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F FARMERS & MERCHANTS LM BANCORP , INC . Farmers & Merchants Bancorp , Inc. Reports 2021 Second - Quarter and Year - to - Date Financial Results July 21 , 2021 ARCHBOLD , Ohio , July 21 , 2021 ( GLOBE NEWSWIRE ) -- Farmers & Merchants Bancorp , Inc. ( Nasdaq : FMAO ) today reported financial results for the 2021 second quarter and year - to - date June 30 , 2021 . 2021 Second Quarter Financial and Operating Highlights ( compared to the 2020 second quarter period unless noted ) : • Net income increased 3.7 % to $ 5.0 million , and included one - time acquisition costs of $ 1.0 million • Earnings increased 2.3 % to $ 0.44 per basic and diluted share , and included one - time acquisition costs of $ 0.08 per basic and diluted share • Net interest income after provision for loan losses increased by 17.9 % to $ 15.3 million • Noninterest income increased 21.1 % to $ 4.0 million • Second quarter after - tax income benefited from $ 0.35 million of accelerated fees associated with the Paycheck Protection Program ( " PPP " ) • Loans have increased 3.9 % organically year - to - date , not including recent acquisitions or PPP loans • Net charge - offs to average loans were 0.00 % , compared to 0.01 % • Adjusted return on average tangible equity increased to 11.28 % from 9.98 % Completed the acquisition of Ossian Financial • • Announced the acquisition of Perpetual Federal Savings Bank · Appointed Frank R. Simon to the Board of Directors • Opened a new full - service office in Fort Wayne , IN " I am excited by the progress F & M is making as we continue to achieve strong execution across all of our key business strategies , while deepening customer relationships , expanding into new markets , and delivering robust operating and financial results , " stated Lars B. Eller , President and Chief Executive Officer . " In 2019 we created a strategic plan aimed at growing earnings and creating value for shareholders by increasing total assets from $ 1.6 billion to $ 3.0 billion by 2023. We expect earnings growth will accelerate in the coming quarters as we benefit from the progress we are making on executing our strategic growth plan . " On April 30 , 2021 , F & M successfully closed the acquisition of Ossian Financial Services , Inc ( " OFSI " ) . OFSI is F & M's third recent acquisition in Northeast Indiana and immediately enhances the Company's growing franchise within the state . The integration and conversion were completed during the second quarter , and OFSI's offices and online portal have transitioned to F & M . Also , in the 2021 second quarter , the Company announced the upcoming acquisition of Perpetual Federal Savings Bank ( " PFSB " ) , expanding F & M's community banking franchise into the compelling Urbana , Columbus , Dayton , Springfield , Piqua , Tipp City , Troy , and Sidney markets . The Company expects the PFSB acquisition to close in October 2021 . Mr. Eller continued , " Acquisition growth is an important component of our strategic growth plan and over the past 12 months we have announced two bank acquisitions and acquired an Indiana based wealth management company . Through the OFSI and PFSB acquisitions , we expect to add a combined $ 513 million in new assets and $ 413 million in new deposits . F & M will also see expense benefits as we re - align our footprint and add new customers to a single platform , which will help to contribute to earnings and allow us to further invest in technology to improve the experience for our customers and employees . " Mr. Eller continued , " Despite our recent growth and expansion , we remain committed to honoring the community banking values that are responsible for our accomplishments over the past 124 years and continue to drive our success today . As a result , F & M has continued to experience strong organic loan growth outside of PPP and acquired loans during the first half of 2021. Organic loans have increased 3.9 % year - to - date . In addition , our credit portfolio remains strong and 30+ days past due accounts as of June 30 , 2021 were 0.12 % , the lowest level since 2018. " Income Statement Net income for the 2021 second quarter ended June 30 , 2021 , was $ 5.0 million , compared to $ 4.8 million for the same period last year . Net income per basic and diluted share for the 2021 second quarter was $ 0.44 , compared to $ 0.43 for the same period last year . Net income for the 2021 first half ended June 30 , 2021 , was $ 9.9 million , compared to $ 8.9 million for the same period last year . Net income per basic and diluted share for the 2021 first half was $ 0.88 , compared to $ 0.80 for the same period last year . Net income for the 2021 second quarter and first half included one - time tax adjusted expenses of $ 0.8 million and $ 1.0 million , respectively . On a per share basis , for the 2021 second quarter and first half , net income included one - time tax adjusted expenses of $ 0.08 or $ 0.11 , respectively , per basic and diluted share . Mr. Eller continued , " F & M's larger size and expanded footprint have helped establish diversity within our revenue streams and insulated our earnings . For the 2021 first half , noninterest income as a percent of total revenue has increased to 20.8 % , compared to 15.7 % for the same period last year . In addition , during the 2021 first half , we have incurred several one - time costs due to our strategic growth focus , which has reduced the level of profitability we are accustomed to seeing . However , we expect to realize significant long - term benefits from our strategies and we believe we will experience an acceleration in profitability in the coming quarters . " Deposits