2024 First Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):
- 84 consecutive quarters of profitability
- Net income was
$5.4 million , or$0.39 per basic and diluted share - Net interest income after provision for credit losses increased 6.2% from
December 31, 2023 , primarily due to a stabilizing net interest margin and solid asset quality - Total loans increased 3.9% to
$2.54 billion atMarch 31, 2024 - Total cash and cash equivalents increased by
$123.5 million , or 191.9% to$187.8 million - Total assets increased 7.1% to a record
$3.29 billion - Deposits increased to 4.3% to a record
$2.62 billion - Stockholders’ equity increased 3.9% to a record
$317.7 million - Asset quality remains solid as net charge-offs to average loans were 0.00%
- Allowance for credit losses was 127.28% of nonperforming loans
Income Statement
Net income for the 2024 first quarter ended
“Core profitability has improved from fourth quarter levels due to higher net interest and noninterest income. We continue to believe that approximately 25% of our loan portfolio will be subject to repricing in 2024, which will benefit the yield on earnings assets and profitability in the coming quarters. Loan growth on a year-over-year basis is expected to be more limited compared to prior years as we focus on the spread between loans and deposits, pursue opportunities to pay down higher cost of funds, and increase our cash position. The progress we are making is encouraging and since the 2023 fourth quarter our cash position has increased by 32.1%, while our
Deposits
At
Loan Portfolio and Asset Quality
Total loans, net at
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were
F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at
F&M’s CRE portfolio included the following categories at
CRE Category | Dollar Balance | Percent of CRE Portfolio(*) | Percent of Total Loan Portfolio(*) | |||||||||
Industrial | $ | 259,191 | 19.9 | % | 10.2 | % | ||||||
Multi-family | $ | 221,884 | 17.0 | % | 8.7 | % | ||||||
Retail | $ | 220,755 | 16.9 | % | 8.7 | % | ||||||
Office | $ | 139,021 | 10.7 | % | 5.5 | % | ||||||
Hotels | $ | 128,313 | 9.8 | % | 5.0 | % | ||||||
Gas Stations | $ | 63,202 | 4.9 | % | 2.5 | % | ||||||
Food Service | $ | 47,304 | 3.6 | % | 1.9 | % | ||||||
Senior Living | $ | 34,534 | 2.7 | % | 1.4 | % | ||||||
Development | $ | 33,961 | 2.6 | % | 1.3 | % | ||||||
Auto Dealers | $ | 31,856 | 2.4 | % | 1.2 | % | ||||||
Other | $ | 124,379 | 9.5 | % | 4.9 | % | ||||||
Total CRE | $ | 1,304,400 | 100.0 | % | 51.3 | % | ||||||
* Numbers have been rounded | ||||||||||||
At
Stockholders’ Equity and Dividends
Total stockholders’ equity increased 3.9% to
Based on a regulatory basis, tangible stockholders’ equity increased to
For the three months ended
About
Safe Harbor Statement
Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(Unaudited) (in thousands of dollars, except per share data)
Three Months Ended | |||||||||||||||||||
Interest Income | |||||||||||||||||||
Loans, including fees | $ | 35,200 | $ | 34,493 | $ | 33,783 | $ | 31,365 | $ | 29,703 | |||||||||
Debt securities: | |||||||||||||||||||
1,045 | 987 | 1,005 | 1,030 | 1,068 | |||||||||||||||
Municipalities | 394 | 397 | 392 | 401 | 408 | ||||||||||||||
Dividends | 333 | 365 | 246 | 148 | 123 | ||||||||||||||
Federal funds sold | 7 | 8 | 6 | 9 | 21 | ||||||||||||||
Other | 1,675 | 2,020 | 927 | 424 | 479 | ||||||||||||||
Total interest income | 38,654 | 38,270 | 36,359 | 33,377 | 31,802 | ||||||||||||||
Interest Expense | |||||||||||||||||||
Deposits | 15,279 | 15,015 | 13,323 | 10,434 | 8,151 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 284 | 293 | 349 | 427 | 405 | ||||||||||||||
Borrowed funds | 2,689 | 2,742 | 2,741 | 2,113 | 1,280 | ||||||||||||||
Subordinated notes | 284 | 285 | 284 | 285 | 284 | ||||||||||||||
Total interest expense | 18,536 | 18,335 | 16,697 | 13,259 | 10,120 | ||||||||||||||
Net Interest Income - Before Provision for Credit Losses | 20,118 | 19,935 | 19,662 | 20,118 | 21,682 | ||||||||||||||
Provision for Credit Losses - Loans | (289 | ) | 278 | 460 | 143 | 817 | |||||||||||||
Provision for Credit Losses - Off Balance Sheet Credit Exposures | (266 | ) | 189 | (76 | ) | (129 | ) | 62 | |||||||||||
Net Interest Income After Provision for Credit Losses | 20,673 | 19,468 | 19,278 | 20,104 | 20,803 | ||||||||||||||
Noninterest Income | |||||||||||||||||||
Customer service fees | 2,782 | 2,576 | 2,208 | 2,361 | 2,447 | ||||||||||||||
Other service charges and fees | 1,057 | 1,121 | 1,162 | 1,803 | 2,554 | ||||||||||||||
Net gain on sale of loans | 107 | 230 | 294 | 108 | 67 | ||||||||||||||
Net loss on sale of available-for-sale securities | - | - | - | - | (891 | ) | |||||||||||||
Total noninterest income | 3,946 | 3,927 | 3,664 | 4,272 | 4,177 | ||||||||||||||
Noninterest Expense | |||||||||||||||||||
Salaries and wages | 7,846 | 6,981 | 6,777 | 6,500 | 6,657 | ||||||||||||||
Employee benefits | 2,171 | 1,218 | 2,066 | 2,071 | 2,165 | ||||||||||||||
Net occupancy expense | 1,027 | 1,187 | 950 | 840 | 856 | ||||||||||||||
Furniture and equipment | 1,353 | 1,370 | 1,189 | 1,211 | 1,252 | ||||||||||||||
Data processing | 500 | 785 | 840 | 796 | 726 | ||||||||||||||
Franchise taxes | 555 | 308 | 434 | 379 | 366 | ||||||||||||||
ATM expense | 473 | 665 | 640 | 683 | 623 | ||||||||||||||
Advertising | 530 | 397 | 865 | 830 | 514 | ||||||||||||||
Net loss on sale of other assets owned | - | 86 | 49 | - | - | ||||||||||||||
580 | 594 | 586 | 496 | 306 | |||||||||||||||
Servicing rights amortization - net | 168 | 182 | 106 | 164 | 159 | ||||||||||||||
Consulting fees | 186 | 192 | 179 | 231 | 230 | ||||||||||||||
Other general and administrative | 2,452 | 2,555 | 2,363 | 2,643 | 3,077 | ||||||||||||||
Total noninterest expense | 17,841 | 16,520 | 17,044 | 16,844 | 16,931 | ||||||||||||||
Income Before Income Taxes | 6,778 | 6,875 | 5,898 | 7,532 | 8,049 | ||||||||||||||
Income Taxes | 1,419 | 1,332 | 1,121 | 1,531 | 1,583 | ||||||||||||||
Net Income | 5,359 | 5,543 | 4,777 | 6,001 | 6,466 | ||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax): | |||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | (1,995 | ) | 13,261 | (4,514 | ) | (5,996 | ) | 8,030 | |||||||||||
Reclassification adjustment for realized loss on sale of available-for-sale securities | - | - | - | - | 891 | ||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | (1,995 | ) | 13,261 | (4,514 | ) | (5,996 | ) | 8,921 | |||||||||||
Tax expense (benefit) | (418 | ) | 2,784 | (947 | ) | (1,260 | ) | 1,874 | |||||||||||
Other comprehensive income (loss) | (1,577 | ) | 10,477 | (3,567 | ) | (4,736 | ) | 7,047 | |||||||||||
Comprehensive Income | $ | 3,782 | $ | 16,020 | $ | 1,210 | $ | 1,265 | $ | 13,513 | |||||||||
Basic Earnings Per Share | $ | 0.39 | $ | 0.41 | $ | 0.35 | $ | 0.44 | $ | 0.47 | |||||||||
Diluted Earnings Per Share | $ | 0.39 | $ | 0.41 | $ | 0.35 | $ | 0.44 | $ | 0.47 | |||||||||
Dividends Declared | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.21 | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except per share data)
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 186,541 | $ | 140,917 | $ | 151,711 | $ | 69,760 | $ | 62,780 | ||||||||||
Federal funds sold | 1,241 | 1,284 | 1,471 | 1,433 | 1,545 | |||||||||||||||
Total cash and cash equivalents | 187,782 | 142,201 | 153,182 | 71,193 | 64,325 | |||||||||||||||
Interest-bearing time deposits | 2,735 | 2,740 | 2,989 | 3,485 | 4,435 | |||||||||||||||
Securities - available-for-sale | 347,516 | 358,478 | 348,255 | 363,225 | 372,975 | |||||||||||||||
Other securities, at cost | 14,744 | 17,138 | 16,995 | 17,535 | 11,543 | |||||||||||||||
Loans held for sale | 2,410 | 1,576 | 1,039 | 1,459 | 951 | |||||||||||||||
Loans, net of allowance for credit losses of | 2,516,687 | 2,556,167 | 2,504,329 | 2,490,883 | 2,422,018 | |||||||||||||||
Premises and equipment | 35,007 | 35,790 | 31,723 | 30,398 | 28,679 | |||||||||||||||
Construction in progress | 9 | 8 | 3,044 | 2,290 | 1,565 | |||||||||||||||
86,358 | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||||||
Loan servicing rights | 5,555 | 5,648 | 5,687 | 5,635 | 4,985 | |||||||||||||||
Bank owned life insurance | 34,123 | 33,907 | 33,691 | 33,470 | 33,269 | |||||||||||||||
Other assets | 54,628 | 43,218 | 47,388 | 41,512 | 38,972 | |||||||||||||||
Total Assets | $ | 3,287,554 | $ | 3,283,229 | $ | 3,234,680 | $ | 3,147,443 | $ | 3,070,075 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing | $ | 510,731 | $ | 528,465 | $ | 505,358 | $ | 488,678 | $ | 520,145 | ||||||||||
Interest-bearing | ||||||||||||||||||||
NOW accounts | 829,236 | 816,790 | 778,133 | 770,113 | 800,230 | |||||||||||||||
Savings | 635,430 | 599,191 | 591,344 | 581,192 | 590,854 | |||||||||||||||
Time | 645,985 | 663,017 | 700,445 | 628,757 | 601,939 | |||||||||||||||
Total deposits | 2,621,382 | 2,607,463 | 2,575,280 | 2,468,740 | 2,513,168 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 28,218 | 28,218 | 30,527 | 51,567 | 30,496 | |||||||||||||||
256,628 | 265,750 | 266,286 | 266,818 | 164,327 | ||||||||||||||||
Subordinated notes, net of unamortized issuance costs | 34,731 | 34,702 | 34,673 | 34,644 | 34,615 | |||||||||||||||
Dividend payable | 2,975 | 2,974 | 2,838 | 2,834 | 2,831 | |||||||||||||||
Accrued expenses and other liabilities | 25,930 | 27,579 | 21,892 | 18,177 | 18,881 | |||||||||||||||
Total liabilities | 2,969,864 | 2,966,686 | 2,931,496 | 2,842,780 | 2,764,318 | |||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Common stock - No par value 20,000,000 shares authorized; issued and outstanding 14,564,425 shares | 135,482 | 135,515 | 135,171 | 135,647 | 135,241 | |||||||||||||||
(10,851 | ) | (11,040 | ) | (11,008 | ) | (11,298 | ) | (11,310 | ) | |||||||||||
Retained earnings | 223,648 | 221,080 | 218,510 | 216,236 | 213,012 | |||||||||||||||
Accumulated other comprehensive loss | (30,589 | ) | (29,012 | ) | (39,489 | ) | (35,922 | ) | (31,186 | ) | ||||||||||
Total stockholders' equity | 317,690 | 316,543 | 303,184 | 304,663 | 305,757 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 3,287,554 | $ | 3,283,229 | $ | 3,234,680 | $ | 3,147,443 | $ | 3,070,075 | ||||||||||
SELECT FINANCIAL DATA
For the Three Months Ended | ||||||||||||||||||||
Selected financial data | ||||||||||||||||||||
Return on average assets | 0.66 | % | 0.67 | % | 0.59 | % | 0.77 | % | 0.84 | % | ||||||||||
Return on average equity | 6.76 | % | 7.27 | % | 6.26 | % | 7.84 | % | 8.59 | % | ||||||||||
Yield on earning assets | 5.00 | % | 4.93 | % | 4.79 | % | 4.53 | % | 4.41 | % | ||||||||||
Cost of interest bearing liabilities | 3.06 | % | 3.02 | % | 2.82 | % | 2.35 | % | 1.85 | % | ||||||||||
Net interest spread | 1.94 | % | 1.91 | % | 1.97 | % | 2.18 | % | 2.56 | % | ||||||||||
Net interest margin | 2.60 | % | 2.57 | % | 2.59 | % | 2.73 | % | 3.01 | % | ||||||||||
Efficiency | 74.08 | % | 69.23 | % | 73.07 | % | 69.06 | % | 63.53 | % | ||||||||||
Dividend payout ratio | 55.52 | % | 54.23 | % | 60.07 | % | 47.22 | % | 43.79 | % | ||||||||||
Tangible book value per share (1) | $ | 18.75 | $ | 18.60 | $ | 18.36 | $ | 18.21 | $ | 17.92 | ||||||||||
Tier 1 leverage ratio | 8.40 | % | 8.20 | % | 8.02 | % | 9.85 | % | 8.36 | % | ||||||||||
Average shares outstanding | 13,671,166 | 13,665,773 | 13,650,823 | 13,632,440 | 13,615,655 | |||||||||||||||
Loans | ||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
Commercial real estate | $ | 1,304,400 | $ | 1,337,766 | $ | 1,304,118 | $ | 1,280,902 | $ | 1,225,315 | ||||||||||
Agricultural real estate | 227,455 | 223,791 | 225,672 | 230,837 | 227,897 | |||||||||||||||
Consumer real estate | 525,178 | 521,895 | 512,973 | 506,866 | 502,974 | |||||||||||||||
Commercial and industrial | 256,051 | 254,935 | 250,891 | 253,444 | 241,598 | |||||||||||||||
Agricultural | 127,670 | 132,560 | 123,735 | 128,344 | 131,467 | |||||||||||||||
Consumer | 74,819 | 79,591 | 83,024 | 88,312 | 89,588 | |||||||||||||||
Other | 26,776 | 30,136 | 31,083 | 28,996 | 29,316 | |||||||||||||||
Less: Net deferred loan fees, costs and other (2) | (982 | ) | 517 | (1,890 | ) | (1,908 | ) | (1,503 | ) | |||||||||||
Total loans,net | $ | 2,541,367 | $ | 2,581,191 | $ | 2,529,606 | $ | 2,515,793 | $ | 2,446,652 | ||||||||||
Asset quality data | ||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
Nonaccrual loans | $ | 19,391 | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | ||||||||||
90 day past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Nonperforming loans | $ | 19,391 | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | ||||||||||
Other real estate owned | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Nonperforming assets | $ | 19,391 | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | ||||||||||
Allowance for credit losses | $ | 24,680 | $ | 25,024 | $ | 25,277 | $ | 24,910 | $ | 24,634 | ||||||||||
Allowance for unfunded | 1,946 | 2,212 | 2,023 | 2,099 | 2,228 | |||||||||||||||
Total Allowance for Credit Losses | $ | 26,626 | $ | 27,236 | $ | 27,300 | $ | 27,009 | $ | 26,862 | ||||||||||
Allowance for credit losses/total loans | 0.97 | % | 0.97 | % | 1.00 | % | 0.99 | % | 1.01 | % | ||||||||||
Adjusted credit losses with accretable yield/total loans | 1.11 | % | 1.13 | % | 1.18 | % | 1.20 | % | 1.24 | % | ||||||||||
Net charge-offs: | ||||||||||||||||||||
Quarter-to-date | $ | 55 | $ | 454 | $ | 93 | $ | (133 | ) | $ | 60 | |||||||||
Year-to-date | $ | 55 | $ | 551 | $ | 97 | $ | (73 | ) | $ | 60 | |||||||||
Net charge-offs to average loans | ||||||||||||||||||||
Quarter-to-date | 0.00 | % | 0.02 | % | 0.00 | % | -0.01 | % | 0.00 | % | ||||||||||
Year-to-date | 0.00 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Nonperforming loans/total loans | 0.76 | % | 0.87 | % | 0.89 | % | 0.25 | % | 0.32 | % | ||||||||||
Allowance for credit losses/nonperforming loans | 127.28 | % | 111.95 | % | 112.61 | % | 395.71 | % | 319.38 | % | ||||||||||
NPA coverage ratio | 127.28 | % | 111.95 | % | 112.61 | % | 395.71 | % | 319.38 | % |
(1) Tangible Equity = Stockholder Equity less goodwill, other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities) plus CECL adjustment
(2) Includes carrying value adjustments of
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||
Interest Earning Assets: | Average Balance | Interest/ Dividends | Annualized Yield/Rate | Average Balance | Interest/ Dividends | Annualized Yield/Rate | ||||||||||||||||||
Loans | $ | 2,577,114 | $ | 35,200 | 5.46 | % | $ | 2,397,061 | $ | 29,703 | 4.96 | % | ||||||||||||
Taxable investment securities | 384,928 | 1,686 | 1.75 | % | 397,480 | 1,499 | 1.51 | % | ||||||||||||||||
Tax-exempt investment securities | 21,109 | 86 | 2.06 | % | 26,352 | 100 | 1.92 | % | ||||||||||||||||
Fed funds sold & other | 110,388 | 1,682 | 6.09 | % | 68,557 | 500 | 2.92 | % | ||||||||||||||||
Total Interest Earning Assets | 3,093,539 | $ | 38,654 | 5.00 | % | 2,889,450 | $ | 31,802 | 4.41 | % | ||||||||||||||
Nonearning Assets | 159,240 | 180,259 | ||||||||||||||||||||||
Total Assets | $ | 3,252,779 | $ | 3,069,709 | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Savings deposits | $ | 1,443,530 | $ | 9,407 | 2.61 | % | $ | 1,400,769 | $ | 4,943 | 1.41 | % | ||||||||||||
Other time deposits | 650,580 | 5,872 | 3.61 | % | 579,409 | 3,208 | 2.21 | % | ||||||||||||||||
Other borrowed money | 263,280 | 2,689 | 4.09 | % | 132,494 | 1,280 | 3.86 | % | ||||||||||||||||
Fed funds purchased & securities sold under agreement to repurch. | 28,458 | 284 | 3.99 | % | 38,853 | 405 | 4.17 | % | ||||||||||||||||
Subordinated notes | 34,712 | 284 | 3.27 | % | 34,596 | 284 | 3.28 | % | ||||||||||||||||
Total Interest Bearing Liabilities | $ | 2,420,560 | $ | 18,536 | 3.06 | % | $ | 2,186,121 | $ | 10,120 | 1.85 | % | ||||||||||||
Noninterest Bearing Liabilities | 514,986 | 582,345 | ||||||||||||||||||||||
Stockholders' Equity | $ | 317,233 | $ | 301,243 | ||||||||||||||||||||
Net Interest Income and Interest Rate Spread | $ | 20,118 | 1.94 | % | $ | 21,682 | 2.56 | % | ||||||||||||||||
Net Interest Margin | 2.60 | % | 3.01 | % | ||||||||||||||||||||
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts | ||||||||||||||||||||||||
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||||
As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||||
$ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||||
Loans | $ | 35,200 | 5.46 | % | $ | 34,525 | 5.36 | % | $ | 675 | 0.10 | % | $ | 29,703 | 4.96 | % | $ | 29,036 | 4.85 | % | $ | 667 | 0.11 | % | |||||||
Taxable investment securities | 1,686 | 1.75 | % | 1,686 | 1.75 | % | - | 0.00 | % | 1,499 | 1.51 | % | 1,499 | 1.51 | % | - | 0.00 | % | |||||||||||||
Tax-exempt investment securities | 86 | 2.06 | % | 86 | 2.06 | % | - | 0.00 | % | 100 | 1.92 | % | 100 | 1.92 | % | - | 0.00 | % | |||||||||||||
Fed funds sold & other | 1,682 | 6.09 | % | 1,682 | 6.09 | % | - | 0.00 | % | 500 | 2.92 | % | 500 | 2.92 | % | - | 0.00 | % | |||||||||||||
Total Interest Earning Assets | 38,654 | 5.00 | % | 37,979 | 4.92 | % | 675 | 0.08 | % | 31,802 | 4.41 | % | 31,135 | 4.31 | % | 667 | 0.10 | % | |||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||
Savings deposits | $ | 9,407 | 2.61 | % | $ | 9,407 | 2.61 | % | $ | - | 0.00 | % | $ | 4,943 | 1.41 | % | $ | 4,943 | 1.41 | % | $ | - | 0.00 | % | |||||||
Other time deposits | 5,872 | 3.61 | % | 5,872 | 3.61 | % | - | 0.00 | % | 3,208 | 2.21 | % | 3,667 | 2.53 | % | (459 | ) | -0.32 | % | ||||||||||||
Other borrowed money | 2,689 | 4.09 | % | 2,707 | 4.11 | % | (18 | ) | -0.02 | % | 1,280 | 3.86 | % | 1,298 | 3.92 | % | (18 | ) | -0.06 | % | |||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 284 | 3.99 | % | 284 | 3.99 | % | - | 0.00 | % | 405 | 4.17 | % | 405 | 4.17 | % | - | 0.00 | % | |||||||||||||
Subordinated notes | 284 | 3.27 | % | 284 | 3.27 | % | - | 0.00 | % | 284 | 3.28 | % | 284 | 3.28 | % | - | 0.00 | % | |||||||||||||
Total Interest Bearing Liabilities | 18,536 | 3.06 | % | 18,554 | 3.07 | % | (18 | ) | -0.01 | % | 10,120 | 1.85 | % | 10,597 | 1.94 | % | (477 | ) | -0.09 | % | |||||||||||
Interest/Dividend income/yield | 38,654 | 5.00 | % | 37,979 | 4.92 | % | 675 | 0.08 | % | 31,802 | 4.41 | % | 31,135 | 4.31 | % | 667 | 0.10 | % | |||||||||||||
Interest Expense / yield | 18,536 | 3.06 | % | 18,554 | 3.07 | % | (18 | ) | -0.01 | % | 10,120 | 1.85 | % | 10,597 | 1.94 | % | (477 | ) | -0.09 | % | |||||||||||
Net Interest Spread | 20,118 | 1.94 | % | 19,425 | 1.85 | % | 693 | 0.09 | % | 21,682 | 2.56 | % | 20,538 | 2.37 | % | 1,144 | 0.19 | % | |||||||||||||
Net Interest Margin | 2.60 | % | 2.52 | % | 0.08 | % | 3.01 | % | 2.85 | % | 0.16 | % | |||||||||||||||||||
NON-GAAP RECONCILIATION OF TANGIBLE BOOK VALUE
Actual End of Period | Regulatory End of Period | |||||||||||||||
Non-GAAP Reconciliation of Tangible Book Value | Year to Date | Year to Date | ||||||||||||||
Shares Outstanding | 13,683,270 | 13,630,122 | 13,683,270 | 13,630,122 | ||||||||||||
Tangible Equity | ||||||||||||||||
Equity | $ | 317,690 | $ | 305,757 | $ | 317,690 | $ | 305,757 | ||||||||
86,358 | 86,358 | 86,358 | 86,358 | |||||||||||||
Other Intangible | 7,103 | 8,882 | 7,103 | 8,882 | ||||||||||||
Comprehensive Loss Adjustment* | - | - | 30,589 | 31,186 | ||||||||||||
CECL Adjustment** | - | - | 1,685 | 2,528 | ||||||||||||
Tangible Equity | $ | 224,229 | $ | 210,517 | $ | 256,503 | $ | 244,231 | ||||||||
Shares Outstanding | 13,683 | 13,630 | 13,683 | 13,630 | ||||||||||||
Tangible Book Equity per Share | $ | 16.39 | $ | 15.44 | $ | 18.75 | $ | 17.92 | ||||||||
Actual Average | Regulatory Average | |||||||||||||||
Year to Date | Year to Date | |||||||||||||||
Net Income | $ | 5,359 | $ | 6,466 | $ | 5,359 | $ | 6,466 | ||||||||
Acquisition Costs - Tax Adjusted | - | 77 | - | 77 | ||||||||||||
Average Shares Outstanding | 13,671,166 | 13,615,655 | 13,671,166 | 13,615,655 | ||||||||||||
Average Tangible Equity | ||||||||||||||||
Average Equity | $ | 317,233 | $ | 301,243 | $ | 317,233 | $ | 301,243 | ||||||||
Average | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||
Average Other Intangible | $ | 7,388 | 9,167 | $ | 7,388 | 9,167 | ||||||||||
Average Comprehensive Loss Adjustment* | - | - | 30,700 | 36,764 | ||||||||||||
Average CECL Adjustment** | - | - | 1,685 | 2,528 | ||||||||||||
Average Tangible Equity | $ | 223,487 | $ | 205,718 | $ | 255,872 | $ | 245,010 | ||||||||
Average Shares Outstanding | 13,671 | 13,616 | 13,671 | 13,616 | ||||||||||||
Average Tangible Book Equity per Share | $ | 16.35 | $ | 15.11 | $ | 18.72 | $ | 17.99 | ||||||||
Return on Average Tangible Equity | 9.59 | % | 12.57 | % | 8.38 | % | 10.56 | % | ||||||||
Return on Average Tangible Equity w/o Acquisition | 9.59 | % | 12.72 | % | 8.38 | % | 10.68 | % |
*The Bank has adopted the Accumulated Other Comprehensive Income (AOCI) opt out election which removed AOCI from the calculation of tangible equity for regulatory purposes.
**ASU 2016-13 adopted during the first quarter of 2023. The Bank has elected to spread the capital adjustment over three years. The first year permits 75% of the capital adjustment and the second year permits 50% of the capital adjustment to be removed from the calculation of tangible equity for regulatory purposes.
Company Contact: President and Chief Executive Officer (419) 446-2501 leller@fm.bank | Investor and Media Contact: Managing Director (216) 464-6400 andrew@smberger.com | |
Source:
2024 GlobeNewswire, Inc., source