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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Farmers and Merchants Bancorp (QX) | USOTC:FMCB | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
89.00 | 8.80% | 1,100.00 | 1,052.00 | 1,100.00 | 1,100.00 | 1,049.00 | 1,049.00 | 55 | 21:00:06 |
Delaware
|
94-3327828
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
111 W. Pine Street, Lodi, California
|
95240
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
None
|
Not Applicable
|
Not Applicable
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
Non-accelerated filer ☐
|
Smaller reporting company ☐ |
Emerging growth company ☐ |
PART I. - FINANCIAL INFORMATION
|
Page
|
||
Item 1 - Financial Statements
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
8
|
|||
9
|
|||
|
|||
33 |
|||
34
|
|||
39
|
|||
44
|
|||
|
|||
59
|
|||
|
|||
59 |
|||
PART II. - OTHER INFORMATION
|
|||
59 |
|||
59 |
|||
59 |
|||
59 |
|||
59 |
|||
59 |
|||
60 |
|||
61 |
Item 1.
|
Financial Statements
|
(Dollars in thousands, except share and per share amounts)
|
March 31,
2022
|
December 31,
2021
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
68,774
|
$
|
52,499
|
||||
Interest bearing deposits with banks
|
772,312
|
662,961
|
||||||
Total cash and cash equivalents
|
841,086
|
715,460
|
||||||
Securities available for sale, at fair value
|
251,375
|
270,454
|
||||||
Securities held to maturity, at amortized cost
|
876,257
|
737,052
|
||||||
Total investment securities
|
1,127,632
|
1,007,506
|
||||||
Non-marketable securities
|
15,549
|
15,549
|
||||||
Loans and leases held for investment
|
3,237,619
|
3,237,177
|
||||||
Allowance for credit losses
|
(61,032
|
)
|
(61,007
|
)
|
||||
Loans held for investment, net
|
3,176,587
|
3,176,170
|
||||||
Bank-owned life insurance
|
71,953
|
71,411
|
||||||
Premises and equipment, net
|
47,423
|
47,730
|
||||||
Deferred income tax assets
|
30,361
|
25,542
|
||||||
Accrued interest receivable
|
14,473
|
18,098
|
||||||
Goodwill
|
11,183
|
11,183
|
||||||
Other intangibles
|
3,254
|
3,402
|
||||||
Other real estate owned
|
873
|
873
|
||||||
Other assets
|
83,802
|
84,796
|
||||||
TOTAL ASSETS
|
$
|
5,424,176
|
$
|
5,177,720
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$
|
1,764,857
|
$
|
1,750,330
|
||||
Interest bearing:
|
||||||||
Demand
|
1,124,470
|
1,097,337
|
||||||
Savings and money market
|
1,557,332
|
1,400,000
|
||||||
Certificate of deposits
|
390,780
|
392,485
|
||||||
Total interest bearing
|
3,072,582
|
2,889,822
|
||||||
Total deposits
|
4,837,439
|
4,640,152
|
||||||
Subordinated debentures
|
10,310
|
10,310
|
||||||
Interest payable and other liabilities
|
111,714
|
64,122
|
||||||
TOTAL LIABILITIES
|
4,959,463
|
4,714,584
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Preferred shares, no par value, 1,000,000 shares authorized and, none
issued or outstanding
|
-
|
-
|
||||||
Common shares, $0.01 par value, 7,500,000 authorized 785,146
and 789,646 outstanding at March 31, 2022 and December 31, 2021, respectively
|
8
|
8
|
||||||
Additional paid in capital
|
73,264
|
77,516
|
||||||
Retained earnings
|
404,389
|
387,331
|
||||||
Accumulated other comprehensive (loss), net of taxes
|
(12,948
|
)
|
(1,719
|
)
|
||||
TOTAL SHAREHOLDERS’ EQUITY
|
464,713
|
463,136
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
5,424,176
|
$
|
5,177,720
|
Three Months Ended
March 31,
|
||||||||
(Dollars in thousands, except share and per share amounts)
|
2022
|
2021
|
||||||
Interest income
|
||||||||
Interest and fees on loans and leases
|
$
|
37,433
|
$
|
37,087
|
||||
Interest and dividends on investments
|
5,295
|
4,417
|
||||||
Interest on deposits with others
|
366
|
103
|
||||||
Total interest income
|
43,094
|
41,607
|
||||||
Interest expense
|
||||||||
Deposits
|
803
|
1,237
|
||||||
Subordinated debentures
|
82
|
79
|
||||||
Total interest expense
|
885
|
1,316
|
||||||
Net interest income
|
42,209
|
40,291
|
||||||
Provision for credit losses
|
-
|
1,250
|
||||||
Net interest income after provision for credit losses
|
42,209
|
39,041
|
||||||
Noninterest income
|
||||||||
Card processing
|
1,737
|
1,579
|
||||||
Service charges on deposit accounts
|
850
|
638
|
||||||
Increase in cash surrender value of BOLI
|
542
|
526
|
||||||
Gain on sale of investment securities
|
-
|
1,840
|
||||||
Net gain/(loss) on deferred compensation benefits
|
412
|
3,540
|
||||||
Other
|
771
|
1,412
|
||||||
Total noninterest income
|
4,312
|
9,535
|
||||||
Noninterest expense
|
||||||||
Salaries and employee benefits
|
16,784
|
16,740
|
||||||
Net gain/(loss) on deferred compensation benefits
|
412
|
3,540
|
||||||
Occupancy
|
1,154
|
1,231
|
||||||
Data processing
|
1,215
|
1,224
|
||||||
FDIC insurance
|
349
|
287
|
||||||
Marketing
|
316
|
188
|
||||||
Legal
|
279
|
111
|
||||||
Other
|
3,279
|
3,042
|
||||||
Total noninterest expense
|
23,788
|
26,363
|
||||||
INCOME BEFORE INCOME TAXES
|
22,733
|
22,213
|
||||||
Income tax expense
|
5,675
|
5,500
|
||||||
NET INCOME
|
$
|
17,058
|
$
|
16,713
|
||||
Earnings per common share:
|
||||||||
Basic
|
$
|
21.70
|
$
|
21.17
|
||||
Diluted
|
$
|
21.70
|
$
|
21.17
|
||||
Weighted average number of common shares
|
||||||||
Basic
|
786,096
|
789,646
|
||||||
Diluted
|
786,096
|
789,646
|
Three Months Ended
March 31,
|
||||||||
(Dollars in thousands)
|
2022
|
2021
|
||||||
Net income
|
$
|
17,058
|
$
|
16,713
|
||||
Other comprehensive income | ||||||||
Unrealized holding (losses)/gains on securities available for sale
|
(15,865
|
)
|
(18,566
|
)
|
||||
Reclassification adjustment for (gains)/losses on available for sale securities
|
-
|
(1,840
|
)
|
|||||
Amortization of unrealized loss on securities transferred to held to maturity
|
(77
|
)
|
(58
|
)
|
||||
Net unrealized holding (losses)/gains on securities available for sale
|
(15,942
|
)
|
(20,464
|
)
|
||||
Income tax benefit/(expense)
|
4,713
|
6,049
|
||||||
Other comprehensive (loss)/income, net of tax
|
(11,229
|
)
|
(14,415
|
)
|
||||
Total comprehensive income
|
$
|
5,829
|
$
|
2,298
|
(Dollars in thousands, except share amounts)
|
Common
Shares
|
Amount
|
Additional
Paid In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss)
|
Total
|
||||||||||||||||||
Balance as of December 31, 2020
|
789,646
|
$
|
8
|
$
|
77,516
|
$
|
333,070
|
$
|
13,071
|
$
|
423,665
|
|||||||||||||
Net income
|
-
|
-
|
-
|
16,713
|
-
|
16,713
|
||||||||||||||||||
Other comprehensive (loss), net of tax
|
-
|
-
|
-
|
-
|
(14,415
|
)
|
(14,415
|
)
|
||||||||||||||||
Cash dividends returned
|
-
|
-
|
-
|
7
|
-
|
7
|
||||||||||||||||||
Balance as of March 31, 2021
|
789,646
|
$
|
8
|
$
|
77,516
|
$
|
349,790
|
$
|
(1,344
|
)
|
$
|
425,970
|
||||||||||||
Balance as of December 31, 2021
|
789,646
|
$
|
8
|
$
|
77,516
|
$
|
387,331
|
$
|
(1,719
|
)
|
$
|
463,136
|
||||||||||||
Net income
|
-
|
-
|
-
|
17,058
|
-
|
17,058
|
||||||||||||||||||
Other comprehensive (loss), net of tax
|
-
|
-
|
-
|
-
|
(11,229
|
)
|
(11,229
|
)
|
||||||||||||||||
Repurchase of common stock
|
(4,500
|
)
|
-
|
(4,252
|
)
|
-
|
-
|
(4,252
|
)
|
|||||||||||||||
Balance as of March 31, 2022
|
785,146
|
$
|
8
|
$
|
73,264
|
$
|
404,389
|
$
|
(12,948
|
)
|
$
|
464,713
|
Three Months Ended
March 31,
|
||||||||
(Dollars in thousands)
|
2022
|
2021
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
17,058
|
$
|
16,713
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for credit losses
|
-
|
1,250
|
||||||
Depreciation and amortization
|
656
|
660
|
||||||
Net amortization of securities premiums and discounts
|
176
|
407
|
||||||
Increase in cash surrender value of BOLI
|
(542
|
)
|
(527
|
)
|
||||
(Increase)/decrease in deferred income taxes, net
|
(113
|
)
|
4,714
|
|||||
Gains on sale of securities available for sale
|
-
|
(1,840
|
)
|
|||||
Net changes in:
|
||||||||
Other assets
|
4,709
|
6,258
|
||||||
Other liabilities
|
6,966
|
1,386
|
||||||
Net cash provided by operating activities
|
28,910
|
29,021
|
||||||
Cash flows from investing activities:
|
||||||||
Net change in loans held for investment
|
(374
|
)
|
(11,340
|
)
|
||||
Purchase of available for sale securities
|
(10,067
|
)
|
(199,440
|
)
|
||||
Purchase of held to maturity securities
|
(118,162
|
)
|
(3,211
|
)
|
||||
Maturities/sales of available for sale securities
|
13,097
|
110,388
|
||||||
Maturities of held to maturity securities
|
19,516
|
3,930
|
||||||
Purchase of premises and equipment
|
(363
|
)
|
(100
|
)
|
||||
Purchase of other investments
|
-
|
(632
|
)
|
|||||
Proceeds from sale of assets
|
34
|
-
|
||||||
Net cash used in investing activities
|
(96,319
|
)
|
(100,405
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
197,287
|
180,947
|
||||||
Net cash used in share repurchase program
|
(4,252
|
)
|
-
|
|||||
Cash dividends returned
|
-
|
7
|
||||||
Net provided by financing activities
|
193,035
|
180,954
|
||||||
Net change in cash and cash equivalents
|
125,626
|
109,570
|
||||||
Cash and cash equivalents, beginning of period
|
715,460
|
383,837
|
||||||
Cash and cash equivalents, end of period
|
$
|
841,086
|
$
|
493,407
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
951
|
$
|
1,943
|
||||
Supplemental disclosures of non-cash transactions:
|
||||||||
Investment securities available for sale transferred to held to maturity
|
$
|
-
|
$
|
316,925
|
||||
Security purchases settled in subsequent period
|
$
|
(40,626
|
)
|
$
|
-
|
|||
Unrealized losses on securities available for sale
|
$
|
(15,865
|
)
|
$
|
(20,406
|
)
|
|
January-2022
|
|||||||||||
|
Reported
|
Reported
|
Impact of
|
|||||||||
|
under
|
Pre-
|
ASC 326
|
|||||||||
(Dollars in thousands)
|
ASC 326
|
Adoption
|
Adoption
|
|||||||||
Allowance for credit losses:
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
$
|
(17,379
|
)
|
$
|
(28,536
|
)
|
$
|
11,157
|
||||
Agricultural
|
(14,580
|
)
|
(9,613
|
)
|
(4,967
|
)
|
||||||
Residential and home equity
|
(5,879
|
)
|
(2,847
|
)
|
(3,032
|
)
|
||||||
Construction
|
(3,311
|
)
|
(1,456
|
)
|
(1,855
|
)
|
||||||
Total real estate
|
(41,149
|
)
|
(42,452
|
)
|
1,303
|
|||||||
Commercial & industrial
|
(11,417
|
)
|
(11,489
|
)
|
72
|
|||||||
Agricultural
|
(6,363
|
)
|
(5,465
|
)
|
(898
|
)
|
||||||
Commercial leases
|
(1,567
|
)
|
(938
|
)
|
(629
|
)
|
||||||
Consumer and other
|
(511
|
)
|
(663
|
)
|
152
|
|||||||
Total allowance for credit losses
|
$
|
(61,007
|
)
|
$
|
(61,007
|
)
|
$
|
-
|
Available-for-Sale Securities
|
Gross Unrealized | |||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gains
|
Losses
|
Fair
Value
|
||||||||||||
As of March 31, 2022 | ||||||||||||||||
U.S. Treasury notes
|
$
|
9,955
|
$
|
41
|
$
|
-
|
$
|
9,996
|
||||||||
U.S. Government-sponsored securities
|
5,771
|
54
|
36
|
5,789
|
||||||||||||
Mortgage-backed securities (1)
|
241,585
|
370
|
18,054
|
223,901
|
||||||||||||
Collateralized mortgage obligations (1)
|
1,549 | - | 5 | 1,544 | ||||||||||||
Corporate securities
|
10,051
|
-
|
216
|
9,835
|
||||||||||||
Other
|
310
|
-
|
-
|
310
|
||||||||||||
Total available-for-sale securities
|
$
|
269,221
|
$
|
465
|
$
|
18,311
|
$
|
251,375
|
Available-for-Sale Securities |
|
Gross Unrealized
|
|
|||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gains
|
Losses
|
Fair
Value
|
||||||||||||
As of December 31, 2021
|
||||||||||||||||
U.S. Treasury notes
|
$
|
9,938
|
$
|
151
|
$
|
-
|
$
|
10,089
|
||||||||
U.S. Government-sponsored securities
|
6,351
|
62
|
39
|
6,374
|
||||||||||||
Mortgage-backed securities (1)
|
253,300
|
3,200
|
5,380
|
251,120
|
||||||||||||
Collateralized mortgage obligations (1)
|
2,412 | 24 | - | 2,436 | ||||||||||||
Other
|
435
|
-
|
-
|
435
|
||||||||||||
Total available-for-sale securities
|
$
|
272,436
|
$
|
3,437
|
$
|
5,419
|
$
|
270,454
|
Held-to-Maturity Securities |
|
Gross Unrealized
|
|
|||||||||||||
(Dollars in thousands)
|
Amortized
Cost |
Gains
|
Losses
|
Fair
Value
|
||||||||||||
As of March 31, 2022 | ||||||||||||||||
Municipal securities
|
$
|
63,581
|
$
|
162
|
$
|
65
|
$
|
63,678
|
||||||||
Mortgage-backed securities (1)
|
695,249
|
-
|
60,650
|
634,599
|
||||||||||||
Collateralized mortgage obligations (1)
|
117,427 | - | 4,795 | 112,632 | ||||||||||||
Total held-to-maturity securities
|
$
|
876,257
|
$
|
162
|
$
|
65,510
|
$
|
810,909
|
Held-to-Maturity Securities
|
|
Gross Unrealized
|
|
|||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gains
|
Losses
|
Fair
Value
|
||||||||||||
As of December 31, 2021 | ||||||||||||||||
Municipal securities
|
$
|
66,496
|
$
|
701
|
$
|
-
|
$
|
67,197
|
||||||||
Mortgage-backed securities (1)
|
596,775 | 45 | 11,764 | 585,056 | ||||||||||||
Collateralized mortgage obligations (1)
|
73,781 | 36 | 229 | 73,588 | ||||||||||||
Total held-to-maturity securities
|
$
|
737,052
|
$
|
782
|
$
|
11,993
|
$
|
725,841
|
Available-for-Sale Securities
|
As of March 31, 2022
|
|||||||||||||||||||||||
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
As of March 31, 2022
|
||||||||||||||||||||||||
U.S. Government-sponsored securities
|
$
|
15
|
$
|
-
|
$
|
1,992
|
$
|
36
|
$
|
2,007
|
$
|
36
|
||||||||||||
Mortgage-backed securities(1)
|
81,711
|
3,753
|
114,391
|
14,301
|
196,102
|
18,054
|
||||||||||||||||||
Collateralized Mortgage Obligations(1)
|
1,544
|
5
|
-
|
-
|
1,544
|
5
|
||||||||||||||||||
Corporate securities
|
9,835
|
216
|
-
|
-
|
9,835
|
216
|
||||||||||||||||||
Total available-for-sale securities
|
$
|
93,105
|
$
|
3,974
|
$
|
116,383
|
$
|
14,337
|
$
|
209,488
|
$
|
18,311
|
Available-for-Sale Securities
|
As of December 31, 2021
|
|||||||||||||||||||||||
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||
U.S. Government-sponsored securities
|
$
|
183
|
$
|
-
|
$
|
2,007
|
$
|
39
|
$
|
2,190
|
$
|
39
|
||||||||||||
Mortgage-backed securities(1)
|
61,469
|
1,192
|
104,489
|
4,188
|
165,958
|
5,380
|
||||||||||||||||||
Total available-for-sale securities
|
$
|
61,652
|
$
|
1,192
|
$
|
106,496
|
$
|
4,227
|
$
|
168,148
|
$
|
5,419
|
Held-to-Maturity Securities
|
As of March 31, 2022
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Less Than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
As of March 31, 2022
|
||||||||||||||||||||||||
Municipal securities
|
$
|
1,034
|
$
|
65
|
$
|
-
|
$
|
-
|
$
|
1,034
|
$
|
65
|
||||||||||||
Mortgage-backed securities(1)
|
398,924
|
31,318
|
234,460
|
29,332
|
633,384
|
60,650
|
||||||||||||||||||
Collateralized mortgage obligations(1)
|
73,221
|
4,795
|
-
|
-
|
73,221
|
4,795
|
||||||||||||||||||
Total held-to-maturity securities
|
$
|
473,179
|
$
|
36,178
|
$
|
234,460
|
$
|
29,332
|
$
|
707,639
|
$
|
65,510
|
Held-to-Maturity Securities
|
As of December 31, 2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Less Than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||
Mortgage-backed securities(1)
|
$
|
570,119
|
$
|
11,764
|
$
|
-
|
$
|
-
|
$
|
570,119
|
$
|
11,764
|
||||||||||||
Collateralized mortgage obligations(1)
|
58,977
|
229
|
-
|
-
|
58,977
|
229
|
||||||||||||||||||
Total held-to-maturity securities
|
$
|
629,096
|
$
|
11,993
|
$
|
-
|
$
|
-
|
$
|
629,096
|
$
|
11,993
|
|
Available-for-Sale
|
Held-to-Maturity
|
||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||
Securities maturing in:
|
||||||||||||||||
One year or less
|
$
|
10,268
|
$
|
10,310
|
$
|
908
|
$
|
908
|
||||||||
After one year through five years
|
5,160
|
5,073
|
7,118
|
7,113
|
||||||||||||
After five years through ten years
|
5,455
|
5,326
|
16,690
|
16,846
|
||||||||||||
After ten years
|
5,204
|
5,221
|
38,865
|
38,811
|
||||||||||||
$ |
26,087
|
$ |
25,930
|
$ |
63,581
|
$ |
63,678
|
|||||||||
Securities not due at a single maturity date:
|
||||||||||||||||
Mortgage-backed securities
|
241,585
|
223,901
|
695,249
|
634,599
|
||||||||||||
Collateralized Mortgage Obligations
|
1,549 | 1,544 | 117,427 | 112,632 | ||||||||||||
Total
|
$
|
269,221
|
$
|
251,375
|
$
|
876,257
|
$
|
810,909
|
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||
Fair Value
|
Amortized Cost
|
|||||||||||||||||||||||
(Dollars in thousands)
|
AAA/AA/A
|
BBB/BB/B
|
Not Rated
|
AAA/AA/A
|
BBB/BB/B
|
Not Rated
|
||||||||||||||||||
March 31, 2022
|
||||||||||||||||||||||||
Breakdown by Category:
|
||||||||||||||||||||||||
U.S. Treasury notes(1)
|
$
|
-
|
$
|
-
|
$
|
9,996
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
U.S. Government-sponsored securities
|
-
|
-
|
5,789
|
-
|
-
|
-
|
||||||||||||||||||
Mortgage-backed securities(1)
|
-
|
-
|
223,901
|
-
|
-
|
695,249
|
||||||||||||||||||
Collateralized mortgage obligations(1)
|
-
|
-
|
1,544
|
-
|
-
|
117,427
|
||||||||||||||||||
Obligations of States and Political Subdivisions
|
-
|
-
|
-
|
19,715
|
134
|
43,732
|
||||||||||||||||||
Corporate securities
|
9,835
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Other
|
-
|
-
|
310
|
-
|
-
|
-
|
||||||||||||||||||
Total Investment Grade
|
$
|
9,835
|
$
|
-
|
$
|
241,540
|
$
|
19,715
|
$
|
134
|
$
|
856,408
|
(Dollars in thousands)
|
Gross
Proceeds
|
Gross
Gains
|
Gross
Losses
|
|||||||||
Three months ended March 31, 2022
|
$
|
2,190
|
$
|
-
|
$
|
-
|
||||||
Three months ended March 31, 2021
|
$
|
63,788
|
$
|
1,840
|
$
|
-
|
(Dollars in thousands)
|
March 31,
2022
|
December 31,
2021
|
||||||
Loans and leases held-for-investment, net
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
1,172,804
|
$
|
1,167,516
|
||||
Agricultural
|
695,565
|
672,830
|
||||||
Residential and home equity
|
359,214
|
350,581
|
||||||
Construction
|
204,794
|
177,163
|
||||||
Total real estate
|
2,432,377
|
2,368,090
|
||||||
Commercial & industrial
|
437,199
|
427,799
|
||||||
Agricultural(1)
|
251,469
|
276,684
|
||||||
Commercial leases
|
92,445
|
96,971
|
||||||
Consumer and other(2)
|
33,255
|
78,367
|
||||||
Total gross loans and leases
|
3,246,745
|
3,247,911
|
||||||
Unearned income
|
(9,126
|
)
|
(10,734
|
)
|
||||
Total net loans and leases
|
3,237,619
|
3,237,177
|
||||||
Allowance for credit losses
|
(61,032
|
)
|
(61,007
|
)
|
||||
Total loans and leases held-for-investment, net
|
$
|
3,176,587
|
$
|
3,176,170
|
(1)
|
The reduction in Agricultural loans is the result of the seasonal cycle,
with the first quarter being outside the growing period.
|
(2)
|
Includes SBA PPP loans.
|
March 31, 2022
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Current
|
30-89 Days
Past Due
|
90+ Days
Past Due
|
Non-
accrual
|
Total Past
Due
|
Total
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
1,162,528
|
$
|
1,251
|
$
|
-
|
$
|
437
|
$
|
1,688
|
$
|
1,164,216
|
||||||||||||
Agricultural
|
695,565
|
-
|
-
|
-
|
-
|
695,565
|
||||||||||||||||||
Residential and home equity
|
358,849
|
365
|
-
|
-
|
365
|
359,214
|
||||||||||||||||||
Construction
|
204,794
|
-
|
-
|
-
|
-
|
204,794
|
||||||||||||||||||
Total real estate
|
2,421,736
|
1,616
|
-
|
437
|
2,053
|
2,423,789
|
||||||||||||||||||
Commercial & Industrial
|
437,199
|
-
|
-
|
-
|
-
|
437,199
|
||||||||||||||||||
Agricultural
|
250,669
|
800
|
-
|
-
|
800
|
251,469
|
||||||||||||||||||
Commercial leases
|
91,907
|
-
|
-
|
-
|
-
|
91,907
|
||||||||||||||||||
Consumer and other
|
33,208
|
47
|
-
|
-
|
47
|
33,255
|
||||||||||||||||||
Total loans and leases, net
|
$
|
3,234,719
|
$
|
2,463
|
$
|
-
|
$
|
437
|
$
|
2,900
|
$
|
3,237,619
|
December 31, 2021
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Current
|
30-89 Days
Past Due
|
90+ Days
Past Due
|
Non-
ccrual
|
Total Past
Due
|
Total
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
1,156,879
|
$
|
459
|
$
|
-
|
$
|
-
|
$
|
459
|
$
|
1,157,338
|
||||||||||||
Agricultural
|
672,812
|
-
|
-
|
18
|
18
|
672,830
|
||||||||||||||||||
Residential and home equity
|
350,492
|
89
|
-
|
-
|
89
|
350,581
|
||||||||||||||||||
Construction
|
177,163
|
-
|
-
|
-
|
-
|
177,163
|
||||||||||||||||||
Total real estate
|
2,357,346
|
548
|
-
|
18
|
566
|
2,357,912
|
||||||||||||||||||
Commercial & Industrial
|
427,799
|
-
|
-
|
-
|
-
|
427,799
|
||||||||||||||||||
Agricultural
|
276,186
|
-
|
-
|
498
|
498
|
276,684
|
||||||||||||||||||
Commercial leases
|
96,415
|
-
|
-
|
-
|
-
|
96,415
|
||||||||||||||||||
Consumer and other
|
78,363
|
4
|
-
|
-
|
4
|
78,367
|
||||||||||||||||||
Total loans and leases, net
|
$
|
3,236,109
|
$
|
552
|
$
|
-
|
$
|
516
|
$
|
1,068
|
$
|
3,237,177
|
(Dollars in thousands)
|
March 31,
2022
|
December 31,
2021
|
||||||
Non-accrual loans and leases:
|
||||||||
Non-accrual loans and leases, not TDRs
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
437
|
$
|
-
|
||||
Agricultural
|
-
|
18
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
437
|
18
|
||||||
Commercial & Industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
437
|
18
|
||||||
Non-accrual loans and leases, are TDRs
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
-
|
$
|
-
|
||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
-
|
-
|
||||||
Commercial & Industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
498
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
-
|
498
|
||||||
Total non-accrual loans and leases
|
$
|
437
|
$
|
516
|
(Dollars in thousands)
|
March 31,
2022
|
December 31,
2021
|
||||||
Troubled debt restructured loans and leases:
|
||||||||
Accruing TDR loans and leases
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
-
|
$
|
41
|
||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
1,347
|
1,522
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
1,347
|
1,563
|
||||||
Commercial & Industrial
|
255
|
260
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
1
|
1
|
||||||
Subtotal
|
1,603
|
1,824
|
||||||
Non-accruing TDR loans and leases
|
||||||||
Real estate:
|
||||||||
Commercial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
-
|
-
|
||||||
Commercial & Industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
498
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
-
|
498
|
||||||
Total TDR loans and leases
|
$
|
1,603
|
$
|
2,322
|
March 31, 2022
|
||||||||||||||||||||||||
(Dollars in thousands)
|
# of
Accruing
TDR
|
$ of
Accruing
TDR
|
# of Non-
Accruing
TDR
|
$ of Non-
Accruing
TDR
|
# of Total
TDR
|
$ of Total
TDR
|
||||||||||||||||||
Loan and lease TDRs
|
||||||||||||||||||||||||
2022
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|||||||||||||||
2021
|
1
|
48
|
-
|
-
|
1
|
48
|
||||||||||||||||||
2020
|
5
|
468
|
-
|
-
|
5
|
468
|
||||||||||||||||||
2019
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Thereafter
|
9
|
1,087
|
-
|
-
|
9
|
1,087
|
||||||||||||||||||
Total
|
15
|
$
|
1,603
|
-
|
$
|
-
|
15
|
$
|
1,603
|
March 31, 2022
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Special
Mention
|
Sub-
standard
|
Doubtful
|
Total Loans
& Leases
|
Total
Allowance
for Credit
Losses
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
1,153,584
|
$
|
6,878
|
$
|
3,754
|
$
|
-
|
$
|
1,164,216
|
$
|
17,920
|
||||||||||||
Agricultural
|
683,415
|
5,996
|
6,154
|
-
|
695,565
|
14,591
|
||||||||||||||||||
Residential and home equity
|
358,847
|
-
|
367
|
-
|
359,214
|
6,759
|
||||||||||||||||||
Construction
|
204,794
|
-
|
-
|
-
|
204,794
|
3,777
|
||||||||||||||||||
Total real estate
|
2,400,640
|
12,874
|
10,275
|
-
|
2,423,789
|
43,047
|
||||||||||||||||||
Commercial & Industrial
|
427,109
|
9,437
|
653
|
-
|
437,199
|
10,361
|
||||||||||||||||||
Agricultural
|
249,972
|
1,477
|
20
|
-
|
251,469
|
5,737
|
||||||||||||||||||
Commercial leases
|
91,772
|
135
|
-
|
-
|
91,907
|
1,466
|
||||||||||||||||||
Consumer and other
|
33,081
|
-
|
174
|
-
|
33,255
|
421
|
||||||||||||||||||
Total loans and leases, net
|
$
|
3,202,574
|
$
|
23,923
|
$
|
11,122
|
$
|
-
|
$
|
3,237,619
|
$
|
61,032
|
December 31, 2021
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Special
Mention
|
Sub-
standard
|
Doubtful
|
Total Loans
& Leases
|
Total
Allowance
for Credit
Losses
|
||||||||||||||||||
Loans and leases held-for-investment, net
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
$
|
1,142,175
|
$
|
6,903
|
$
|
8,260
|
$
|
-
|
$
|
1,157,338
|
$
|
28,536
|
||||||||||||
Agricultural
|
663,157
|
3,292
|
6,381
|
-
|
672,830
|
9,613
|
||||||||||||||||||
Residential and home equity
|
350,148
|
-
|
433
|
-
|
350,581
|
2,847
|
||||||||||||||||||
Construction
|
177,163
|
-
|
-
|
-
|
177,163
|
1,456
|
||||||||||||||||||
Total real estate
|
2,332,643
|
10,195
|
15,074
|
-
|
2,357,912
|
42,452
|
||||||||||||||||||
Commercial & Industrial
|
417,806
|
9,321
|
672
|
-
|
427,799
|
11,489
|
||||||||||||||||||
Agricultural
|
275,206
|
958
|
520
|
-
|
276,684
|
5,465
|
||||||||||||||||||
Commercial leases
|
96,415
|
-
|
-
|
-
|
96,415
|
938
|
||||||||||||||||||
Consumer and other
|
78,181
|
-
|
186
|
-
|
78,367
|
663
|
||||||||||||||||||
Total loans and leases, net
|
$
|
3,200,251
|
$
|
20,474
|
$
|
16,452
|
$
|
-
|
$
|
3,237,177
|
$
|
61,007
|
March 31, 2022
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving
Loans
Amortized
Cost
|
Total
|
||||||||||||||||||||||||
Net loans and leases held-for-investment
|
||||||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
25,293
|
$
|
247,149
|
$
|
164,009
|
$
|
82,890
|
$
|
95,039
|
$
|
254,266
|
$
|
284,938
|
$
|
1,153,584
|
||||||||||||||||
Special mention
|
-
|
-
|
-
|
-
|
3,888
|
840
|
2,150
|
6,878
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
-
|
3,104
|
650
|
3,754
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total commercial
|
$
|
25,293
|
$
|
247,149
|
$
|
164,009
|
$
|
82,890
|
$
|
98,927
|
$
|
258,210
|
$
|
287,738
|
$
|
1,164,216
|
||||||||||||||||
Agricultural real estate
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
12,121
|
$
|
43,482
|
$
|
58,501
|
$
|
15,393
|
$
|
56,374
|
$
|
159,386
|
$
|
338,158
|
$
|
683,415
|
||||||||||||||||
Special mention
|
-
|
-
|
2,382
|
2,636
|
143
|
-
|
835
|
5,996
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
118
|
6,036
|
-
|
6,154
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total agricultural real estate
|
$
|
12,121
|
$
|
43,482
|
$
|
60,883
|
$
|
18,029
|
$
|
56,635
|
$
|
165,422
|
$
|
338,993
|
$
|
695,565
|
||||||||||||||||
Residential and home equity
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
21,332
|
$
|
101,603
|
$
|
93,842
|
$
|
16,431
|
$
|
7,719
|
$
|
88,166
|
$
|
29,754
|
$
|
358,847
|
||||||||||||||||
Special mention
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
-
|
220
|
147
|
367
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total residential and home equity
|
$
|
21,332
|
$
|
101,603
|
$
|
93,842
|
$
|
16,431
|
$
|
7,719
|
$
|
88,386
|
$
|
29,901
|
$
|
359,214
|
||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,275
|
$
|
-
|
$
|
122
|
$
|
202,397
|
$
|
204,794
|
||||||||||||||||
Special mention
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total construction
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,275
|
$
|
-
|
$
|
122
|
$
|
202,397
|
$
|
204,794
|
||||||||||||||||
Total real estate
|
$
|
58,746
|
$
|
392,234
|
$
|
318,734
|
$
|
119,625
|
$
|
163,281
|
$
|
512,140
|
$
|
859,029
|
$
|
2,423,789
|
||||||||||||||||
Commercial & industrial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
4,368
|
$
|
45,633
|
$
|
16,791
|
$
|
15,010
|
$
|
11,515
|
$
|
9,983
|
$
|
323,809
|
$
|
427,109
|
||||||||||||||||
Special mention
|
-
|
82
|
-
|
-
|
-
|
4
|
9,351
|
9,437
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
38
|
31
|
584
|
653
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total commercial & industrial
|
$
|
4,368
|
$
|
45,715
|
$
|
16,791
|
$
|
15,010
|
$
|
11,553
|
$
|
10,018
|
$
|
333,744
|
$
|
437,199
|
||||||||||||||||
Agriculture
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
1,236
|
$
|
4,736
|
$
|
1,353
|
$
|
1,624
|
$
|
834
|
$
|
2,358
|
$
|
237,831
|
$
|
249,972
|
||||||||||||||||
Special mention
|
-
|
-
|
-
|
-
|
-
|
98
|
1,379
|
1,477
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
15
|
5
|
-
|
-
|
20
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total Agriculture
|
$
|
1,236
|
$
|
4,736
|
$
|
1,353
|
$
|
1,639
|
$
|
839
|
$
|
2,456
|
$
|
239,210
|
$
|
251,469
|
||||||||||||||||
Commercial leases
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
3,635
|
$
|
14,816
|
$
|
14,904
|
$
|
9,041
|
$
|
22,133
|
$
|
27,243
|
$
|
-
|
$
|
91,772
|
||||||||||||||||
Special mention
|
-
|
-
|
-
|
135
|
-
|
-
|
-
|
135
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total commercial leases
|
$
|
3,635
|
$
|
14,816
|
$
|
14,904
|
$
|
9,176
|
$
|
22,133
|
$
|
27,243
|
$
|
-
|
$
|
91,907
|
||||||||||||||||
Consumer and other
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
612
|
$
|
26,679
|
$
|
967
|
$
|
425
|
$
|
656
|
$
|
2,870
|
$
|
872
|
$
|
33,081
|
||||||||||||||||
Special mention
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Substandard
|
-
|
-
|
-
|
-
|
-
|
47
|
127
|
174
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total consumer and other
|
$
|
612
|
$
|
26,679
|
$
|
967
|
$
|
425
|
$
|
656
|
$
|
2,917
|
$
|
999
|
$
|
33,255
|
||||||||||||||||
Total net loans and leases
|
$
|
68,597
|
$
|
484,180
|
$
|
352,749
|
$
|
145,875
|
$
|
198,462
|
$
|
554,774
|
$
|
1,432,982
|
$
|
3,237,619
|
March 31, 2022
|
||||||||||||
(Dollars in thousands)
|
Real Estate
|
Vehicles
|
Total
|
|||||||||
Collateral dependent loans and leases
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
$
|
1
|
$
|
-
|
$
|
1
|
||||||
Agricultural
|
5,560
|
-
|
5,560
|
|||||||||
Residential and home equity
|
235
|
-
|
235
|
|||||||||
Construction
|
-
|
-
|
-
|
|||||||||
Total real estate
|
5,796
|
-
|
5,796
|
|||||||||
Commercial & Industrial
|
-
|
-
|
-
|
|||||||||
Agricultural
|
-
|
-
|
-
|
|||||||||
Commercial leases
|
-
|
-
|
-
|
|||||||||
Consumer and other
|
-
|
169
|
169
|
|||||||||
Total gross loans and leases
|
$
|
5,796
|
$
|
169
|
$
|
5,965
|
December 31, 2021
|
||||||||||||
(Dollars in thousands)
|
Real Estate
|
Vehicles
|
Total
|
|||||||||
Collateral dependent loans and leases
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
$
|
5
|
$
|
-
|
$
|
5
|
||||||
Agricultural
|
5,587
|
-
|
5,587
|
|||||||||
Residential and home equity
|
330
|
-
|
330
|
|||||||||
Construction
|
-
|
-
|
-
|
|||||||||
Total real estate
|
5,922
|
-
|
5,922
|
|||||||||
Commercial & Industrial
|
-
|
-
|
-
|
|||||||||
Agricultural
|
-
|
-
|
-
|
|||||||||
Commercial leases
|
-
|
-
|
-
|
|||||||||
Consumer and other
|
-
|
173
|
173
|
|||||||||
Total gross loans and leases
|
$
|
5,922
|
$
|
173
|
$
|
6,095
|
For the Three Months Ended March 31,
2022
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial &
Agricultural
R/E |
Construction
|
Residential &
Home Equity
|
Commercial
&
Agricultural
|
Commercial
Leases
|
Consumer
& Other |
Total
|
|||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Balance at beginning of period, prior to adoption of ASC 326
|
$ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||
Impact of adopting ASC 326
|
(6,190 | ) | 1,855 | 3,032 | 826 | 629 | (152 | ) | - | |||||||||||||||||||
Provision / (recapture) for credit losses
|
552 | 466 | 866 | (1,700 | ) | (101 | ) | (83 | ) | - | ||||||||||||||||||
Charge-offs
|
- | - | - | - | - | (9 | ) | (9 | ) | |||||||||||||||||||
Recoveries
|
- | - | 14 | 18 | - | 2 | 34 | |||||||||||||||||||||
Net (charge-offs) / recoveries
|
- | - | 14 | 18 | - | (7 | ) | 25 | ||||||||||||||||||||
Balance at end of period
|
$ | 32,511 | $ | 3,777 | $ | 6,759 | $ | 16,098 | $ | 1,466 | $ | 421 | $ | 61,032 |
For the Three Months Ended March 31,
2021
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial &
Agricultural
R/E
|
Construction
|
Residential &
Home Equity
|
Commercial
&
Agricultural
|
Commercial
Leases
|
Consumer
& Other
|
Total
|
|||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 36,312 | $ | 1,643 | $ | 2,984 | $ | 14,775 | $ | 1,731 |
$
|
1,417
|
$
|
58,862
|
||||||||||||||
Provision / (recapture) for credit losses
|
1,802 | 4 | (135 | ) | (584 | ) | (57 | ) | 220 |
1,250
|
||||||||||||||||||
Charge-offs
|
- | - | - | - | - | (8 | ) |
(8
|
)
|
|||||||||||||||||||
Recoveries
|
- | - | 32 | 32 | - | 7 |
71
|
|||||||||||||||||||||
Net (charge-offs) / recoveries
|
- | - | 32 | 32 | - | (1 | ) |
63
|
||||||||||||||||||||
Balance at end of period
|
$ | 38,114 | $ | 1,647 | $ | 2,881 | $ | 14,223 | $ | 1,674 | $ | 1,636 | $ | 60,175 |
(Dollars in thousands)
|
March 31,
2022
|
December 31,
2021
|
||||||
Certificate of deposits:
|
||||||||
Certificates of deposits less than or equal to $250,000
|
221,904
|
223,620
|
||||||
Certificates of deposits greater than $250,000
|
168,876
|
168,865
|
||||||
Total certificates of deposits
|
390,780
|
392,485
|
(Dollars in thousands)
|
Amount
|
|||
2022
|
$
|
291,366
|
||
2023
|
89,678
|
|||
2024
|
5,633
|
|||
2025
|
1,818
|
|||
2026 and beyond
|
2,285
|
|||
Total time deposits
|
$
|
390,780
|
March 31, 2022
|
||||||||||||||||||||||||
Actual
|
Minimum Capital
Requirement
|
Well Capitalized
Requirment
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Farmers & Merchants Bancorp
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
463,607
|
11.63
|
%
|
$
|
179,354
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 capital to risk-weighted assets
|
473,607
|
11.88
|
%
|
239,139
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Risk-based capital to risk-weighted assets
|
523,580
|
13.14
|
%
|
318,851
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Tier 1 leverage capital ratio
|
473,607
|
8.45
|
%
|
224,315
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Farmers & Merchants Bank
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
472,965
|
11.87
|
%
|
$
|
179,339
|
4.50
|
%
|
$
|
259,046
|
6.50
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
472,965
|
11.87
|
%
|
239,119
|
6.00
|
%
|
318,826
|
8.00
|
%
|
|||||||||||||||
Risk-based capital to risk-weighted assets
|
522,934
|
13.12
|
%
|
318,826
|
8.00
|
%
|
398,532
|
10.00
|
%
|
|||||||||||||||
Tier 1 leverage capital ratio
|
472,965
|
8.94
|
%
|
211,642
|
4.00
|
%
|
264,552
|
5.00
|
%
|
December 31, 2021
|
||||||||||||||||||||||||
Actual
|
Minimum Capital
Requirement
|
Well Capitalized
Requirment
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Farmers & Merchants Bancorp
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
450,687
|
11.68
|
%
|
$
|
173,674
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 capital to risk-weighted assets
|
460,687
|
11.94
|
%
|
231,566
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Risk-based capital to risk-weighted assets
|
509,091
|
13.19
|
%
|
308,755
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Tier 1 leverage capital ratio
|
460,687
|
8.92
|
%
|
206,606
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Farmers & Merchants Bank
|
||||||||||||||||||||||||
CET1 capital to risk-weighted assets
|
$
|
459,813
|
11.91
|
%
|
$
|
173,664
|
4.50
|
%
|
$
|
250,847
|
6.50
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
459,813
|
11.91
|
%
|
231,551
|
6.00
|
%
|
308,735
|
8.00
|
%
|
|||||||||||||||
Risk-based capital to risk-weighted assets
|
508,215
|
13.17
|
%
|
308,735
|
8.00
|
%
|
385,919
|
10.00
|
%
|
|||||||||||||||
Tier 1 leverage capital ratio
|
459,813
|
8.91
|
%
|
206,426
|
4.00
|
%
|
258,033
|
5.00
|
%
|
Three Months
Ended March 31,
|
||||||||
(Dollars in thousands, except share and per share amounts)
|
2022
|
2021
|
||||||
Numerator
|
||||||||
Net income
|
$
|
17,058
|
$
|
16,713
|
||||
Denominator
|
||||||||
Weighted average number of common shares outstanding
|
786,096
|
789,646
|
||||||
Weighted average number of dilutive shares outstanding
|
786,096
|
789,646
|
||||||
Basic earnings per common share
|
$
|
21.70
|
$
|
21.17
|
||||
Diluted earning per common share
|
$
|
21.70
|
$
|
21.17
|
March 31, 2022
|
Fair Value
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
841,086
|
$
|
841,086
|
$
|
-
|
$
|
-
|
$
|
841,086
|
||||||||||
Investment securities available-for-sale
|
251,375
|
9,996
|
241,379
|
-
|
251,375
|
|||||||||||||||
Investment securities held-to-maturity
|
876,257
|
-
|
771,971
|
43,732
|
815,703
|
|||||||||||||||
Non-marketable securities
|
15,549
|
-
|
-
|
15,549
|
15,549
|
|||||||||||||||
Loans and leases, net
|
3,176,587
|
-
|
-
|
3,184,796
|
3,184,796
|
|||||||||||||||
Bank-owned life insurance
|
71,953
|
71,953
|
-
|
-
|
71,953
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Total deposits
|
4,837,439
|
$
|
4,446,659
|
$
|
-
|
$
|
387,625
|
$
|
4,834,284
|
|||||||||||
Subordinated debentures
|
10,310
|
-
|
9,766
|
-
|
9,766
|
December 31, 2021
|
Fair Value
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
715,460
|
$
|
715,460
|
$
|
-
|
$
|
-
|
$
|
715,460
|
||||||||||
Investment securities available-for-sale
|
270,454
|
10,214
|
260,240
|
-
|
270,454
|
|||||||||||||||
Investment securities held-to-maturity
|
737,052
|
-
|
681,588
|
44,446
|
726,034
|
|||||||||||||||
Non-marketable securities
|
15,549
|
-
|
-
|
15,549
|
15,549
|
|||||||||||||||
Loans and leases, net
|
3,176,170
|
-
|
-
|
3,179,857
|
3,179,857
|
|||||||||||||||
Bank-owned life insurance
|
71,411
|
71,411
|
-
|
-
|
71,411
|
|||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Total deposits
|
$
|
4,640,152
|
$
|
4,247,666
|
$
|
-
|
$
|
391,732
|
$
|
4,639,398
|
||||||||||
Subordinated debentures
|
10,310
|
-
|
6,890
|
-
|
6,890
|
March 31, 2022
|
Fair Value Measurements
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Fair valued on a recurring basis:
|
||||||||||||||||||||
Investment securities available-for-sale
|
||||||||||||||||||||
U.S. Treasury notes
|
$
|
9,996
|
$
|
9,996
|
$
|
-
|
$
|
-
|
$
|
9,996
|
||||||||||
U.S. Government-sponsored securities
|
5,789
|
-
|
5,789
|
-
|
5,789
|
|||||||||||||||
Mortgage-backed securities
|
223,901
|
-
|
223,901
|
-
|
223,901
|
|||||||||||||||
Collateralized mortgage obligations
|
1,544
|
-
|
1,544
|
-
|
1,544
|
|||||||||||||||
Corporate securities
|
9,835
|
-
|
9,835
|
-
|
9,835
|
|||||||||||||||
Other
|
310
|
-
|
310
|
-
|
310
|
|||||||||||||||
Fair valued on a non-recurring basis:
|
||||||||||||||||||||
Other real estate
|
873
|
-
|
-
|
873
|
873
|
December 31, 2021
|
Fair Value Measurements
|
|||||||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
Fair valued on a recurring basis:
|
||||||||||||||||||||
Investment securities available-for-sale
|
||||||||||||||||||||
U.S. Treasury notes
|
$
|
10,089
|
$
|
10,089
|
$
|
-
|
$
|
-
|
$
|
10,089
|
||||||||||
U.S. Government-sponsored securities
|
6,374
|
-
|
6,374
|
-
|
6,374
|
|||||||||||||||
Mortgage-backed securities
|
251,120
|
-
|
251,120
|
-
|
251,120
|
|||||||||||||||
Collateralized mortgage obligations
|
2,436
|
-
|
2,436
|
-
|
2,436
|
|||||||||||||||
Other
|
435
|
125
|
310
|
-
|
435
|
|||||||||||||||
Fair valued on a non-recurring basis:
|
||||||||||||||||||||
Individually evaluated loans
|
$
|
2,562
|
$
|
-
|
$
|
-
|
$
|
2,562
|
$
|
2,562
|
||||||||||
Other real estate
|
873
|
-
|
-
|
873
|
873
|
(Dollars in thousands)
|
March 31,
2022
|
December 31,
2021
|
||||||
Commitments to extend credit, including unsecured commitments of $20,907
and $21,036 as of March 31, 2022 and December 31, 2021, respectively
|
$
|
987,423
|
$
|
937,009
|
||||
Stand-by letters of credit, including unsecured commitments of $8,361
and $9,091 as of March 31, 2022 and December 31, 2021, respectively
|
16,250
|
17,880
|
||||||
Performance guarantees under interest rate swap contracts entered into with our clients and third-parties
|
191
|
1,433
|
■
|
the pendency, duration, and impact of the COVID-19 pandemic;
|
■
|
changes in general economic conditions, either nationally, in California, or in our local markets;
|
■
|
inflation, changes in interest rates, securities market volatility and monetary fluctuations;
|
■
|
increases in competitive pressures among financial institutions and businesses offering similar products and services;
|
■
|
higher defaults in our loan portfolio than we expect;
|
■
|
changes in management’s estimate of the adequacy of the allowance for credit losses;
|
■
|
risks associated with our growth and expansion strategy and related costs;
|
■
|
increased lending risks associated with our high concentration of real estate loans;
|
■
|
legislative or regulatory changes or changes in accounting principles, policies or guidelines;
|
■
|
technological changes; and
|
■
|
regulatory or judicial proceedings.
|
■
|
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses.
|
■
|
Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments.
|
■
|
Changes in the nature and volume of the portfolio and in the terms of loans.
|
■
|
Changes in the experience, ability, and depth of lending management and other relevant staff.
|
■
|
Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans.
|
■
|
Changes in the quality of the institution’s loan review system.
|
■
|
Changes in the value of underlying collateral for collateral-dependent loans.
|
■
|
The existence and effect of any concentrations of credit, and changes in the level of such concentrations.
|
■
|
The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio.
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2022
|
2021
|
||||||||||||||||||||||
(Dollars in thousands)
|
Average Balance
|
Interest Income / Expense
|
Average
Yield / Rate
|
Average Balance
|
Interest Income / Expense
|
Average
Yield / Rate
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold
|
$
|
760,080
|
$
|
366
|
0.20
|
%
|
$
|
410,276
|
$
|
103
|
0.10
|
%
|
||||||||||||
Securities:(1)
|
||||||||||||||||||||||||
Taxable securities
|
1,022,457
|
4,588
|
1.82
|
%
|
834,831
|
3,804
|
1.85
|
%
|
||||||||||||||||
Non-taxable securities(2)
|
49,997
|
402
|
3.22
|
%
|
55,078
|
423
|
3.07
|
%
|
||||||||||||||||
Total securities
|
1,072,454
|
4,990
|
1.89
|
%
|
889,909
|
4,227
|
1.93
|
%
|
||||||||||||||||
Loans:(3)
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Commercial
|
1,151,611
|
13,276
|
4.68
|
%
|
965,249
|
10,977
|
4.61
|
%
|
||||||||||||||||
Agricultural
|
680,230
|
7,793
|
4.65
|
%
|
638,292
|
7,136
|
4.53
|
%
|
||||||||||||||||
Residential and home equity
|
353,371
|
3,301
|
3.79
|
%
|
335,573
|
4,571
|
5.52
|
%
|
||||||||||||||||
Construction
|
191,684
|
2,072
|
4.38
|
%
|
193,366
|
2,097
|
4.40
|
%
|
||||||||||||||||
Total real estate
|
2,376,896
|
26,442
|
4.51
|
%
|
2,132,480
|
24,781
|
4.71
|
%
|
||||||||||||||||
Commercial & industrial
|
424,598
|
4,799
|
4.58
|
%
|
365,881
|
4,111
|
4.56
|
%
|
||||||||||||||||
Agricultural
|
248,414
|
2,755
|
4.50
|
%
|
226,200
|
2,564
|
4.60
|
%
|
||||||||||||||||
Commercial leases
|
94,855
|
1,416
|
6.05
|
%
|
102,566
|
1,344
|
5.31
|
%
|
||||||||||||||||
Consumer and other
|
52,078
|
2,021
|
15.74
|
%
|
232,845
|
4,287
|
7.47
|
%
|
||||||||||||||||
Total loans and leases
|
3,196,841
|
37,433
|
4.75
|
%
|
3,059,972
|
37,087
|
4.92
|
%
|
||||||||||||||||
Non-marketable securities
|
15,549
|
305
|
7.96
|
%
|
12,693
|
190
|
6.07
|
%
|
||||||||||||||||
Total interest earning assets
|
5,044,924
|
43,094
|
3.46
|
%
|
4,372,850
|
41,607
|
3.86
|
%
|
||||||||||||||||
Allowance for credit losses
|
(61,022
|
)
|
(59,431
|
)
|
||||||||||||||||||||
Non-interest earning assets
|
314,932
|
306,261
|
||||||||||||||||||||||
Total average assets
|
$
|
5,298,834
|
$
|
4,619,680
|
||||||||||||||||||||
|
||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Demand
|
$
|
1,115,578
|
259
|
0.09
|
%
|
$
|
943,635
|
294
|
0.13
|
%
|
||||||||||||||
Savings and money market accounts
|
1,517,234
|
342
|
0.09
|
%
|
1,291,214
|
418
|
0.13
|
%
|
||||||||||||||||
Certificates of deposit greater than $250,000
|
167,515
|
97
|
0.23
|
%
|
171,501
|
256
|
0.61
|
%
|
||||||||||||||||
Certificates of deposit less than $250,000
|
223,842
|
105
|
0.19
|
%
|
247,416
|
269
|
0.44
|
%
|
||||||||||||||||
Total interest bearing deposits
|
3,024,169
|
803
|
0.11
|
%
|
2,653,766
|
1,237
|
0.19
|
%
|
||||||||||||||||
Short-term borrowings
|
3
|
-
|
0.00
|
%
|
4
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
10,310
|
82
|
3.23
|
%
|
10,310
|
79
|
3.11
|
%
|
||||||||||||||||
Total interest bearing liabilities
|
3,034,482
|
885
|
0.12
|
%
|
2,664,080
|
1,316
|
0.20
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
1,722,597
|
1,469,741
|
||||||||||||||||||||||
Total funding
|
4,757,079
|
885
|
0.08
|
%
|
4,133,821
|
1,316
|
0.13
|
%
|
||||||||||||||||
Other non-interest bearing liabilities
|
76,061
|
56,268
|
||||||||||||||||||||||
Shareholders’ equity
|
465,694
|
429,591
|
||||||||||||||||||||||
Total average liabilities and shareholders’ equity
|
$
|
5,298,834
|
$
|
4,619,680
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net interest income
|
$
|
42,209
|
$
|
40,291
|
||||||||||||||||||||
Interest rate spread
|
3.35
|
%
|
3.66
|
%
|
||||||||||||||||||||
Net interest margin(4)
|
3.39
|
%
|
3.74
|
%
|
(1) |
Excludes average unrealized (losses) gains of ($7.0) million and $12.9 million for the three months ended March 31, 2022, and 2021, respectively, which are included in non-interest earning assets.
|
(2) |
The average yield does not include the federal tax benefits at an assumed effective yield of 25% related to income earned on tax-exempt municipal securities totaling $106,000 and $111,000 for the three months ended March 31, 2022, and
2021, respectively.
|
(3) |
Loan interest income includes loan fees of $3.9 million and $5.2 million for the three months ended March 31, 2022 and 2021, respectively.
|
(4) |
Net interest margin is computed by dividing net interest income by average interest earning assets.
|
|
Three Months Ended March 31, 2022
compared with 2021
|
|||||||||||
|
Increase (Decrease) Due to:
|
|||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
Net
|
|||||||||
Interest income:
|
||||||||||||
Interest earnings deposits in other banks and federal funds sold
|
$
|
127
|
$
|
136
|
$
|
263
|
||||||
Securities:
|
||||||||||||
Taxable securities
|
1,174
|
(390
|
)
|
784
|
||||||||
Non-taxable securities
|
(119
|
)
|
98
|
(21
|
)
|
|||||||
Total securities
|
1,055
|
(292
|
)
|
763
|
||||||||
Loans:
|
||||||||||||
Real estate:
|
||||||||||||
Commercial
|
2,146
|
153
|
2,299
|
|||||||||
Agricultural
|
477
|
180
|
657
|
|||||||||
Residential and home equity
|
1,499
|
(2,769
|
)
|
(1,270
|
)
|
|||||||
Construction
|
(18
|
)
|
(7
|
)
|
(25
|
)
|
||||||
Total real estate
|
4,105
|
(2,444
|
)
|
1,661
|
||||||||
Commercial & industrial
|
664
|
24
|
688
|
|||||||||
Agricultural
|
525
|
(334
|
)
|
191
|
||||||||
Commercial leases
|
(507
|
)
|
579
|
72
|
||||||||
Consumer and other
|
(16,806
|
)
|
14,540
|
(2,266
|
)
|
|||||||
Total loans
|
(12,020
|
)
|
12,366
|
346
|
||||||||
Non-marketable securities
|
48
|
67
|
115
|
|||||||||
Total interest income
|
(10,790
|
)
|
12,277
|
1,487
|
||||||||
|
||||||||||||
Interest expense:
|
||||||||||||
Interest-bearing deposits:
|
||||||||||||
Demand
|
239
|
(274
|
)
|
(35
|
)
|
|||||||
Savings and money market accounts
|
349
|
(425
|
)
|
(76
|
)
|
|||||||
Certificates of deposit greater than $250,000
|
(6
|
)
|
(153
|
)
|
(159
|
)
|
||||||
Certificates of deposit less than $250,000
|
(24
|
)
|
(140
|
)
|
(164
|
)
|
||||||
Total interest bearing deposits
|
558
|
(992
|
)
|
(434
|
)
|
|||||||
Subordinated debentures
|
-
|
3
|
3
|
|||||||||
Total interest expense
|
558
|
(989
|
)
|
(431
|
)
|
|||||||
Net interest income
|
$
|
(11,348
|
)
|
$
|
13,266
|
$
|
1,918
|
|
Three Months Ended
March 31,
|
|||||||||||||||
(Dollars in thousands)
|
2022
|
2021
|
$ Better /
(Worse)
|
% Better /
(Worse)
|
||||||||||||
Selected Income Statement Information:
|
||||||||||||||||
Interest income
|
$
|
43,094
|
$
|
41,607
|
$
|
1,487
|
3.57
|
%
|
||||||||
Interest expense
|
885
|
1,316
|
431
|
32.75
|
%
|
|||||||||||
Net interest income
|
42,209
|
40,291
|
1,918
|
4.76
|
%
|
|||||||||||
Provision for credit losses
|
-
|
1,250
|
1,250
|
100.00
|
%
|
|||||||||||
Net interest income after provision for credit losses
|
42,209
|
39,041
|
3,168
|
8.11
|
%
|
|||||||||||
Non-interest income
|
4,312
|
9,535
|
(5,223
|
)
|
-54.78
|
%
|
||||||||||
Non-interest expense
|
23,788
|
26,363
|
2,575
|
9.77
|
%
|
|||||||||||
Income before income tax expense
|
22,733
|
22,213
|
520
|
2.34
|
%
|
|||||||||||
Income tax expense
|
5,675
|
5,500
|
(175
|
)
|
-3.18
|
%
|
||||||||||
Net income
|
$
|
17,058
|
$
|
16,713
|
$
|
345
|
2.06
|
%
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
||||||
Available-for-Sale Securities
|
||||||||
U.S. Treasury notes
|
$
|
9,996
|
$
|
10,089
|
||||
U.S. Government-sponsored securities
|
5,789
|
6,374
|
||||||
Mortgage-backed securities(1)
|
223,901
|
251,120
|
||||||
Collateralized mortgage obligations(1)
|
1,544
|
2,436
|
||||||
Corporate securities
|
9,835
|
-
|
||||||
Other
|
310
|
435
|
||||||
Total available-for-sale securities
|
$
|
251,375
|
$
|
270,454
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
||||||
Held-to-Maturity Securities
|
||||||||
Mortgage-backed securities(1)
|
$
|
695,249
|
$
|
596,775
|
||||
Collateralized mortgage obligations(1)
|
117,427
|
73,781
|
||||||
Municipal securities
|
63,581
|
66,496
|
||||||
Total held-to-maturity securities
|
$
|
876,257
|
$
|
737,052
|
Investment Securities
|
As of March 31, 2022
|
|||||||||||||||||||||||||||||||||||||||
|
Within One Year
|
After One but
Within Five Years
|
After Five but
Within Ten Years
|
After Ten Years
|
Total
|
|||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes
|
$
|
9,996
|
2.36
|
%
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
9,996
|
2.36
|
%
|
||||||||||||||||||||
U.S. Government-sponsored securities
|
3
|
2.57
|
%
|
142
|
2.36
|
%
|
423
|
1.42
|
%
|
5,221
|
1.27
|
%
|
5,789
|
1.30
|
%
|
|||||||||||||||||||||||||
Mortgage-backed securities(1)
|
1
|
1.39
|
%
|
26,319
|
2.31
|
%
|
37,271
|
2.40
|
%
|
160,310
|
1.67
|
%
|
223,901
|
1.83
|
%
|
|||||||||||||||||||||||||
Collateralized Mortgage Obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
1,544
|
2.26
|
%
|
1,544
|
2.30
|
%
|
|||||||||||||||||||||||||
Corporate securities
|
-
|
0.00
|
%
|
4,932
|
0.68
|
%
|
4,903
|
0.81
|
%
|
-
|
0.00
|
%
|
9,835
|
0.00
|
%
|
|||||||||||||||||||||||||
Other
|
310
|
0.01
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
310
|
3.31
|
%
|
|||||||||||||||||||||||||
Total securities available-for-sale
|
$
|
10,310
|
2.29
|
%
|
$
|
31,393
|
2.05
|
%
|
$
|
42,597
|
2.21
|
%
|
$
|
167,075
|
1.66
|
%
|
$
|
251,375
|
1.77
|
%
|
|
Within One Year
|
After One but
Within Five Years
|
After Five but
Within Ten Years
|
After Ten Years
|
Total
|
|||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1)
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
15,820
|
0.72
|
%
|
$
|
679,429
|
1.80
|
%
|
$
|
695,249
|
1.70
|
%
|
||||||||||||||||||||
Collateralized Mortgage Obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
117,427
|
1.17
|
%
|
117,427
|
1.71
|
%
|
|||||||||||||||||||||||||
Municipal securities
|
908
|
1.41
|
%
|
7,118
|
2.20
|
%
|
16,690
|
3.34
|
%
|
38,865
|
1.22
|
%
|
63,581
|
3.90
|
%
|
|||||||||||||||||||||||||
Total securities held-to-maturity
|
$
|
908
|
1.41
|
%
|
$
|
7,118
|
2.20
|
%
|
$
|
32,510
|
2.06
|
%
|
$
|
835,721
|
1.68
|
%
|
$
|
876,257
|
1.86
|
%
|
Investment Securities
|
As of December 31, 2021
|
|||||||||||||||||||||||||||||||||||||||
Within One Year
|
After One but
Within Five Years
|
After Five but
Within Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Securities available for sale
|
||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes
|
$
|
5,028
|
2.33
|
%
|
$
|
5,061
|
2.38
|
%
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
10,089
|
2.36
|
%
|
||||||||||||||||||||
U.S. Government-sponsored securities
|
2
|
1.80
|
%
|
148
|
2.29
|
%
|
512
|
1.55
|
%
|
5,712
|
1.26
|
%
|
6,374
|
1.30
|
%
|
|||||||||||||||||||||||||
Mortgage-backed securities(1)
|
13
|
1.50
|
%
|
21,155
|
2.36
|
%
|
50,554
|
2.36
|
%
|
179,398
|
1.61
|
%
|
251,120
|
1.83
|
%
|
|||||||||||||||||||||||||
Collateralized Mortgage Obligations(1)
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
2,436
|
2.30
|
%
|
2,436
|
2.30
|
%
|
|||||||||||||||||||||||||
Corporate securities
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
|||||||||||||||||||||||||
Other
|
435
|
3.31
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
435
|
3.31
|
%
|
|||||||||||||||||||||||||
Total securities available for sale
|
$
|
5,478
|
2.41
|
%
|
$
|
26,364
|
2.36
|
%
|
$
|
51,066
|
2.35
|
%
|
$
|
187,546
|
1.61
|
%
|
$
|
270,454
|
1.84
|
%
|
|
March 31, 2022
|
December 31, 2021
|
||||||||||||||
|
||||||||||||||||
(Dollars in thousands)
|
Dollars
|
Percent
of Total
|
Dollars
|
Percent
of Total
|
||||||||||||
Gross Loans and Leases
|
||||||||||||||||
Real estate:
|
||||||||||||||||
Commercial
|
$
|
1,172,804
|
36.12
|
%
|
$
|
1,167,516
|
35.95
|
%
|
||||||||
Agricultural
|
695,565
|
21.42
|
%
|
672,830
|
20.72
|
%
|
||||||||||
Residential and home equity
|
359,214
|
11.06
|
%
|
350,581
|
10.79
|
%
|
||||||||||
Construction
|
204,794
|
6.31
|
%
|
177,163
|
5.45
|
%
|
||||||||||
Total real estate
|
2,432,377
|
74.91
|
%
|
2,368,090
|
72.91
|
%
|
||||||||||
Commercial
|
437,199
|
13.47
|
%
|
427,799
|
13.17
|
%
|
||||||||||
Agricultural
|
251,469
|
7.75
|
%
|
276,684
|
8.52
|
%
|
||||||||||
Commercial leases
|
92,445
|
2.85
|
%
|
96,971
|
2.99
|
%
|
||||||||||
Consumer and other(1)
|
33,255
|
1.02
|
%
|
78,367
|
2.41
|
%
|
||||||||||
Total gross loans and leases
|
3,246,745
|
100.00
|
%
|
3,247,911
|
100.00
|
%
|
|
Loan Contractual Maturity
|
|||||||||||||||||||
(Dollars in thousands)
|
One Year or Less
|
After One But Within Five Years
|
After Five Years But Within Fifteen Years
|
After Fifteen Years
|
Total
|
|||||||||||||||
Gross loan and leases:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
$
|
89,814
|
$
|
249,435
|
$
|
798,092
|
$
|
35,463
|
$
|
1,172,804
|
||||||||||
Agricultural
|
41,641
|
153,198
|
429,832
|
70,894
|
695,565
|
|||||||||||||||
Residential and home equity
|
197
|
3,371
|
117,347
|
238,299
|
359,214
|
|||||||||||||||
Construction
|
140,600
|
63,397
|
797
|
-
|
204,794
|
|||||||||||||||
Total real estate
|
272,252
|
469,401
|
1,346,068
|
344,656
|
2,432,377
|
|||||||||||||||
Commercial & Industrial
|
153,153
|
238,138
|
39,932
|
5,976
|
437,199
|
|||||||||||||||
Agricultural
|
153,586
|
85,412
|
12,471
|
-
|
251,469
|
|||||||||||||||
Commercial leases
|
6,743
|
33,387
|
52,315
|
-
|
92,445
|
|||||||||||||||
Consumer and other(1)
|
1,233
|
29,970
|
2,052
|
-
|
33,255
|
|||||||||||||||
Total gross loans and leases
|
$
|
586,967
|
$
|
856,308
|
$
|
1,452,838
|
$
|
350,632
|
$
|
3,246,745
|
||||||||||
Rate Structure for Loans
|
||||||||||||||||||||
Fixed Rate
|
$
|
112,960
|
$
|
370,873
|
$
|
1,130,743
|
$
|
234,582
|
$
|
1,849,158
|
||||||||||
Adjustable Rate
|
474,007
|
485,435
|
322,095
|
116,050
|
1,397,587
|
|||||||||||||||
Total gross loans and leases
|
$
|
586,967
|
$
|
856,308
|
$
|
1,452,838
|
$
|
350,632
|
$
|
3,246,745
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
||||||
Non-performing assets:
|
||||||||
Non-accrual loans and leases, not TDRs
|
||||||||
Real estate:
|
||||||||
Commercial
|
$
|
437
|
$
|
-
|
||||
Agricultural
|
-
|
18
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
437
|
18
|
||||||
Commercial & Industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
437
|
18
|
||||||
Non-accrual loans and leases, are TDRs
|
||||||||
Real estate:
|
||||||||
Commercial
|
-
|
-
|
||||||
Agricultural
|
-
|
498
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
-
|
498
|
||||||
Commercial & Industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
-
|
-
|
||||||
Subtotal
|
-
|
498
|
||||||
Total non-performing loans and leases
|
$
|
437
|
$
|
516
|
||||
Other real estate owned (“OREO”)
|
$
|
873
|
$
|
873
|
||||
Total non-performing assets
|
$
|
1,310
|
$
|
1,389
|
||||
Performing TDRs
|
$
|
1,603
|
$
|
1,824
|
||||
|
||||||||
Selected ratios:
|
||||||||
Non-performing loans to total loans
|
0.01
|
%
|
0.02
|
%
|
||||
Non-performing assets to total assets
|
0.02
|
%
|
0.03
|
%
|
•
|
The State of California experienced drought conditions from 2013 through most of 2016. After 2016, reasonable levels of rain and snow alleviated drought conditions in our primary service area, but the winters
of 2020-2021 and 2021-2022 were once again dry. Despite this, the availability of water in our primary service area was not an issue for the 2021 growing season. However, the weather patterns over the past eight years further reinforce the
fact that the long-term risks associated with the availability of water are significant.
|
•
|
While tremendous strides have been made in fighting the COVID-19 virus, particularly with the development of a vaccine, the lingering effects of COVID-19 are still with us, and it is impossible to predict the
ultimate impact on classified and non-performing loans and leases (see Part I. “Introduction - COVID-19 (Coronavirus) Disclosure”).
|
|
Three Months Ended March 31,
|
|||||||
(Dollars in thousands)
|
2022
|
2021
|
||||||
Allowance for credit losses:
|
||||||||
Balance at beginning of year
|
$
|
61,007
|
$
|
58,862
|
||||
Provision / (recapture) for credit losses
|
-
|
1,250
|
||||||
Charge-offs:
|
||||||||
Real estate:
|
||||||||
Commercial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
-
|
-
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
-
|
-
|
||||||
Commercial & Industrial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
(9
|
)
|
(8
|
)
|
||||
Total charge-offs
|
(9
|
)
|
(8
|
)
|
||||
Recoveries:
|
||||||||
Real estate:
|
||||||||
Commercial
|
-
|
-
|
||||||
Agricultural
|
-
|
-
|
||||||
Residential and home equity
|
14
|
32
|
||||||
Construction
|
-
|
-
|
||||||
Total real estate
|
14
|
32
|
||||||
Commercial & Industrial
|
16
|
29
|
||||||
Agricultural
|
2
|
3
|
||||||
Commercial leases
|
-
|
-
|
||||||
Consumer and other
|
2
|
7
|
||||||
Total recoveries
|
34
|
71
|
||||||
Net recoveries / charge-offs
|
25
|
63
|
||||||
|
||||||||
Balance at end of year
|
$
|
61,032
|
$
|
60,175
|
||||
|
||||||||
Selected financial information:
|
||||||||
Net loans held for investment
|
$
|
3,237,619
|
$
|
3,111,011
|
||||
Average loans
|
3,196,841
|
3,059,972
|
||||||
Non-performing loans
|
437
|
493
|
||||||
Allowance for credit losses to non-performing loans
|
13966.13
|
%
|
12205.88
|
%
|
||||
Net (recoveries)/charge-offs to average loans
|
0.00
|
%
|
0.00
|
%
|
||||
Provision for credit losses to average loans
|
0.00
|
%
|
0.04
|
%
|
||||
Allowance for credit losses to loans held for investment
|
1.89
|
%
|
1.93
|
%
|
|
March 31, 2022
|
December 31, 2021
|
||||||||||||||
(Dollars in thousands)
|
Dollars
|
Percent
of Total
|
Dollars
|
Percent
of Total |
||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Real estate:
|
||||||||||||||||
Commercial
|
$
|
17,920
|
36.12
|
%
|
$
|
28,536
|
35.95
|
%
|
||||||||
Agricultural
|
14,591
|
21.42
|
%
|
9,613
|
20.72
|
%
|
||||||||||
Residential and home equity
|
6,759
|
11.06
|
%
|
2,847
|
10.79
|
%
|
||||||||||
Construction
|
3,777
|
6.31
|
%
|
1,456
|
5.45
|
%
|
||||||||||
Total real estate
|
43,047
|
74.91
|
%
|
42,452
|
72.91
|
%
|
||||||||||
Commercial & Industrial
|
10,361
|
13.47
|
%
|
11,489
|
13.17
|
%
|
||||||||||
Agricultural
|
5,737
|
7.75
|
%
|
5,465
|
8.52
|
%
|
||||||||||
Commercial leases
|
1,466
|
2.85
|
%
|
938
|
2.99
|
%
|
||||||||||
Consumer and other
|
421
|
1.02
|
%
|
663
|
2.41
|
%
|
||||||||||
Total allowance for credit losses
|
$
|
61,032
|
100.00
|
%
|
$
|
61,007
|
100.00
|
%
|
•
|
Demand and interest-bearing transaction accounts totaled $2.89 billion at March 31, 2022, an increase of $41.7 million, or 1.46% from $2.85 billion held at December 31, 2021.
|
•
|
Savings and money market accounts increased $157 million, or 11.24%, to $1.56 billion at March 31, 2022 compared with $1.40 billion at December 31, 2021.
|
•
|
Time deposit accounts decreased $1.7 million, or 0.43%, to $391 million at March 31, 2022 compared with $392 million at December 31, 2021.
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2022
|
2021
|
||||||||||||||||||||||
(Dollars in thousands)
|
Average Balance
|
Interest Expense
|
Average Rate
|
Average Balance
|
Interest Expense
|
Average Rate
|
||||||||||||||||||
Total deposits:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Demand
|
$
|
1,115,578
|
259
|
0.09
|
%
|
$
|
943,635
|
294
|
0.13
|
%
|
||||||||||||||
Savings and Money Market
|
1,517,234
|
342
|
0.09
|
%
|
1,291,214
|
418
|
0.13
|
%
|
||||||||||||||||
Certificates of deposit greater than $250,000
|
167,515
|
97
|
0.23
|
%
|
171,501
|
256
|
0.61
|
%
|
||||||||||||||||
Certificates of deposit less than $250,000
|
223,842
|
105
|
0.19
|
%
|
247,416
|
269
|
0.44
|
%
|
||||||||||||||||
Total interest bearing deposits
|
3,024,169
|
803
|
0.11
|
%
|
2,653,766
|
1,237
|
0.19
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
1,722,597
|
1,469,741
|
||||||||||||||||||||||
Total deposits
|
$
|
4,746,766
|
$
|
803
|
0.07
|
%
|
$
|
4,123,507
|
$
|
1,237
|
0.12
|
%
|
|
March 31,
|
December 31,
|
||||||
(Dollars in thousands)
|
2022
|
2021
|
||||||
Deposits greater than $250,000
|
$
|
2,860,003
|
$
|
2,708,576
|
||||
Certificates of deposit greater $250,000, by maturity:
|
||||||||
Less than 3 months
|
48,962
|
59,591
|
||||||
3 months to 6 months
|
48,130
|
37,182
|
||||||
6 months to 12 months
|
61,890
|
59,945
|
||||||
More than 12 months
|
9,881
|
12,147
|
||||||
Total Time Deposits greater than $250,000
|
$
|
168,863
|
$
|
168,865
|
||||
Total deposits greater than $250,000
|
$
|
3,028,866
|
$
|
2,877,441
|
(Dollars in thousands)
|
Basel III
Regulatory Well
Capitalized
Requirement
|
March 31, 2022
|
December 31, 2021
|
|||||||||
Farmers & Merchants Bancorp
|
||||||||||||
CET1 capital to risk-weighted assets
|
N/A
|
11.63
|
%
|
11.68
|
%
|
|||||||
Tier 1 capital to risk-weighted assets
|
N/A
|
11.88
|
%
|
11.94
|
%
|
|||||||
Risk-based capital to risk-weighted assets
|
N/A
|
13.14
|
%
|
13.19
|
%
|
|||||||
Tier 1 leverage capital ratio
|
N/A
|
8.45
|
%
|
8.92
|
%
|
|||||||
|
||||||||||||
Farmers & Merchants Bank
|
||||||||||||
CET1 capital to risk-weighted assets
|
6.50
|
%
|
11.87
|
%
|
11.91
|
%
|
||||||
Tier 1 capital to risk-weighted assets
|
8.00
|
%
|
11.87
|
%
|
11.91
|
%
|
||||||
Risk-based capital to risk-weighted assets
|
10.00
|
%
|
13.12
|
%
|
13.17
|
%
|
||||||
Tier 1 leverage capital ratio
|
5.00
|
%
|
8.94
|
%
|
8.91
|
%
|
|
Amount of Commitment Expiration per Period
|
|||||||||||||||||||
(Dollars in thousands)
|
Total Committed Amount
|
Less than
One Year
|
One to
Three
Years
|
Three to
Five Years
|
After Five
Years
|
|||||||||||||||
Off-balance sheet commitments
|
||||||||||||||||||||
Commitments to extend credit
|
$
|
987,423
|
$
|
387,129
|
$
|
436,860
|
$
|
19,049
|
$
|
144,385
|
||||||||||
Standby letters of credit
|
16,250
|
6,964
|
6,040
|
2,970
|
276
|
|||||||||||||||
Performance guarantees
|
191
|
71
|
25
|
2
|
93
|
|||||||||||||||
Total off-balance sheet commitments
|
$
|
1,003,864
|
$
|
394,164
|
$
|
442,925
|
$
|
22,021
|
$
|
144,754
|
March 31, 2022
|
||||||||||||||||||||
(Dollars in thousands)
|
Total Credit Line Limit
|
Current
Credit Line Available
|
Outstanding Amount
|
Remaining Credit Line Available
|
Value of Collateral Pledged
|
|||||||||||||||
Additional liquidity sources:
|
||||||||||||||||||||
Federal Home Loan Bank
|
$
|
815,060
|
$
|
815,060
|
$
|
-
|
$
|
815,060
|
$
|
1,154,080
|
||||||||||
Federal Reserve BIC
|
$
|
664,437
|
$
|
664,437
|
$
|
-
|
$
|
664,437
|
$
|
860,206
|
||||||||||
FHLB Fed Funds
|
$
|
18,000
|
$
|
18,000
|
$
|
-
|
$
|
18,000
|
$
|
-
|
||||||||||
US Bank Fed Funds
|
$
|
35,000
|
$
|
35,000
|
$
|
-
|
$
|
35,000
|
$
|
-
|
||||||||||
MUFG Union Bank Fed Funds
|
$
|
15,000
|
$
|
15,000
|
$
|
-
|
$
|
15,000
|
$
|
-
|
||||||||||
PCBB Fed Funds
|
$
|
50,000
|
$
|
50,000
|
$
|
-
|
$
|
50,000
|
$
|
-
|
||||||||||
Total additional liquidity sources
|
$
|
1,597,497
|
$
|
1,597,497
|
$
|
-
|
$
|
1,597,497
|
$
|
2,014,286
|
(a)
|
The following documents are filed as a part of this Quarterly Report on Form 10-Q:
|
(1)
|
Financial Statements and
|
(2)
|
Financial Statement schedules required to be filed by Item 1 of this Quarterly Report on Form 10-Q.
|
(3)
|
The following exhibits are required by Item 601 of Regulation S-K and are included as part of this Quarterly Report on Form 10-Q:
|
Exhibit
Number |
Description
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
FARMERS & MERCHANTS BANCORP
|
|
Date: May 10, 2022
|
/s/ Kent A. Steinwert
|
Kent A. Steinwert
|
|
Director, Chairman, President and Chief Executive Officer
(Principal Executive Officer)
|
Date: May 10, 2022
|
/s/ Stephen W. Haley
|
Stephen W. Haley
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
1 Year Farmers and Merchants Ba... (QX) Chart |
1 Month Farmers and Merchants Ba... (QX) Chart |
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