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Farmers and Merchants Bank

Adamsville, TN · Cert 9188

FDIC · 1 branch

Q2 2019

$41.7MAssets
$20.9MLoans
$36.3MDeposits
$5.3MEquity
Loan mix
82%RE $12.4M7%C&I $1.1M11%Consumer $1.7MQ3 2017Q2 2019
Deposit mix
74%Interest-bearing $26.9M26%Noninterest $9.5MQ3 2017Q2 2019

Executive Summary

  • Earnings: ROA of 0.82%, down 33 bps year over year; NIM at 3.86%.
  • Asset quality: problem loans at 0.38% of loans (-47 bps YoY), with net recoveries of 0.04%.
  • Capital: tier 1 leverage ratio of 12.50%, up 46 bps from a year ago.
  • Funding: loans stand at 57.49% of deposits as of Q2 2019.

Return on Assets (YTD, annualized)

0.82%-33 bps YoY

Net Interest Margin (YTD, annualized)

3.86%-27 bps YoY

Efficiency Ratio (YTD, annualized)

60.33%-560 bps YoY

Tier 1 Leverage Ratio

12.50%+46 bps YoY

NIM

4.05%Q2 ’174.38%Q2 ’184.32%Q2 ’19+9%-6%

Non-interest income vs. expense

2.78%Q2 ’172.92%Q2 ’182.46%Q2 ’19+8%-14%

Year to date, annualized, through each quarter.

MetricQ3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019YoY ΔTrend
Earnings
Return on Assets0.92%0.89%1.16%1.15%1.08%1.15%1.23%0.82%-33 bps
Return on Equity7.87%7.63%10.09%9.92%9.32%9.81%10.09%6.61%-331 bps
Net Interest Margin3.82%3.83%4.18%4.12%4.15%4.08%3.95%3.86%-27 bps
Efficiency Ratio67.12%66.91%64.21%65.93%66.84%65.47%61.74%60.33%-560 bps
Non-Interest Burden2.45%2.45%2.55%2.61%2.67%2.56%2.36%2.24%-38 bps
Growth
Asset Growth (YoY)12.15%9.14%6.07%1.24%1.95%0.48%0.53%2.39%+116 bps
Loan Growth (YoY)15.36%13.63%3.26%2.01%5.66%1.77%0.25%-5.85%-786 bps
Deposit Growth (YoY)13.50%9.58%6.40%0.91%1.95%0.06%-0.60%1.29%+38 bps
Asset Quality
Nonperforming Loans / Loans1.12%0.87%0.70%0.85%0.65%0.60%0.45%0.38%-47 bps
Net Charge-Offs / Loans-0.02%0.10%-0.02%-0.02%0.02%0.02%-0.06%-0.04%-2 bps
Allowance / Loans2.13%2.02%2.02%1.98%1.89%1.97%2.01%2.13%+15 bps
Allowance Coverage of NPLs1.9x2.3x2.9x2.3x2.9x3.3x4.5x5.6x+3.3x
Capital
Tier 1 Leverage Ratio11.70%11.72%11.87%12.04%12.62%12.33%12.66%12.50%+46 bps
Total Risk-Based Capital22.28%21.98%22.46%22.78%22.56%23.39%24.08%24.77%+199 bps
Equity / Assets11.76%11.68%11.35%11.64%11.72%12.02%12.43%12.63%+98 bps
Liquidity & Funding
Loans / Deposits61.67%60.80%59.77%61.85%63.92%61.83%60.29%57.49%-436 bps
Liquid Assets / Assets16.84%14.14%14.37%15.54%12.22%11.33%10.52%8.38%-716 bps
CRE / Total Capitaln/an/an/an/an/an/an/an/an/an/a