Farmers & Merchants Bancorp, Inc. Reports 2019 Second-Quarter and Year-to-Date Financial Results

Positive Operating Momentum Drives Strong Second Quarter Financial Results

/EIN News/ -- ARCHBOLD, Ohio, July 19, 2019 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2019 second quarter and year-to-date June 30, 2019.

2019 Second Quarter Financial Highlights Include (on a year-over-year basis unless noted):

• 65 consecutive quarters of profitability
• Total loans increased 31.3% to $1.091 billion as a result of the contribution from the Limberlost acquisition and strong organic consumer lending and residential mortgage growth
• Total assets increased 38.5% and crossed $1.5 billion for the first time in F&M’s history
• Strong organic deposit growth, which has increased year-to-date by 16.6% or $154.2 million
• Net interest income after provision for loan losses increased 45.2% to $14.5 million
• Net income increased 50.2% to $6.2 million
• Adjusted net income was $6.2 million, which accounts for one-time acquisition related expenses of $31,000 and a $1.6 million benefit from recoveries that occurred in the 2019 second quarter
• Earnings per basic and diluted share increased 27.3% to $0.56 per basic and diluted share
• Adjusted earnings per basic and diluted share was $0.42, which accounts for one-time adjusted acquisition related expenses of $0.00 per basic and diluted share and a $0.14 per basic and diluted share benefit from recoveries that occurred in the 2019 second quarter
• Tangible book value per share increased 7.9% to $15.49 per share

“Strong operating momentum continued in the 2019 second quarter and earnings per diluted share increased 27.3% to $0.56,” stated Lars B. Eller, President and Chief Executive Officer. “While earnings benefited from a nice recovery in the second quarter, core profitability remains strong as a result of year-over-year loan growth, improved margins, and favorable asset quality.  In addition, the Limberlost acquisition, which was completed on January 1, 2019, is now fully integrated and has started contributing to our financial performance and earnings.  I am extremely pleased with the quick combination of Limberlost and F&M and the opportunities our larger scale will create for F&M in the future.” 

“Total loans declined slightly over the past three months, primarily due to the impacts a wet planting season had on agricultural customers across our markets and the payoff of several classified loans that occurred in the second quarter, which was higher than normal.  Our loan portfolio would have increased sequentially, if second quarter payoffs and paydowns were in line with historical trends.  We have a strong pipeline of new loans that will be originated during the third quarter, including several large loans to customers in Southern Michigan.  This market supports a compelling opportunity for F&M and we already have $62.8 million in loans and $16.3 million in deposits in Southern Michigan, even though we have no physical presence in the market.  As large regional financial institutions focus on bigger markets and opportunities, we believe F&M is well positioned to grow our brand throughout our Ohio, Indiana and Michigan markets.” 

Income Statement
Net income for the 2019 second quarter ended June 30, 2019, was $6.2 million, compared to $4.1 million for the same period last year.  Net income for the 2019 second quarter included $31,000 of one-time acquisition related expenses and a $1.6 million benefit from recoveries.  Net income per basic and diluted share for the 2019 second quarter was $0.56, compared to $0.44 for the same period last year.  2019 second quarter earnings included $0.00 per basic and diluted share of one-time acquisition related expenses and a $0.14 per basic and diluted share benefit from recoveries. 

Cost of funds outpaced asset yield improvements for the 2019 second quarter and first half as a result of higher dollar volume of deposits and increased rates on deposits.  Overall, the company believes profitability from core operations is on track to match the expectations for 2019 with the acquisition factored in.

Net income for the 2019 first half ended June 30, 2019, was $9.4 million, compared to $7.9 million for the same period last year.  Net income for the 2019 first half included $1.2 million of one-time acquisition related expenses and a $1.6 million benefit from recoveries.  Net income per basic and diluted share for the 2019 first half was $0.85, compared to $0.85 for the same period last year.  2019 first half earnings included $0.09 per basic and diluted share of one-time acquisition related expenses and a $0.14 per basic and diluted share benefit from recoveries. 

Loan Portfolio and Asset Quality
Total loans, net at June 30, 2019, increased 31.3% or by $260.1 million to $1.091 billion, compared to $831.0 million at June 30, 2018. The year-over-year improvement resulted primarily from the contribution of the Limberlost acquisition and organic loan growth. 

F&M’s asset quality remains strong.  Despite the 38.5% year-over-year increase in total assets at June 30, 2019, nonperforming assets were up only $105,000 or 6.7%.  In addition, nonperforming loans to total loans remains low and at June 30, 2019 were 0.12%, compared to 0.11% for the same period last year.  The allowance for loan losses to nonperforming loans was 375.5% at June 30, 2019, compared to 751.5% at June 30, 2018.  Net charge-offs for the quarter ended June 30, 2019, were $86,000, or 0.01% of average loans, compared to $143,000 or 0.02% of average loans, at June 30, 2018.  Year-to-date, net charge-offs at June 30, 2019, were $255,000, or 0.02% of average loans, compared to $251,000 or 0.03% of average loans at June 30, 2018. 

Mr. Eller continued, “Economic trends within our markets remain stable, supporting F&M’s growth and excellent asset quality.  Total agricultural loans were $307.5 million at June 30, 2019, compared to $307.8 million at March 31, 2019, and $174.5 million at June 30, 2018.  Most of our agricultural customers utilize crop insurance, which will protect them from the wettest planting season in approximately 40 years and the impacts weather has on farm revenues.  Agricultural lending is one of F&M’s core competencies.  All of F&M’s agricultural lenders are farmers themselves and many of our communities are dependent on the farm economy.  F&M is dedicated to helping our agricultural customers during this difficult season, especially as other larger lenders have pulled back from this market.” 

Deposits
Over the past three months, deposits have increased organically 4.6% or by $54.9 million to $1.242 billion at June 30, 2019.  The significant organic deposit growth we have been experiencing continues to be due primarily to new product development that has allowed the company to attract new customers and expand existing customer holdings. 

Stockholders’ Equity and Dividends
Tangible stockholders’ equity increased to $172.0 million at June 30, 2019, compared to $165.5 million at March 31, 2019, and $137.5 million at June 30, 2018.  On a per share basis, tangible stockholders’ equity at June 30, 2019, was $15.49 per share, compared to $14.90 per share at March 31, 2019, and $14.36 at June 30, 2018. 

Total stockholders’ equity increased 62.9% to $224.0 million at June 30, 2019, from $137.6 million at June 30, 2018, and increased 3.3% from $216.9 million at March 31, 2019.  At June 30, 2019, the company had a Tier 1 leverage ratio of 11.77%, compared to 12.38% at June 30, 2018.  The decline in the Tier 1 leverage ratio was primarily due to the added goodwill associated with the Limberlost acquisition. 

For the 2019 second quarter, the company declared cash dividends of $0.15 per share, which is a 7.1% increase over the 2018 second quarter declared dividend payment.  F&M is committed to returning capital to shareholders and has increased the annual cash dividend for over nine consecutive years. 

“Over the past year we have made significant investments across our organization to strengthen F&M’s platform and expand our leadership team, while remodeling our offices and providing our customers with new, market-leading financial products and services.  In addition, attracting, developing, and retaining our employees is an important component of our strategy and during the second quarter, we announced the addition of Benét Rupp as F&M’s Chief People Officer.  The investments we are making are focused on supporting the current and future needs of both F&M and our customers, and I am encouraged by our progress.  We are currently working on a three-year strategic plan, which will be the basis of our success in the future.  I remain excited by our near- and long-term potential and based on our strong year-to-date financial results, expect 2019 to be another record year for F&M,” concluded Mr. Eller. 

About Farmers & Merchants State Bank:
Farmers & Merchants Bancorp, Inc. (“F&M”) (Nasdaq: FMAO), is the holding company for the Farmers & Merchants State Bank, a local independent community bank with $1.5 billion in assets that has been serving Northwest Ohio and Northeast Indiana since 1897. The Farmers & Merchants State Bank provides commercial banking, retail banking and other financial services through its 30 offices. Our locations are in Fulton, Defiance, Hancock, Henry, Lucas, Williams, and Wood counties in Northwest Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay and Steuben counties.

Safe harbor statement
Farmers & Merchants Bancorp, Inc. (“F&M“) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions or capital market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Company Contact:	Investor and Media Contact
Marty Filogamo Senior Vice President – Marketing Manager Farmers & Merchants Bancorp, Inc. (419) 445-3501 ext. 15435 mfilogamo@fm.bank 	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(Unaudited) (in thousands of dollars, except per share data)
		Three  Months Ended																				Six Months Ended
		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				June 30, 2019				June 30, 2018
Interest Income
Loans, including fees		$	16,723			$	14,680			$	10,955			$	10,725			$	10,521			$	31,403			$	20,623
Debt securities:
U.S. Treasury and government agencies			816				713				630				613				612				1,529				1,235
Municipalities			211				211				250				275				289				422				570
Dividends			76				88				56				56				53				164				108
Federal funds sold and other			457				170				112				84				62				627				137
Total interest income			18,283				15,862				12,003				11,753				11,537				34,145				22,673
Interest Expense
Deposits			3,339				2,613				1,670				1,611				1,389				5,952				2,708
Federal funds purchased and securities sold
under agreements to repurchase			141				185				127				134				118				326				242
Borrowed funds			269				287				20				20				20				556				40
Total interest expense			3,749				3,085				1,817				1,765				1,527				6,834				2,990
Net Interest Income - Before Provision for Loan Losses			14,534				12,777				10,186				9,988				10,010				27,311				19,683
Provision for Loan Losses			133				30				105				47				132				163				172
Net Interest Income After Provision For Loan Losses			14,401				12,747				10,081				9,941				9,878				27,148				19,511
Noninterest Income
Customer service fees			1,694				1,578				1,612				1,392				1,465				3,272				2,931
Other service charges and fees			1,091				1,041				1,032				1,097				1,040				2,132				2,052
Net gain on sale of loans			196				102				140				184				301				298				433
Net gain (loss) on sale of available-for-sale securities			-				(26	)			(19	)			10				-				(26	)			-
Total noninterest income			2,981				2,695				2,765				2,683				2,806				5,676				5,416
Noninterest Expense
Salaries and wages			3,830				4,312				3,834				3,391				3,225				8,142				6,535
Employee benefits			1,223				1,594				1,102				1,029				848				2,817				1,984
Net occupancy expense			614				667				451				478				441				1,281				828
Furniture and equipment			763				696				450				588				565				1,459				1,072
Data processing			376				1,299				318				364				305				1,675				636
Franchise taxes			229				258				244				243				228				487				467
ATM expense			418				447				368				327				333				865				645
Advertising			382				260				218				236				247				642				433
Net (gain) loss on sale of other assets owned			28				15				27				1				(1	)			43				16
FDIC assessment			98				96				77				81				81				194				168
Mortgage servicing rights amortization			105				75				100				84				95				180				180
Consulting fees			95				113				461				179				178				208				288
Other general and administrative			1,551				1,679				1,167				1,125				1,093				3,230				2,026
Total noninterest expense			9,712				11,511				8,817				8,126				7,638				21,223				15,278
Income Before Income Taxes			7,670				3,931				4,029				4,498				5,046				11,601				9,649
Income Taxes			1,490				707				836				623				932				2,197				1,768
Net Income			6,180				3,224				3,193				3,875				4,114				9,404				7,881
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities			3,061				1,749				2,374				(617	)			(344	)			4,810				(2,815	)
Reclassification adjustment for (gain) loss on sale of available-for-sale securities			-				26				19				(10	)			-				26				-
Net unrealized gain (loss) on available-for-sale securities			3,061				1,775				2,393				(627	)			(344	)			4,836				(2,815	)
Tax expense (benefit)			643				373				503				(132	)			(72	)			1,016				(591	)
Other comprehensive income (loss)			2,418				1,402				1,890				(495	)			(272	)			3,820				(2,224	)
Comprehensive Income		$	8,598			$	4,626			$	5,083			$	3,380			$	3,842			$	13,224			$	5,657
Basic and Diluted Earnings Per Share		$	0.56			$	0.29			$	0.34			$	0.42			$	0.44			$	0.85			$	0.85
Dividends Declared		$	0.15			$	0.15			$	0.15			$	0.14			$	0.14			$	0.30			$	0.27

 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)
			June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018
			(Unaudited)
Assets
Cash and due from banks			$	108,085			$	48,740			$	37,492			$	28,782			$	31,838
Federal funds sold				15,193				33,109				873				939				726
	Total cash and cash equivalents			123,278				81,849				38,365				29,721				32,564
Interest-bearing time deposits				4,509				4,509				4,019				4,019				4,019
Securities - available-for-sale				204,415				174,682				168,447				183,075				187,036
Other securities, at cost				5,789				5,789				3,679				3,717				3,717
Loans held for sale				1,909				859				495				1,679				913
Loans, net				1,084,448				1,091,829				839,599				831,943				824,226
Premises and equipment				26,013				25,205				22,615				22,117				21,957
Goodwill				47,340				47,340				4,074				4,074				4,074
Mortgage servicing rights				2,465				2,397				2,385				2,373				2,356
Other real estate owned				329				510				600				717				649
Bank owned life insurance				15,050				14,963				14,884				14,799				14,692
Other assets				15,002				15,729				17,001				9,778				9,129
Total Assets			$	1,530,547			$	1,465,661			$	1,116,163			$	1,108,012			$	1,105,332
	Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing			$	242,510			$	236,847			$	215,422			$	197,088			$	200,067
Interest-bearing
	NOW accounts			430,505				418,773				298,254				314,873				311,185
	Savings			293,179				272,875				227,701				230,306				238,167
	Time			276,153				258,929				187,413				186,592				181,347
	Total deposits			1,242,347				1,187,424				928,790				928,859				930,766
Federal Funds Purchased and
securities sold under agreements to repurchase				27,102				25,521				32,181				27,026				23,898
Federal Home Loan Bank (FHLB) advances				24,532				24,682				-				5,000				5,000
Dividend payable				1,654				1,654				1,379				1,287				1,284
Accrued expenses and other liabilities				10,865				9,446				10,526				6,493				6,808
	Total liabilities			1,306,500				1,248,727				972,876				968,665				967,756
Commitments and Contingencies
Stockholders' Equity
Common stock - No par value 20,000,000 shares authorized; issued
and outstanding 12,230,000 shares 6/30/19, 10,400,000 shares 12/31/18				81,955				81,760				10,823				10,589				11,842
Treasury stock - 1,123,817 shares 6/30/19, 1,114,739 shares 12/31/18				(12,707	)			(12,680	)			(12,409	)			(12,409	)			(12,186	)
Retained earnings				153,993				149,466				147,887				146,072				142,330
Accumulated other comprehensive income (loss)				806				(1,612	)			(3,014	)			(4,905	)			(4,410	)
	Total stockholders' equity			224,047				216,934				143,287				139,347				137,576
Total Liabilities and Stockholders' Equity			$	1,530,547			$	1,465,661			$	1,116,163			$	1,108,012			$	1,105,332

 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA
		For the Three Months Ended																				For the Six Months Ended
Selected financial data		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				June 30, 2019				June 30, 2018
Return on average assets			1.63	%			1.00	%			1.15	%			1.40	%			1.48	%		1.32	%			1.41	%
Return on average equity			11.21	%			7.16	%			9.04	%			11.19	%			12.08	%		8.63	%			11.64	%
Yield on earning assets			5.25	%			4.80	%			4.52	%			4.52	%			4.41	%		5.03	%			4.35	%
Cost of interest bearing liabilities			1.45	%			1.26	%			0.92	%			0.92	%			0.79	%		1.36	%			0.78	%
Net interest spread			3.80	%			3.54	%			3.60	%			3.60	%			3.62	%		3.57	%			3.57	%
Net interest margin			4.18	%			3.87	%			3.85	%			3.85	%			3.83	%		3.78	%			3.78	%
Efficiency			56.00	%			73.11	%			67.59	%			63.86	%			60.89	%		64.09	%			60.55	%
Dividend payout ratio			26.78	%			42.77	%			43.16	%			33.21	%			31.21	%		32.26	%			31.43	%
Tangible book value per share (1)		$	15.49			$	14.90			$	14.96			$	14.53			$	14.36
Tier 1 capital to average assets			11.77	%			13.35	%			12.81	%			12.63	%			12.38	%
Loans		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018
(Dollar amounts in thousands)
Commercial real estate		$	443,257			$	440,993			$	419,784			$	417,217			$	411,509
Agricultural real estate			193,768				191,752				68,609				68,548				69,701
Consumer real estate			159,540				160,967				80,766				83,134				82,853
Commercial and industrial			125,609				137,949				121,793				119,536				116,351
Agricultural			113,755				112,898				108,495				103,624				104,830
Consumer			48,952				47,647				41,953				41,444				40,513
Industrial development bonds			7,341				7,392				5,889				6,005				6,071
Less: Net deferred loan fees and costs			(1,091	)			(1,133	)			(915	)			(810	)			(813	)
Total loans,net		$	1,091,131			$	1,098,465			$	846,374			$	838,698			$	831,015
Asset quality data		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018
(Dollar amounts in thousands)
Nonaccrual loans		$	1,328			$	1,188			$	542			$	483			$	903
Troubled debt restructuring		$	981			$	102			$	178			$	205			$	218
90 day past due and accruing		$	-			$	-			$	-			$	-			$	-
Nonperforming loans		$	1,328			$	1,188			$	542			$	483			$	903
Other real estate owned		$	329			$	510			$	600			$	717			$	649
Nonperforming assets		$	1,657			$	1,698			$	1,142			$	1,200			$	1,552
(Dollar amounts in thousands)
Allowance for loan and lease losses		$	6,964			$	6,636			$	6,755			$	6,755			$	7,104
Allowance for loan and lease losses/total loans			0.64	%			0.60	%			0.80	%			0.81	%			0.85	%
Net charge-offs:
Quarter-to-date		$	86			$	169			$	84			$	81			$	143
Year-to-date		$	255			$	169			$	417			$	332			$	251
Net charge-offs to average loans
Quarter-to-date			0.01	%			0.02	%			0.01	%			0.01	%			0.02	%
Year-to-date			0.02	%			0.02	%			0.05	%			0.04	%			0.03	%
Nonperforming loans/total loans			0.12	%			0.11	%			0.06	%			0.06	%			0.11	%
Allowance for loan and lease losses/nonperforming loans			375.51	%			558.92	%			1249.57	%			1399.58	%			751.49	%
(1)  Tangible Equity = Stockholder Equity less goodwill and other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities)

 

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
(in thousands of dollars, except per share data)
PRO-FORMA EARNINGS PER SHARE
		Pro-forma Three Months Ended								Pro-forma Six Months Ended
		June 30,				June 30,				June 30,				June 30,
			2019				2018				2019				2018
Earnings per share
Net income		$	6,149			$	6,787			$	10,402			$	11,589
Less: distributed earnings allocated to participating securities			(11	)			(13	)			(23	)			(25	)
Less: undistributed earnings allocated to participating securities			(33	)			(43	)			(52	)			(72	)
Net earnings available to common shareholders		$	6,105			$	6,731			$	10,327			$	11,492
Weighted average common shares outstanding including participating securities			11,106,367				11,095,898				11,098,149				11,095,928
Less: average unvested restricted shares			(77,304	)			(92,368	)			(80,343	)			(92,398	)
Weighted average common shares outstanding			11,029,063				11,003,530				11,017,806				11,003,530
Basic earnings and diluted per share		$	0.56			$	0.61			$	0.94			$	1.04

The results of operations of Bank of Geneva have been included in the Company’s consolidated financial statements since the acquisition date of January 1, 2019.  The following schedule includes pro-forma results for the three and six months ended June 30, 2019 and 2018 as if the Bank of Geneva acquisitions had occurred as of the beginning of the comparable prior reporting period.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)
		For the Three Months Ended									For the Three Months Ended
		June 30, 2019									June 30, 2018
Interest Earning Assets:		Average Balance			Interest/Dividends			Yield/Rate			Average Balance			Interest/Dividends			Yield/Rate
Loans		$	1,107,271		$	16,723		6.04	%		$	833,932		$	10,521		5.05	%
Taxable Investment Securities			169,776			933		2.20	%			149,284			707		1.89	%
Tax-exempt Investment Securities			33,622			170		2.56	%			50,663			247		2.47	%
Fed Funds Sold & Other			85,145			457		2.15	%			19,315			62		1.28	%
Total Interest Earning Assets			1,395,814			18,283		5.25	%			1,053,194			11,537		4.41	%
Nonearning Assets			117,185									61,343
Total Assets		$	1,512,999								$	1,114,537
Interest Bearing Liabilities:
Savings Deposits		$	718,731		$	2,006		1.12	%		$	558,826		$	835		0.60	%
Other Time Deposits			265,113			1,333		2.01	%			181,590			554		1.22	%
Other Borrowed Money			24,668			269		4.36	%			5,000			20		1.60	%
Fed Funds Purchased & Securities
Sold under Agreement to Repurch.			26,231			141		2.15	%			26,292			118		1.80	%
Total Interest Bearing Liabilities			1,034,743			3,749		1.45	%			771,708			1,527		0.79	%
Noninterest bearing Liabilities			257,765									206,602
Stockholders Equity		$	220,491								$	136,227
Net Interest Income and interest rate spread						14,534		3.80	%						10,010		3.62	%
Net Interest Margin								4.18	%								3.83	%
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts
		For the Six Months Ended									For the Six Months Ended
		June 30, 2019									June 30, 2018
Interest Earning Assets:		Average Balance			Interest/Dividends			Yield/Rate			Average Balance			Interest/Dividends			Yield/Rate
Loans		$	1,107,649		$	31,403		5.67	%		$	829,545		$	20,623		4.97	%
Taxable Investment Securities			160,830			1,775		2.21	%			150,464			1,426		1.90	%
Tax-exempt Investment Securities			34,067			340		2.53	%			50,245			487		2.45	%
Fed Funds Sold & Other			59,526			627		2.11	%			19,435			137		1.41	%
Total Interest Earning Assets			1,362,072			34,145		5.03	%			1,049,689			22,673		4.35	%
Nonearning Assets			59,609									65,358
Total Assets		$	1,421,681								$	1,115,047
Interest Bearing Liabilities:
Savings Deposits		$	695,302		$	3,533		1.02	%		$	555,181		$	1,576		0.57	%
Other Time Deposits			253,991			2,419		1.90	%			183,729			1,132		1.23	%
Other Borrowed Money			26,424			556		4.21	%			5,000			40		1.60	%
Fed Funds Purchased & Securities
Sold under Agreement to Repurch.			30,012			326		2.17	%			26,689			242		1.81	%
Total Interest Bearing Liabilities			1,005,729			6,834		1.36	%			770,599			2,990		0.78	%
Noninterest bearing Liabilities			198,042									208,991
Stockholders Equity		$	217,910								$	135,457
Net Interest Income and interest rate spread						27,311		3.67	%						19,683		3.57	%
Net Interest Margin								4.03	%								3.78	%
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts