Farmers & Merchants Bancorp, Inc. (FMAO) has reported a 15.08 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.02 million, or $0.65 a share in the quarter, compared with $2.62 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 9.96 percent to $11.10 million from $10.09 million in the previous year period. Net interest income for the quarter rose 13.08 percent over the prior year period to $8.49 million. Non-interest income for the quarter rose 3.11 percent over the last year period to $2.92 million.
Farmers & Merchants Bancorp, Inc. has made provision of $0.31 million for loan losses during the quarter, up 26.75 percent from $0.24 million in the same period last year.
Net interest margin improved 4 basis points to 3.57 percent in the quarter from 3.53 percent in the last year period. Efficiency ratio for the quarter improved to 60.09 percent from 62.73 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our financial results continued to demonstrate strong improvements in the 2016 third quarter as a result of strong loan growth, higher net interest margin, controlled operating expenses, and increased fee based income," stated Paul S. Siebenmorgen, president and chief executive officer. "The double-digit loan growth we achieved in the third quarter, was a result of higher commercial real estate and commercial and industrial loans, which increased 22.7% and 25.6%, respectively from the prior year period. Our loan to deposit ratio at the end of the 2016 third quarter was 88.1%, which has increased 540 basis points from 82.7% at September 30, 2015. I am encouraged by these strong growth trends, which reflect the team of experienced commercial lenders we have assembled over the past several years, and F&M’s focus on managing risk with quick underwriting decisions and superior customer service. Our local markets continue to show stable economic trends and we are cautiously optimistic 2016 will be another good year for the bank."
Liabilities outpace assets growth
Total assets stood at $1,044.45 million as on Sep. 30, 2016, up 9.08 percent compared with $957.52 million on Sep. 30, 2015. On the other hand, total liabilities stood at $917.50 million as on Sep. 30, 2016, up 9.48 percent from $838.03 million on Sep. 30, 2015. Loans outpace deposit growth
Net loans stood at $732.07 million as on Sep. 30, 2016, up 16.37 percent compared with $629.07 million on Sep. 30, 2015. Deposits stood at $838.10 million as on Sep. 30, 2016, up 9.12 percent compared with $768.04 million on Sep. 30, 2015.
Investments stood at $228.19 million as on Sep. 30, 2016, down 8.17 percent or $20.31 million from year-ago. Shareholders equity stood at $126.94 million as on Sep. 30, 2016, up 6.23 percent or $7.45 million from year-ago.
Return on average assets moved up 7 basis points to 1.17 percent in the quarter from 1.10 percent in the last year period. At the same time, return on average equity increased 71 basis points to 9.58 percent in the quarter from 8.87 percent in the last year period.
Nonperforming assets moved down 25.77 percent or $0.88 million to $2.54 million on Sep. 30, 2016 from $3.43 million on Sep. 30, 2015.
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