Farmers & Merchants Bancorp Q3 net income was $2,620,000Staff writer ▼ | October 28, 2015
Farmers & Merchants Bancorp reported financial results for the 2015 third quarter and nine months ended September 30, 2015.
Farmers & Merchants Bancorp $0.57 per basic and diluted share
The 5.9% improvement in net income for the 2015 third quarter was primarily due to a 2.4% increase in noninterest income, a 1.0% decline in noninterest expense, offset by slightly lower net interest income.
Net income for the 2015 nine months was $7,568,000, or $1.64 per basic and diluted share compared to $6,985,000, or $1.51 per basic and diluted share for the nine months ended September 30, 2014. The 8.3% improvement in net income for the 2015 nine month period was primarily due to a 6.4% increase in noninterest income, and a 5.2% reduction in interest expense.
Total interest income for the 2015 nine month period, compared with the same period last year, was basically flat, and noninterest expenses increased 3.3%.
Paul S. Siebenmorgen, president and chief executive officer, stated, "Loans, assets, and net income all increased during the 2015 third quarter, while we controlled noninterest expenses. We have a strong pipeline of loans, but converting this pipeline into earnings assets has taken longer than expected. Despite this delay in closing loans, our loan portfolio increased 2.4% from June 30, 2015 and is up 4.4% from September 30, 2014.
"We are cautiously optimistic our closing rate will improve in the coming quarters and will result in an accelerating pace of loan growth. With this said, we remain committed to strict underwriting standards that manage risk while producing adequate returns for our shareholders.
"Our asset quality levels remain strong with nonperforming assets to total assets at September 30, 2015 of less than 0.4% and our provision for loan losses declined 13.8% to $243,000 in the 2015 third quarter. As a result of our strong asset quality, low cost of funds, and controlled operating expenses, F&M grew earnings 5.6% to $0.57 per diluted share in the quarter.
"Looking ahead, we are excited about a number of banking products and services that will be available to customers during the fourth quarter and into next year." ■