Farmers and Merchants Bancshares, Inc. Reports Earnings of $3,570,968 or $1.16 per Share for the Six Months Ended June 30, 2023
HAMPSTEAD, Md., July 31, 2023 (GLOBE NEWSWIRE) -- Farmers and Merchants Bancshares, Inc. (the “Company”), the parent of Farmers and Merchants Bank (the “Bank”), announced that net income for the six months ended June 30, 2023 was
Net income for the three months ended June 30, 2023 was
Net interest income for the six months ended June 30, 2023 was
Noninterest income decreased by
Income taxes decreased by
Total assets increased to
The book value of the Company’s common stock increased to
The Company began utilizing the Federal Reserve Bank’s (“FRB”) Bank Term Funding Program (“BTFP”) during the second quarter and had borrowings of
Gary A. Harris, President and CEO, commented “Our second quarter and year to date earnings were negatively impacted by higher deposit and borrowing costs which continues to squeeze our net interest margin. However, our loan portfolio continues to grow with strong credit quality despite rising rates. I have confidence in our experienced team to manage through this difficult interest rate environment. We have access to ample liquidity including the recently implemented BTFP facility.”
About the Company
The Company is a financial holding company and the parent 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, and Route 26 corridors. The main office is located in Upperco, Maryland, with seven additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, Westminster, and Eldersburg. 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, | |||||
2023 | 2022 | |||||
Assets | ||||||
Cash and due from banks | $ | 11,034,175 | $ | 6,414,822 | ||
Federal funds sold and other interest-bearing deposits | 1,253,343 | 848,715 | ||||
Cash and cash equivalents | 12,287,518 | 7,263,537 | ||||
Certificates of deposit in other banks | 100,000 | 100,000 | ||||
Securities available for sale, at fair value | 119,760,780 | 126,314,449 | ||||
Securities held to maturity, at amortized cost less allowance for credit | ||||||
losses of | 20,188,458 | 20,508,997 | ||||
Equity security, at fair value | 493,489 | 489,145 | ||||
Restricted stock, at cost | 1,077,500 | 1,332,500 | ||||
Mortgage loans held for sale | - | 428,355 | ||||
Loans, less allowance for credit losses of | 530,999,092 | 516,920,540 | ||||
Premises and equipment, net | 6,054,185 | 6,186,594 | ||||
Accrued interest receivable | 1,825,427 | 1,815,784 | ||||
Deferred income taxes, net | 8,746,561 | 8,392,658 | ||||
Other real estate owned, net | 1,242,365 | 1,242,365 | ||||
Bank owned life insurance | 14,757,189 | 14,585,342 | ||||
Goodwill and other intangibles, net | 7,038,588 | 7,042,752 | ||||
Other assets | 5,690,973 | 5,587,654 | ||||
$ | 730,262,125 | $ | 718,210,672 | |||
Liabilities and Stockholders' Equity | ||||||
Deposits | ||||||
Noninterest-bearing | $ | 120,971,669 | $ | 126,695,349 | ||
Interest-bearing | 510,839,221 | 496,915,775 | ||||
Total deposits | 631,810,890 | 623,611,124 | ||||
Securities sold under repurchase agreements | 4,062,938 | 5,175,303 | ||||
Federal Home Loan Bank of Atlanta advances | 14,000,000 | 20,000,000 | ||||
Federal Reserve Bank advances | 10,000,000 | - | ||||
Long-term debt, net of issuance costs | 14,154,010 | 15,095,642 | ||||
Accrued interest payable | 1,120,963 | 349,910 | ||||
Other liabilities | 5,279,080 | 6,203,730 | ||||
680,427,881 | 670,435,709 | |||||
Stockholders' equity | ||||||
Common stock, par value $.01 per share, | ||||||
authorized 5,000,000 shares; issued and outstanding | ||||||
3,090,368 shares in 2023 and 3,071,214 shares in 2022 | 30,904 | 30,712 | ||||
Additional paid-in capital | 29,941,488 | 29,549,914 | ||||
Retained earnings | 37,508,400 | 35,300,166 | ||||
Accumulated other comprehensive loss | (17,646,548) | (17,105,829) | ||||
49,834,244 | 47,774,963 | |||||
$ | 730,262,125 | $ | 718,210,672 |
Farmers and Merchants Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Interest income | ||||||||||||
Loans, including fees | $ | 6,368,721 | $ | 5,370,350 | $ | 12,414,269 | $ | 11,053,712 | ||||
Investment securities - taxable | 769,999 | 742,087 | 1,532,207 | 1,386,548 | ||||||||
Investment securities - tax exempt | 139,528 | 140,823 | 279,372 | 290,310 | ||||||||
Federal funds sold and other interest earning assets | 105,974 | 21,887 | 210,903 | 34,302 | ||||||||
Total interest income | 7,384,222 | 6,275,147 | 14,436,751 | 12,764,872 | ||||||||
Interest expense | ||||||||||||
Deposits | 1,735,965 | 319,204 | 2,770,816 | 657,764 | ||||||||
Securities sold under repurchase agreements | 7,501 | 2,433 | 11,839 | 5,684 | ||||||||
Federal Home Loan Bank advances | 208,536 | 12,588 | 412,983 | 25,038 | ||||||||
Federal Reserve Bank advances | 13,000 | - | 13,263 | - | ||||||||
Long-term debt | 148,390 | 168,737 | 299,952 | 340,112 | ||||||||
Total interest expense | 2,113,392 | 502,962 | 3,508,853 | 1,028,598 | ||||||||
Net interest income | 5,270,830 | 5,772,185 | 10,927,898 | 11,736,274 | ||||||||
Recovery of credit losses | (225,000) | - | (495,000) | - | ||||||||
Net interest income after recovery of credit losses | 5,495,830 | 5,772,185 | 11,422,898 | 11,736,274 | ||||||||
Noninterest income | ||||||||||||
Service charges on deposit accounts | 204,726 | 191,727 | 391,433 | 373,193 | ||||||||
Mortgage banking income | 33,636 | 64,986 | 58,929 | 187,674 | ||||||||
Bank owned life insurance income | 88,741 | 56,266 | 171,846 | 109,256 | ||||||||
Fair value adjustment of equity security | (7,341) | (18,096) | (1,574) | (44,913) | ||||||||
Gain on sale of SBA loans | - | 64,523 | - | 158,123 | ||||||||
Other fees and commissions | 83,488 | 82,235 | 165,030 | 154,115 | ||||||||
Total noninterest income | 403,250 | 441,641 | 785,664 | 937,448 | ||||||||
Noninterest expense | ||||||||||||
Salaries | 1,850,494 | 1,928,257 | 3,726,938 | 3,668,652 | ||||||||
Employee benefits | 541,173 | 437,615 | 1,135,230 | 949,407 | ||||||||
Occupancy | 202,147 | 213,238 | 416,263 | 441,665 | ||||||||
Furniture and equipment | 252,924 | 224,593 | 492,651 | 439,208 | ||||||||
Other | 838,909 | 764,883 | 1,672,000 | 1,869,252 | ||||||||
Total noninterest expense | 3,685,647 | 3,568,586 | 7,443,082 | 7,368,184 | ||||||||
Income before income taxes | 2,213,433 | 2,645,240 | 4,765,480 | 5,305,538 | ||||||||
Income taxes | 543,316 | 594,507 | 1,194,512 | 1,204,003 | ||||||||
Net income | $ | 1,670,117 | $ | 2,050,733 | $ | 3,570,968 | $ | 4,101,535 | ||||
Earnings per common share - basic and diluted | $ | 0.54 | $ | 0.67 | $ | 1.16 | $ | 1.35 | ||||
FOR FURTHER INFORMATION CONTACT:
Contact: | Mr. Gary A. Harris |
President and Chief Executive Officer | |
(410) 374-1510, ext. 1104 |