital to risk-weighted assets
|
12.97
|
%
|
12.53
|
%
|
12.43
|
%
| ||||||
Risk-based capital to risk-weighted assets
|
14.23
|
%
|
13.78
|
%
|
13.68
|
%
| ||||||
Tier 1 leverage capital ratio
|
10.85
|
%
|
10.38
|
%
|
9.94
|
%
| ||||||
Tangible Common Equity Ratio (2) |
9.68
|
%
|
10.13
|
%
|
9.67
|
%
|
(1) |
Capital information is preliminary March 31, 2024
|
(2) |
Non-GAAP measurement
|
(Dollars in thousands)
|
March 31, 2024
|
December 31, 2023
|
March 31, 2023
| |||||||||
Shareholders' equity
|
$
|
565,217
|
$
|
549,755
|
$
|
508,902
| ||||||
Less: Intangible assets
|
13,282
|
13,419
|
13,849
| |||||||||
Tangible common equity
|
$
|
551,935
|
$
|
536,336
|
$
|
495,053
| ||||||
Total Assets
|
$
|
5,714,573
|
$
|
5,308,928
|
$
|
5,133,771
| ||||||
Less: Intangible assets
|
13,282
|
13,419
|
13,849
| |||||||||
Tangible assets
|
$
|
5,701,291
|
$
|
5,295,509
|
$
|
5,119,922
| ||||||
Tangible common equity ratio(1) |
9.68
|
%
|
10.13
|
%
|
9.67
|
%
|
(1)
|
Tangible common equity divided by tangible assets
|
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Disclaimer
Farmers & Merchants Bancorp published this content on 17 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2024 20:30:21 UTC.