Farmers & Merchants Bancorp Q2 pretax profit beats analyst estimates

Overview

• US community bank's preliminary Q2 pretax profit beat analyst expectations

• Preliminary Q2 net income rose 53% yr/yr to a record, with EPS at $0.86

• Profitability driven by net interest margin expansion and higher noninterest income

Outlook

• Company sees favorable business and economic trends across Ohio, Indiana, and Michigan markets

• Farmers Merchants Bancorp expects to build on earnings momentum under new three-year strategic plan

• Company believes it is positioned for sustained profitable growth and long-term value creation

Result Drivers

• NET INTEREST MARGIN EXPANSION - Co said higher net interest margin contributed to record profitability

• NONINTEREST INCOME - Strong levels of noninterest income supported earnings growth

• FUNDING COSTS - Improved cost of interest-bearing liabilities aided profitability

Company press release: ID:nGNX6XKqwY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Farmers Merchants Bancorp Inc is $29.00, about 6.3% below its July 24 closing price of $30.95

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 27 - First Farmers' Q2 profit rises on higher interest income, loan growth

• July 27 - Ohio Valley Banc Q2 net interest income rises on higher average earning assets

• July 27 - German American Bancorp Q2 net income rises 21% to record high

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)