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First Farmers and Merchants Corporation Reports Third Quarter Results

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First Farmers and Merchants (FFMH) reported strong third quarter 2024 results with net income rising 18.4% to $4.0 million and earnings per share increasing 22.8% to $0.97. The company's book value jumped 50.6% to $35.56 per share. Net interest income grew 13.5% to $11.4 million, while net interest margin improved for the third consecutive quarter to 2.55%. The Board increased quarterly cash dividend by 12.5% to $0.27 per share. The company reported its lowest level of nonperforming assets in over a year, with improved efficiency at 66.36%.

First Farmers and Merchants (FFMH) ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto che è aumentato del 18,4% a 4,0 milioni di dollari e un utile per azione che è salito del 22,8% a 0,97 dollari. Il valore contabile dell'azienda è aumentato del 50,6% a 35,56 dollari per azione. I proventi netti da interessi sono cresciuti del 13,5% a 11,4 milioni di dollari, mentre il margine di interesse netto è migliorato per il terzo trimestre consecutivo, arrivando al 2,55%. Il Consiglio ha aumentato il dividendo in contante trimestrale del 12,5% a 0,27 dollari per azione. L'azienda ha riportato il suo livello più basso di prestiti non performanti in oltre un anno, con un'efficienza migliorata al 66,36%.

First Farmers and Merchants (FFMH) reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto que aumentó un 18.4% a 4.0 millones de dólares y ganancias por acción que crecieron un 22.8% a 0.97 dólares. El valor en libros de la compañía saltó un 50.6% a 35.56 dólares por acción. Los ingresos netos por intereses crecieron un 13.5% a 11.4 millones de dólares, mientras que el margen de interés neto mejoró por tercer trimestre consecutivo al 2.55%. La Junta aumentó el dividendo en efectivo trimestral en un 12.5% a 0.27 dólares por acción. La compañía reportó su nivel más bajo de activos no productivos en más de un año, con una eficiencia mejorada del 66.36%.

퍼스트 파머스 앤 머천츠 (FFMH)는 2024년 3분기 강력한 실적을 보고하며, 순이익이 18.4% 증가하여 400만 달러에 달하고 주당 순이익이 22.8% 증가하여 0.97달러에 이르렀습니다. 회사의 장부 가치는 50.6% 증가하여 주당 35.56달러가 되었습니다. 순이자 수익은 13.5% 증가하여 1140만 달러에 이르렀고, 순이자 마진은 3분기 연속 개선되어 2.55%에 도달했습니다. 이사회는 분기별 현금 배당금을 12.5% 증가시켜 주당 0.27달러로 결정했습니다. 회사는 1년 이상 만에 최저 수준의 비수익 자산을 보고하며, 효율성도 66.36%로 향상되었습니다.

First Farmers and Merchants (FFMH) a annoncé de solides résultats pour le troisième trimestre 2024, avec un revenu net en hausse de 18,4 % à 4,0 millions de dollars et un bénéfice par action en augmentation de 22,8 % à 0,97 dollar. La valeur comptable de l'entreprise a bondi de 50,6 % à 35,56 dollars par action. Le produit net d'intérêts a augmenté de 13,5 % pour atteindre 11,4 millions de dollars, tandis que la marge nette d'intérêts s'est améliorée pour le troisième trimestre consécutif, atteignant 2,55 %. Le Conseil d'administration a augmenté le dividende en espèces trimestriel de 12,5 % à 0,27 dollar par action. L'entreprise a signalé son niveau le plus bas d'actifs non performants depuis plus d'un an, avec une efficacité améliorée à 66,36 %.

First Farmers and Merchants (FFMH) hat für das dritte Quartal 2024 starke Ergebnisse gemeldet, mit einem Anstieg des Nettogewinns um 18,4% auf 4,0 Millionen Dollar und einem Anstieg des Gewinns pro Aktie um 22,8% auf 0,97 Dollar. Der Buchwert des Unternehmens sprang um 50,6% auf 35,56 Dollar pro Aktie. Der Nettozinsertrag wuchs um 13,5% auf 11,4 Millionen Dollar, während die Nettozinsspanne im dritten Quartal in Folge auf 2,55% verbessert wurde. Der Vorstand erhöhte die vierteljährliche Barausschüttung um 12,5% auf 0,27 Dollar pro Aktie. Das Unternehmen meldete den niedrigsten Stand an notleidenden Krediten seit über einem Jahr, mit einer verbesserten Effizienz von 66,36%.

Positive
  • Net income increased 18.4% to $4.0 million YoY
  • EPS grew 22.8% to $0.97
  • Book value per share rose 50.6% to $35.56
  • Net interest income up 13.5% to $11.4 million
  • Quarterly dividend increased 12.5% to $0.27 per share
  • Efficiency improved to 66.36% from 69.17% YoY
  • Nonperforming assets decreased to 0.05% of total assets
Negative
  • Nine-month net income declined 9.9% to $11.2 million
  • Total deposits decreased 4.2% YoY
  • Loan balances decreased 2.2% from previous quarter
  • Nine-month adjusted net income down 14.6% YoY

Net Income Rises 18% to $4 Million

Book Value Increases 51% to $35.56 per Share

COLUMBIA, Tenn.--(BUSINESS WIRE)-- First Farmers and Merchants Corporation (OTC Pink: FFMH), the holding company for First Farmers and Merchants Bank, today announced growth in net income, net interest income, net interest margin and book value per share for the third quarter of 2024.

“We had a strong third quarter with our best earnings performance this year,” stated Brian K. Williams, Chairman and Chief Executive Officer of First Farmers. “Net income rose 18.4% to $4.0 million and earnings per share increased 22.8% to $0.97. Our book value also jumped 50.6% to $35.56 per share. These solid results benefited from the continued net interest margin expansion we have been experiencing over the past three quarters.

“The Board of Directors recently increased our quarterly cash dividend by 12.5% to $0.27 per share highlighting our favorable earnings results, our strong capital position and positive outlook for First Farmers’ future performance. We have positioned our balance sheet to enhance earnings as interest rates decline, and we are optimistic about continued earnings growth in the coming quarters.

“Additionally, robust risk management practices and well-managed concentration levels continue to deliver strong asset quality, as this quarter marked the lowest level of nonperforming assets in over a year.”

Key highlights of First Farmers’ results for the third quarter of 2024 include:

  • Net income rose 18.4% to $4.0 million from $3.3 million for the third quarter of 2023. Net income per common share increased 22.8% to $0.97 from $0.79 in the third quarter of 2023. Net income increased 4.2% from $3.8 million, or $0.92, per common share, reported in the second quarter of 2024;
  • Adjusted net income, which excludes special items, increased 17.9% to $3.9 million, or $0.97 per common share, compared with $3.3 million, or $0.79 per common share, for the third quarter of 2023. Third quarter adjusted net income improved 5.8% from $3.7 million, or $0.90 per common share, reported in the second quarter of 2024 (see “Non-GAAP Financial Measures” section);
  • Net interest income increased 13.5% to $11.4 million from $10.0 million for the third quarter of 2023 and was up 3.7% from $11.0 million from the second quarter of 2024;
  • Net interest margin improved for the third consecutive quarter to 2.55%;
  • Efficiency improved to 66.36% compared to 69.17% from the third quarter of 2023 and 67.36% from the second quarter of 2024; and
  • Book value per share increased 50.6% to $35.56 from $23.61 from the third quarter of 2023 and increased 15.9% from $30.68 for the second quarter of 2024.

Robert E. Krimmel, Chief Financial Officer, added, “Our third quarter marked the third consecutive quarterly improvement in our net interest margin. We benefited from an increase in loan yields outpacing the increase in the total cost of interest-bearing liabilities. We are pleased with the stability of our core deposit base and took advantage of the lower interest rate environment to pay down Federal Reserve Bank Term Funding Program borrowings with lower cost brokered deposits. Our success in repositioning First Farmers’ balance sheet over the past year was a strong contributor to our third quarter’s earnings growth and will benefit the trajectory of earnings in the fourth quarter and beyond as rates decline.

“We remain focused on improving our operating efficiency while enhancing customer service and support. We posted our third consecutive improvement in our operating efficiency this year and believe we have further opportunities to enhance operations. We continue to upgrade our digital banking and lending technology platforms. We have also added new team members in mortgage operations and treasury management to expand our growth opportunities.

“First Farmers’ capital position remains strong and continues to benefit from lower market interest rates that are reducing the impact from the fair value adjustment of our investment portfolio. Our book value per share rose for the fourth consecutive quarter and was up 50.6% from the third quarter of last year, the highest level in book value per share since the fourth quarter of 2021.”

Third Quarter 2024 Results of Operations

Net income increased to $4.0 million, up $613,000, or 18.4% from the third quarter of 2023. Net income per share increased 21.8% to $0.97 for the third quarter of 2024 compared with $0.79 for the third quarter of 2023. The increase in earnings for the third quarter of 2024 resulted from an increase in net interest income of $1.4 million driven by growth in interest and fees on loans of $2.3 million, up 15.2%, that was offset in part by an increase in total interest expense of $958,000. Net interest income after provision increased for the fourth consecutive quarter to $11.4 million, up 13.5%, compared to the third quarter of 2023. Non-interest income declined, offsetting the increase in net interest income by $69,000 due to a decrease in service fees on deposit accounts of $102,000 and lower FHLB cash dividends of $100,000 for the third quarter of 2024, offset in part by an increase in wealth management and trust services fee income of $77,000. Non-interest expense grew $487,000 for the third quarter of 2024 driven by increases in employee health insurance expense of $179,000, recruitment and placement services expense of $111,000, software support and other computer expense of $87,000, and FDIC insurance premium expense of $67,000 compared to the third quarter of 2023.

Net income for the third quarter of 2024 was up from the sequential second quarter by $161,000, or 4.2%. The increase in earnings was due to growth in net interest income of $404,000 driven by interest and fees on loans offset in part by higher interest on deposits. During the quarter, the net interest margin increased for the third consecutive quarter by seven basis points supported by growth in loan yields of six basis points and investment yields of four basis points offset in part by higher total cost of interest-bearing liabilities of three basis points. Provision for credit losses declined $60,000 for the third quarter of 2024 compared to the sequential second quarter driven by lower loan balances. Non-interest income decreased $95,000 driven by lower service fees on deposit accounts of $56,000 and a decline in gain on disposal of premises and equipment of $47,000 compared to the sequential second quarter. Non-interest expense increased $194,000 because of recruitment and placement services expense of $111,000, higher software support and other computer expense of $62,000, and growth in FDIC insurance premium expense of $33,000.

For the third quarter of 2024, total cash and cash equivalents increased $42 million from the sequential second quarter and increased $41 million from the third quarter of 2023. Available-for-sale securities decreased by $11 million from the sequential second quarter to $634 million, or 34.2% of total assets, and decreased $63 million from $697 million, or 37.3% of total assets, from the third quarter of 2023. Outstanding loan balances decreased $23 million, or 2.2%, from the sequential second quarter to $1.031 billion but increased $27 million, or 2.7%, from the third quarter of 2023. During the third quarter of 2024, loan balances declined because the bank remains focused on a disciplined lending strategy to manage credit risks by limiting total loans in certain market segments while maintaining overall loan quality criteria. Total deposits increased $80 million, or 5.2%, from the sequential second quarter to $1.604 billion, but decreased $71 million, or 4.2%, from the third quarter of 2023. The increase in total deposits compared to the sequential second quarter was related to growth in brokered deposits of $82 million and core deposits of $38 million offset in part by a reduction in municipal deposits of $25 million and other non-core deposits of $15 million. The growth in brokered deposits and core deposits during the third quarter of 2024 was used to reduce Federal Reserve Bank Term Funding Program borrowings by $88 million compared to the sequential second quarter. The reduction in total deposits compared to the third quarter of 2023 was primarily driven by decreases in municipal deposits of $61 million, brokered deposits of $41 million, and other non-core deposits of $7 million offset in part by an increase in core deposits of $38 million.

For the third quarter of 2024, total shareholders’ equity increased by $19.3 million from the sequential second quarter to $145.0 million and increased $46.3 million from the third quarter of 2023. The increase in total shareholders’ equity from the sequential second quarter was primarily the result of a decrease in the unrealized loss adjustment to the available-for-sale securities portfolio that totaled $17.1 million, net of tax, and growth in retained earnings of $2.2 million, net of stock repurchases and cash dividends. The increase in total shareholders’ equity from the third quarter of 2023 primarily resulted from a decrease in the unrealized loss adjustment to the available-for-sale securities portfolio that totaled $38.8 million, net of tax, and growth in retained earnings of $7.7 million, net of stock repurchases and cash dividends. The reduction in the fair value loss adjustment of the available-for-sale securities portfolio’s impact to shareholders’ equity was driven by a smaller securities portfolio and a decrease in market interest rates. The book value per share improved 15.9% from the sequential second quarter to $35.56 and increased 50.6% compared to the third quarter of 2023.

Nine Months Results

Net income available to common shareholders was $11.2 million for the first nine months of 2024, down 9.9% compared with $12.4 million in the first nine months of 2023. Net income per share declined 7.3% to $2.70 for the first nine months of 2024 compared with $2.92 for the same period in 2023. The decline in earnings was driven by a decrease in net interest income of $1.4 million, an increase in provision for credit losses of $385,000, and higher non-interest expense of $699,000, offset in part by an increase in non-interest income of $920,000 compared to the same period in 2023. Adjusted net income was $11.0 million for the first nine months of 2024, down 14.6% compared with $12.9 million in the first nine months of 2023. Adjusted net income per share declined 12.1% to $2.66 for the first nine months of 2024 compared with $3.03 for the same period in 2023.

The decline in adjusted net income for the first nine months of 2024 was due to a decrease in net interest income of $1.4 million driven by growth in total interest expense of $8 million, an increase of 77.7%, that was offset in part by an increase in interest and fees on loans of $6.7 million compared to the same period in 2023. Provision for credit losses increased by $385,000 driven by a provision credit of $260,000 recorded in 2023 and provision expense of $125,000 recorded in 2024 for loan growth. The increase in non-interest income of $920,000 was attributable to gain on equity securities of $442,000, lower losses on the sale of available-for-sale securities of $291,000, revenue growth from wealth management and trust services fees of $237,000, and gain on disposal of premises and equipment of $142,000, offset in part by a decrease in service fees on deposit accounts of $219,000 compared to the first nine months of 2023. The increase in non-interest expense of $699,000 was due to higher health insurance expense of $337,000, software support and other computer expense of $223,000, data processing expense of $192,000, and recruitment and placement services expense of $111,000, offset in part by a decline in net occupancy expense of $184,000 compared to the first nine months of 2023.

Asset Quality

Nonperforming assets declined to $852,000, or 0.05% of total assets, down from $863,000, or 0.05% of total assets, from the sequential second quarter and down from $3.1 million, or 0.17% of total assets, from the third quarter of 2023. Net charge-offs to average loans were 0.01% for the third quarter of 2024 compared with net charge-offs of 0.00% for the sequential quarter and net charge-offs of 0.00% for the third quarter of 2023. Provision expense of less than $1,000 was recorded to the allowance for credit losses during the third quarter of 2024 compared to provision for credit losses expense of $60,000 for the sequential second quarter and no provision for credit losses expense for the third quarter of 2023. The allowance for credit losses represented 0.78% of total loans outstanding for the third quarter of 2024 compared with 0.77% for the sequential second quarter and 0.78% for the third quarter of 2023. The allowance for credit losses for unfunded commitments declined to $605,000, or 0.20% of total unfunded commitments, for the third quarter of 2024 compared with 0.21% for the sequential second quarter and 0.29% for the third quarter of 2023. The allowance for credit losses for held-to-maturity (“HTM”) securities represented 0.06% of total HTM securities for the third quarter of 2024 compared with 0.06% for the sequential second quarter and 0.06% for the third quarter of 2023.

Capital Management Initiatives

During the third quarter of 2024, First Farmers repurchased 22,500 shares of the Company’s common stock in the open market and through privately negotiated transactions at an average price of $31.00 per share, with prices ranging from $28.00 to $34.03 per share in accordance with the Company’s stock repurchase program. The third quarter of 2024 stock repurchases represented a 59.1% decrease compared to the sequential second quarter and a 49.9% decrease compared to the third quarter of 2023. Authorization to repurchase approximately 97,500 shares remains in the current program, which is set to expire in December 2024, unless extended or otherwise completed.

About First Farmers and Merchants Corporation and First Farmers and Merchants Bank

First Farmers and Merchants Corporation is the holding company for First Farmers and Merchants Bank, a community bank serving the Middle Tennessee area through 22 offices in seven Middle Tennessee counties. As of September 30, 2024, First Farmers reported total assets of approximately $1.9 billion, total shareholders’ equity of approximately $145 million, and administered trust assets of $6.2 billion. For more information about First Farmers, visit us on the Web at www.myfirstfarmers.com under “Investor Relations.”

Cautionary Note Regarding Forward Looking Statements

This news release may contain certain “forward-looking statements” that represent First Farmers’ expectations or beliefs concerning future events and often use words or phrases such as “opportunities,” “prospects,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions. Such forward-looking statements contained herein represent the current expectations, plans or forecast of First Farmers and are about matters that are inherently subject to risks and uncertainties. These statements are not guarantees of future results or performance and readers are cautioned not to place undue reliance on them, whether included in this news release or made elsewhere from time to time by First Farmers or on its behalf. First Farmers disclaims any obligation to update such forward-looking statements.

Non-GAAP Financial Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. First Farmers management uses non-GAAP financial measures, including: (i) adjusted net income and (ii) adjusted basic earnings per share, in its analysis of the Company’s performance. These non-GAAP financial measures exclude the following from net income: securities gains and losses, gain on redemption of bank-owned life insurance, gain on disposal of premises and equipment, and the income tax effect of adjustments. Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES PRESENTED IN EARNINGS RELEASE

(Dollars in thousands, except per share data)

       

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2024

 

2023

Total non-interest income

 

$

3,428

 

 

$

3,497

 

 

$

3,523

 

 

$

10,434

 

 

$

9,514

 

Loss on sale of securities

 

 

26

 

 

 

-

 

 

 

-

 

 

 

26

 

 

 

317

 

(Gain) loss on equity securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(91

)

 

 

351

 

Gain on redemption of bank-owned life insurance

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

(2

)

 

 

-

 

Gain on disposal of premises and equipment

 

 

(51

)

 

 

(3

)

 

 

(98

)

 

 

(149

)

 

 

(7

)

Adjusted non-interest income

 

$

3,403

 

 

$

3,494

 

 

$

3,423

 

 

$

10,218

 

 

$

10,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

$

9,974

 

 

$

9,487

 

 

$

9,780

 

 

$

29,607

 

 

$

28,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income as reported

 

$

3,951

 

 

$

3,338

 

 

$

3,790

 

 

$

11,160

 

 

$

12,390

 

Total adjustments, net of tax1

 

 

(18

)

 

 

(2

)

 

 

(74

)

 

 

(160

)

 

 

490

 

Adjusted net income

 

$

3,933

 

 

$

3,336

 

 

$

3,716

 

 

$

11,000

 

 

$

12,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.97

 

 

$

0.79

 

 

$

0.92

 

 

$

2.70

 

 

$

2.92

 

Total adjustments, net of tax1

 

 

-

 

 

 

-

 

 

 

(0.02

)

 

 

(0.04

)

 

 

0.11

 

Adjusted basic earnings per share

 

$

0.97

 

 

$

0.79

 

 

$

0.90

 

 

$

2.66

 

 

$

3.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.96

 

 

$

0.79

 

 

$

0.92

 

 

$

2.70

 

 

$

2.92

 

Total adjustments, net of tax1

 

 

-

 

 

 

-

 

 

 

(0.02

)

 

 

(0.04

)

 

 

0.11

 

Adjusted diluted earnings per share

 

$

0.96

 

 

$

0.79

 

 

$

0.90

 

 

$

2.66

 

 

$

3.03

 

     

(1) The effective tax rate of 26.1% is used to determine net of tax amounts.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

   

 

 

 

 

(unaudited)

 

 

 

September 30,

December 31,

 

 

(dollars in thousands, except per share data)

 

2024

 

2023(1)

ASSETS

 

Cash and due from banks

 

$

26,299

 

$

22,654

 

Interest-bearing deposits

 

44,770

 

2,689

 

Federal funds sold

 

31

 

117

 

Total cash and cash equivalents

 

71,100

 

25,460

 

Securities:

 

 

 

Available-for-sale

 

633,734

 

692,763

 

Held-to-maturity (fair market value $15,246 and $14,394)

 

15,860

 

15,038

 

 

 

Equity securities

 

2,214

 

 

2,123

 

Loans held-for-sale

 

165

 

470

 

Loans, net of deferred fees

 

1,031,098

 

1,018,866

 

Allowance for credit losses

 

(8,049

)

(7,666

)

Net loans

 

1,023,049

 

1,011,200

 

Bank premises and equipment, net

 

29,362

 

30,208

 

Bank-owned life insurance

 

36,491

 

34,602

 

Goodwill

 

9,018

 

9,018

 

 

 

Deferred tax asset

 

19,214

 

 

24,862

 

Other assets

 

14,584

 

25,859

 

 

 

TOTAL ASSETS

 

$

1,854,791

 

 

$

1,871,603

 

LIABILITIES

 

Deposits:

 

 

Noninterest-bearing

 

$

463,688

 

$

463,858

 

Interest-bearing

 

1,139,984

 

1,154,706

 

Total deposits

 

1,603,672

 

1,618,564

 

 

 

Accounts payable and accrued liabilities

 

26,167

 

 

24,798

 

 

 

FRB Bank Term Funding Program borrowings

 

80,000

 

 

104,000

 

 

 

TOTAL LIABILITIES

 

1,709,839

 

 

1,747,362

 

 

 

 

 

 

 

SHAREHOLDERS’

EQUITY

 

Common stock - $10 par value per share, 8,000,000 shares authorized; 4,071,602 and 4,174,142 shares issued and outstanding as of the periods presented

 

40,716

 

 

41,741

 

 

 

Additional paid-in capital

 

61

 

 

-

 

Retained earnings

 

149,297

 

143,249

 

Accumulated other comprehensive loss

 

(45,217

)

(60,844

)

 

Total shareholders’ equity attributable to First Farmers and Merchants Corporation

 

144,857

124,146

 

Noncontrolling interest - preferred stock of subsidiary

 

95

 

95

 

TOTAL SHAREHOLDERS’ EQUITY

 

144,952

 

124,241

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,854,791

 

 

$

1,871,603

 

 

(1) Derived from audited financial statements as of December 31, 2023.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

 

Three Months Ended

 

Nine Months Ended

September 30,

September 30,

 

 

(dollars in thousands, except per share data)

 

2024

 

2023

 

2024

 

2023

INTEREST AND

Interest and fees on loans

$

14,467

 

 

$

12,417

 

 

$

42,517

 

 

$

35,826

 

DIVIDEND

Income on investment securities

 

 

 

 

INCOME

Taxable interest

2,073

 

 

2,291

 

 

6,374

 

 

7,107

 

Exempt from federal income tax

462

 

 

442

 

 

1,331

 

 

1,353

 

Interest from federal funds sold and other

548

 

 

90

 

 

1,084

 

 

375

 

 

Total interest income

17,550

 

 

15,240

 

 

51,306

 

 

44,661

 

INTEREST

Interest on deposits

4,325

 

 

4,568

 

 

12,625

 

 

9,308

 

EXPENSE

Interest on borrowings

1,870

 

 

669

 

 

5,763

 

 

1,041

 

Total interest expense

6,195

 

 

5,237

 

 

18,388

 

 

10,349

 

Net interest income

11,355

 

 

10,003

 

 

32,918

 

 

34,312

 

Provision (credit) for credit losses

-

 

 

-

 

 

125

 

 

(260

)

 

Net interest income after provision

11,355

 

 

10,003

 

 

32,793

 

 

34,572

 

NON-INTEREST

Mortgage banking activities

45

 

 

26

 

 

122

 

 

101

 

INCOME

Wealth management and trust services fees

1,180

 

 

1,103

 

 

3,504

 

 

3,267

 

 

Service fees on deposit accounts

1,715

 

 

1,817

 

 

5,170

 

 

5,389

 

Investment services fee income

77

 

 

90

 

 

292

 

 

279

 

Earnings on bank-owned life insurance

177

 

 

158

 

 

489

 

 

402

 

Loss on sale of available-for-sale securities

(26

)

 

-

 

 

(26

)

 

(317

)

 

Gain on disposal of premises and equipment

51

 

 

3

 

 

149

 

 

7

 

 

Gain (loss) on equity securities

-

 

 

-

 

 

91

 

 

(351

)

Other non-interest income

209

 

 

300

 

 

643

 

 

737

 

 

Total non-interest income

3,428

 

 

3,497

 

 

10,434

 

 

9,514

 

NON-INTEREST

Salaries and employee benefits

5,689

 

 

5,288

 

 

16,911

 

 

16,245

 

EXPENSE

Net occupancy expense

599

 

 

632

 

 

1,759

 

 

1,943

 

Depreciation expense

410

 

 

407

 

 

1,221

 

 

1,229

 

Data processing expense

583

 

 

536

 

 

1,727

 

 

1,535

 

 

Software support and other computer expense

1,173

 

 

1,086

 

 

3,379

 

 

3,156

 

Legal and professional fees

180

 

 

202

 

 

588

 

 

643

 

Audits and exams expense

173

 

 

158

 

 

532

 

 

525

 

Advertising and promotions

212

 

 

255

 

 

622

 

 

749

 

FDIC insurance premium expense

255

 

 

188

 

 

695

 

 

681

 

Other non-interest expense

700

 

 

735

 

 

2,173

 

 

2,202

 

Total non-interest expense

9,974

 

 

9,487

 

 

29,607

 

 

28,908

 

Income before provision for income taxes

4,809

 

 

4,013

 

 

13,620

 

 

15,178

 

 

Provision for income taxes

858

 

 

675

 

 

2,452

 

 

2,780

 

Net income

3,951

 

 

3,338

 

 

11,168

 

 

12,398

 

Noncontrolling interest - dividends on preferred stock subsidiary

-

 

 

-

 

 

8

 

 

8

 

 

Net income available to common shareholders

$

3,951

 

 

$

3,338

 

 

$

11,160

 

 

$

12,390

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

4,087,043

 

 

4,206,805

 

 

4,126,960

 

 

4,246,412

 

 

Weighted average shares outstanding - diluted

4,099,707

 

 

4,206,805

 

 

4,139,624

 

 

4,246,412

 

 

Earnings per share

$

0.97

 

 

$

0.79

 

 

$

2.70

 

 

$

2.92

 

 

Diluted earnings per share

$

0.96

 

$

0.79

$

2.70

 

$

2.92

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL HIGHLIGHTS

(unaudited)

   
 

For the Three Months Ended

(dollars in thousands, except per share data)

 

September 30,
2024

 

June 30,
2024

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

Results of Operations:

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

17,550

 

 

$

16,975

 

 

$

16,781

 

 

$

16,091

 

 

$

15,240

 

Interest expense

 

6,195

 

 

6,024

 

 

6,169

 

 

6,048

 

 

5,237

 

Net interest income

 

11,355

 

 

10,951

 

 

10,612

 

 

10,043

 

 

10,003

 

Provision (credit) for credit losses

 

-

 

 

60

 

 

65

 

 

(230

)

 

-

 

Non-interest income

 

3,428

 

 

3,523

 

 

3,483

 

 

3,685

 

 

3,497

 

Non-interest expense and non-controlling interest – preferred stock of subsidiary

 

9,974

 

 

9,788

 

 

 

9,853

 

 

 

 

9,677

 

 

 

 

9,487

 

 

Income before income taxes

 

4,809

 

 

4,626

 

 

4,177

 

 

4,281

 

 

4,013

 

Income taxes

 

858

 

 

836

 

 

758

 

 

622

 

 

675

 

Net income for common shareholders

 

$

3,951

 

 

$

3,790

 

 

$

3,419

 

 

$

3,659

 

 

$

3,338

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.97

 

 

$

0.92

 

 

$

0.82

 

 

$

0.88

 

 

$

0.79

 

Diluted earnings per share

 

$

0.96

 

 

$

0.92

 

 

$

0.82

 

 

$

0.88

 

 

$

0.79

 

Book value per share

 

$

35.56

 

 

$

30.68

 

 

$

29.92

 

 

$

29.74

 

 

$

23.61

 

Weighted average shares outstanding per quarter - basic

 

4,087,043

 

 

4,127,442

 

 

4,166,834

 

 

4,174,283

 

 

4,206,805

 

Weighted average shares outstanding per quarter - diluted

 

4,099,707

 

 

4,140,106

 

 

4,177,909

 

 

4,175,998

 

 

4,206,805

 

Financial Condition Data and Ratios:

 

 

 

 

 

 

 

 

 

 

Total securities

 

$

651,808

 

 

$

662,834

 

 

$

686,795

 

 

$

709,924

 

 

$

713,707

 

Available-for-sale securities, fair market value

 

$

633,734

 

 

$

644,451

 

 

$

669,552

 

 

$

692,763

 

 

$

696,505

 

Available-for-sale securities, amortized cost

 

$

695,808

 

 

$

729,602

 

 

$

755,162

 

 

$

776,078

 

 

$

810,959

 

Loans, net of deferred fees

 

$

1,031,098

 

 

$

1,053,814

 

 

$

1,017,677

 

 

$

1,018,866

 

 

$

1,004,066

 

Allowance for credit losses

 

$

(8,049

)

 

$

(8,064

)

 

$

(7,803

)

 

$

(7,666

)

 

$

(7,871

)

Total assets

 

$

1,854,791

 

 

$

1,854,337

 

 

$

1,884,126

 

 

$

1,871,603

 

 

$

1,868,540

 

Total deposits

 

$

1,603,672

 

 

$

1,524,077

 

 

$

1,567,083

 

 

$

1,618,564

 

 

$

1,674,673

 

Net interest income, on a fully taxable-equivalent basis

 

$

11,612

 

 

$

11,188

 

 

$

10,834

 

 

$

10,268

 

 

$

10,223

 

Net interest margin

 

2.55

%

 

2.48

%

 

2.39

%

 

2.21

%

 

2.22

%

Efficiency

 

66.36

%

 

67.37

%

 

69.72

%

 

67.56

%

 

69.17

%

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data and Ratios:

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

852

 

 

$

863

 

 

$

945

 

 

$

1,407

 

 

$

3,109

 

Nonperforming assets to total assets

 

0.05

%

 

0.05

%

 

0.05

%

 

0.08

%

 

0.17

%

Allowance for credit losses to total loans

 

0.78

%

 

0.77

%

 

0.77

%

 

0.75

%

 

0.78

%

Net charge-offs to average loans (annualized)

 

0.01

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

Robert E. Krimmel

Chief Financial Officer

(931) 380-8257

Source: First Farmers and Merchants Corporation

FAQ

What was FFMH's net income for Q3 2024?

FFMH reported net income of $4.0 million for Q3 2024, an 18.4% increase from $3.3 million in Q3 2023.

How much did FFMH's book value per share increase in Q3 2024?

FFMH's book value per share increased 50.6% to $35.56 from $23.61 in Q3 2023.

What was FFMH's net interest margin in Q3 2024?

FFMH's net interest margin improved to 2.55% in Q3 2024, marking the third consecutive quarterly improvement.

How did FFMH's dividend change in Q3 2024?

FFMH increased its quarterly cash dividend by 12.5% to $0.27 per share.

FIRST FMRS & MERCHANTS CO

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