Farmers and Merchants Bancshares, Inc. Reports Earnings of $2,298,496 or $0.74 per Share for the Six Months Ended June 30, 2024
Farmers and Merchants Bancshares, Inc. (FMFG) reported net income of $2,298,496, or $0.74 per share, for the six months ended June 30, 2024, compared to $3,570,968, or $1.16 per share, for the same period in 2023. The decline in net income was primarily due to higher interest expenses resulting from Federal Reserve rate increases. The company's return on average equity decreased to 8.81% from 14.34%, and return on average assets fell to 0.58% from 0.99%. Net interest income decreased by $620,275, with the net interest margin declining to 2.70% from 3.09%. Despite challenges, loan portfolio growth was significant, and the company maintains a strong liquidity position with access to approximately $343 million at June 30, 2024.
Farmers and Merchants Bancshares, Inc. (FMFG) ha riportato un utile netto di 2.298.496 dollari, ovvero 0,74 dollari per azione, per i sei mesi terminati il 30 giugno 2024, rispetto ai 3.570.968 dollari, o 1,16 dollari per azione, per lo stesso periodo del 2023. Il calo dell'utile netto è stato principalmente causato da spese per interessi più elevate derivanti dagli aumenti dei tassi della Federal Reserve. Il rendimenti medio del capitale dell'azienda è diminuito all'8,81% dal 14,34%, e il rendimenti medio degli attivi è sceso allo 0,58% dallo 0,99%. Il reddito netto da interessi è diminuito di 620.275 dollari, con il margine di interesse netto in calo al 2,70% dal 3,09%. Nonostante le sfide, la crescita del portafoglio prestiti è stata significativa e l'azienda mantiene una solida posizione di liquidità con accesso a circa 343 milioni di dollari al 30 giugno 2024.
Farmers and Merchants Bancshares, Inc. (FMFG) reportó un ingreso neto de 2,298,496 dólares, o 0.74 dólares por acción, para los seis meses que terminaron el 30 de junio de 2024, en comparación con 3,570,968 dólares, o 1.16 dólares por acción, para el mismo período en 2023. La disminución en el ingreso neto se debió principalmente a mayores gastos por intereses resultantes de los aumentos en las tasas de la Reserva Federal. El rendimiento sobre el capital promedio de la compañía disminuyó al 8.81% desde el 14.34%, y el rendimiento sobre los activos promedio cayó al 0.58% desde el 0.99%. El ingreso neto por intereses disminuyó en 620,275 dólares, con el margen de interés neto cayendo al 2.70% desde el 3.09%. A pesar de los desafíos, el crecimiento de la cartera de préstamos fue significativo y la compañía mantiene una sólida posición de liquidez con acceso a aproximadamente 343 millones de dólares al 30 de junio de 2024.
Farmers and Merchants Bancshares, Inc. (FMFG)는 2024년 6월 30일까지의 6개월 동안 순이익 2,298,496달러, 즉 주당 0.74달러를 보고했습니다. 이는 2023년 같은 기간 동안의 3,570,968달러, 즉 1.16달러에 비해 감소한 수치입니다. 순이익 감소는 주로 연방준비제도 이자 비용 증가로 인한 것입니다. 회사의 평균 자기자본 수익률은 14.34%에서 8.81%로 감소했으며, 평균 자산 수익률은 0.99%에서 0.58%로 하락했습니다. 순이자 수익은 620,275달러 감소했고, 순이자 마진은 3.09%에서 2.70%으로 감소했습니다. 어려움에도 불구하고 대출 포트폴리오의 성장이 두드러졌고, 회사는 2024년 6월 30일 기준으로 약 3억 4,300만 달러에 접근할 수 있는 강력한 유동성 위치를 유지하고 있습니다.
Farmers and Merchants Bancshares, Inc. (FMFG) a rapporté un revenu net de 2 298 496 dollars, soit 0,74 dollar par action, pour les six mois se terminant le 30 juin 2024, contre 3 570 968 dollars, ou 1,16 dollar par action, pour la même période en 2023. La baisse du revenu net est principalement due à des charges d'intérêt plus élevées résultant des augmentations de taux de la Réserve fédérale. Le rendement sur les fonds propres moyens de l'entreprise a diminué à 8,81% contre 14,34%, et le rendement sur les actifs moyens a chuté à 0,58% contre 0,99%. Le revenu net d'intérêts a diminué de 620 275 dollars, avec la marge d'intérêt nette tombant à 2,70% contre 3,09%. Malgré les défis, la croissance du portefeuille de prêts a été significative et l'entreprise maintient une position de liquidité solide avec accès à environ 343 millions de dollars au 30 juin 2024.
Farmers and Merchants Bancshares, Inc. (FMFG) berichtete über einen Nettoertrag von 2.298.496 Dollar, oder 0,74 Dollar pro Aktie, für die sechs Monate bis zum 30. Juni 2024, im Vergleich zu 3.570.968 Dollar, oder 1,16 Dollar pro Aktie, im gleichen Zeitraum 2023. Der Rückgang des Nettoertrags war hauptsächlich auf höhere Zinsaufwendungen infolge von Zinserhöhungen der Federal Reserve zurückzuführen. Die Rendite auf das durchschnittliche Eigenkapital des Unternehmens sank auf 8,81% von 14,34%, und die Rendite auf das durchschnittliche Vermögen fiel auf 0,58% von 0,99%. Die Nettozinseinnahmen sanken um 620.275 Dollar, wobei der Nettozinssatz auf 2,70% von 3,09% fiel. Trotz der Herausforderungen war das Wachstum des Kreditportfolios signifikant, und das Unternehmen behält eine starke Liquiditätsposition mit Zugang zu etwa 343 Millionen Dollar am 30. Juni 2024 bei.
- Loan portfolio increased to $546 million from $523 million
- Book value per share increased to $17.34 from $16.74
- Strong liquidity position with access to $343 million
- New Towson commercial banking office opened in the second quarter
- Core system conversion on track for completion in Q4 2024
- Net income decreased by 35.6% year-over-year
- Return on average equity declined from 14.34% to 8.81%
- Return on average assets fell from 0.99% to 0.58%
- Net interest margin decreased from 3.09% to 2.70%
- Deposits decreased to $651 million from $681 million
- Noninterest expenses increased by $792,646 year-over-year
HAMPSTEAD, Md., July 22, 2024 (GLOBE NEWSWIRE) -- Farmers and Merchants Bancshares, Inc. (the “Company”), the parent company of Farmers and Merchants Bank (the “Bank” and, together with the Company, “we”, “us” and “our”), announced that net income for the six months ended June 30, 2024 was
Net income for the three months ended June 30, 2024 was
Net interest income for the six months ended June 30, 2024 was
The Bank entered into several interest rate swaps structured as fair value hedges during 2023, some in combination with the purchase of mortgage backed securities, which are intended to offset the impact of higher interest expense by improving interest income on debt securities. Our loan portfolio is comprised primarily of commercial real estate loans with fixed rates for five-year terms. As those loans reprice, our net interest margin should improve. In addition, our current strategy is to increase the diversification of our portfolio with commercial and industrial loans, which are typically adjustable rate loans and would provide an immediate higher yield in today’s interest rate environment.
No provision was recorded for credit losses for the six months ended June 30, 2024. For the six months ended June 30, 2023, we recorded a
Noninterest income increased by
Income taxes decreased by
Total assets decreased slightly to
The book value of the Company’s common stock increased to
The Bank began utilizing the Federal Reserve Bank’s Bank Term Funding Program (“BTFP”) during the second quarter of 2023 and had borrowings of
Gary A. Harris, President and CEO, commented “Higher deposit and borrowing costs continue to negatively impact earnings. The reduced net interest margin is expected to continue over the remainder of 2024. However, our loan portfolio had significant growth during the first half of the year, our asset quality remains high, and our liquidity position remains strong. I am happy to report that our new Towson commercial banking office opened in the second quarter. In addition, we are on track with our core system conversion. While it will increase our expenses in 2024, the new system will be a substantial digital upgrade that will position the bank for future growth, provide for significant efficiency gains and an enhanced customer experience moving forward.”
About the Company
The Company is a financial holding company and the parent company of the Bank. The Bank was chartered in Maryland in 1919 and has over 100 years of service to the community. The Bank serves the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30, Route 795, Route 140, Route 26, and Route 45 corridors. The main office is located in Upperco, Maryland, with seven additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, Westminster, Eldersburg, and Towson. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through the OTC Markets Group’s Pink Market under the symbol “FMFG”.
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “will,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Farmers and Merchants Bancshares, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.
| Farmers and Merchants Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) | ||||||
| June 30, | December 31, * | |||||
| 2024 | 2023 | |||||
| Assets | ||||||
| Cash and due from banks | $ | 24,212,716 | $ | 44,404,473 | ||
| Federal funds sold and other interest-bearing deposits | 297,604 | 285,864 | ||||
| Cash and cash equivalents | 24,510,320 | 44,690,337 | ||||
| Certificates of deposit in other banks | 100,000 | 100,000 | ||||
| Securities available for sale, at fair value | 157,524,568 | 164,084,673 | ||||
| Securities held to maturity, at amortized cost less allowance for credit | ||||||
| losses of | 20,135,893 | 20,163,622 | ||||
| Equity security, at fair value | 508,333 | 507,130 | ||||
| Restricted stock, at cost | 1,395,900 | 863,500 | ||||
| Loans, less allowance for credit losses of | 546,036,461 | 523,308,044 | ||||
| Premises and equipment, net | 7,455,924 | 6,583,452 | ||||
| Accrued interest receivable | 2,191,090 | 2,180,734 | ||||
| Deferred income taxes, net | 8,061,994 | 8,312,482 | ||||
| Other real estate owned, net | 1,242,365 | 1,242,365 | ||||
| Bank owned life insurance | 15,115,536 | 14,930,754 | ||||
| Goodwill and other intangibles, net | 7,030,260 | 7,034,424 | ||||
| Other assets | 7,247,205 | 5,939,309 | ||||
| $ | 798,555,849 | $ | 799,940,826 | |||
| Liabilities and Stockholders' Equity | ||||||
| Deposits | ||||||
| Noninterest-bearing | $ | 108,907,898 | $ | 115,284,706 | ||
| Interest-bearing | 542,301,597 | 565,678,145 | ||||
| Total deposits | 651,209,495 | 680,962,851 | ||||
| Securities sold under repurchase agreements | 2,758,183 | 6,760,493 | ||||
| Federal Home Loan Bank of Atlanta advances | 15,000,000 | 5,000,000 | ||||
| Federal Reserve Bank advances | 54,000,000 | 33,000,000 | ||||
| Long-term debt, net of issuance costs | 12,270,747 | 13,212,378 | ||||
| Accrued interest payable | 2,217,250 | 1,482,773 | ||||
| Other liabilities | 6,557,384 | 7,344,040 | ||||
| 744,013,059 | 747,762,535 | |||||
| Stockholders' equity | ||||||
| Common stock, par value $.01 per share, | ||||||
| authorized 5,000,000 shares; issued and outstanding | ||||||
| 3,144,974 in 2024 and 3,116,966 shares in 2023 | 31,450 | 31,170 | ||||
| Additional paid-in capital | 30,832,609 | 30,398,080 | ||||
| Retained earnings | 40,703,077 | 39,433,185 | ||||
| Accumulated other comprehensive loss | (17,024,346 | ) | (17,684,144 | ) | ||
| 54,542,790 | 52,178,291 | |||||
| $ | 798,555,849 | $ | 799,940,826 | |||
| * - Derived from audited consolidated financial statements | ||||||
| Farmers and Merchants Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Interest income | ||||||||||||
| Loans, including fees | $ | 7,237,816 | $ | 6,368,721 | $ | 14,119,727 | $ | 12,414,269 | ||||
| Investment securities - taxable | 1,592,316 | 769,999 | 3,171,382 | 1,532,207 | ||||||||
| Investment securities - tax exempt | 137,593 | 139,528 | 274,371 | 279,372 | ||||||||
| Federal funds sold and other interest earning assets | 212,043 | 105,974 | 680,350 | 210,903 | ||||||||
| Total interest income | 9,179,768 | 7,384,222 | 18,245,830 | 14,436,751 | ||||||||
| Interest expense | ||||||||||||
| Deposits | 3,231,886 | 1,735,965 | 6,332,812 | 2,770,816 | ||||||||
| Securities sold under repurchase agreements | 13,035 | 7,501 | 36,044 | 11,839 | ||||||||
| Federal Home Loan Bank advances and other borrowings | 31,929 | 208,536 | 44,517 | 412,983 | ||||||||
| Federal Reserve Bank advances | 640,846 | 13,000 | 1,262,529 | 13,263 | ||||||||
| Long-term debt | 128,705 | 148,390 | 262,305 | 299,952 | ||||||||
| Total interest expense | 4,046,401 | 2,113,392 | 7,938,207 | 3,508,853 | ||||||||
| Net interest income | 5,133,367 | 5,270,830 | 10,307,623 | 10,927,898 | ||||||||
| Recovery of credit losses | - | (225,000 | ) | - | (495,000 | ) | ||||||
| Net interest income after recovery of credit losses | 5,133,367 | 5,495,830 | 10,307,623 | 11,422,898 | ||||||||
| Noninterest income | ||||||||||||
| Service charges on deposit accounts | 217,427 | 204,726 | 412,101 | 391,433 | ||||||||
| Mortgage banking income | 18,376 | 33,636 | 23,327 | 58,929 | ||||||||
| Bank owned life insurance income | 94,462 | 88,741 | 184,783 | 171,846 | ||||||||
| Loss on sale of debt securities | (31,922 | ) | - | (31,922 | ) | - | ||||||
| Fair value adjustment of equity security | (2,430 | ) | (7,341 | ) | (5,971 | ) | (1,574 | ) | ||||
| Gain on insurance proceeds | - | - | 142,794 | - | ||||||||
| Other fees and commissions | 78,047 | 83,488 | 153,263 | 165,030 | ||||||||
| Total noninterest income | 373,960 | 403,250 | 878,375 | 785,664 | ||||||||
| - | ||||||||||||
| Noninterest expense | ||||||||||||
| Salaries | 1,993,580 | 1,850,494 | 3,969,767 | 3,726,938 | ||||||||
| Employee benefits | 441,546 | 541,173 | 1,047,859 | 1,135,230 | ||||||||
| Occupancy | 277,690 | 202,147 | 524,017 | 416,263 | ||||||||
| Furniture and equipment | 327,884 | 252,924 | 570,305 | 492,651 | ||||||||
| Other | 1,082,561 | 838,909 | 2,123,780 | 1,672,000 | ||||||||
| Total noninterest expense | 4,123,261 | 3,685,647 | 8,235,728 | 7,443,082 | ||||||||
| Income before income taxes | 1,384,066 | 2,213,433 | 2,950,270 | 4,765,480 | ||||||||
| Income taxes | 305,557 | 543,316 | 651,774 | 1,194,512 | ||||||||
| Net income | $ | 1,078,509 | $ | 1,670,117 | $ | 2,298,496 | $ | 3,570,968 | ||||
| Earnings per share - basic | $ | 0.35 | $ | 0.54 | $ | 0.74 | $ | 1.16 | ||||
| Earnings per share - diluted | $ | 0.35 | $ | 0.54 | $ | 0.74 | $ | 1.16 | ||||
| Contact: | Mr. Gary A. Harris President and Chief Executive Officer (410) 374-1510, ext. 1104 |
FAQ
What was Farmers and Merchants Bancshares' (FMFG) earnings per share for H1 2024?
How did FMFG's net income in H1 2024 compare to the same period in 2023?
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What was FMFG's total asset value as of June 30, 2024?
