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Previous: AMERICAN FUNDS TAX EXEMPT SERIES I, 485BPOS, EX-99, 2000-11-14 |
Next: FARMERS & MERCHANTS BANCORP INC, 10-Q, EX-27, 2000-11-14 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X Quarterly Report Pursuant to Section 13 or 15(d)
---
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
OR
Transition Report Pursuant to Section 13 or 15(d)
---
of the Securities Exchange Act of 1934
For the transition period from to
-------- --------
Commision File Number 0-14492
FARMERS & MERCHANTS BANCORP, INC.
(Exact name of registrant as specified in its charter)
OHIO 34-1469491
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
307-11 North Defiance Street, Archbold, Ohio 43502
-------------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
(419) 446-2501
--------------------------------------------------------------------------------
Registrant's telephone number, including area code
--------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
---- ----
Indicate the number of shares of each of the issuers classes of common stock, as
of the latest practicable date:
Common Stock, No Par Value 1,300,000
-------------------------------- -------------------------------------
Class Outstanding as of October 1, 2000
<PAGE> 2
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
FARMERS & MERCHANTS BANCORP, INC.
INDEX
<TABLE>
<CAPTION>
Form 10-Q Items Page
---------------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets-
September 30, 2000, December 31, 1999 and September 30, 1999 1
Condensed Consolidated Statements of Net Earnings-
Nine Months Ended September 30, 1999 and September 30, 2000 2
Condensed Consolidated Statements of Cash Flows-
Nine Months Ended September 30, 1999 and September 30, 2000 3
Notes to Condensed Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 5
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on form 8K 6
Signatures 7
</TABLE>
<PAGE> 3
FARMERS & MERCHANTS BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands of dollars)
<TABLE>
<CAPTION>
Sept 30, 2000 December 31, 1999 Sept 30, 1999
<S> <C> <C> <C>
ASSETS:
Cash and due from banks $ 17,829 $ 17,245 $ 14,742
Interest bearing deposits with banks 100 100 100
Federal funds sold 0 - -
Investment Securities:
U.S. Treasury 7,987 6,842 6,958
U.S. Government 56,431 47,906 48,440
State & political obligations 29,107 31,246 32,634
All others 12,077 12,411 15,885
Loans and leases 482,998 463,947 456,574
Bank premises and equipment-net 10,410 10,176 9,755
Accrued interest and other assets 10,479 8,656 8,935
TOTAL ASSETS $ 627,418 $ 598,529 $ 594,023
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits:
Demand $ 41,792 $ 54,051 $ 42,950
Time and savings 465,574 449,115 448,568
Federal funds purchased and securities
sold under agreement to repurchase 21,687 7,343 15,433
Other borrowed money 31,004 25,039 25,244
Accrued interest and other liabilities 4,723 5,092 4,357
Total Liabilities 564,780 540,640 536,552
SHAREHOLDERS' EQUITY:
Common stock, no par value - authorized 1,500,000
shares; issued 1,300,000 shares 12,677 12,677 12,677
Undivided profits 50,199 45,975 45,085
Accumulated other comprehensive income (238) (763) (291)
Total Shareholders' Equity 62,638 57,889 57,471
LIABILITIES AND SHAREHOLDERS' EQUITY $ 627,418 $ 598,529 $ 594,023
</TABLE>
See Notes to Condensed Consolidated Unaudited Financial Statements.
Note: The December 31, 1999 Balance Sheet has been derived from the audited
financial statements of that date.
<PAGE> 4
1
FARMERS & MERCHANTS BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands of dollars)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans and leases $ 10,872 $ 9,427 $ 31,417 $ 26,756
Investment Securities:
U.S. Treasury securities 125 140 356 583
Securities of U.S. Government agencies 832 746 2,433 2,370
Obligations of states and political subdivisions 357 409 1,116 1,254
Other 190 237 681 1,022
Federal funds 44 11 110 87
Deposits in banks 1 1 3 2
Total Interest Income 12,421 10,971 36,116 32,074
INTEREST EXPENSE:
Deposits 5,763 4,837 16,308 14,861
Borrowed funds 892 426 2,308 894
Total Interest Expense 6,655 5,263 18,616 15,755
NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES 5,766 5,708 17,500 16,319
PROVISION FOR LOAN LOSSES 630 471 1,093 1,069
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 5,136 5,237 16,407 15,250
OTHER INCOME:
Service charges 472 400 1,278 1,114
Other 380 244 1,092 1,137
Net securities gains (losses) - 11 0 31
852 655 2,370 2,282
OTHER EXPENSES:
Salaries and wages 1,687 1,562 4,986 4,527
Pension and other employee benefits 415 403 1,153 1,116
Occupancy expense (net) 225 155 325 390
Other operating expenses 1,472 1,175 4,531 4,303
3,799 3,295 10,995 10,336
INCOME BEFORE FEDERAL INCOME TAX 2,189 2,597 7,782 7,196
FEDERAL INCOME TAXES 615 769 2,192 1,941
NET INCOME 1,574 1,828 5,590 5,255
OTHER COMPREHENSIVE INCOME (NET OF TAX):
Unrealized gains (losses) on securities 620 (425) (96) (1,538)
COMPREHENSIVE INCOME $ 2,194 $ 1,403 $ 5,494 $ 3,717
NET INCOME PER SHARE (Based upon
weighted average nmber of shares outstanding of 1,300,000 $ 1.21 $ 1.41 $ 4.30 $ 4.04
DIVIDENDS DECLARED $ 0.35 $ 0.30 $ 1.05 $ 0.90
</TABLE>
See Notes to Condensed Consolidated Unaudited Financial Statements.
<PAGE> 5
2
FARMERS & MERCHANTS BANCORP, INC.
CONDENSED CONSOLIDATED STATMENTS OF CASH FLOWS
(Unaudited)
(in thousands of dollars)
<TABLE>
<CAPTION>
Three Months Ended
Sept 30, 2000 Sept 30, 1999
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 5,590 $ 5,255
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and amortization 825 925
Premium amortization 139 214
Discount amortization (50) (38)
Provision for loan losses 1,093 1,069
Provision for deferred income taxes (119) (62)
(Gain) loss on sale of fixed assets 17 23
(Gain) loss on sale of investment securities - (31)
Changes in Operating Assets and Liabilities:
Accrued interest receivable and other assets (1,704) (1,760)
Accrued interest payable and other liabilities (369) 177
Net Cash Provided by Operating Activities 5,422 5,772
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (1,076) (1,273)
Proceeds from sale of fixed assets - -
Proceeds from maturities of investment securities: 11,073 28,054
Proceeds from sale of investment securities: - 17,550
Purchase of investment securities- (17,835) (27,719)
Net increase in loans and leases (20,144) (49,922)
Net Cash Used by Investing Activities (27,982) (33,310)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 4,200 (20,665)
Net change in short-term borrowings 14,344 12,517
Increase in long-term borrowings - -
Payments on long-term borrowings 5,965 14,004
Payments of dividends (1,365) (1,170)
Net Cash Provided by Financing Activities 23,144 4,686
Net change in cash and cash equivalents 584 (22,852)
Cash and cash equivalents - Beginning of year 17,345 37,694
CASH AND CASH EQUIVALENTS - END OF THE YEAR $ 17,929 $ 14,842
RECONCILIATION OF CASH AND CASH EQUIVALENTS:
Cash and cash due from banks $ 17,829 $ 14,742
Interest bearing deposits 100 100
Federal funds sold - -
$ 17,929 $ 14,842
</TABLE>
See Notes to Condensed Consolidated Unaudited Financial Statements.
<PAGE> 6
3
FARMERS & MERCHANTS BANCORP, INC.
Notes to Condensed Consolidated Unaudited Financial Statements
NOTE 1 BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions for Form 10Q and Rule 10-01 of Regulation S-X;
accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments, consisting of normal recurring accruals, considered
necessary for a fair presentation have been included. Operating
results for the nine months ended September 30, 2000 are not
necessarily indicative of the results that are expected for the year
ended December 31, 2000. For further information, refer to the
consolidated financial statements and footnotes thereto included in
the Company's annual report on Form 10-K for the year ended December
31, 1999.
<PAGE> 7
4
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
Farmers & Merchants Bancorp, Inc. was incorporated on February 25,
1985, under the laws of the State of Ohio. Farmers & Merchants
Bancorp, Inc., and its subsidiaries The Farmers & Merchants State
Bank and Farmers & Merchants Life Insurance Company are engaged in
commercial banking and life and disability insurance, respectively.
The executive offices of Farmers & Merchants Bancorp, Inc. are
located at 307-11 North Defiance Street, Archbold, Ohio 43502.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity for the nine months ended September 30, 2000 comes
primarily from net income from operations of $5.19 millon. This
compares with net income of $5.26 million for the same period in
1999. In addition, funds were purchased from correspondents, and the
Federal Home Loan Bank.
The principal uses of these funds were for granting loans. Loans as
of September 30, 2000 were $483 million compared to $463.95 million
as of December 31, 1999, a $19.1 million or 4% increase.
The following is a summary of five capital ratios as they are
calculated from the September 30, 1999 financial statements:
<TABLE>
<S> <C>
Primary Ratio 11.00%
Total Capital Ratio 15.89%
Risk Based Capital Tier 1 13.97%
Risk Based Capital Tier 2 22.50%
Stockholders' Equity/Total Assets 9.98%
</TABLE>
<PAGE> 8
5
PART II
ITEM 6 EXHIBIT AND REPORTS ON FORM 8-K
(A) The following documents are filed as part of this report:
<TABLE>
<CAPTION>
Exhibit No. Description
<S> <C>
27 Financial Data Schedule
</TABLE>
(B) Reports on Form 8-K
No reports on Form 8-K were filed by the registrant during
the quarter ended September 30, 2000
<PAGE> 9
6
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, theeunto duly authorized.
Farmers & Merchants Bancorp, Inc.,
Date: November 10, 2000 By: /s/ Joe E. Crossgrove
Joe E. Crossgrove
President and Cashier
Date: November 10, 2000 By: /s/ Randal H. Schroeder
Randal H. Schroeder
Asst. Vice-President
and Chief Operating Officer
<PAGE> 10
7
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
<S> <C>
27 Financial Data Schedule
</TABLE>
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