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| 8-K - FARMERS & MERCHANTS BANCORP 8-K 7-25-2016 - FARMERS & MERCHANTS BANCORP | form8k.htm |
Exhibit 99
Farmers & Merchants Bancorp
Reports Record Second Quarter and
Year-to-Date Earnings
Farmers & Merchants Bancorp (OTCQX: FMCB) announced record net income for second quarter and year-to-date 2016.
For the quarter ending June 30, 2016, Farmers & Merchants Bancorp reported net income of $7.3 million, an 8.6% increase from net income of $6.7 million earned in second quarter of 2015. Earnings per share of common stock for the quarter were $9.25, up from $8.59 in the same period in 2015. Net interest income for the quarter ending June 30, 2016, was $23.4 million, up 11.7% from the same quarter in 2015. Return on average assets for the second quarter of 2016 was 1.14%, and return on average equity was 11.14%. Total assets at quarter-end were $2.7 billion, up 9.5% from the second quarter of 2015. Total loans and leases outstanding reached $2.1 billion, an increase of 13.7%, and total deposits of $2.3 billion increased 7.6% from the prior year. The Company’s loan quality remained strong with non-performing loans as of June 30, 2016, totaling only 0.11% of total loans. In addition, the Company’s allowance for credit losses was $44.1 million, or 2.13% of total loans and leases. The Company’s tier 1 leverage capital ratio was 10.52% at June 30, 2016, and the total capital ratio was 12.50%, resulting in the highest possible regulatory classification of “well capitalized.”
For the six-month period ending June 30, 2016, net income was $14.5 million, up 10.3% from the prior year, and earnings per share of common stock outstanding were $18.31, up from $16.74 in 2015. Net interest income increased to $46.5 million for the six-month period in 2016, up 12.2% from the same period in 2015. For the first six months, return on average assets was 1.12%, and return on average equity was 11.13%.
Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are very pleased with the Company’s continuing strong performance in the second quarter of 2016, particularly given that we have begun to incur expenses in connection with our recently announced acquisition of Delta National Bancorp and its subsidiary Delta Bank, N.A. The Delta transaction is scheduled to close in the 4th quarter of 2016. We remain positive in our outlook for the second half of 2016 as continuing growth should be supported by our acquisition of Delta, and what appear to be signs of a strengthening economy in the Central Valley.”
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About Farmers & Merchants Bancorp
Farmers & Merchants Bancorp is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank which proudly serves California through 24 convenient locations. The Bank recently expanded into the Bay Area with new full service branches in Walnut Creek and Concord. The FDIC awarded F&M Bank the highest possible rating of "Outstanding" in their CRA Evaluation, and the Bank has received BauerFinancial’s highest, five-star rating for 24 consecutive years, longer than any other commercial bank in the State of California. The Bank offers a full complement of loan, deposit, equipment leasing, and treasury management products to businesses, as well as a full suite of consumer banking products. For more information about Farmers & Merchants Bancorp and F&M Bank visit www.fmbonline.com.
Forward-Looking Statement
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, levels of net interest margin, the ability to control costs and expenses, interest rate changes, the competitive environment, financial and regulatory policies of the United States government, ongoing drought conditions in California and general economic conditions. Additional information on these and other factors that could affect financial results are included in our Securities and Exchange Commission filings. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.