Farmers and Merchants Bank

Rudolph, WI · Cert 2485

FDIC · 1 branch

Q4 2016

$31.9MAssets

$19.2MLoans

$28.4MDeposits

$3.3MEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of 0.54%, down 28 bps year over year; NIM at 3.47%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.56%.

Return on Assets (YTD, annualized)

0.54%-28 bps YoY

Net Interest Margin (YTD, annualized)

3.47%-6 bps YoY

Efficiency Ratio (YTD, annualized)

89.13%+1,415 bps YoY

Tier 1 Leverage Ratio

8.36%-367 bps YoY

Year to date, annualized, through each quarter.

Metric	Q4 2015	Q1 2016	Q2 2016	Q3 2016	Q4 2016	YoY Δ	Trend
Earnings
Return on Assets	0.82%	0.78%	0.77%	0.53%	0.54%	-28 bps
Return on Equity	7.06%	6.48%	6.39%	4.40%	4.63%	-243 bps
Net Interest Margin	3.53%	3.32%	3.34%	3.33%	3.47%	-6 bps
Efficiency Ratio	74.98%	74.23%	73.53%	79.88%	89.13%	+1,415 bps
Non-Interest Burden	2.59%	2.41%	2.40%	2.62%	2.98%	+38 bps
Growth
Asset Growth (YoY)	-1.66%	0.61%	5.14%	2.25%	8.66%	+1,032 bps
Loan Growth (YoY)	-2.95%	-3.39%	2.94%	2.11%	0.13%	+307 bps
Deposit Growth (YoY)	-2.10%	0.07%	3.57%	1.97%	9.83%	+1,193 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.07%	0.00%	0.05%	0.03%	0.56%	+49 bps
Allowance / Loans	1.61%	1.59%	1.45%	1.47%	0.00%	-161 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	12.03%	11.96%	11.95%	11.77%	8.36%	-367 bps
Total Risk-Based Capital	20.27%	20.32%	19.20%	19.24%	12.15%	-812 bps
Equity / Assets	11.84%	12.23%	11.87%	12.09%	10.33%	-150 bps
Liquidity & Funding
Loans / Deposits	74.06%	75.67%	79.70%	79.01%	67.52%	-654 bps
Liquid Assets / Assets	11.72%	15.27%	14.77%	13.37%	10.78%	-94 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a