Piper Sandler to hold a virtual field trip » 10:2205/1705/17/21
CIVB, FMAO, FFBC, HLAN, LCNB, PRK, PEBO, PFC, SBFG, TFSL
Virtual Ohio Community…
Virtual Ohio Community Bank Field Trip to be held on May 17-18.
|Over a week ago|
Farmers & Merchants reports Q1 EPS ,44c consensus 45c » 16:0804/2104/21/21
Net income increased…
Net income increased 19.6% to $4.9M. "2021 is off to a strong start as our markets emerge from the COVID-19 crisis and we continue to focus on providing local services and leading financial products to our retail, commercial, and agriculture customers. As a result, we are gaining market share and benefitting from robust growth in loans, deposits, and noninterest income, which have helped us successfully offset higher provision for loan losses and operating expenses during the 2021 first quarter," stated Lars B. Eller, President and Chief Executive Officer. "I am grateful to our team members who continue to work diligently and support the financial needs of our local customers and communities." "The acquisition of Ossian Financial Services is expected to close in the coming weeks, and we are well positioned to quickly integrate Ossian into F&M's platform. Once completed, we expect the acquisition will add approximately $122 million in assets to F&M and will begin contributing to earnings in 2021. In addition, we expect to see the benefit to noninterest expense of our office realignment strategy over the next several quarters, and we will use a portion of the savings to reinvest in expanding our digital and online offerings."
|Over a quarter ago|
Farmers & Merchants reports Q4 EPS 60c, consensus 39c » 16:3202/1002/10/21
Reports Q1 NII $16.1M vs.…
Reports Q1 NII $16.1M vs. $13.3M last year. "Across the board 2020 was a record year for F&M, despite the challenges associated with the COVID-19 pandemic. Our record results speak to the dedication of our 354 associates throughout our Ohio, Indiana, and Michigan markets and our daily commitment to provide our communities with superior and individual financial services," stated Lars B. Eller, CEO. "In addition, our record performance demonstrates the success of our 2019 strategic plan that is focused on growing earnings and creating long-term value for our shareholders. As we look forward to 2021, I am excited to complete the Ossian acquisition, which we believe will be completed during the second quarter. In addition, we plan to finish integrating Adams County Financial Resources during the first quarter, as well as implementing our office realignment strategy, investing in new offices in compelling markets, and expanding our digital offerings throughout 2021. We expect to incur an estimated $2.5 million of one-time expenses associated with these initiatives in 2021. Once fully integrated, we believe the combination of reduced operating expenses and the contribution of additional sources of revenue will provide an approximately $2.1 million benefit to income in 2022 and beyond as we further increase our scale, diversify our revenues, improve our cost structure, and better serve our customers."
Farmers & Merchants to acquire Ossian Financial Services for $20M in cash » 17:3612/2112/21/20
Farmers & Merchants…
Farmers & Merchants Bancorp announced that they have signed an agreement and plan of reorganization and merger whereby F&M will acquire Ossian Financial Services in a cash transaction. OFSI operates two full-service offices in northeast Indiana and has approximately $122M in assets, $58M in loans, $108M in deposits and $11.9M in consolidated equity as of September 30. OFSI is taxed as an S-Corporation. Subject to the terms of the Agreement, which has been unanimously approved by the Board of Directors of each company, aggregate cash consideration of the deal is equal to $20M, representing $67.71 per share. The consideration is subject to potential adjustment, as set forth in the Agreement, in the event that OFSI's equity capital is less than $12M at closing. Excluding one-time transaction costs, F&M expects the transaction to be approximately 6.2% and 7.1% accretive to first and second year diluted earnings per share, respectively. Tangible book value per share will be diluted approximately 4.6% at closing including the impact of an estimated $2.5M of combined pre-tax transaction costs. The tangible book value dilution is expected to be recovered in less than five years using the crossover method. When the transaction is completed, F&M will have consolidated assets of approximately $2B. Subject to customary regulatory approvals, OFSI shareholder approval and other conditions set forth in the Agreement, the transaction is anticipated to close in the second quarter of 2021.
Farmers & Merchants reports Q3 EPS 40c, consensus » 16:0710/2110/21/20
F&M's agriculture portfolio continues to perform well, as a result of the Company's experienced lenders, diversified market exposure, and geographic focus within strong agricultural markets. At September 30, 2020, F&M's $103.3 million agriculture portfolio consisted primarily of row crop and livestock production, with almost no dairy exposure. Agriculture customers are proven farmers with strong balance sheets and 95% of row crop producers utilize crop insurance to mitigate weather and production risks. Approximately, 25% of F&M's agriculture portfolio at September 30, 2020, was within the livestock sector, and approximately 70% of this exposure is to customers that support production but do not have direct livestock ownership. In addition, approximately 80% of F&M's livestock exposure is for loans with balances under $750,000 and of the borrowers with direct livestock ownership, approximately 50% are not dependent on the income from livestock to manage their debt payments. Overall, F&M believes agricultural performance will be similar to 2019"Momentum in our business remains strong and I am extremely proud of the high level of service and dedication our employees continue to provide our customers and communities," stated Lars B. Eller, President and Chief Executive Officer. "We entered the COVID-19 crisis from a position of strength through our commitment to community-oriented and prudent banking values. F&M's continued success throughout this challenging period is encouraging and we have been able to offset an increased level of provision for loan losses by reducing our cost of funds, driving strong noninterest income, and improving our efficiency ratio. As a result, third quarter net income increased 3.2%, and earnings per diluted share are up 5.3% over the prior year period."
Fly Intel: Top five analyst initiations » 09:5310/0910/09/20
DDD, TFII, ALTG, ZM, FMAO
Catch up on today's…
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Stratasys (SSYS) initiated with a Buy at Berenberg. 2. TFI International (TFII) initiated with a Buy at Goldman Sachs. 3. Alta Equipment Group (ALTG) initiated with a Market Perform at Raymond James. 4. Zoom Video (ZM) initiated with a Buy at Mizuho. 5. Farmers & Merchants (FMAO) initiated with an Equal Weight at Stephens. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
Stephens starts Farmers & Merchants at Equal Weight with $22.50 price target » 08:2810/0910/09/20
As previously reported,…
As previously reported, Stephens analyst Terry McEvoy initiated coverage of Farmers & Merchants with an Equal Weight rating and $22.50 price target. While he thinks the stocks premium valuation "appears more than justified" given the bank's track record of steady EPS growth and balance sheet strength, McEvoy sees it being tough to make an argument for additional relative multiple expansion from here, he tells investors.
Farmers & Merchants initiated with an Equal Weight at Stephens » 06:1210/0910/09/20
Stephens analyst Terry…
Stephens analyst Terry McEvoy initiated coverage of Farmers & Merchants with an Equal Weight rating and $22.50 price target.
Farmers & Merchants resumed with a Neutral at Boenning & Scattergood » 07:4209/2409/24/20
Boenning & Scattergood analyst Joseph Plevelich initiated coverage of Farmers & Merchants with a Neutral rating. The firm is resuming coverage of the community bank sector and has "generally positive views" on the space given that deferrals have peaked and near-term expectations are "relatively muted," although it notes that this emerging credit cycle is early innings and "could last extra innings depending upon the timing of a successful vaccine or treatment for COVID-19."
Farmers & Merchants raises quarterly cash dividend 6.3% to 17c per share » 11:0709/1809/18/20
The Board of Directors of…
The Board of Directors of Farmers & Merchants Bancorp announced that it has approved a 6.3% increase in the company's quarterly cash dividend. The new cash dividend has been raised to 17c per share from the previous dividend of 16c and represents the 26th consecutive annual increase in the Company's regular dividend payment since 1994. The third quarter dividend is payable on October 20, 2020, to shareholders of record as of September 29, 2020.