Farmers & Merchants Bancorp, Inc. ( FMAO Quick Quote FMAO - Free Report) announced the acquisition of the assets and clients of Adams County Financial Resources. The terms of the deal were not disclosed. The company carried out the acquisition through its subsidiary, FM Investment Services.
Following the development, shares of Farmers & Merchants declined marginally.
The Geneva, IN-based Adams County Financial is a registered investment advisory firm, which provides personalized investment planning services. The company's business comes primarily from the Northeastern Indiana region, where it has a loyal customer base with a typical one staying with the company for 15 years on average. Further, as of Nov 30, 2020, it had roughly $83 million of assets under management and more than 450 clients.
R. Lee Flueckiger, the founder of Adams County Financial, who now joined FM Investment Services, said, "By partnering with FM Investment Services, Adams County Financial Resources is able to offer continued stability while introducing additional value-added services to our clients. F&M’s growing presence in Eastern Indiana is exciting and I look forward to working with the team at FM Investment Services."
Lars B. Eller, president and CEO of Farmers & Merchants, said “Diversifying our sources of revenue is an important part of our growth strategy. ACFR significantly increases the scale of FM Investment Services, while further expanding our presence in Northeastern Indiana. We expect the purchase will contribute over $500,000 of revenue to noninterest income in 2021.”
The acquisition of Adams County Financial will fortify Farmers & Merchants' presence in Northeastern Indiana and will enable it to cater to clients in the region in a more efficient manner.
In the past year, shares of Farmers & Merchants have lost 13.5% compared with the 15.9% decline of the
industry it belongs to.
Currently, the company carries a Zacks Rank #3 (Hold).You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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