F&M reports record earnings

Lodi-based Farmers & Merchants Bank on Monday announced record net income for the second quarter and first half of 2021.

For the quarter ended June 30, the bank reported net income of $16.2 million, an increase of 12.9% from net income of $14.3 million in the second quarter of 2020.

On a per-share basis, earnings were $20.45, up 13.4% when compared to $18.03 per weighted average share of common stock outstanding in the second quarter of 2020.

Additionally, the company’s net income over the trailing 12 was $63.2 million ($79.83 per share as reported), as compared to $56.8 million ($71.82 per share as reported) for the same period in the prior year.

Net interest income for the quarter ended June 30 was $39.8 million, up 12.5% over the same quarter in 2020.

During the second quarter the bank declared a dividend of $7.50 per share or $5.9 million, an increase over the $7.25 per share paid in the same period of 2020. The company has now paid a dividend for 86 consecutive years and has increased the dividend for 56 consecutive years.

Total assets at quarterend were $4.9 billion, up 15.7% from the second quarter of 2020. Total loans and leases outstanding reached $3 billion at June 30.

Total deposits of $4.4 billion increased 16.7% from the prior year. At quarter-end, total checking deposits represented 60.0% of total deposits compared to 55.3% at June 30, 2020.

“We are very pleased with the company’s record second quarter net income of $16.2 million in 2021. We remain focused on generating high quality loan growth while at the same time protecting loan pricing,” F&M President and CEO Kent Steinwert said. “These efforts have paidoff handsomely, as our core loan portfolio grew 5.5% year-over-year, something that very few banks can report.”

The bank reported that it has continued to participate in the federal government’s Small Business Administration’s Paycheck Protection Program, having funded $494.9 million of loans for over 2,000 customers since the program’s inception (as of June 30, $167.7 million of these loans remain outstanding).

F&M has generated $17.9 million of fees for originating the PPP loans.