FARMERS & MER BANCSHARES - FMFG STOCK NEWS

Farmers and Merchants Bancshares reported a net income of $1,900,851 for Q1 2023, a decline from $2,050,802 in Q1 2022. This translates to earnings per share of $0.62, down from $0.68 last year. The return on average equity improved to 15.49% from 14.55%, while return on average assets dropped to 1.05% from 1.15%. Net interest income fell by $307,021 as the taxable equivalent net yield decreased to 3.24%. Total assets slightly increased to $723 million, and deposits rose to $637 million. The book value per share improved to $16.53. CEO Gary A. Harris emphasized strong liquidity and low uninsured deposits at around 20%, positioning the bank favorably amidst recent industry challenges.

Farmers and Merchants Bancshares, Inc. (FMFG) reported a net income of $8,090,127 for the year ending December 31, 2022, equating to $2.66 per share, a slight decrease from $8,149,606 or $2.70 per share in 2021. The company achieved a return on average equity of 16.03%, up from 14.85% the previous year, while return on average assets declined to 1.13%. Total assets stood at $718 million, with loans increasing by 7.2% to $517 million. However, the book value per share dropped to $15.56 from $18.64, impacted by unrealized losses in the investment portfolio due to rising interest rates. The CEO noted challenges ahead due to higher deposit rates affecting net interest margin.

The Board of Directors of Farmers and Merchants Bancshares has declared a cash dividend of $.32 per share, payable on December 16, 2022, to shareholders of record by December 2, 2022. This marks a 10.5% increase over the $.57 dividend from 2021, reflecting a 3.0% yield based on the market price of $.20.75 per share. The annual dividend has now increased for 12 consecutive years, showcasing the company’s commitment to returning value to its shareholders.

Farmers and Merchants Bancshares reported a net income of $6,075,845 for the nine months ended September 30, 2022, down from $6,184,341 in 2021. Earnings per share decreased to $2.00 from $2.05.

Net interest income rose due to a $24.9 million increase in average interest-earning assets. However, noninterest income fell by $362,546, impacted by reduced mortgage banking revenue. Total assets remained stable at $717 million, with loans rising to $505 million. Market value declines in the AFS investment portfolio caused book value per share to decrease to $15.01.

Farmers and Merchants Bancshares reported net income of $4.1 million for the first half of 2022, maintaining earnings per share at $1.35. The return on average equity rose to 15.37%, while return on average assets slightly decreased to 1.15%. Income from PPP loans dropped significantly from $507,000 to $159,000 compared to the previous year. Net interest income increased by $620,298, driven by a rise in average interest-earning assets to $679.3 million. However, noninterest income fell by $168,053 due to decreased mortgage banking revenue.

Farmers and Merchants Bancshares has appointed Gary A. Harris as its new President and CEO, effective January 1, 2023. Harris, who has been with the bank since 2008, will replace James R. Bosley, Jr., who is retiring. The Board conducted an extensive search for Harris, interviewing candidates from Atlanta to Boston. Harris has served in various leadership roles, demonstrating consistent performance as a top producer. The bank has been serving the community for over 102 years and operates multiple branches in Maryland.

Farmers and Merchants Bancshares declared a cash dividend of $.31 per share, payable on June 24, 2022, to shareholders of record by June 3, 2022. This dividend is $.02 greater than the previous one paid in December 2021, representing the 25th consecutive increase or stable dividend since June 2010. The bank, chartered in Maryland since 1919, serves consumers and businesses in various counties and is traded under the symbol FMFG.