Farmers & Merchants Bancorp reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period.
For the three months ended September 30, 2024, interest income increased to $68.6 million from $65.7 million in 2023, reflecting a 4.45% rise. However, net interest income decreased to $52.0 million from $53.4 million, resulting in a net interest margin of 4.07%, down from 4.17% in the prior year. The increase in interest expense, which rose to $16.6 million from $12.3 million, contributed to this decline. Non-interest income saw a significant increase of 74.15%, reaching $6.3 million compared to $3.6 million in 2023.
Net income for the third quarter was $22.1 million, slightly up from $22.0 million in the same period last year. Earnings per share increased to $29.96 from $29.23. For the nine months ended September 30, 2024, net income totaled $66.6 million, a decrease from $66.9 million in 2023.
The company’s total assets as of September 30, 2024, were $5.4 billion, an increase of $109.2 million from December 31, 2023. Total deposits rose to $4.71 billion, up $40.6 million, while the loan portfolio increased to $3.7 billion, reflecting a 1.35% growth. The allowance for credit losses (ACL) was $75.8 million, slightly up from $74.9 million at the end of 2023.
In terms of strategic developments, Farmers & Merchants Bancorp initiated a new share repurchase program on September 10, 2024, allowing for the repurchase of up to $55.0 million of common stock, with approximately $20.1 million remaining as of the latest report. On October 3, 2024, the company repurchased 37,990 shares for $34.8 million, reducing total shares outstanding from 737,995 to 699,997.
The company’s non-interest expenses for the third quarter increased by 13.43% to $27.8 million, primarily due to higher salaries and employee benefits. For the nine months ended September 30, 2024, non-interest expenses decreased slightly to $78.7 million from $79.5 million in 2023.
Overall, Farmers & Merchants Bancorp's financial performance reflects a combination of increased interest income and non-interest income, alongside rising expenses and a slight decline in net income for the nine-month period.
About FARMERS & MERCHANTS BANCORP
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